80_FR_80705 80 FR 80458 - Agency Information Collection Activities; Proposed Information Collection; Comment Request; Draft Bulletin: Risk Management Guidance for Higher Loan-to-Value Lending in Communities Targeted for Revitalization

80 FR 80458 - Agency Information Collection Activities; Proposed Information Collection; Comment Request; Draft Bulletin: Risk Management Guidance for Higher Loan-to-Value Lending in Communities Targeted for Revitalization

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency

Federal Register Volume 80, Issue 247 (December 24, 2015)

Page Range80458-80461
FR Document2015-32376

The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and Federal agencies to take this opportunity to comment on a new information collection, as required by the Paperwork Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting PRA-related comment concerning a new information collection titled, ``Draft Bulletin: Risk Management Guidance for Higher Loan-to-Value Lending in Communities Targeted for Revitalization'' (draft guidance).

Federal Register, Volume 80 Issue 247 (Thursday, December 24, 2015)
[Federal Register Volume 80, Number 247 (Thursday, December 24, 2015)]
[Notices]
[Pages 80458-80461]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32376]


=======================================================================
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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities; Proposed Information 
Collection; Comment Request; Draft Bulletin: Risk Management Guidance 
for Higher Loan-to-Value Lending in Communities Targeted for 
Revitalization

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

-----------------------------------------------------------------------

SUMMARY:  The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and Federal agencies 
to take this opportunity to comment on a new information collection, as 
required by the Paperwork Reduction Act of 1995 (PRA).
    In accordance with the requirements of the PRA, the OCC may not 
conduct or sponsor, and the respondent is not required to respond to, 
an information collection unless it displays a currently valid Office 
of Management and Budget (OMB) control number. The OCC is soliciting 
PRA-related comment concerning a new information collection titled, 
``Draft Bulletin: Risk Management Guidance for Higher Loan-to-Value 
Lending in Communities Targeted for Revitalization'' (draft guidance).

DATES: You should submit written comments by February 22, 2016.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email, if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-NEW, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-11, 
Washington, DC 20219. In addition, comments may be sent by fax to (571) 
465-4326 or by electronic mail to [email protected]. You may 
personally inspect and photocopy comments at the OCC, 400 7th Street 
SW., Washington, DC 20219. For security reasons, the OCC requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 649-6700, or for persons who are deaf or hard of hearing, 
TTY, (202) 649-5597. Upon arrival, visitors will be required to present 
valid government-issued photo identification and to submit to security 
screening in order to inspect and photocopy comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490, or for persons who are deaf or hard of hearing, TTY, 
(202) 649-5597, Legislative and Regulatory Activities Division, Office 
of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 
20219.

SUPPLEMENTARY INFORMATION:
    Title: Draft Bulletin: Risk Management Guidance for Higher Loan-to-
Value Lending in Communities Targeted for Revitalization.
    OMB Control No.: 1557-NEW.
    Type of Review: Regular.
    Abstract: Under the draft guidance, national banks and federal 
savings associations wishing to establish a program for originating 
owner-occupied residential mortgage loans that exceed supervisory loan-
to-value (SLTV) limits in communities targeted for revitalization 
should have policies and procedures approved by their Board of 
Directors (Board) that address the loan portfolio management, 
underwriting, and other relevant considerations for such loans. The 
draft guidance would

[[Page 80459]]

advise that banks also should notify the appropriate OCC supervisory 
office in writing at least 30 days prior to originating residential 
loans pursuant to a Board-approved program or implementing any 
substantive change to a previously submitted program and provide a copy 
of the Board-approved policies and procedures to the OCC supervisory 
office.
    Affected Public: Businesses or other for-profit.
    Burden Estimates:
    Estimated Number of Respondents: 20.
    Estimated Burden per Respondent for the First Year: Drafting 
Policies-200 hours; Documentation-10 hours per quarter (i.e., 40 
hours); Reporting-10 hours.
    Total Estimated Annual Burden: 5,000 hours.
    Frequency of Response: On occasion.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval of the information 
collection. All comments will become a matter of public record. 
Comments are invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimate of the information 
collection burden;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    Draft Guidance: The text of the draft guidance \1\ is as follows:
---------------------------------------------------------------------------

    \1\ The OCC plans to issue this guidance in the form of a 
bulletin directed to national banks and federal savings 
associations.
---------------------------------------------------------------------------

Draft Bulletin: Risk Management Guidance for Higher Loan-to-Value 
Lending in Communities Targeted for Revitalization

Summary

    The Office of the Comptroller of the Currency (OCC) supports 
efforts by national banks and federal savings associations 
(collectively, banks) to assist in the revitalization, stabilization, 
or redevelopment (referred to in this bulletin individually and 
collectively as revitalization) of distressed communities through 
prudent residential mortgage lending. The OCC recognizes that banks and 
other parties have expressed concern that depressed housing values in 
certain distressed communities in the United States inhibit mortgage 
lending in these communities. One way in which banks can support 
revitalization efforts in distressed communities is by offering 
mortgage products for purchasing, or purchasing and rehabilitating, 
one- to four-unit residential properties where the loan amount may 
exceed supervisory loan-to-value (SLTV) limits. This bulletin provides 
guidance for managing risks associated with originating certain 
residential mortgage loans that exceed SLTV limits.

Note for Community Banks

    This guidance applies to all OCC-supervised banks wishing to 
establish a program for originating owner-occupied residential mortgage 
loans that exceed SLTV limits in communities targeted for 
revitalization.

Highlights

    This bulletin provides guidance regarding the
     Circumstances under which banks may establish programs to 
originate certain owner-occupied residential mortgage loans that exceed 
SLTV limits.
     OCC's supervisory considerations regarding such programs.
    As described in this bulletin, the OCC will actively monitor and 
evaluate the programs established by banks, including the performance 
of owner-occupied residential mortgage loans that exceed the SLTV 
limits. At least annually, the OCC will assess whether the programs are 
contributing to the revitalization of targeted communities and whether 
the banks are adequately controlling the risks associated with such 
higher loan-to-value (LTV) lending.

Background

    Some U.S. communities continue to confront lagging home values. 
Financing difficulties caused by depressed housing markets are 
particularly pronounced in communities that were significantly affected 
by the financial crisis and housing market decline.
    As these communities work to stabilize home ownership and home 
values, the rehabilitation of abandoned or distressed housing stock is 
an important component of broader efforts to strengthen communities. 
Local governments, government-affiliated entities, community-based 
organizations, financial institutions, and others have developed 
creative solutions for some of these challenges. These solutions 
include strategies for acquiring and rehabilitating properties in 
communities targeted for revitalization. Community groups, financial 
institutions, non-profit organizations, and state and local entities, 
including land banks, are working together to develop and implement 
innovative residential mortgage financing to bring needed lending to 
economically distressed areas. The efforts include providing second-
lien loans to finance rehabilitation costs, interest-rate discounts, 
and down payment and closing cost assistance. The Federal Housing 
Administration, Fannie Mae, and Freddie Mac all currently offer 
rehabilitation financing.\2\
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    \2\ Programs include the Federal Housing Administration's 
Limited 203(k) Rehabilitation Mortgage Insurance Program, Fannie Mae 
HomeStyle Renovation, and Freddie Mac Construction Conversion and 
Renovation Mortgages.
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    In addition to participating in these and other third-party 
efforts, banks have expressed a desire to participate in revitalization 
efforts of distressed communities by offering their own loan products. 
The value of the collateral in a distressed community, however, can 
present challenges to banks' residential lending in part because of 
current SLTV limits. Distressed sales, including short sales and 
foreclosures, often negatively affect home values in these communities. 
Further, in communities with minimal sales activity, finding comparable 
property sales becomes challenging when appraisals or evaluations are 
required. Buyers of distressed properties can have particular 
difficulty securing adequate financing to cover the often substantial 
renovation costs required to make the properties habitable.
    The OCC recognizes that supporting long-term community 
revitalization may necessitate responsible innovative lending 
strategies. One way in which banks can support revitalization efforts 
is through prudent lending within established exceptions to the SLTV 
limits for residential loans. Existing regulations and guidelines 
recognize that it may be appropriate, in individual cases, for banks to 
make loans in excess of the SLTV limits, based on support provided by 
other credit factors.\3\ The regulations and guidelines also

[[Page 80460]]

recognize that banks may make prudent underwriting exceptions for 
creditworthy borrowers whose needs do not fit within the banks' general 
lending policies, including SLTV limits, on a loan-by-loan basis under 
certain conditions.\4\ These conditions include that the aggregate 
amount of all loans in excess of SLTV limits should not exceed 100 
percent of total capital, that the boards of directors establish 
standards for reviewing and approving exception loans, and that written 
justification setting forth relevant credit factors accompany all 
approvals of exception loans.\5\ Credit factors for these purposes may 
include the borrower's capacity to adequately service the debt, the 
borrower's overall creditworthiness, and the level of funds invested in 
the property.\6\
---------------------------------------------------------------------------

    \3\ For national banks, refer to 12 CFR 34, ``Real Estate 
Lending and Appraisals,'' appendix A to subpart D, ``Interagency 
Guidelines for Real Estate Lending Policies.'' For federal savings 
associations, refer to 12 CFR 160.101, ``Real estate lending 
standards,'' appendix to 12 CFR 160.101, ``Interagency Guidelines 
for Real Estate Lending Policies.''
    \4\ Id.
    \5\ Id.
    \6\ Id.
---------------------------------------------------------------------------

    The OCC believes that banks can offer residential mortgage loans in 
communities targeted for revitalization in a manner consistent with 
safe and sound lending practices. As described later in section I of 
this bulletin, such loans may include eligible loans in eligible 
communities originated in accordance with a board-approved program 
(referred to as a program in this bulletin). Important elements of any 
program are the bank's policies and procedures for complying with the 
ability-to-repay standard of Regulation Z \7\ and the bank's separate 
underwriting standards and approval processes for residential mortgage 
loans that exceed SLTV limits.
---------------------------------------------------------------------------

    \7\ The Dodd-Frank Wall Street Reform and Consumer Protection 
Act amended the Truth in Lending Act to require creditors to make a 
reasonable, good faith determination of a consumer's ability to 
repay a mortgage loan, absent specified exceptions. Refer to 15 
U.S.C. 1639c. The Consumer Financial Protection Bureau issued a 
final rule amending Regulation Z to implement these ability to repay 
requirements, which became effective January 1, 2014. Refer to 78 FR 
6621, January 30, 2013.
---------------------------------------------------------------------------

    Lending under such a program may be in the best interest of the 
bank, individual borrowers, and the community. Additionally, the bank 
may receive Community Reinvestment Act consideration for SLTV exception 
loans depending on the specifics of the program. SLTV exception lending 
is not, however, without risk. The OCC will actively monitor and 
evaluate how a bank's program manages the risks, particularly to the 
bank and its borrowers, and the effect the program has on the community 
targeted by the bank's program. At least annually, the OCC also will 
evaluate the overall impact of programs offered by all banks in 
communities targeted for revitalization.

I. Program Criteria

A. Eligible Loan

    An eligible loan should be a permanent mortgage for the purchase 
of, or purchase and rehabilitation of, an owner-occupied residential 
property located in an eligible community. An eligible loan also should 
have an original loan balance of $200,000 or less and be originated 
under a program developed pursuant to this bulletin.
    The OCC recognizes that eligible loans will have an LTV ratio equal 
to or exceeding 90 percent without mortgage insurance or readily 
marketable, or other acceptable, collateral.
    This bulletin does not apply to home equity loans, lines of credit, 
or refinancing loans.

B. Eligible Community

    An eligible community should be one that has been officially 
targeted for revitalization by a federal, state, or municipal 
governmental entity or agency, or by a government-designated entity 
such as a land bank.

C. Board-Approved Policies and Procedures

    Existing regulations and guidelines require that each bank adopt 
and maintain a general lending policy that establishes appropriate 
limits and standards for extensions of credit that are secured by liens 
or interests in real estate or that finance building construction or 
other improvements.\8\ Additionally, banks should have specific 
policies and procedures that are approved by the board of directors, or 
appropriately designated board committee, and that address loan 
portfolio management, underwriting, and other relevant considerations 
for eligible loans. These board-approved policies and procedures should 
include provisions that address the:
---------------------------------------------------------------------------

    \8\ For national banks, refer to 12 CFR 34, ``Real Estate 
Lending and Appraisals,'' appendix A to subpart D, ``Interagency 
Guidelines for Real Estate Lending Policies.'' For federal savings 
associations, refer to 12 CFR 160.101, ``Real estate lending 
standards,'' appendix to 12 CFR 160.101, ``Interagency Guidelines 
for Real Estate Lending Policies.''
---------------------------------------------------------------------------

     Defined geographies of an eligible community where the 
bank will consider making eligible loans under the program \9\ and 
describe how the eligible loans are intended to support revitalization 
efforts in the eligible community (e.g., how the origination of 
eligible loans is expected to contribute to the normalization of a 
distressed housing market).
---------------------------------------------------------------------------

    \9\ Banks should retain documentation indicating: (1) The 
eligible community is one targeted for revitalization by a 
government entity or agency; (2) the specific revitalization 
criteria used by the government entity or agency; and (3) the type 
of financing and other support, if any, that the governmental entity 
provides to the community.
---------------------------------------------------------------------------

     Amount, and the duration, of the bank's financial 
commitment to the program.
     Limitation on the aggregate level of committed eligible 
loans as a percentage of tier 1 capital (as defined in 12 CFR 3.2), 
which should not exceed 10 percent.
     Characteristics of eligible loans, including loan 
structure, credit terms, interest rate and fees, and maximum loan size, 
which should not exceed $200,000.
     Underwriting standards and approval processes for eligible 
loans, including appropriate documentation of relevant credit factors 
and document retention standards.
     Real estate appraisal and evaluation criteria applicable 
to eligible loans.\10\
---------------------------------------------------------------------------

    \10\ For all mortgage loan transactions based on an appraisal, 
banks should select and engage appraisers with local market 
competency in valuing the property securing an eligible loan. 
Similarly, any evaluation, if applicable, should be credible and 
consistent with safe and sound banking practices. Given the unique 
underwriting considerations, banks should not use automated 
valuation models in connection with these programs.
---------------------------------------------------------------------------

     Credit administration requirements for eligible loans, 
including detailed guidelines regarding oversight of the rehabilitation 
process, such as controls over contracts, disbursements, inspections, 
and project management.
     Compliance with all applicable laws and regulations, 
including the ability-to-repay and other requirements of 12 CFR 1026, 
anti-discrimination laws, and section 5 of the Federal Trade Commission 
Act.
     Content, form, and timing of notice(s) the bank will 
provide in connection with eligible loans to clearly inform the 
borrower that:

--The market value of a rehabilitated property likely will be less than 
the original loan amount upon completion of the rehabilitation.
--The market value may continue to be less than the original loan 
amount thereafter and for the duration of the loan.
--There may be financial implications if the borrower seeks to sell the 
property after rehabilitation and the sale price of such rehabilitated 
property is less than the outstanding loan balance at the time of such 
sale, and explain the implications.

     Incentives that may be available to qualifying borrowers 
(e.g., assistance or

[[Page 80461]]

grants for down payments, fees, and closing costs; at or below market 
interest rates; or rewards for long-term occupancy).
     Monitoring and internal reporting requirements sufficient 
to: (1) Assess the performance, impact, trends, and success of the 
program; and (2) inform the board on at least a quarterly basis of the 
aggregate dollar amount, and percentage of tier 1 capital, of committed 
eligible loans in relation to the board-approved limitation.

D. Notice to the OCC

    The bank should notify the appropriate OCC supervisory office in 
writing at least 30 days before the bank's first origination of an 
eligible loan pursuant to the program or the bank's making of any 
substantive change to a previously submitted program. Substantive 
changes may include the addition of a new eligible community, an 
increase in the financial commitment or duration of a program, or 
material changes to eligible loan characteristics or underwriting 
standards. Such notice should include:
     The date the bank's board (or appropriately designated 
board committee) approved the program's policies and procedures.
     A copy of the board-approved policies and procedures.

II. OCC Supervisory Considerations

A. Supervision of Individual Banks

    After receiving the bank's notice to the OCC, examiners will 
evaluate the bank's program to assess whether it complies with the 
requirements of applicable laws and regulations and is consistent with 
safe and sound lending practices, this bulletin, and other relevant 
guidance. Examiners' assessment will include review of the:
     Financial commitment (as a dollar amount and a percentage 
of Tier 1 capital) and defined geographies for originating eligible 
loans.
     Characteristics of eligible loans and incentives, if 
available, to qualifying borrowers.
     Standards for the underwriting, collateral review, credit 
administration, and approval of eligible loans.
     Borrower notice(s).
     Monitoring and reporting procedures for eligible loans.
     Process for ensuring compliance with all applicable laws 
and regulations.
    In connection with the evaluation of the bank's program, examiners 
may request clarification or changes to the bank's policies and 
procedures before the bank's first origination of an eligible loan 
pursuant to the program or the bank's making of any substantive change 
to a previously submitted program. Such requests may include 
clarification or changes to ensure the program is consistent with safe 
and sound lending practices.
    During the course of subsequent supervisory activities, examiners 
also will monitor and evaluate the program. Examiners evaluations will 
include consideration of the:
     Bank's governance of the program and whether the program 
adequately manages the various risks.
     Performance of loans that exceed the SLTV limits and 
whether delinquent eligible loans are managed and accurately classified 
consistent with the OCC's existing guidance on delinquent loans and in 
compliance with applicable laws pertaining to loans in delinquency.\11\
---------------------------------------------------------------------------

    \11\ Applicable laws may include (1) Regulation X, 12 CFR 1024, 
which provides mortgage servicing standards, including early 
intervention requirements and loss mitigation procedures and (2) 
Regulation Z, 12 CFR 1026, which establishes requirements for 
including delinquency-related information on the periodic statements 
required for residential mortgage loans.
---------------------------------------------------------------------------

     Bank's internal reporting of program performance, impact, 
trends, and overall success.
     Process to establish and document community development 
consideration, if applicable, under the Community Reinvestment Act.
    For banks found to have shortfalls or unsatisfactory governance or 
controls, examiners will communicate these findings to the bank and 
require remediation to continue the lending activity. In addition, 
examiners may review individual eligible loans to assess asset quality, 
credit risk, and consumer compliance.

B. Overall Evaluation of Programs

    At least annually, the OCC will evaluate the overall impact of 
banks' programs in communities targeted for revitalization. The OCC's 
evaluations will consider, among other matters, whether the programs 
adequately control the various risks, the performance of loans that 
exceed the SLTV limits, and the effect such lending has had on the 
housing market and other economic indicators in communities targeted 
for revitalization.
    Based on these evaluations, the OCC may amend or rescind this 
bulletin. Any decision by the OCC to materially amend or rescind this 
bulletin will apply only to the origination of new loans that exceed 
the SLTV limits. Any loans originated that are consistent with this 
bulletin, or any subsequent revisions thereof, when made will not be 
deemed to be unsafe and unsound solely because of any material 
amendment or rescission of this bulletin.

    Dated: December 18, 2015.
Stuart E. Feldstein,
Director, Legislative and Regulatory Activities Division.
[FR Doc. 2015-32376 Filed 12-23-15; 8:45 am]
 BILLING CODE 4810-33-P



                                                  80458                     Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices

                                                  pipeline safety regulations. The request                 www.Regulations.gov, and by                           comments closing date. Comments will
                                                  includes a technical analysis provided                   submitting written comments, data or                  be evaluated after this date if it is
                                                  by the operator. The request has been                    other views. Please include any                       possible to do so without incurring
                                                  filed at www.Regulations.gov and                         comments on potential environmental                   additional expense or delay. PHMSA
                                                  assigned docket number PHMSA–2015–                       impacts that may result if this special               will consider each relevant comment we
                                                  0210. We invite interested persons to                    permit is granted.                                    receive in making our decision to grant
                                                  participate by reviewing this special                      Before acting on this special permit                or deny a request.
                                                  permit request and draft environmental                   request, PHMSA will evaluate all                        PHMSA has received the following
                                                  assessment docketed at http://                           comments received on or before the                    special permit request:

                                                              Docket No.                                Requester                             Regulation(s)                         Nature of special permit

                                                  PHMSA–2015–0210 ....................     Hess Corporation ......................   49 CFR 195.100; 112; 200;            To authorize Hess North Dakota Pipe-
                                                                                                                                       202; 204; 206; 248; 260; 300;        lines, LLC (‘‘Hess’’) to commission
                                                                                                                                       and 304.                             and operate two sections totaling ap-
                                                                                                                                                                            proximately 14.5 miles of 6-inch
                                                                                                                                                                            crude oil intrastate gathering pipelines
                                                                                                                                                                            made of material other than steel in
                                                                                                                                                                            Mountrail County, North Dakota at a
                                                                                                                                                                            maximum operating pressure (MOP)
                                                                                                                                                                            of 1,050 pounds per square inch. The
                                                                                                                                                                            pipelines     are   manufactured      by
                                                                                                                                                                            FlexSteel Pipeline Technologies of
                                                                                                                                                                            Houston, Texas. The two sections are
                                                                                                                                                                            affiliated with projects Hess refers to
                                                                                                                                                                            as EN Johnson Phase 2 and the EN
                                                                                                                                                                            VP&R. The Special Permit request
                                                                                                                                                                            seeks to waive compliance from cer-
                                                                                                                                                                            tain Federal regulations found in 49
                                                                                                                                                                            CFR 195.


                                                    Authority: 49 U.S.C. 60118(c)(1) and 49                or sponsor, and the respondent is not                 order to inspect and photocopy
                                                  CFR 1.97.                                                required to respond to, an information                comments.
                                                    Issued in Washington, DC on December 21,               collection unless it displays a currently                All comments received, including
                                                  2015, under authority delegated in 49 CFR                valid Office of Management and Budget                 attachments and other supporting
                                                  1.97.                                                    (OMB) control number. The OCC is                      materials, are part of the public record
                                                  Alan K. Mayberry,                                        soliciting PRA-related comment                        and subject to public disclosure. Do not
                                                  Deputy Associate Administrator for Policy                concerning a new information collection               enclose any information in your
                                                  and Programs.                                            titled, ‘‘Draft Bulletin: Risk Management             comment or supporting materials that
                                                  [FR Doc. 2015–32487 Filed 12–23–15; 8:45 am]             Guidance for Higher Loan-to-Value                     you consider confidential or
                                                  BILLING CODE 4910–60–P                                   Lending in Communities Targeted for                   inappropriate for public disclosure.
                                                                                                           Revitalization’’ (draft guidance).                    FOR FURTHER INFORMATION CONTACT:
                                                                                                           DATES: You should submit written                      Shaquita Merritt, Clearance Officer,
                                                  DEPARTMENT OF THE TREASURY                               comments by February 22, 2016.                        (202) 649–5490, or for persons who are
                                                                                                           ADDRESSES: Because paper mail in the                  deaf or hard of hearing, TTY, (202) 649–
                                                  Office of the Comptroller of the                         Washington, DC area and at the OCC is                 5597, Legislative and Regulatory
                                                  Currency                                                 subject to delay, commenters are                      Activities Division, Office of the
                                                                                                           encouraged to submit comments by                      Comptroller of the Currency, 400 7th
                                                  Agency Information Collection                            email, if possible. Comments may be                   Street SW., Washington, DC 20219.
                                                  Activities; Proposed Information                         sent to: Legislative and Regulatory                   SUPPLEMENTARY INFORMATION:
                                                  Collection; Comment Request; Draft                       Activities Division, Office of the                      Title: Draft Bulletin: Risk Management
                                                  Bulletin: Risk Management Guidance                       Comptroller of the Currency, Attention:               Guidance for Higher Loan-to-Value
                                                  for Higher Loan-to-Value Lending in                      1557–NEW, 400 7th Street SW., Suite                   Lending in Communities Targeted for
                                                  Communities Targeted for                                 3E–218, Mail Stop 9W–11, Washington,                  Revitalization.
                                                  Revitalization                                           DC 20219. In addition, comments may                     OMB Control No.: 1557–NEW.
                                                  AGENCY: Office of the Comptroller of the                 be sent by fax to (571) 465–4326 or by                  Type of Review: Regular.
                                                  Currency (OCC), Treasury.                                electronic mail to prainfo@occ.treas.gov.               Abstract: Under the draft guidance,
                                                  ACTION: Notice and request for comment.
                                                                                                           You may personally inspect and                        national banks and federal savings
                                                                                                           photocopy comments at the OCC, 400                    associations wishing to establish a
                                                  SUMMARY:   The OCC, as part of its                       7th Street SW., Washington, DC 20219.                 program for originating owner-occupied
                                                  continuing effort to reduce paperwork                    For security reasons, the OCC requires                residential mortgage loans that exceed
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  and respondent burden, invites the                       that visitors make an appointment to                  supervisory loan-to-value (SLTV) limits
                                                  general public and Federal agencies to                   inspect comments. You may do so by                    in communities targeted for
                                                  take this opportunity to comment on a                    calling (202) 649–6700, or for persons                revitalization should have policies and
                                                  new information collection, as required                  who are deaf or hard of hearing, TTY,                 procedures approved by their Board of
                                                  by the Paperwork Reduction Act of 1995                   (202) 649–5597. Upon arrival, visitors                Directors (Board) that address the loan
                                                  (PRA).                                                   will be required to present valid                     portfolio management, underwriting,
                                                    In accordance with the requirements                    government-issued photo identification                and other relevant considerations for
                                                  of the PRA, the OCC may not conduct                      and to submit to security screening in                such loans. The draft guidance would


                                             VerDate Sep<11>2014   17:57 Dec 23, 2015   Jkt 238001   PO 00000   Frm 00147    Fmt 4703   Sfmt 4703   E:\FR\FM\24DEN1.SGM    24DEN1


                                                                            Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices                                                      80459

                                                  advise that banks also should notify the                 communities through prudent                           solutions for some of these challenges.
                                                  appropriate OCC supervisory office in                    residential mortgage lending. The OCC                 These solutions include strategies for
                                                  writing at least 30 days prior to                        recognizes that banks and other parties               acquiring and rehabilitating properties
                                                  originating residential loans pursuant to                have expressed concern that depressed                 in communities targeted for
                                                  a Board-approved program or                              housing values in certain distressed                  revitalization. Community groups,
                                                  implementing any substantive change to                   communities in the United States                      financial institutions, non-profit
                                                  a previously submitted program and                       inhibit mortgage lending in these                     organizations, and state and local
                                                  provide a copy of the Board-approved                     communities. One way in which banks                   entities, including land banks, are
                                                  policies and procedures to the OCC                       can support revitalization efforts in                 working together to develop and
                                                  supervisory office.                                      distressed communities is by offering                 implement innovative residential
                                                    Affected Public: Businesses or other                   mortgage products for purchasing, or                  mortgage financing to bring needed
                                                  for-profit.                                              purchasing and rehabilitating, one- to                lending to economically distressed
                                                    Burden Estimates:                                      four-unit residential properties where                areas. The efforts include providing
                                                    Estimated Number of Respondents:                       the loan amount may exceed                            second-lien loans to finance
                                                  20.                                                      supervisory loan-to-value (SLTV) limits.              rehabilitation costs, interest-rate
                                                    Estimated Burden per Respondent for                    This bulletin provides guidance for                   discounts, and down payment and
                                                  the First Year: Drafting Policies–200                    managing risks associated with                        closing cost assistance. The Federal
                                                  hours; Documentation–10 hours per                        originating certain residential mortgage              Housing Administration, Fannie Mae,
                                                  quarter (i.e., 40 hours); Reporting–10                   loans that exceed SLTV limits.                        and Freddie Mac all currently offer
                                                  hours.                                                                                                         rehabilitation financing.2
                                                    Total Estimated Annual Burden:                         Note for Community Banks                                 In addition to participating in these
                                                  5,000 hours.                                               This guidance applies to all OCC-                   and other third-party efforts, banks have
                                                    Frequency of Response: On occasion.                    supervised banks wishing to establish a               expressed a desire to participate in
                                                    Comments submitted in response to                      program for originating owner-occupied                revitalization efforts of distressed
                                                  this notice will be summarized and                       residential mortgage loans that exceed                communities by offering their own loan
                                                  included in the request for OMB                          SLTV limits in communities targeted for               products. The value of the collateral in
                                                  approval of the information collection.                  revitalization.                                       a distressed community, however, can
                                                  All comments will become a matter of                                                                           present challenges to banks’ residential
                                                  public record. Comments are invited on:                  Highlights
                                                                                                                                                                 lending in part because of current SLTV
                                                    (a) Whether the collection of                            This bulletin provides guidance                     limits. Distressed sales, including short
                                                  information is necessary for the proper                  regarding the                                         sales and foreclosures, often negatively
                                                  performance of the functions of the                        • Circumstances under which banks                   affect home values in these
                                                  OCC, including whether the information                   may establish programs to originate                   communities. Further, in communities
                                                  has practical utility;                                   certain owner-occupied residential                    with minimal sales activity, finding
                                                    (b) The accuracy of the OCC’s                          mortgage loans that exceed SLTV limits.               comparable property sales becomes
                                                  estimate of the information collection                     • OCC’s supervisory considerations                  challenging when appraisals or
                                                  burden;                                                  regarding such programs.                              evaluations are required. Buyers of
                                                    (c) Ways to enhance the quality,                         As described in this bulletin, the OCC              distressed properties can have particular
                                                  utility, and clarity of the information to               will actively monitor and evaluate the                difficulty securing adequate financing to
                                                  be collected;                                            programs established by banks,                        cover the often substantial renovation
                                                    (d) Ways to minimize the burden of                     including the performance of owner-                   costs required to make the properties
                                                  the collection on respondents, including                 occupied residential mortgage loans that              habitable.
                                                  through the use of automated collection                  exceed the SLTV limits. At least                         The OCC recognizes that supporting
                                                  techniques or other forms of information                 annually, the OCC will assess whether                 long-term community revitalization may
                                                  technology; and                                          the programs are contributing to the                  necessitate responsible innovative
                                                    (e) Estimates of capital or start-up                   revitalization of targeted communities                lending strategies. One way in which
                                                  costs and costs of operation,                            and whether the banks are adequately                  banks can support revitalization efforts
                                                  maintenance, and purchase of services                    controlling the risks associated with                 is through prudent lending within
                                                  to provide information.                                  such higher loan-to-value (LTV)                       established exceptions to the SLTV
                                                    Draft Guidance: The text of the draft                  lending.                                              limits for residential loans. Existing
                                                  guidance 1 is as follows:                                                                                      regulations and guidelines recognize
                                                                                                           Background
                                                  Draft Bulletin: Risk Management                                                                                that it may be appropriate, in individual
                                                                                                              Some U.S. communities continue to
                                                  Guidance for Higher Loan-to-Value                                                                              cases, for banks to make loans in excess
                                                                                                           confront lagging home values. Financing
                                                  Lending in Communities Targeted for                                                                            of the SLTV limits, based on support
                                                                                                           difficulties caused by depressed housing
                                                  Revitalization                                                                                                 provided by other credit factors.3 The
                                                                                                           markets are particularly pronounced in
                                                                                                                                                                 regulations and guidelines also
                                                  Summary                                                  communities that were significantly
                                                    The Office of the Comptroller of the                   affected by the financial crisis and                     2 Programs include the Federal Housing

                                                  Currency (OCC) supports efforts by                       housing market decline.                               Administration’s Limited 203(k) Rehabilitation
                                                                                                              As these communities work to                       Mortgage Insurance Program, Fannie Mae
                                                  national banks and federal savings
                                                                                                           stabilize home ownership and home                     HomeStyle Renovation, and Freddie Mac
                                                  associations (collectively, banks) to                                                                          Construction Conversion and Renovation
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                                                                                                           values, the rehabilitation of abandoned
                                                  assist in the revitalization, stabilization,                                                                   Mortgages.
                                                                                                           or distressed housing stock is an
                                                  or redevelopment (referred to in this                                                                             3 For national banks, refer to 12 CFR 34, ‘‘Real
                                                                                                           important component of broader efforts                Estate Lending and Appraisals,’’ appendix A to
                                                  bulletin individually and collectively as
                                                                                                           to strengthen communities. Local                      subpart D, ‘‘Interagency Guidelines for Real Estate
                                                  revitalization) of distressed                                                                                  Lending Policies.’’ For federal savings associations,
                                                                                                           governments, government-affiliated
                                                                                                                                                                 refer to 12 CFR 160.101, ‘‘Real estate lending
                                                    1 The OCC plans to issue this guidance in the          entities, community-based                             standards,’’ appendix to 12 CFR 160.101,
                                                  form of a bulletin directed to national banks and        organizations, financial institutions, and            ‘‘Interagency Guidelines for Real Estate Lending
                                                  federal savings associations.                            others have developed creative                        Policies.’’



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                                                  80460                     Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices

                                                  recognize that banks may make prudent                   in communities targeted for                             eligible loans are intended to support
                                                  underwriting exceptions for                             revitalization.                                         revitalization efforts in the eligible
                                                  creditworthy borrowers whose needs do                                                                           community (e.g., how the origination of
                                                                                                          I. Program Criteria
                                                  not fit within the banks’ general lending                                                                       eligible loans is expected to contribute
                                                  policies, including SLTV limits, on a                   A. Eligible Loan                                        to the normalization of a distressed
                                                  loan-by-loan basis under certain                           An eligible loan should be a                         housing market).
                                                  conditions.4 These conditions include                   permanent mortgage for the purchase of,                    • Amount, and the duration, of the
                                                  that the aggregate amount of all loans in               or purchase and rehabilitation of, an                   bank’s financial commitment to the
                                                  excess of SLTV limits should not exceed                 owner-occupied residential property                     program.
                                                  100 percent of total capital, that the                  located in an eligible community. An                       • Limitation on the aggregate level of
                                                  boards of directors establish standards                 eligible loan also should have an                       committed eligible loans as a percentage
                                                  for reviewing and approving exception                                                                           of tier 1 capital (as defined in 12 CFR
                                                                                                          original loan balance of $200,000 or less
                                                  loans, and that written justification                                                                           3.2), which should not exceed 10
                                                                                                          and be originated under a program
                                                  setting forth relevant credit factors                                                                           percent.
                                                                                                          developed pursuant to this bulletin.
                                                  accompany all approvals of exception                       The OCC recognizes that eligible                        • Characteristics of eligible loans,
                                                  loans.5 Credit factors for these purposes                                                                       including loan structure, credit terms,
                                                                                                          loans will have an LTV ratio equal to or
                                                  may include the borrower’s capacity to                                                                          interest rate and fees, and maximum
                                                                                                          exceeding 90 percent without mortgage
                                                  adequately service the debt, the                                                                                loan size, which should not exceed
                                                                                                          insurance or readily marketable, or
                                                  borrower’s overall creditworthiness, and                                                                        $200,000.
                                                                                                          other acceptable, collateral.
                                                  the level of funds invested in the
                                                                                                             This bulletin does not apply to home                    • Underwriting standards and
                                                  property.6                                                                                                      approval processes for eligible loans,
                                                                                                          equity loans, lines of credit, or
                                                     The OCC believes that banks can offer                                                                        including appropriate documentation of
                                                  residential mortgage loans in                           refinancing loans.
                                                                                                                                                                  relevant credit factors and document
                                                  communities targeted for revitalization                 B. Eligible Community                                   retention standards.
                                                  in a manner consistent with safe and                      An eligible community should be one                      • Real estate appraisal and evaluation
                                                  sound lending practices. As described                   that has been officially targeted for                   criteria applicable to eligible loans.10
                                                  later in section I of this bulletin, such
                                                                                                          revitalization by a federal, state, or                     • Credit administration requirements
                                                  loans may include eligible loans in                                                                             for eligible loans, including detailed
                                                                                                          municipal governmental entity or
                                                  eligible communities originated in                                                                              guidelines regarding oversight of the
                                                                                                          agency, or by a government-designated
                                                  accordance with a board-approved                                                                                rehabilitation process, such as controls
                                                                                                          entity such as a land bank.
                                                  program (referred to as a program in this                                                                       over contracts, disbursements,
                                                  bulletin). Important elements of any                    C. Board-Approved Policies and                          inspections, and project management.
                                                  program are the bank’s policies and                     Procedures                                                 • Compliance with all applicable
                                                  procedures for complying with the                          Existing regulations and guidelines                  laws and regulations, including the
                                                  ability-to-repay standard of Regulation                 require that each bank adopt and                        ability-to-repay and other requirements
                                                  Z 7 and the bank’s separate underwriting                maintain a general lending policy that                  of 12 CFR 1026, anti-discrimination
                                                  standards and approval processes for                    establishes appropriate limits and                      laws, and section 5 of the Federal Trade
                                                  residential mortgage loans that exceed                  standards for extensions of credit that                 Commission Act.
                                                  SLTV limits.                                            are secured by liens or interests in real                  • Content, form, and timing of
                                                     Lending under such a program may be                  estate or that finance building                         notice(s) the bank will provide in
                                                  in the best interest of the bank,                       construction or other improvements.8                    connection with eligible loans to clearly
                                                  individual borrowers, and the                           Additionally, banks should have                         inform the borrower that:
                                                  community. Additionally, the bank may                   specific policies and procedures that are               —The market value of a rehabilitated
                                                  receive Community Reinvestment Act                      approved by the board of directors, or                     property likely will be less than the
                                                  consideration for SLTV exception loans                  appropriately designated board                             original loan amount upon
                                                  depending on the specifics of the                       committee, and that address loan                           completion of the rehabilitation.
                                                  program. SLTV exception lending is not,                 portfolio management, underwriting,                     —The market value may continue to be
                                                  however, without risk. The OCC will                     and other relevant considerations for                      less than the original loan amount
                                                  actively monitor and evaluate how a                     eligible loans. These board-approved                       thereafter and for the duration of the
                                                  bank’s program manages the risks,                       policies and procedures should include                     loan.
                                                  particularly to the bank and its                        provisions that address the:                            —There may be financial implications if
                                                  borrowers, and the effect the program                      • Defined geographies of an eligible                    the borrower seeks to sell the property
                                                  has on the community targeted by the                    community where the bank will                              after rehabilitation and the sale price
                                                  bank’s program. At least annually, the                  consider making eligible loans under                       of such rehabilitated property is less
                                                  OCC also will evaluate the overall                      the program 9 and describe how the                         than the outstanding loan balance at
                                                  impact of programs offered by all banks                                                                            the time of such sale, and explain the
                                                    4 Id.
                                                                                                             8 For national banks, refer to 12 CFR 34, ‘‘Real        implications.
                                                    5 Id.
                                                                                                          Estate Lending and Appraisals,’’ appendix A to
                                                                                                          subpart D, ‘‘Interagency Guidelines for Real Estate
                                                                                                                                                                     • Incentives that may be available to
                                                    6 Id.                                                 Lending Policies.’’ For federal savings associations,   qualifying borrowers (e.g., assistance or
                                                     7 The Dodd-Frank Wall Street Reform and              refer to 12 CFR 160.101, ‘‘Real estate lending
                                                  Consumer Protection Act amended the Truth in            standards,’’ appendix to 12 CFR 160.101,                  10 For all mortgage loan transactions based on an
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                                                  Lending Act to require creditors to make a              ‘‘Interagency Guidelines for Real Estate Lending        appraisal, banks should select and engage
                                                  reasonable, good faith determination of a               Policies.’’                                             appraisers with local market competency in valuing
                                                  consumer’s ability to repay a mortgage loan, absent        9 Banks should retain documentation indicating:      the property securing an eligible loan. Similarly,
                                                  specified exceptions. Refer to 15 U.S.C. 1639c. The     (1) The eligible community is one targeted for          any evaluation, if applicable, should be credible
                                                  Consumer Financial Protection Bureau issued a           revitalization by a government entity or agency; (2)    and consistent with safe and sound banking
                                                  final rule amending Regulation Z to implement           the specific revitalization criteria used by the        practices. Given the unique underwriting
                                                  these ability to repay requirements, which became       government entity or agency; and (3) the type of        considerations, banks should not use automated
                                                  effective January 1, 2014. Refer to 78 FR 6621,         financing and other support, if any, that the           valuation models in connection with these
                                                  January 30, 2013.                                       governmental entity provides to the community.          programs.



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                                                                            Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices                                                80461

                                                  grants for down payments, fees, and                     bank’s making of any substantive                      be deemed to be unsafe and unsound
                                                  closing costs; at or below market interest              change to a previously submitted                      solely because of any material
                                                  rates; or rewards for long-term                         program. Such requests may include                    amendment or rescission of this
                                                  occupancy).                                             clarification or changes to ensure the                bulletin.
                                                    • Monitoring and internal reporting                   program is consistent with safe and                     Dated: December 18, 2015.
                                                  requirements sufficient to: (1) Assess the              sound lending practices.                              Stuart E. Feldstein,
                                                  performance, impact, trends, and                           During the course of subsequent
                                                                                                                                                                Director, Legislative and Regulatory Activities
                                                  success of the program; and (2) inform                  supervisory activities, examiners also                Division.
                                                  the board on at least a quarterly basis of              will monitor and evaluate the program.                [FR Doc. 2015–32376 Filed 12–23–15; 8:45 am]
                                                  the aggregate dollar amount, and                        Examiners evaluations will include
                                                                                                                                                                BILLING CODE 4810–33–P
                                                  percentage of tier 1 capital, of                        consideration of the:
                                                  committed eligible loans in relation to                    • Bank’s governance of the program
                                                  the board-approved limitation.                          and whether the program adequately                    DEPARTMENT OF THE TREASURY
                                                                                                          manages the various risks.
                                                  D. Notice to the OCC                                       • Performance of loans that exceed                 Fiscal Service
                                                     The bank should notify the                           the SLTV limits and whether delinquent
                                                  appropriate OCC supervisory office in                   eligible loans are managed and                        Surety Companies Acceptable on
                                                  writing at least 30 days before the bank’s              accurately classified consistent with the             Federal Bonds: National Fire & Marine
                                                  first origination of an eligible loan                   OCC’s existing guidance on delinquent                 Insurance Company Berkshire
                                                  pursuant to the program or the bank’s                   loans and in compliance with                          Hathaway Homestate Insurance
                                                  making of any substantive change to a                   applicable laws pertaining to loans in                Company
                                                  previously submitted program.                           delinquency.11                                        AGENCY:  Bureau of the Fiscal Service,
                                                  Substantive changes may include the                        • Bank’s internal reporting of
                                                                                                                                                                Fiscal Service, Department of the
                                                  addition of a new eligible community,                   program performance, impact, trends,
                                                                                                                                                                Treasury.
                                                  an increase in the financial commitment                 and overall success.
                                                                                                                                                                ACTION: Notice.
                                                  or duration of a program, or material                      • Process to establish and document
                                                  changes to eligible loan characteristics                community development consideration,                  SUMMARY:    This is Supplement No. 5 to
                                                  or underwriting standards. Such notice                  if applicable, under the Community                    the Treasury Department Circular 570,
                                                  should include:                                         Reinvestment Act.                                     2015 Revision, published July 1, 2015,
                                                     • The date the bank’s board (or                         For banks found to have shortfalls or              at 80 FR 37735.
                                                  appropriately designated board                          unsatisfactory governance or controls,                FOR FURTHER INFORMATION CONTACT:
                                                  committee) approved the program’s                       examiners will communicate these                      Surety Bond Section at (202) 874–6850.
                                                  policies and procedures.                                findings to the bank and require
                                                                                                                                                                SUPPLEMENTARY INFORMATION: A
                                                     • A copy of the board-approved                       remediation to continue the lending
                                                                                                                                                                Certificate of Authority as an acceptable
                                                  policies and procedures.                                activity. In addition, examiners may
                                                                                                                                                                surety on Federal bonds is hereby
                                                                                                          review individual eligible loans to
                                                  II. OCC Supervisory Considerations                                                                            issued under 31 U.S.C. 9305 to the
                                                                                                          assess asset quality, credit risk, and
                                                                                                                                                                following companies:
                                                  A. Supervision of Individual Banks                      consumer compliance.                                  National Fire & Marine Insurance
                                                    After receiving the bank’s notice to                  B. Overall Evaluation of Programs                        Company (NAIC# 20079), BUSINESS
                                                  the OCC, examiners will evaluate the                      At least annually, the OCC will                        ADDRESS: 3024 Harney Street,
                                                  bank’s program to assess whether it                     evaluate the overall impact of banks’                    Omaha, NE 68131–3580. PHONE:
                                                  complies with the requirements of                       programs in communities targeted for                     (402)393–7255. UNDERWRITING
                                                  applicable laws and regulations and is                  revitalization. The OCC’s evaluations                    LIMITATION b/: $560,473,000.
                                                  consistent with safe and sound lending                  will consider, among other matters,                      SURETY LICENSES c/: NE.
                                                  practices, this bulletin, and other                     whether the programs adequately                          INCORPORATED IN: Nebraska
                                                  relevant guidance. Examiners’                                                                                 Berkshire Hathaway Homestate
                                                                                                          control the various risks, the
                                                  assessment will include review of the:                                                                           Insurance Company (NAIC# 20044),
                                                                                                          performance of loans that exceed the
                                                    • Financial commitment (as a dollar                   SLTV limits, and the effect such lending
                                                                                                                                                                   BUSINESS ADDRESS: 1314 Douglas
                                                  amount and a percentage of Tier 1                                                                                Street, Omaha, NE 68102. PHONE:
                                                                                                          has had on the housing market and
                                                  capital) and defined geographies for                                                                             (402)393–7255. UNDERWRITING
                                                                                                          other economic indicators in
                                                  originating eligible loans.                                                                                      LIMITATION b/: $115,951,000.
                                                                                                          communities targeted for revitalization.
                                                    • Characteristics of eligible loans and                 Based on these evaluations, the OCC
                                                                                                                                                                   SURETY LICENSES c/: AL, AK, AZ,
                                                  incentives, if available, to qualifying                                                                          AR, CA, CO, CT, DE, DC, FL, GA, HI,
                                                                                                          may amend or rescind this bulletin. Any
                                                  borrowers.                                                                                                       ID, IL, IN, IA, KS, KY, LA, ME, MD,
                                                                                                          decision by the OCC to materially
                                                    • Standards for the underwriting,                     amend or rescind this bulletin will
                                                                                                                                                                   MA, MI, MN, MS, MO, MT, NE., NV,
                                                  collateral review, credit administration,                                                                        NH, NJ, NM, NY, NC, ND, OH, OK,
                                                                                                          apply only to the origination of new
                                                  and approval of eligible loans.                                                                                  OR, PA, RI, SC, SD, TN, TX, UT, VT,
                                                                                                          loans that exceed the SLTV limits. Any
                                                    • Borrower notice(s).                                 loans originated that are consistent with
                                                                                                                                                                   VA, WA, WV, WI, WY.
                                                    • Monitoring and reporting                                                                                     INCORPORATED IN: Nebraska
                                                                                                          this bulletin, or any subsequent
                                                  procedures for eligible loans.                                                                                Federal bond-approving officers should
                                                                                                          revisions thereof, when made will not
                                                    • Process for ensuring compliance
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                                                                                                                                                                annotate their reference copies of the
                                                  with all applicable laws and regulations.                 11 Applicable laws may include (1) Regulation X,    Treasury Circular 570 (‘‘Circular’’), 2015
                                                    In connection with the evaluation of                  12 CFR 1024, which provides mortgage servicing        Revision, to reflect these additions.
                                                  the bank’s program, examiners may                       standards, including early intervention                  Certificates of Authority expire on
                                                  request clarification or changes to the                 requirements and loss mitigation procedures and (2)   June 30th each year, unless revoked
                                                                                                          Regulation Z, 12 CFR 1026, which establishes
                                                  bank’s policies and procedures before                   requirements for including delinquency-related
                                                                                                                                                                prior to that date. The Certificates are
                                                  the bank’s first origination of an eligible             information on the periodic statements required for   subject to subsequent annual renewal as
                                                  loan pursuant to the program or the                     residential mortgage loans.                           long as the companies remain qualified


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Document Created: 2015-12-24 02:25:09
Document Modified: 2015-12-24 02:25:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice and request for comment.
DatesYou should submit written comments by February 22, 2016.
ContactShaquita Merritt, Clearance Officer, (202) 649-5490, or for persons who are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.
FR Citation80 FR 80458 

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