81 FR 75315 - Temporary Exceptions to FIRREA Appraisal Requirements in Areas Affected by Severe Storms and Flooding in Louisiana
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
NATIONAL CREDIT UNION ADMINISTRATION Federal Register Volume 81, Issue 210 (October 31, 2016)
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
NATIONAL CREDIT UNION ADMINISTRATION
Federal Register Volume 81, Issue 210 (October 31, 2016)
| Page Range | 75315-75316 | |
| FR Document | 2016-26234 |
[Federal Register Volume 81, Number 210 (Monday, October 31, 2016)] [Rules and Regulations] [Pages 75315-75316] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-26234] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Rules and Regulations [[Page 75315]] DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 34 [Docket No. OCC-2016-0030] FEDERAL RESERVE SYSTEM 12 CFR Part 225 [Docket No. R-1551] RIN 7100 AE-62 FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 323 NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 722 Temporary Exceptions to FIRREA Appraisal Requirements in Areas Affected by Severe Storms and Flooding in Louisiana AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC); and National Credit Union Administration (NCUA), collectively referred to as the Agencies. ACTION: Statement and order; temporary exceptions. ----------------------------------------------------------------------- SUMMARY: Section 2 of the Depository Institutions Disaster Relief Act of 1992 (DIDRA) authorizes the Agencies to make exceptions to statutory and regulatory appraisal requirements under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The exceptions are available for transactions involving real property located within an area declared to be a major disaster area by the President if the Agencies determine, and describe by publication of a regulation or order, that the exceptions would facilitate recovery from the disaster and would be consistent with safety and soundness. In this statement and order, the Agencies exercise their authority to grant temporary exceptions to the FIRREA appraisal requirements for real estate related transactions, provided certain criteria are met, in the Louisiana parishes declared a major disaster area by President Obama on August 14, 2016, as a result of the severe storms and flooding in Louisiana. The expiration date for the exceptions is December 31, 2017. DATES: This order is effective on October 31, 2016 and expires for specific areas on December 31, 2017. FOR FURTHER INFORMATION CONTACT: OCC: Robert Parson, Senior Appraisal Policy Advisor, Chief National Bank Examiner's Office, at (202) 649-6423; Kevin Lawton, Appraisal Specialist, Chief National Bank Examiner's Office, at (202) 649-7152; Christopher Manthey, Special Counsel, Chief Counsel's Office, at (202) 649-6203; or Mitchell Plave, Special Counsel, Chief Counsel's Office, at (202) 649-6285 or, for persons who are deaf or hard of hearing, TTY (202) 649-5597. Board: Carmen D. Holly, Senior Supervisory Financial Analyst, Division of Banking Supervision and Regulation at 202-973-6122; Gillian Burgess, Counsel, Legal Division, at (202) 736-5564. FDIC: Beverlea S. Gardner, Senior Examination Specialist, Division of Risk Management and Supervision, at (202) 898-3640; Benjamin K. Gibbs, Counsel, Legal Division, at (202) 898- 6726; or Kimberly Stock, Counsel, Legal Division, at (202) 898-3815, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429. NCUA: D. Scott Neat, Director of Supervision, Office of Examination and Insurance, at (703) 518-6363; John Brolin, Staff Attorney, Office of General Counsel, at (703) 518-6438, National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314. SUPPLEMENTARY INFORMATION: Statement Section 2 of DIDRA, which added section 1123 to Title XI of FIRREA,\1\ authorizes the Agencies to make exceptions to statutory and regulatory appraisal requirements for certain transactions. These exceptions are available for transactions involving real property located in areas in which the President has determined a major disaster exists, pursuant to 42 U.S.C. 5170, provided that the exception would facilitate recovery from the major disaster and is consistent with safety and soundness. --------------------------------------------------------------------------- \1\ 12 U.S.C. 3352. --------------------------------------------------------------------------- On August 14, 2016, the President declared that 22 parishes in Louisiana were in a major disaster area (Major Disaster Area) due to extensive damage that occurred as a result of severe storms and subsequent flooding.\2\ The Agencies believe that granting relief from the appraisal requirements set forth in Title XI of FIRREA for real estate transactions in the Major Disaster Area is consistent with the provisions of DIDRA. --------------------------------------------------------------------------- \2\ Press Release, The White House (Aug. 14, 2016), available at https://www.whitehouse.gov/the-press-office/2016/08/14/president-obama-signs-louisiana-disaster-declaration. --------------------------------------------------------------------------- Facilitation of Recovery From the Storms and Flooding Declared as Major Disaster The Agencies have determined that the disruption of real estate markets in the Major Disaster Area interferes with the ability of depository institutions to obtain appraisals that comply with all statutory and regulatory requirements. Further, the Agencies have determined that the disruption may impede institutions in making loans and engaging in other transactions that would aid in the reconstruction and rehabilitation of the affected area. Accordingly, the Agencies have determined that recovery from this major disaster would be facilitated by exempting certain transactions involving real estate located in the area directly affected by the severe storms and flooding from the real estate appraisal requirements of Title XI of FIRREA and its implementing regulations.\3\ --------------------------------------------------------------------------- \3\ 12 U.S.C. 3331-3355; 12 CFR 34.41-34.47 (OCC); 12 CFR part 225, subpart G (Board); 12 CFR part 323, subpart A (FDIC); 12 CFR part 722 (NCUA). --------------------------------------------------------------------------- [[Page 75316]] Consistency With Safety and Soundness The Agencies also have determined that the exceptions are consistent with safety and soundness, provided that the depository institution determines and maintains appropriate documentation of the following: (1) The transaction involves real property located in the Major Disaster Area; (2) there is a binding commitment to fund the transaction that was entered into on or after August 14, 2016, but no later than December 31, 2017; and (3) the value of the real property supports the institution's decision to enter into the transaction. In addition, the transaction must continue to be subject to review by management and by the Agencies in the course of examinations of the institution. Expiration Date Exceptions made under section 1123 of FIRREA may be provided for no more than three years after the President determines that a major disaster exists in the area.\4\ The Agencies have determined that the exceptions provided for by this order shall expire on December 31, 2017. --------------------------------------------------------------------------- \4\ 12 U.S.C. 3352(b). --------------------------------------------------------------------------- Order In accordance with section 2 of DIDRA, relief is hereby granted from the provisions of Title XI of FIRREA and the Agencies' appraisal regulations for any real estate-related financial transaction that requires the services of an appraiser under those provisions, provided that the institution determines, and maintains documentation made available to the Agencies upon request, of the following: (1) The transaction involves real property located in one of the 22 parishes declared a major disaster area as a result of severe storms and flooding in Louisiana by the President on August 14, 2016 (identified in the Appendix); (2) There is a binding commitment to fund a transaction that was entered into on or after August 14, 2016, but no later than December 31, 2017; and (3) The value of the real property supports the institution's decision to enter into the transaction. Appendix (Major Disaster Area) Designated Parishes: Acadia, Ascension, Avoyelles, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. James, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge and West Feliciana. Dated: October 19, 2016. Thomas J. Curry, Comptroller of the Currency. By order of the Board of Governors of the Federal Reserve System, October 21, 2016. Margaret McCloskey Shanks, Deputy Secretary of the Board. Dated at Washington, DC, October 19, 2016. By order of the Board of Directors. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. Dated at Alexandria, VA, October 27, 2016. By order of the Board of Directors. National Credit Union Administration. Gerard Poliquin, Secretary of the Board. [FR Doc. 2016-26234 Filed 10-28-16; 8:45 am] BILLING CODE 6210-01-P
![75315
Rules and Regulations Federal Register
Vol. 81, No. 210
Monday, October 31, 2016
This section of the FEDERAL REGISTER to be a major disaster area by the Statement
contains regulatory documents having general President if the Agencies determine, and
applicability and legal effect, most of which describe by publication of a regulation Section 2 of DIDRA, which added
are keyed to and codified in the Code of
or order, that the exceptions would section 1123 to Title XI of FIRREA,1
Federal Regulations, which is published under authorizes the Agencies to make
50 titles pursuant to 44 U.S.C. 1510. facilitate recovery from the disaster and
exceptions to statutory and regulatory
would be consistent with safety and
appraisal requirements for certain
The Code of Federal Regulations is sold by soundness. In this statement and order,
the Superintendent of Documents. Prices of transactions. These exceptions are
the Agencies exercise their authority to available for transactions involving real
new books are listed in the first FEDERAL grant temporary exceptions to the
REGISTER issue of each week. property located in areas in which the
FIRREA appraisal requirements for real President has determined a major
estate related transactions, provided disaster exists, pursuant to 42 U.S.C.
DEPARTMENT OF THE TREASURY certain criteria are met, in the Louisiana 5170, provided that the exception
parishes declared a major disaster area would facilitate recovery from the major
Office of the Comptroller of the by President Obama on August 14, 2016, disaster and is consistent with safety
Currency as a result of the severe storms and and soundness.
flooding in Louisiana. The expiration On August 14, 2016, the President
12 CFR Part 34 date for the exceptions is December 31, declared that 22 parishes in Louisiana
[Docket No. OCC–2016–0030]
2017. were in a major disaster area (Major
DATES: This order is effective on October Disaster Area) due to extensive damage
FEDERAL RESERVE SYSTEM 31, 2016 and expires for specific areas that occurred as a result of severe storms
on December 31, 2017. and subsequent flooding.2 The Agencies
12 CFR Part 225 believe that granting relief from the
FOR FURTHER INFORMATION CONTACT: appraisal requirements set forth in Title
[Docket No. R–1551]
OCC: Robert Parson, Senior Appraisal XI of FIRREA for real estate transactions
RIN 7100 AE–62 Policy Advisor, Chief National Bank in the Major Disaster Area is consistent
Examiner’s Office, at (202) 649–6423; with the provisions of DIDRA.
FEDERAL DEPOSIT INSURANCE
CORPORATION Kevin Lawton, Appraisal Specialist, Facilitation of Recovery From the
Chief National Bank Examiner’s Office, Storms and Flooding Declared as Major
12 CFR Part 323 at (202) 649–7152; Christopher Disaster
Manthey, Special Counsel, Chief
NATIONAL CREDIT UNION Counsel’s Office, at (202) 649–6203; or The Agencies have determined that
ADMINISTRATION Mitchell Plave, Special Counsel, Chief the disruption of real estate markets in
Counsel’s Office, at (202) 649–6285 or, the Major Disaster Area interferes with
12 CFR Part 722 for persons who are deaf or hard of the ability of depository institutions to
hearing, TTY (202) 649–5597. obtain appraisals that comply with all
Temporary Exceptions to FIRREA statutory and regulatory requirements.
Board: Carmen D. Holly, Senior Further, the Agencies have determined
Appraisal Requirements in Areas
Supervisory Financial Analyst, Division that the disruption may impede
Affected by Severe Storms and
of Banking Supervision and Regulation institutions in making loans and
Flooding in Louisiana
at 202–973–6122; Gillian Burgess, engaging in other transactions that
AGENCY: Office of the Comptroller of the Counsel, Legal Division, at (202) 736– would aid in the reconstruction and
Currency, Treasury (OCC); Board of 5564. rehabilitation of the affected area.
Governors of the Federal Reserve FDIC: Beverlea S. Gardner, Senior Accordingly, the Agencies have
System (Board); Federal Deposit Examination Specialist, Division of Risk determined that recovery from this
Insurance Corporation (FDIC); and Management and Supervision, at (202) major disaster would be facilitated by
National Credit Union Administration exempting certain transactions
898–3640; Benjamin K. Gibbs, Counsel,
(NCUA), collectively referred to as the involving real estate located in the area
Legal Division, at (202) 898- 6726; or
Agencies. directly affected by the severe storms
Kimberly Stock, Counsel, Legal
ACTION: Statement and order; temporary and flooding from the real estate
Division, at (202) 898–3815, Federal
exceptions. Deposit Insurance Corporation, 550 17th appraisal requirements of Title XI of
Street NW., Washington, DC 20429. FIRREA and its implementing
SUMMARY: Section 2 of the Depository regulations.3
Institutions Disaster Relief Act of 1992 NCUA: D. Scott Neat, Director of
(DIDRA) authorizes the Agencies to Supervision, Office of Examination and 1 12 U.S.C. 3352
make exceptions to statutory and Insurance, at (703) 518–6363; John 2 Press Release, The White House (Aug. 14, 2016),
Lhorne on DSK30JT082PROD with RULES
regulatory appraisal requirements under Brolin, Staff Attorney, Office of General available at https://www.whitehouse.gov/the-press-
Title XI of the Financial Institutions Counsel, at (703) 518–6438, National office/2016/08/14/president-obama-signs-louisiana-
Reform, Recovery, and Enforcement Act disaster-declaration.
Credit Union Administration, 1775 3 12 U.S.C. 3331–3355; 12 CFR 34.41–34.47
of 1989 (FIRREA). The exceptions are Duke Street, Alexandria, VA 22314. (OCC); 12 CFR part 225, subpart G (Board); 12 CFR
available for transactions involving real part 323, subpart A (FDIC); 12 CFR part 722
property located within an area declared SUPPLEMENTARY INFORMATION: (NCUA).
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![75316 Federal Register / Vol. 81, No. 210 / Monday, October 31, 2016 / Rules and Regulations
Consistency With Safety and Soundness Dated: October 19, 2016. travel insurance and supplemental
The Agencies also have determined Thomas J. Curry, health insurance coverage to be
that the exceptions are consistent with Comptroller of the Currency. considered excepted benefits. This
safety and soundness, provided that the By order of the Board of Governors of the
document also amends a reference in
depository institution determines and Federal Reserve System, October 21, 2016. the final regulations relating to the
maintains appropriate documentation of prohibition on lifetime and annual
Margaret McCloskey Shanks, dollar limits.
the following: (1) The transaction
involves real property located in the Deputy Secretary of the Board. DATES:
Major Disaster Area; (2) there is a Dated at Washington, DC, October 19, Effective date. These final regulations
binding commitment to fund the 2016. are effective on December 30, 2016.
transaction that was entered into on or By order of the Board of Directors. Applicability date. These final
after August 14, 2016, but no later than Federal Deposit Insurance Corporation. regulations apply to group health plans
December 31, 2017; and (3) the value of Robert E. Feldman,
and health insurance issuers beginning
the real property supports the on the first day of the first plan year (or,
institution’s decision to enter into the Executive Secretary. in the individual market, the first day of
transaction. In addition, the transaction Dated at Alexandria, VA, October 27, 2016. the first policy year) beginning on or
must continue to be subject to review by By order of the Board of Directors. after January 1, 2017.
management and by the Agencies in the National Credit Union Administration. FOR FURTHER INFORMATION CONTACT:
course of examinations of the Elizabeth Schumacher or Matthew
Gerard Poliquin,
institution. Litton of the Department of Labor, at
Secretary of the Board.
Expiration Date 202–693–8335, Karen Levin, Internal
[FR Doc. 2016–26234 Filed 10–28–16; 8:45 am]
Revenue Service, Department of the
Exceptions made under section 1123 BILLING CODE 6210–01–P
Treasury, at (202) 317–5500, David
of FIRREA may be provided for no more
Mlawsky or Cam Clemmons, Centers for
than three years after the President
Medicare & Medicaid Services,
determines that a major disaster exists DEPARTMENT OF THE TREASURY Department of Health and Human
in the area.4 The Agencies have
Services, at 410–786–1565.
determined that the exceptions Internal Revenue Service
Customer Service Information:
provided for by this order shall expire
Individuals interested in obtaining
on December 31, 2017. 26 CFR Part 54
information from the Department of
Order [TD 9791] Labor concerning employment-based
In accordance with section 2 of health coverage laws may call the
RIN 1545–BN44
DIDRA, relief is hereby granted from the Employee Benefits Security
provisions of Title XI of FIRREA and the DEPARTMENT OF LABOR Administration (EBSA) Toll-Free
Agencies’ appraisal regulations for any Hotline, at 1–866–444–EBSA (3272) or
real estate-related financial transaction Employee Benefits Security visit the Department of Labor’s Web site
that requires the services of an appraiser Administration (http://www.dol.gov/ebsa). In addition,
under those provisions, provided that information from the Department of
the institution determines, and 29 CFR Part 2590 Health and Human Services (HHS) on
maintains documentation made private health insurance for consumers
RIN 1210–AB75 can be found on the Centers for
available to the Agencies upon request,
of the following: Medicare & Medicaid Services (CMS)
DEPARTMENT OF HEALTH AND
(1) The transaction involves real Web site (www.cms.gov/cciio) and
HUMAN SERVICES
property located in one of the 22 information on health reform can be
parishes declared a major disaster area found at www.HealthCare.gov.
45 CFR Parts 144, 146, 147, and 148
as a result of severe storms and flooding SUPPLEMENTARY INFORMATION:
in Louisiana by the President on August [CMS–9932–F]
I. Background
14, 2016 (identified in the Appendix); RIN 0938–AS93
(2) There is a binding commitment to The Health Insurance Portability and
fund a transaction that was entered into Excepted Benefits; Lifetime and Accountability Act of 1996 (HIPAA),
on or after August 14, 2016, but no later Annual Limits; and Short-Term, Public Law 104–191 (110 Stat. 1936),
than December 31, 2017; and Limited-Duration Insurance added title XXVII of the Public Health
(3) The value of the real property Service Act (PHS Act), part 7 of the
supports the institution’s decision to AGENCY: Internal Revenue Service, Employee Retirement Income Security
enter into the transaction. Department of the Treasury; Employee Act of 1974 (ERISA), and Chapter 100 of
Benefits Security Administration, the Internal Revenue Code (the Code),
Appendix (Major Disaster Area) Department of Labor; Centers for providing portability and
Designated Parishes: Acadia, Medicare & Medicaid Services, nondiscrimination rules with respect to
Ascension, Avoyelles, East Baton Rouge, Department of Health and Human health coverage. These provisions of the
East Feliciana, Evangeline, Iberia, Services. PHS Act, ERISA, and the Code were
Iberville, Jefferson Davis, Lafayette, ACTION: Final rules. later augmented by other consumer
Livingston, Pointe Coupee, St. Helena, protection laws, including the Mental
Lhorne on DSK30JT082PROD with RULES
St. James, St. Landry, St. Martin, St. SUMMARY: This document contains final Health Parity Act of 1996,1 the Paul
Tammany, Tangipahoa, Vermilion, regulations regarding the definition of Wellstone and Pete Domenici Mental
Washington, West Baton Rouge and short-term, limited-duration insurance Health Parity and Addiction Equity Act
West Feliciana. for purposes of the exclusion from the
definition of individual health 1 Public Law 104–204, 110 Stat. 2944 (September
4 12 U.S.C. 3352(b). insurance coverage, and standards for 26, 1996).
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Document Created: 2018-02-02 12:13:22
Document Modified: 2018-02-02 12:13:22
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Statement and order; temporary exceptions. | |
| Dates | This order is effective on October 31, 2016 and expires for specific areas on December 31, 2017. | |
| Contact | OCC: Robert Parson, Senior Appraisal Policy Advisor, Chief National Bank Examiner's Office, at (202) 649-6423; Kevin Lawton, Appraisal Specialist, Chief National Bank Examiner's Office, at (202) 649-7152; Christopher Manthey, Special Counsel, Chief Counsel's Office, at (202) 649-6203; or Mitchell Plave, Special Counsel, Chief Counsel's Office, at (202) 649-6285 or, for persons who are deaf or hard of hearing, TTY (202) 649-5597. | |
| FR Citation | 81 FR 75315 | |
| RIN Number | 7100 AE62 | |
| CFR Citation | 12
CFR
225 12 CFR 323 12 CFR 34 12 CFR 722 |
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