82_FR_45472 82 FR 45285 - Agency Information Collection Activities: Submission for OMB Review; Comment Request (OMB Nos. 3064-0085 and 3064-0120)

82 FR 45285 - Agency Information Collection Activities: Submission for OMB Review; Comment Request (OMB Nos. 3064-0085 and 3064-0120)

FEDERAL DEPOSIT INSURANCE CORPORATION

Federal Register Volume 82, Issue 187 (September 28, 2017)

Page Range45285-45287
FR Document2017-20759

The Federal Deposit Insurance Corporation (FDIC) will submit the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed information collections were previously published in the Federal Register on July 6, 2017, allowing for a 60-day comment.

Federal Register, Volume 82 Issue 187 (Thursday, September 28, 2017)
[Federal Register Volume 82, Number 187 (Thursday, September 28, 2017)]
[Notices]
[Pages 45285-45287]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20759]


=======================================================================
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FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Submission for OMB 
Review; Comment Request (OMB Nos. 3064-0085 and 3064-0120)

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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

SUMMARY: The Federal Deposit Insurance Corporation (FDIC) will submit 
the following information collection request to the Office of 
Management and Budget (OMB) for review and approval in accordance with 
the Paperwork Reduction Act of 1995. The proposed information 
collections were previously published in the Federal Register on July 
6, 2017, allowing for a 60-day comment.

DATES: Comments are encouraged and will be accepted for an additional 
30 days until October 30, 2017.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     http://www.FDIC.gov/regulations/laws/federal/notices.html
     Email: [email protected]. Please include the name and OMB 
control number of the relevant information collection in the subject 
line of the message.
     Mail: Manny Cabeza, Counsel, Room MB-3007, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20429.
     Hand Delivery: Comments may be hand-delivered to the guard 
station at the rear of the 17th Street Building (located on F Street), 
on business days between 7:00 a.m. and 5:00 p.m.

All comments should refer to the relevant OMB control number. Written 
comments and/or suggestions can also be directed to the Office of 
Management and Budget, Office of Information and Regulatory Affairs, 
attention FDIC Desk Officer, New Executive Office Building, Washington 
DC 20503 or sent to [email protected].

FOR FURTHER INFORMATION CONTACT: If you have additional comments, 
particularly with respect to the estimated public burden or associated 
response time, have suggestions, need a copy of any proposed 
information collection instrument and instructions, or desire any other 
additional information, please contact Manny Cabeza, Counsel, FDIC 
Legal Division either by mail at Room MB-3007, Federal Deposit 
Insurance Corporation, 550 17th Street NW., Washington, DC 20429; by 
email at [email protected]; or by telephone at (202) 898-3767.

SUPPLEMENTARY INFORMATION: Written comments and suggestions from the 
public and affected agencies concerning the proposed collections of 
information are encouraged. All comments received will become a matter 
of public record. Your comments should address one or more of the 
following four points:

--Evaluate whether the proposed collection of information is necessary 
for the proper performance of the functions of the agency, including 
whether the information has practical utility;
--Evaluate the accuracy of the agency's estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
--Evaluate whether and if so, how, the quality, utility, and clarity of 
the information to be collected can be enhanced; and
--Ways to minimize the burden of the information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology.

Overview of the Information Collection Request

    1. Title: Record Keeping, Reporting and Disclosure Requirements in 
Connection with the Equal Credit Opportunity Act Regulation B.
    OMB Number: 3064-0085.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.

[[Page 45286]]

    Burden Estimate: \1\

----------------------------------------------------------------------------------------------------------------
                                                                                   Average time      Estimated
        Source and burden            Number of        Annual           Total       per response    annual burden
                                    respondents      frequency       responses       (Minutes)        (Hours)
----------------------------------------------------------------------------------------------------------------
Reporting burden:
    Credit Reporting History               3,711           1,333       4,946,763               1          82,466
     (1002.10)..................
    Demographic Information                3,711             279       1,035,369               1          17,256
     Collected for Monitoring
     Purposes (1002.13(a)&(b))..
                                 -------------------------------------------------------------------------------
        Total Reporting.........  ..............  ..............  ..............  ..............          99,702
Disclosure Burden:
    Disclosure for Optional Self-             50               1              50               2               2
     Test (1002.5)..............
    Notification (1002.9).......           3,711             333       1,235,763               3          61,788
    Appraisal Report............           3,711             279       1,035,369               3          51,768
    (1002.14(a)(1)).............
    Disclosure of Information              3,711             279       1,035,369               1          17,256
     Collected for Monitoring
     Purposes(1002.13(c)).......
        Notice of Right to                 3,711             279       1,035,369               1          17,256
         Appraisal
         (1002.14(a)(2))........
                                 -------------------------------------------------------------------------------
        Total Disclosure........  ..............  ..............  ..............  ..............         148,071
Recordkeeping Burden:
Record Retention (Applications,            3,711           1,333       4,946,763               3         247,338
 Actions, Pre-Screened
 Solicitations)(1002.12)........
Record Retention (Self-                       50               1              50               3               3
 Testing)(1002.12)(b)(6)........
                                 -------------------------------------------------------------------------------
    Total Recordkeeping.........  ..............  ..............  ..............  ..............         247,341
                                 -------------------------------------------------------------------------------
    Total Burden Hours..........  ..............  ..............  ..............  ..............         495,113
----------------------------------------------------------------------------------------------------------------

    General Description of Collection: Regulation B (12 CFR part 1002) 
issued by the Consumer Financial Protection Bureau, prohibits creditors 
from discriminating against applicants on any bases specified by the 
Equal Credit Opportunity Act; imposes, reporting, record keeping and 
disclosure requirements; establishes guidelines for gathering and 
evaluating credit information; and requires creditors to give 
applicants certain written notices. There is no change in the method or 
substance of the collection. The overall 107,276 hour reduction in 
total estimated annual burden (from 602,389 to 495,113 hours) is a 
result of economic fluctuation reflected in a reduction in the number 
of FDIC-supervised institutions, and because of the revision of the 
FDIC's estimates of the number of responses and the average time 
required to respond to the various information collections tasks.
---------------------------------------------------------------------------

    \1\ The average hours per response shown in the table are 
rounded, but the Estimated Annual Burden is calculated using the 
full decimal and then is rounded to the nearest hour.
---------------------------------------------------------------------------

    Changes to Data and Assumptions: The burden estimates shown above 
include several changes from the estimates the FDIC previously provided 
for this information collection. The FDIC currently supervises 3,711 
insured financial institutions, a decrease of 687 from the 4,398 
reported in 2014. Whereas the FDIC previously estimated that 25 percent 
(1,100) of its supervised institutions would conduct optional self-
testing, the FDIC's experience shows that very few banks actually 
conduct these optional tests; our revised estimate of 50 banks is 
likely high. The FDIC has also updated the annual frequencies for each 
burden. The FDIC believes the prior estimate of 850 approved loans per 
year, on average, was too low and has increased its estimate to 1,000. 
The agency has also corrected the frequencies for sections 1002.5 and 
1002.12 which are completed only once per year. As a conservative 
estimate, FDIC assumes that the denial rate for residential real estate 
loans applications for covered institutions is 14 percent. According to 
Home Mortgage Disclosure Act (HMDA) data from 2015, the denial rate for 
conventional home-purchase loan applications was 10.8 percent, and the 
denial rate for nonconventional home-purchase loans was 13.9 
percent.\2\ Call report data from June 30, 2017 shows that 
approximately 24 percent of total loan and lease balances are 
residential real estate loans (RRE), so, for purposes of estimating 
burden, FDIC assumes that 24 percent of the number of loans relate to 
RRE. The FDIC estimates that approximately 25 percent of non-RRE loans 
are denied.
---------------------------------------------------------------------------

    \2\ Federal Reserve Bulletin, November 2016, Vol. 102, No. 6.
---------------------------------------------------------------------------

    The foregoing assumptions result in the following estimates:

1,000 loans approved/(1 - 25 percent) = 1,333 loan applications
1,333 loan applications x 25 percent = 333 loans denied
1,000 loans approved x 24 percent = 240 RRE loans
240 RRE loans/(1 - 14 percent) = 279 RRE loan applications

    The table above now includes the burden estimate for section 
1002.13 that was inadvertently omitted from prior information 
collection submissions. Section 1002.13(a), to monitor compliance, 
requires lenders to collect demographic information from loan 
applicants either on the application form or on a separate form. 
Section 1002.13(b) & (c) involve disclosing to loan applicants the 
purpose and use of this demographic information.
    The burden table also deletes the prior estimated burden for 
1002.15 which only describes the eligibility for incentives for self-
testing and self-correction and does not involve any disclosures, 
reporting, or recordkeeping requirements.
    The FDIC has updated its estimate of the number of burden hours 
required to complete each task. It has estimated a burden of one to 
three minutes for most tasks (0.017 to 0.05 hours), a figure not 
significantly different from the prior estimates. However, the FDIC 
believes that the prior burden estimates for self-testing were greatly 
overstated. Whereas previously, self-testing under section 1002.12 was 
estimated to require two (2) hours to complete, the FDIC believes the 
recordkeeping requirement articulated

[[Page 45287]]

in the rule should take only 3 minutes (0.05 hours) to complete.
    2. Title: Flood Insurance.
    OMB Number: 3064-0120.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                               Table 1--Burden Calculation
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Share of
                          Item                                burden           Hours           Share           Hours           Hours        Total hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Disclosure to the Borrower...........................             50%            0.50             90%            0.45           0.225          25,097
2. Disclosure to the Servicer...........................  ..............  ..............  ..............  ..............           0.225          25,097
3. Report to FEMA of a Change in Servicer...............  ..............  ..............             10%            0.05            0.05           5,577
4. Recordkeeping (Bank keeps a copy of all                            50            0.50  ..............            0.50            0.50          55,770
 notifications).........................................
                                                          ..............             1.0  ..............             1.0             1.0         111,540
--------------------------------------------------------------------------------------------------------------------------------------------------------
Respondents (FDIC supervised banks with real estate loans)..............................................................................           3,718
Frequency (Average no. of real estate loans serviced w/flood ins).......................................................................              30
                                                         -----------------------------------------------------------------------------------------------
    Total burden........................................................................................................................         111,540
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: FDIC, FEMA, Federal Reserve Board.

    General Description of Collection: Each supervised lending 
institution is currently required to provide a notice of special flood 
hazards to each borrower with a loan secured by a building or mobile 
home located or to be located in an area identified by the Director of 
the Federal Emergency Management Agency as being subject to special 
flood hazards. The Riegle Community Development Act requires that each 
institution also provide a copy of the notice to the servicer of the 
loan (if different from the originating lender).
    There is no change in the method or substance of the collection. 
There is an overall reduction in burden hours which is the result of 
(1) economic fluctuation reflected by a decrease in the number of FDIC-
supervised institutions and (2) a decrease in the number of flood 
insurance policies nationally. In particular, the number of respondents 
and the frequency of response (number of loans) have decreased while 
the hours per response remain the same.
    Changes to Data and Assumptions: FDIC estimates total annual burden 
to be 111,540 hours. To obtain this figure, FDIC relied on: (a) Data 
from the Federal Emergency Management Agency (FEMA) as of May 2017; (b) 
FDIC Call Report data as of March 31, 2017; and (c) Federal Reserve 
Board mortgage data as of March 31, 2017.
    FEMA reported there were 4,983,954 flood insurance policies in 
effect with a total insured value of $1,238,657,149,400.\3\
---------------------------------------------------------------------------

    \3\ https://www.fema.gov/flood-insurance-statistics-current-month (accessed June 15, 2017).
---------------------------------------------------------------------------

    FDIC Call Report data showed that as of March 31, 2017, there were 
a total of 5,790 FDIC-insured institutions with a total of $4.25 
trillion in 1-4 family; multifamily; nonfarm, nonresidential, and 
agricultural loans secured by real estate. As of March 31, 2017, there 
were 3,718 FDIC-regulated institutions with a total value of about 
$1.19 trillion in these loans. Based on the foregoing, we estimate that 
FDIC-regulated banks hold 27.9% of these assets.
    The Federal Reserve Board reported $14.41 trillion in mortgage debt 
outstanding in the U.S., with $4.63 trillion (32.4%) held by depository 
institutions.\4\ Since this total debt held by banks is close to the 
value of these real estate loans from Call Report data, we have 
confidence that we can meld the data sets for estimation purposes. We 
therefore assume that 32.4% of the value of flood insurance policies 
will be held by U.S. commercial banks: $401 billion.
---------------------------------------------------------------------------

    \4\ https://www.federalreserve.gov/econresdata/releases/mortoutstand/mortoutstand20170331.htm (accessed June 15, 2017).
---------------------------------------------------------------------------

    In the absence of any data on the number of real estate loans with 
flood insurance at any bank, we resort to apportion 32.4% of the number 
of flood insurance policies (1,614,801) to commercial banks, and 27.9% 
of those to FDIC-regulated institutions (451,177). Because the value of 
property varies greatly between different geographical regions and 
different banks, it is doubtful that this estimation of the number of 
policies is accurate. However, there exists no other reasonable method 
for deriving the number of policies at each bank given available data.
    Next, we apportioned the 451,177 flood insurance policies to each 
FDIC-regulated institution according to its share of real estate loans 
to total real estate loans. The resulting apportionment results in an 
average of 121 policies per bank, and a median of 30 policies per bank. 
Because the average is skewed by the large number of policies at large 
banks, we believe the median is a better measure for calculating burden 
hours.
    Our subject-matter experts (SMEs) for this rule believe that the 
total burden to the public for complying with this rule is 1.0 hours 
per policy. We find four PRA related tasks in this rule: (1) Disclosure 
to Borrowers, (2) Disclosure to Servicers, (3) Reporting to FEMA of 
Changes in Coverage, and (4) Recordkeeping for tasks 1-3 above. We 
assume that Recordkeeping will comprise \1/2\ hour, and the remaining 
\1/2\ is split between the other tasks. We assume that 90% of policies 
will involve a new origination, and 10% of policies will involve a 
change in status.
    With 3,718 respondents holding a median of 30 policies and 1 hour 
of burden per policy, we calculate a total burden of 111,540 hours. 
This burden is apportioned to each task as shown in Table 1 above.

    Dated at Washington, DC, this 22nd day of September, 2017. 
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2017-20759 Filed 9-27-17; 8:45 am]
 BILLING CODE 6714-01-P



                              Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices                                          45285

     feet. River flows between 159 and 1,408                 heading the name of the applicant and                 All comments should refer to the
     cfs are used for power generation, while                the project number of the application to              relevant OMB control number. Written
     flows in excess of 1,408 cfs are passed                 which the filing responds; (3) furnish                comments and/or suggestions can also
     over the flashboards and spillway. Flow                 the name, address, and telephone                      be directed to the Office of Management
     to the generating units is controlled by                number of the person protesting or                    and Budget, Office of Information and
     five manually operated square slide                     intervening; and (4) otherwise comply                 Regulatory Affairs, attention FDIC Desk
     gates. The total installed capacity of the              with the requirements of 18 CFR                       Officer, New Executive Office Building,
     project is 3,300 kW between the five                    385.2001 through 385.2005. Agencies                   Washington DC 20503 or sent to OIRA_
     generating units. The project generates                 may obtain copies of the application                  submissions@omb.eop.gov.
     approximately 8,784 megawatt-hours                      directly from the applicant. A copy of                FOR FURTHER INFORMATION CONTACT: If
     annually, which are sold to a local                     any protest or motion to intervene must               you have additional comments,
     utility.                                                be served upon each representative of                 particularly with respect to the
        The co-licensees propose to continue                 the applicant specified in the particular             estimated public burden or associated
     to operate and maintain the Lower                       application.                                          response time, have suggestions, need a
     Pelzer Project as is required in the                      Dated: September 21, 2017.                          copy of any proposed information
     existing license, and to develop canoe                  Kimberly D. Bose,                                     collection instrument and instructions,
     portage facilities. The co-licensees also                                                                     or desire any other additional
                                                             Secretary.
     propose to remove the existing three-                                                                         information, please contact Manny
                                                             [FR Doc. 2017–20788 Filed 9–27–17; 8:45 am]
     mile-long, 3,300-volt overhead                                                                                Cabeza, Counsel, FDIC Legal Division
     transmission line, which is no longer in                BILLING CODE 6717–01–P
                                                                                                                   either by mail at Room MB–3007,
     use, from the project boundary under a                                                                        Federal Deposit Insurance Corporation,
     new license. Instead, the project would                                                                       550 17th Street NW., Washington, DC
     use a 165-foot-long, 3,300-volt                         FEDERAL DEPOSIT INSURANCE
                                                                                                                   20429; by email at mcabeza@fdic.gov; or
     transmission line that interconnects                    CORPORATION
                                                                                                                   by telephone at (202) 898–3767.
     with the grid at an applicant-owned
     transformer.                                            Agency Information Collection                         SUPPLEMENTARY INFORMATION: Written
        No changes to project operations are                 Activities: Submission for OMB                        comments and suggestions from the
     proposed. Other than the development                    Review; Comment Request (OMB Nos.                     public and affected agencies concerning
     of canoe portage facilities, no new                     3064–0085 and 3064–0120)                              the proposed collections of information
     construction or major project                           AGENCY: Federal Deposit Insurance                     are encouraged. All comments received
     modifications are proposed.                             Corporation (FDIC).                                   will become a matter of public record.
        m. A copy of the application is                                                                            Your comments should address one or
                                                             ACTION: Notice and request for comment.
     available for review at the Commission                                                                        more of the following four points:
     in the Public Reference Room, or may be                 SUMMARY:   The Federal Deposit                        —Evaluate whether the proposed
     viewed on the Commission’s Web site at                  Insurance Corporation (FDIC) will                        collection of information is necessary
     http://www.ferc.gov using the eLibrary                  submit the following information                         for the proper performance of the
     link. Enter the docket number excluding                 collection request to the Office of                      functions of the agency, including
     the last three digits in the docket                     Management and Budget (OMB) for                          whether the information has practical
     number field to access the document.                    review and approval in accordance with                   utility;
     For assistance, contact FERC Online                     the Paperwork Reduction Act of 1995.                  —Evaluate the accuracy of the agency’s
     Support. A copy is also available for                   The proposed information collections                     estimate of the burden of the
     inspection and reproduction at the                      were previously published in the                         proposed information collection,
     address in item h above.                                Federal Register on July 6, 2017,                        including the validity of the
        You may also register online at http://              allowing for a 60-day comment.                           methodology and assumptions used;
     www.ferc.gov/docs-filing/                               DATES: Comments are encouraged and                    —Evaluate whether and if so, how, the
     esubscription.asp to be notified via                    will be accepted for an additional 30                    quality, utility, and clarity of the
     email of new filings and issuances                      days until October 30, 2017.                             information to be collected can be
     related to this or other pending projects.              ADDRESSES: Interested parties are                        enhanced; and
     For assistance, contact FERC Online                     invited to submit written comments to                 —Ways to minimize the burden of the
     Support.                                                the FDIC by any of the following
        n. Anyone may submit a protest or a                                                                           information collection on
                                                             methods:                                                 respondents, including through the
     motion to intervene in accordance with                     • http://www.FDIC.gov/regulations/                    use of automated collection
     the requirements of Rules of Practice                   laws/federal/notices.html                                techniques or other forms of
     and Procedure, 18 CFR 385.210, .211,                       • Email: comments@fdic.gov. Please                    information technology.
     and .214. In determining the appropriate                include the name and OMB control
     action to take, the Commission will                     number of the relevant information                    Overview of the Information Collection
     consider all protests or other comments                 collection in the subject line of the                 Request
     filed, but only those who file a motion                 message.
                                                                                                                     1. Title: Record Keeping, Reporting
     to intervene in accordance with the                        • Mail: Manny Cabeza, Counsel,
     Commission’s Rules may become a                                                                               and Disclosure Requirements in
                                                             Room MB–3007, Federal Deposit
     party to the proceeding. Any protests or                                                                      Connection with the Equal Credit
                                                             Insurance Corporation, 550 17th Street
     motions to intervene must be received                                                                         Opportunity Act Regulation B.
                                                             NW., Washington, DC 20429.
     on or before the specified comment date                    • Hand Delivery: Comments may be                     OMB Number: 3064–0085.
     for the particular application.                         hand-delivered to the guard station at                  Form Number: None.
        All filings must: (1) Bear in all capital            the rear of the 17th Street Building                    Affected Public: Insured state
     letters the title PROTEST or MOTION                     (located on F Street), on business days               nonmember banks and state savings
     TO INTERVENE; (2) set forth in the                      between 7:00 a.m. and 5:00 p.m.                       associations.




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     45286                           Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices

        Burden Estimate: 1

                                                                                                                                                                            Average time                Estimated
                                                                                            Number of                     Annual                      Total
                                Source and burden                                                                                                                           per response              annual burden
                                                                                           respondents                  frequency                  responses                  (Minutes)                  (Hours)

     Reporting burden:
        Credit Reporting History (1002.10) ...............................                               3,711                      1,333               4,946,763                               1            82,466
        Demographic Information Collected for Monitoring
           Purposes (1002.13(a)&(b)) .......................................                             3,711                         279              1,035,369                               1            17,256

              Total Reporting ......................................................      ........................   ........................   ........................   ........................          99,702
     Disclosure Burden:
         Disclosure for Optional Self-Test (1002.5) ...................                                     50                           1                     50                                2                2
         Notification (1002.9) ......................................................                    3,711                         333              1,235,763                                3           61,788
         Appraisal Report ...........................................................
         (1002.14(a)(1)) ..............................................................                  3,711                         279              1,035,369                               3            51,768
         Disclosure of Information Collected for Monitoring
            Purposes(1002.13(c)) ................................................                        3,711                         279              1,035,369                               1            17,256
              Notice of Right to Appraisal (1002.14(a)(2)) .........                                     3,711                         279              1,035,369                               1            17,256

               Total Disclosure .....................................................     ........................   ........................   ........................   ........................         148,071
     Recordkeeping Burden:
     Record Retention (Applications, Actions, Pre-Screened
       Solicitations)(1002.12) ......................................................                    3,711                      1,333               4,946,763                               3          247,338
     Record Retention (Self-Testing)(1002.12)(b)(6) ..................                                      50                          1                      50                               3                3

           Total Recordkeeping .....................................................      ........................   ........................   ........................   ........................        247,341

           Total Burden Hours ......................................................      ........................   ........................   ........................   ........................         495,113



        General Description of Collection:                               self-testing, the FDIC’s experience                                        1,333 loan applications × 25 percent =
     Regulation B (12 CFR part 1002) issued                              shows that very few banks actually                                             333 loans denied
     by the Consumer Financial Protection                                conduct these optional tests; our revised                                  1,000 loans approved × 24 percent = 240
     Bureau, prohibits creditors from                                    estimate of 50 banks is likely high. The                                       RRE loans
     discriminating against applicants on any                            FDIC has also updated the annual                                           240 RRE loans/(1 ¥ 14 percent) = 279
     bases specified by the Equal Credit                                 frequencies for each burden. The FDIC                                          RRE loan applications
     Opportunity Act; imposes, reporting,                                believes the prior estimate of 850
     record keeping and disclosure                                       approved loans per year, on average,                                         The table above now includes the
     requirements; establishes guidelines for                            was too low and has increased its                                          burden estimate for section 1002.13 that
     gathering and evaluating credit                                     estimate to 1,000. The agency has also                                     was inadvertently omitted from prior
     information; and requires creditors to                              corrected the frequencies for sections                                     information collection submissions.
     give applicants certain written notices.                            1002.5 and 1002.12 which are                                               Section 1002.13(a), to monitor
     There is no change in the method or                                 completed only once per year. As a                                         compliance, requires lenders to collect
     substance of the collection. The overall                            conservative estimate, FDIC assumes                                        demographic information from loan
     107,276 hour reduction in total                                     that the denial rate for residential real                                  applicants either on the application
     estimated annual burden (from 602,389                               estate loans applications for covered                                      form or on a separate form. Section
     to 495,113 hours) is a result of economic                           institutions is 14 percent. According to                                   1002.13(b) & (c) involve disclosing to
     fluctuation reflected in a reduction in                             Home Mortgage Disclosure Act (HMDA)                                        loan applicants the purpose and use of
     the number of FDIC-supervised                                       data from 2015, the denial rate for                                        this demographic information.
     institutions, and because of the revision                           conventional home-purchase loan                                              The burden table also deletes the
     of the FDIC’s estimates of the number of                            applications was 10.8 percent, and the                                     prior estimated burden for 1002.15
     responses and the average time required                             denial rate for nonconventional home-                                      which only describes the eligibility for
     to respond to the various information                               purchase loans was 13.9 percent.2 Call                                     incentives for self-testing and self-
     collections tasks.                                                  report data from June 30, 2017 shows                                       correction and does not involve any
        Changes to Data and Assumptions:                                 that approximately 24 percent of total                                     disclosures, reporting, or recordkeeping
     The burden estimates shown above                                    loan and lease balances are residential                                    requirements.
     include several changes from the                                    real estate loans (RRE), so, for purposes                                    The FDIC has updated its estimate of
     estimates the FDIC previously provided                              of estimating burden, FDIC assumes that                                    the number of burden hours required to
     for this information collection. The                                24 percent of the number of loans relate                                   complete each task. It has estimated a
     FDIC currently supervises 3,711 insured                             to RRE. The FDIC estimates that                                            burden of one to three minutes for most
     financial institutions, a decrease of 687                           approximately 25 percent of non-RRE                                        tasks (0.017 to 0.05 hours), a figure not
     from the 4,398 reported in 2014.                                    loans are denied.                                                          significantly different from the prior
     Whereas the FDIC previously estimated                                  The foregoing assumptions result in                                     estimates. However, the FDIC believes
     that 25 percent (1,100) of its supervised                           the following estimates:                                                   that the prior burden estimates for self-
     institutions would conduct optional                                                                                                            testing were greatly overstated. Whereas
                                                                         1,000 loans approved/(1 ¥ 25 percent)
       1 The average hours per response shown in the
                                                                              = 1,333 loan applications                                             previously, self-testing under section
     table are rounded, but the Estimated Annual
                                                                                                                                                    1002.12 was estimated to require two (2)
     Burden is calculated using the full decimal and                       2 Federal Reserve Bulletin, November 2016, Vol.                          hours to complete, the FDIC believes the
     then is rounded to the nearest hour.                                102, No. 6.                                                                recordkeeping requirement articulated


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                                       Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices                                                                                             45287

     in the rule should take only 3 minutes                                      Form Number: None.                                                             Burden Estimate:
     (0.05 hours) to complete.                                                   Affected Public: Insured state
       2. Title: Flood Insurance.                                              nonmember banks and state savings
       OMB Number: 3064–0120.                                                  associations.
                                                                                     TABLE 1—BURDEN CALCULATION
                                                                            Share of
                                Item                                                                     Hours                      Share                      Hours                    Hours               Total hours
                                                                             burden

     1. Disclosure to the Borrower ..................                                   50%                        0.50                       90%                        0.45                   0.225             25,097
     2. Disclosure to the Servicer ...................                 ........................   ........................   ........................   ........................                0.225             25,097
     3. Report to FEMA of a Change in
       Servicer ................................................       ........................   ........................                   10%                        0.05                      0.05             5,577
     4. Recordkeeping (Bank keeps a copy of
       all notifications) .....................................                            50                     0.50       ........................                    0.50                     0.50           55,770
                                                                       ........................                    1.0       ........................                     1.0                      1.0          111,540

     Respondents (FDIC supervised banks with real estate loans) ...........................................................................................................                                        3,718
     Frequency (Average no. of real estate loans serviced w/flood ins) ....................................................................................................                                           30

           Total burden .................................................................................................................................................................................       111,540
        Sources: FDIC, FEMA, Federal Reserve Board.


        General Description of Collection:                                     multifamily; nonfarm, nonresidential,                                        apportionment results in an average of
     Each supervised lending institution is                                    and agricultural loans secured by real                                       121 policies per bank, and a median of
     currently required to provide a notice of                                 estate. As of March 31, 2017, there were                                     30 policies per bank. Because the
     special flood hazards to each borrower                                    3,718 FDIC-regulated institutions with a                                     average is skewed by the large number
     with a loan secured by a building or                                      total value of about $1.19 trillion in                                       of policies at large banks, we believe the
     mobile home located or to be located in                                   these loans. Based on the foregoing, we                                      median is a better measure for
     an area identified by the Director of the                                 estimate that FDIC-regulated banks hold                                      calculating burden hours.
     Federal Emergency Management Agency                                       27.9% of these assets.                                                          Our subject-matter experts (SMEs) for
     as being subject to special flood hazards.                                   The Federal Reserve Board reported                                        this rule believe that the total burden to
     The Riegle Community Development                                          $14.41 trillion in mortgage debt                                             the public for complying with this rule
     Act requires that each institution also                                   outstanding in the U.S., with $4.63                                          is 1.0 hours per policy. We find four
     provide a copy of the notice to the                                       trillion (32.4%) held by depository                                          PRA related tasks in this rule: (1)
     servicer of the loan (if different from the                               institutions.4 Since this total debt held                                    Disclosure to Borrowers, (2) Disclosure
     originating lender).                                                      by banks is close to the value of these                                      to Servicers, (3) Reporting to FEMA of
        There is no change in the method or                                    real estate loans from Call Report data,                                     Changes in Coverage, and (4)
     substance of the collection. There is an                                  we have confidence that we can meld                                          Recordkeeping for tasks 1–3 above. We
     overall reduction in burden hours                                         the data sets for estimation purposes.                                       assume that Recordkeeping will
     which is the result of (1) economic                                       We therefore assume that 32.4% of the                                        comprise 1⁄2 hour, and the remaining 1⁄2
     fluctuation reflected by a decrease in the                                value of flood insurance policies will be                                    is split between the other tasks. We
     number of FDIC-supervised institutions                                    held by U.S. commercial banks: $401                                          assume that 90% of policies will
     and (2) a decrease in the number of                                       billion.                                                                     involve a new origination, and 10% of
     flood insurance policies nationally. In                                      In the absence of any data on the                                         policies will involve a change in status.
     particular, the number of respondents                                     number of real estate loans with flood                                          With 3,718 respondents holding a
     and the frequency of response (number                                     insurance at any bank, we resort to                                          median of 30 policies and 1 hour of
     of loans) have decreased while the                                        apportion 32.4% of the number of flood                                       burden per policy, we calculate a total
     hours per response remain the same.                                       insurance policies (1,614,801) to                                            burden of 111,540 hours. This burden is
        Changes to Data and Assumptions:                                       commercial banks, and 27.9% of those                                         apportioned to each task as shown in
     FDIC estimates total annual burden to                                     to FDIC-regulated institutions (451,177).                                    Table 1 above.
     be 111,540 hours. To obtain this figure,                                  Because the value of property varies
     FDIC relied on: (a) Data from the Federal                                 greatly between different geographical                                         Dated at Washington, DC, this 22nd day of
     Emergency Management Agency                                               regions and different banks, it is                                           September, 2017. Federal Deposit Insurance
                                                                                                                                                            Corporation.
     (FEMA) as of May 2017; (b) FDIC Call                                      doubtful that this estimation of the
     Report data as of March 31, 2017; and                                     number of policies is accurate.                                              Valerie J. Best,
     (c) Federal Reserve Board mortgage data                                   However, there exists no other                                               Assistant Executive Secretary.
     as of March 31, 2017.                                                     reasonable method for deriving the                                           [FR Doc. 2017–20759 Filed 9–27–17; 8:45 am]
        FEMA reported there were 4,983,954                                     number of policies at each bank given                                        BILLING CODE 6714–01–P
     flood insurance policies in effect with a                                 available data.
     total insured value of                                                       Next, we apportioned the 451,177
     $1,238,657,149,400.3                                                      flood insurance policies to each FDIC-                                       FEDERAL RESERVE SYSTEM
        FDIC Call Report data showed that as                                   regulated institution according to its
     of March 31, 2017, there were a total of                                  share of real estate loans to total real                                     Formations of, Acquisitions by, and
     5,790 FDIC-insured institutions with a                                    estate loans. The resulting                                                  Mergers of Savings and Loan Holding
     total of $4.25 trillion in 1–4 family;                                                                                                                 Companies
                                                                                 4 https://www.federalreserve.gov/econresdata/
       3 https://www.fema.gov/flood-insurance-statistics-                      releases/mortoutstand/mortoutstand20170331.htm                                 The companies listed in this notice
     current-month (accessed June 15, 2017).                                   (accessed June 15, 2017).                                                    have applied to the Board for approval,


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Document Created: 2017-09-28 01:32:43
Document Modified: 2017-09-28 01:32:43
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.
DatesComments are encouraged and will be accepted for an additional 30 days until October 30, 2017.
ContactIf you have additional comments, particularly with respect to the estimated public burden or associated response time, have suggestions, need a copy of any proposed information collection instrument and instructions, or desire any other additional information, please contact Manny Cabeza, Counsel, FDIC Legal Division either by mail at Room MB-3007, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429; by email at [email protected]; or by telephone at (202) 898-3767.
FR Citation82 FR 45285 

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