83 FR 4121 - Agency Information Collection Activities: Information Collection Renewal; Comment Request; Credit Risk Retention

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency

Federal Register Volume 83, Issue 19 (January 29, 2018)

Page Range		4121-4124
FR Document		2018-01521
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other federal agencies to take this opportunity to comment on a continuing 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 comment concerning the renewal of its information collection titled, ``Credit Risk Retention.''
Federal Register, Volume 83 Issue 19 (Monday, January 29, 2018)
[Federal Register Volume 83, Number 19 (Monday, January 29, 2018)]
[Notices]
[Pages 4121-4124]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01521]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Comment Request; Credit Risk Retention

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

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other federal 
agencies to take this opportunity to comment on a continuing 
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 comment concerning the renewal of its information collection 
titled, ``Credit Risk Retention.''

DATES: You should submit written comments by March 30, 2018.

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: 1557-0249, 400 7th Street SW, Suite 3E-218, 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 hearing impaired, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid 
government-issued photo identification and 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 include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, for persons who are deaf or hearing 
impaired, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street SW, 
Suite 3E-218, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), federal 
agencies must obtain approval from the OMB for each collection of 
information that they conduct or sponsor. ``Collection of information'' 
is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency 
requests or requirements that members of the public submit reports, 
keep records, or provide information to a third party. Section 
3506(c)(2)(A) of title 44 requires federal agencies to provide a 60-day 
notice in the Federal Register concerning each proposed collection of 
information, including each proposed extension of an existing 
collection of information, before submitting the collection to OMB for 
approval. To comply with this requirement, the OCC is publishing notice 
of the proposed collection of information set forth in this document.
    Title: Credit Risk Retention.
    OMB Control No.: 1557-0249.
    Affected Public: Business or other for-profit.
    Type of Review: Regular review.
    Abstract: This information collection request relates to 12 CFR 
part 43, which implemented section 941(b) of the Dodd-Frank Act.\1\ 
Section 941(b) of the Dodd-Frank Act required the OCC, Board of 
Governors of the Federal Reserve System (FRB), Federal Deposit 
Insurance Corporation (FDIC), Securities and Exchange Commission (SEC), 
and, in the case of the securitization of any residential mortgage 
asset, the Federal Housing Finance Agency (FHFA), and the Department of 
Housing and Urban Development (HUD) to issue rules that, subject to 
certain exemptions: Require a securitizer to retain not less than 5% of 
the credit risk of any asset that the securitizer, through the issuance 
of an asset-backed security, transfers, sells, or conveys to a third 
party; and prohibit a securitizer from directly or indirectly hedging 
or otherwise transferring the credit risk that the securitizer is 
required to retain under the statute and implementing regulations.
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    \1\ Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Pub. L. 111-203, 124 Stat. 1376 (July 21, 2010)).
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    Part 43 sets forth permissible forms of risk retention for 
securitizations that involve issuance of asset-backed securities. 
Section 15G of the Exchange Act also exempts certain types of 
securitization transactions from these risk retention requirements and 
authorizes the agencies to exempt or establish a lower risk retention 
requirement for other types of securitization transactions. Section 15G 
also states that the agencies must permit a securitizer to retain less 
than five percent of the credit risk of commercial mortgages, 
commercial loans, and automobile loans that are transferred, sold, or 
conveyed through the issuance of ABS by the securitizer if the loans 
meet underwriting standards established by the federal banking 
agencies.\2\
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    \2\ 15 U.S.C. 78o-11(c)(1)(B)(ii) and (2).
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    Part 43 sets forth permissible forms of risk retention for 
securitizations that involve issuance of asset-backed securities, as 
well as exemptions from the risk retention requirements, and contains 
requirements subject to the PRA.
    Section 43.4 sets forth the conditions that must be met by sponsors 
electing to use the standard risk retention option, which may consist 
of an eligible vertical interest or an eligible horizontal residual 
interest, or any combination thereof. Sections 43.4(c)(1) and 
43.4(c)(2) specify the disclosures required with respect to eligible 
horizontal residual interests and eligible vertical interests, 
respectively.

[[Page 4122]]

    A sponsor retaining any eligible horizontal residual interest (or 
funding a horizontal cash reserve account) is required to disclose: The 
fair value (or a range of fair values and the method used to determine 
such range) of the eligible horizontal residual interest that the 
sponsor expects to retain at the closing of the securitization 
transaction (Sec.  43.4(c)(1)(i)(A)); the material terms of the 
eligible horizontal residual interest (Sec.  43.4(c)(1)(i)(B)); the 
methodology used to calculate the fair value (or range of fair values) 
of all classes of ABS interests (Sec.  43.4(c)(1)(i)(C)); the key 
inputs and assumptions used in measuring the estimated total fair value 
(or range of fair values) of all classes of ABS interests (Sec.  
43.4(c)(1)(i)(D)); the reference data set or other historical 
information used to develop the key inputs and assumptions (Sec.  
43.4(c)(1)(i)(G)); the fair value of the eligible horizontal residual 
interest retained by the sponsor (Sec.  43.4(c)(1)(ii)(A)); the fair 
value of the eligible horizontal residual interest required to be 
retained by the sponsor (Sec.  43.4(c)(1)(ii)(B)); a description of any 
material differences between the methodology used in calculating the 
fair value disclosed prior to sale and the methodology used to 
calculate the fair value at the time of closing (Sec.  
43.4(c)(1)(ii)(C)); and the amount placed by the sponsor in the 
horizontal cash reserve account at closing, the fair value of the 
eligible horizontal residual interest that the sponsor is required to 
fund through such account, and a description of such account (Sec.  
43.4(c)(1)(iii)).
    For eligible vertical interests, the sponsor is required to 
disclose: The form of the eligible vertical interest (Sec.  
43.4(c)(2)(i)(A)); the percentage that the sponsor is required to 
retain (Sec.  43.4(c)(2)(i)(B)); a description of the material terms of 
the vertical interest and the amount the sponsor expects to retain at 
closing (Sec.  43.4(c)(2)(i)(C)); and the amount of vertical interest 
retained by the sponsor at closing ((Sec.  43.4(c)(2)(ii)).
    Section 43.4(d) requires a sponsor to retain the certifications and 
disclosures required in paragraphs (a) and (c) of this section in its 
records and must provide the disclosure upon request to the Commission 
and the sponsor's appropriate federal banking agency, if any, until 
three years after all ABS interests are no longer outstanding.
    Section 43.5(k) requires sponsors relying on the master trust (or 
revolving pool securitization) risk retention option to disclose: The 
material terms of the seller's interest and the percentage of the 
seller's interest that the sponsor expects to retain at the closing of 
the transaction (Sec.  43.5(k)(1)(i)); the percentage of the seller's 
interest that the sponsor retained at closing (Sec.  43.5(k)(1)(ii)); 
the material terms of any horizontal risk retention offsetting the 
seller's interest under Sec.  43.5(g), Sec.  43.5(h) and Sec.  43.5(i) 
(Sec.  43.5(k)(1)(iii)); and the fair value of any horizontal risk 
retention retained by the sponsor (Sec.  43.5(k)(1)(iv)). Additionally, 
a sponsor must retain the disclosures required in Sec.  43.5(k)(1) in 
its records and must provide the disclosure upon request to the 
Commission and the sponsor's appropriate federal banking agency, if 
any, until three years after all ABS interests are no longer 
outstanding (Sec.  43.5(k)(3)).
    Section 43.6 addresses the requirements for sponsors utilizing the 
eligible ABCP conduit risk retention option. The requirements for the 
eligible ABCP conduit risk retention option include disclosure to each 
purchaser of ABCP and periodically to each holder of commercial paper 
issued by the ABCP conduit of the name and form of organization of the 
regulated liquidity provider that provides liquidity coverage to the 
eligible ABCP conduit, including a description of the material terms of 
such liquidity coverage, and notice of any failure to fund; and with 
respect to each ABS interest held by the ABCP conduit, the asset class 
or brief description of the underlying securitized assets, the standard 
industrial category code for each originator-seller that retains an 
interest in the securitization transaction, and a description of the 
percentage amount and form of interest retained by each originator-
seller (Sec.  43.6(d)(1)). An ABCP conduit sponsor relying upon this 
section shall provide, upon request, to the Commission and the 
sponsor's appropriate Federal banking agency, if any, the information 
required under Sec.  43.6(d)(1), in addition to the name and form of 
organization of each originator-seller that retains an interest in the 
securitization transaction (Sec.  43.6(d)(2)).
    A sponsor relying on the eligible ABCP conduit risk retention 
option shall maintain and adhere to policies and procedures to monitor 
compliance by each originator-seller which is satisfying a risk 
retention obligation in respect to ABS interests acquired by an 
eligible ABCP conduit (Sec.  43.6(f)(2)(i)). If the ABCP conduit 
sponsor determines that an originator-seller is no longer in 
compliance, the sponsor must promptly notify the holders of the ABCP, 
and upon request, the Commission and the sponsor's appropriate federal 
banking agency, in writing of the name and form of organization of any 
originator-seller that fails to retain, and the amount of ABS interests 
issued by an intermediate SPV of such originator-seller and held by the 
ABCP conduit (Sec.  43.6(f)(2)(ii)(A)(1)); the name and form of 
organization of any originator-seller that hedges, directly or 
indirectly through an intermediate SPV, its risk retention in violation 
of the rule, and the amount of ABS interests issued by an intermediate 
SPV of such originator-seller and held by the ABCP conduit (Sec.  
43.6(f)(2)(ii)(A)(2)); and any remedial actions taken by the ABCP 
conduit sponsor or other party with respect to such ABS interests 
(Sec.  43.6(f)(2)(ii)(A)(3)).
    Section 43.7 sets forth the requirements for sponsors relying on 
the commercial mortgage-backed securities risk retention option, and 
includes disclosures of: The name and form of organization of each 
initial third-party purchaser (Sec.  43.7(b)(7)(i)); each initial 
third-party purchaser's experience in investing in commercial mortgage-
backed securities (Sec.  43.7(b)(7)(ii)); other material information 
(Sec.  43.7(b)(7)(iii)); the fair value and purchase price of the 
eligible horizontal residual interest retained by each third-party 
purchaser, and the fair value of the eligible horizontal residual 
interest that the sponsor would have retained if the sponsor had relied 
on retaining an eligible horizontal residual interest under the 
standard risk retention option (Sec.  43.7(b)(7)(iv) and (v)); a 
description of the material terms of the eligible horizontal residual 
interest retained by each initial third-party purchaser, including the 
same information as is required to be disclosed by sponsors retaining 
horizontal interests pursuant to Sec.  43.4 (Sec.  43.7(b)(7)(vi)); the 
material terms of the applicable transaction documents with respect to 
the Operating Advisor (Sec.  43.7(b)(7)(vii)); and representations and 
warranties concerning the securitized assets, a schedule of any 
securitized assets that are determined not to comply with such 
representations and warranties, and the factors used to determine that 
such securitized assets should be included in the pool notwithstanding 
that they did not comply with the representations and warranties (Sec.  
43.7(b)(7)(viii)). A sponsor relying on the commercial mortgage-backed 
securities risk retention option is also required to provide in the 
underlying securitization transaction documents certain provisions 
related to the Operating Advisor (Sec.  43.7(b)(6)), to maintain and 
adhere to policies and procedures to monitor compliance by third-party 
purchasers with regulatory requirements (Sec.  43.7(c)(2)(A)), and to

[[Page 4123]]

notify the holders of the ABS interests in the event of noncompliance 
by a third-party purchaser with such regulatory requirements (Sec.  
43.7(c)(2)(B)).
    Section 43.8 requires that a sponsor relying on the Federal 
National Mortgage Association and Federal Home Loan Mortgage 
Corporation risk retention option must disclose a description of the 
manner in which it has met the credit risk retention requirements 
(Sec.  43.8(c)).
    Section 43.9 sets forth the requirements for sponsors relying on 
the open market CLO risk retention option, and includes disclosures of 
a complete list of, and certain information related to, every asset 
held by an open market CLO (Sec.  43.9(d)(1)), and the full legal name 
and form of organization of the CLO manager (Sec.  43.9(d)(2)).
    Section 43.10 sets forth the requirements for sponsors relying on 
the qualified tender option bond risk retention option, and includes 
disclosures of the name and form of organization of the qualified 
tender option bond entity, a description of the form and subordination 
features of the retained interest in accordance with the disclosure 
obligations in section 43.4(d), the fair value of any portion of the 
retained interest that is claimed by the sponsor as an eligible 
horizontal residual interest, and the percentage of ABS interests 
issued that is represented by any portion of the retained interest that 
is claimed by the sponsor as an eligible vertical interest (Sec.  
43.10(e)(1)-(4)). In addition, to the extent any portion of the 
retained interest claimed by the sponsor is a municipal security held 
outside of the qualified tender option bond entity, the sponsor must 
disclose the name and form of organization of the qualified tender 
option bond entity, the identity of the issuer of the municipal 
securities, the face value of the municipal securities deposited into 
the qualified tender option bond entity, and the face value of the 
municipal securities retained outside of the qualified tender option 
bond entity by the sponsor or its majority-owned affiliates (Sec.  
43.10(e)(5)).
    Section 43.11 sets forth the conditions that apply when the sponsor 
of a securitization allocates to originators of securitized assets a 
portion of the credit risk the sponsor is required to retain, including 
disclosure of the name and form of organization of any originator that 
acquires and retains an interest in the transaction, a description of 
the form, amount and nature of such interest, and the method of payment 
for such interest (Sec.  43.11(a)(2)). A sponsor relying on this 
section is required to maintain and adhere to policies and procedures 
that are reasonably designed to monitor originator compliance with 
retention amount and hedging, transferring and pledging requirements 
(Sec.  43.11(b)(2)(A)), and to promptly notify the holders of the ABS 
interests in the transaction in the event of originator non-compliance 
with such regulatory requirements (Sec.  43.11(b)(2)(B)).
    Sections 43.13 and 43.19(g) provide exemptions from the risk 
retention requirements for qualified residential mortgages and 
qualifying 3-to-4 unit residential mortgage loans that meet certain 
specified criteria, including that the depositor with respect to the 
securitization transaction certify that it has evaluated the 
effectiveness of its internal supervisory controls and concluded that 
the controls are effective (Sec. Sec.  43.13(b)(4)(i) and 43.19(g)(2)), 
and that the sponsor provide a copy of the certification to potential 
investors prior to sale of asset-backed securities in the issuing 
entity (Sec. Sec.  43.13(b)(4)(iii) and 43.19(g)(2)). In addition, 
Sec. Sec.  43.13(c)(3) and 43.19(g)(3) provide that a sponsor that has 
relied upon the exemptions will not lose the exemptions if, after 
closing of the transaction, it is determined that one or more of the 
residential mortgage loans does not meet all of the criteria; provided 
that the depositor complies with certain specified requirements, 
including prompt notice to the holders of the asset-backed securities 
of any loan that is required to be repurchased by the sponsor, the 
amount of such repurchased loan, and the cause for such repurchase.
    Section 43.15 provides exemptions from the risk retention 
requirements for qualifying commercial loans that meet the criteria 
specified in Sec.  43.16, qualifying CRE loans that meet the criteria 
specified in Sec.  43.17, and qualifying automobile loans that meet the 
criteria specified in Sec.  43.18. Section 43.15 also requires the 
sponsor to disclose a description of the manner in which the sponsor 
determined the aggregate risk retention requirement for the 
securitization transaction after including qualifying commercial loans, 
qualifying CRE loans, or qualifying automobile loans with 0 percent 
risk retention (Sec.  43.15(a)(4)). In addition, the sponsor is 
required to disclose descriptions of the qualifying commercial loans, 
qualifying CRE loans, and qualifying automobile loans (``qualifying 
assets''), and descriptions of the assets that are not qualifying 
assets, and the material differences between the group of qualifying 
assets and the group of assets that are not qualifying assets with 
respect to the composition of each group's loan balances, loan terms, 
interest rates, borrower credit information, and characteristics of any 
loan collateral (Sec.  43.15(b)(3)). Additionally, a sponsor must 
retain the disclosures required in Sec. Sec.  43.15(a) and (b) in its 
records and must provide the disclosure upon request to the Commission 
and the sponsor's appropriate federal banking agency, if any, until 
three years after all ABS interests are no longer outstanding (Sec.  
43.15(d)).
    Sections 43.16, 43.17 and 43.18 each require that: The depositor of 
the asset-backed security certify that it has evaluated the 
effectiveness of its internal supervisory controls and concluded that 
its internal supervisory controls are effective (Sec. Sec.  
43.16(a)(8)(i), 43.17(a)(10)(i), and 43.18(a)(8)(i)); the sponsor is 
required to provide a copy of the certification to potential investors 
prior to the sale of asset-backed securities in the issuing entity 
(Sec. Sec.  43.16(a)(8)(iii), 43.17(a)(10)(iii), and 43.18(a)(8)(iii)); 
and the sponsor must promptly notify the holders of the asset-backed 
securities of any loan included in the transaction that is required to 
be cured or repurchased by the sponsor, including the principal amount 
of such loan and the cause for such cure or repurchase (Sec. Sec.  
43.16(b)(3), 43.17(b)(3), and 43.18(b)(3)). Additionally, a sponsor 
must retain the disclosures required in Sec. Sec.  43.16(a)(8), 
43.17(a)(10) and 43.18(a)(8) in its records and must provide the 
disclosure upon request to the Commission and the sponsor's appropriate 
Federal banking agency, if any, until three years after all ABS 
interests are no longer outstanding (Sec.  43.15(d)).
    Estimated Number of Respondents: 35 sponsors; 182 annual offerings 
per year.
    Total Estimated Annual Burden: 3,139 hours.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval. 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

[[Page 4124]]

    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: January 23, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel, Office of the 
Comptroller of the Currency.
[FR Doc. 2018-01521 Filed 1-26-18; 8:45 am]
BILLING CODE 4810-33-P
4122 Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices

A sponsor retaining any eligible expects to retain at the closing of the that fails to retain, and the amount of
horizontal residual interest (or funding transaction (§ 43.5(k)(1)(i)); the ABS interests issued by an intermediate
a horizontal cash reserve account) is percentage of the seller’s interest that SPV of such originator-seller and held
required to disclose: The fair value (or the sponsor retained at closing by the ABCP conduit
a range of fair values and the method (§ 43.5(k)(1)(ii)); the material terms of (§ 43.6(f)(2)(ii)(A)(1)); the name and
used to determine such range) of the any horizontal risk retention offsetting form of organization of any originator-
eligible horizontal residual interest that the seller’s interest under § 43.5(g), seller that hedges, directly or indirectly
the sponsor expects to retain at the § 43.5(h) and § 43.5(i) (§ 43.5(k)(1)(iii)); through an intermediate SPV, its risk
closing of the securitization transaction and the fair value of any horizontal risk retention in violation of the rule, and
(§ 43.4(c)(1)(i)(A)); the material terms of retention retained by the sponsor the amount of ABS interests issued by
the eligible horizontal residual interest (§ 43.5(k)(1)(iv)). Additionally, a an intermediate SPV of such originator-
(§ 43.4(c)(1)(i)(B)); the methodology sponsor must retain the disclosures seller and held by the ABCP conduit
used to calculate the fair value (or range required in § 43.5(k)(1) in its records (§ 43.6(f)(2)(ii)(A)(2)); and any remedial
of fair values) of all classes of ABS and must provide the disclosure upon actions taken by the ABCP conduit
interests (§ 43.4(c)(1)(i)(C)); the key request to the Commission and the sponsor or other party with respect to
inputs and assumptions used in sponsor’s appropriate federal banking such ABS interests
measuring the estimated total fair value agency, if any, until three years after all (§ 43.6(f)(2)(ii)(A)(3)).
(or range of fair values) of all classes of ABS interests are no longer outstanding Section 43.7 sets forth the
ABS interests (§ 43.4(c)(1)(i)(D)); the (§ 43.5(k)(3)). requirements for sponsors relying on the
reference data set or other historical Section 43.6 addresses the
commercial mortgage-backed securities
information used to develop the key requirements for sponsors utilizing the
risk retention option, and includes
inputs and assumptions eligible ABCP conduit risk retention
disclosures of: The name and form of
(§ 43.4(c)(1)(i)(G)); the fair value of the option. The requirements for the eligible
organization of each initial third-party
eligible horizontal residual interest ABCP conduit risk retention option
purchaser (§ 43.7(b)(7)(i)); each initial
retained by the sponsor include disclosure to each purchaser of
third-party purchaser’s experience in
(§ 43.4(c)(1)(ii)(A)); the fair value of the ABCP and periodically to each holder of
investing in commercial mortgage-
eligible horizontal residual interest commercial paper issued by the ABCP
backed securities (§ 43.7(b)(7)(ii)); other
required to be retained by the sponsor conduit of the name and form of
material information (§ 43.7(b)(7)(iii));
(§ 43.4(c)(1)(ii)(B)); a description of any organization of the regulated liquidity
provider that provides liquidity the fair value and purchase price of the
material differences between the
coverage to the eligible ABCP conduit, eligible horizontal residual interest
methodology used in calculating the fair
including a description of the material retained by each third-party purchaser,
value disclosed prior to sale and the
terms of such liquidity coverage, and and the fair value of the eligible
methodology used to calculate the fair
notice of any failure to fund; and with horizontal residual interest that the
value at the time of closing
respect to each ABS interest held by the sponsor would have retained if the
(§ 43.4(c)(1)(ii)(C)); and the amount
ABCP conduit, the asset class or brief sponsor had relied on retaining an
placed by the sponsor in the horizontal
cash reserve account at closing, the fair description of the underlying eligible horizontal residual interest
value of the eligible horizontal residual securitized assets, the standard under the standard risk retention option
interest that the sponsor is required to industrial category code for each (§ 43.7(b)(7)(iv) and (v)); a description of
fund through such account, and a originator-seller that retains an interest the material terms of the eligible
description of such account in the securitization transaction, and a horizontal residual interest retained by
(§ 43.4(c)(1)(iii)). description of the percentage amount each initial third-party purchaser,
For eligible vertical interests, the and form of interest retained by each including the same information as is
sponsor is required to disclose: The originator-seller (§ 43.6(d)(1)). An ABCP required to be disclosed by sponsors
form of the eligible vertical interest conduit sponsor relying upon this retaining horizontal interests pursuant
(§ 43.4(c)(2)(i)(A)); the percentage that section shall provide, upon request, to to § 43.4 (§ 43.7(b)(7)(vi)); the material
the sponsor is required to retain the Commission and the sponsor’s terms of the applicable transaction
(§ 43.4(c)(2)(i)(B)); a description of the appropriate Federal banking agency, if documents with respect to the
material terms of the vertical interest any, the information required under Operating Advisor (§ 43.7(b)(7)(vii));
and the amount the sponsor expects to § 43.6(d)(1), in addition to the name and and representations and warranties
retain at closing (§ 43.4(c)(2)(i)(C)); and form of organization of each originator- concerning the securitized assets, a
the amount of vertical interest retained seller that retains an interest in the schedule of any securitized assets that
by the sponsor at closing securitization transaction (§ 43.6(d)(2)). are determined not to comply with such
((§ 43.4(c)(2)(ii)). A sponsor relying on the eligible representations and warranties, and the
Section 43.4(d) requires a sponsor to ABCP conduit risk retention option factors used to determine that such
retain the certifications and disclosures shall maintain and adhere to policies securitized assets should be included in
required in paragraphs (a) and (c) of this and procedures to monitor compliance the pool notwithstanding that they did
section in its records and must provide by each originator-seller which is not comply with the representations and
the disclosure upon request to the satisfying a risk retention obligation in warranties (§ 43.7(b)(7)(viii)). A sponsor
Commission and the sponsor’s respect to ABS interests acquired by an relying on the commercial mortgage-
appropriate federal banking agency, if eligible ABCP conduit (§ 43.6(f)(2)(i)). If backed securities risk retention option is
also required to provide in the
sradovich on DSK3GMQ082PROD with NOTICES

any, until three years after all ABS the ABCP conduit sponsor determines
interests are no longer outstanding. that an originator-seller is no longer in underlying securitization transaction
Section 43.5(k) requires sponsors compliance, the sponsor must promptly documents certain provisions related to
relying on the master trust (or revolving notify the holders of the ABCP, and the Operating Advisor (§ 43.7(b)(6)), to
pool securitization) risk retention option upon request, the Commission and the maintain and adhere to policies and
to disclose: The material terms of the sponsor’s appropriate federal banking procedures to monitor compliance by
seller’s interest and the percentage of agency, in writing of the name and form third-party purchasers with regulatory
the seller’s interest that the sponsor of organization of any originator-seller requirements (§ 43.7(c)(2)(A)), and to

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notify the holders of the ABS interests procedures that are reasonably designed balances, loan terms, interest rates,
in the event of noncompliance by a to monitor originator compliance with borrower credit information, and
third-party purchaser with such retention amount and hedging, characteristics of any loan collateral
regulatory requirements (§ 43.7(c)(2)(B)). transferring and pledging requirements (§ 43.15(b)(3)). Additionally, a sponsor
Section 43.8 requires that a sponsor (§ 43.11(b)(2)(A)), and to promptly must retain the disclosures required in
relying on the Federal National notify the holders of the ABS interests §§ 43.15(a) and (b) in its records and
Mortgage Association and Federal Home in the transaction in the event of must provide the disclosure upon
Loan Mortgage Corporation risk originator non-compliance with such request to the Commission and the
retention option must disclose a regulatory requirements sponsor’s appropriate federal banking
description of the manner in which it (§ 43.11(b)(2)(B)). agency, if any, until three years after all
has met the credit risk retention Sections 43.13 and 43.19(g) provide ABS interests are no longer outstanding
requirements (§ 43.8(c)). exemptions from the risk retention (§ 43.15(d)).
Section 43.9 sets forth the requirements for qualified residential Sections 43.16, 43.17 and 43.18 each
requirements for sponsors relying on the mortgages and qualifying 3-to-4 unit require that: The depositor of the asset-
open market CLO risk retention option, residential mortgage loans that meet backed security certify that it has
and includes disclosures of a complete certain specified criteria, including that evaluated the effectiveness of its
list of, and certain information related the depositor with respect to the internal supervisory controls and
to, every asset held by an open market securitization transaction certify that it concluded that its internal supervisory
CLO (§ 43.9(d)(1)), and the full legal has evaluated the effectiveness of its controls are effective (§§ 43.16(a)(8)(i),
name and form of organization of the internal supervisory controls and 43.17(a)(10)(i), and 43.18(a)(8)(i)); the
CLO manager (§ 43.9(d)(2)). concluded that the controls are effective sponsor is required to provide a copy of
Section 43.10 sets forth the (§§ 43.13(b)(4)(i) and 43.19(g)(2)), and the certification to potential investors
requirements for sponsors relying on the that the sponsor provide a copy of the prior to the sale of asset-backed
qualified tender option bond risk certification to potential investors prior securities in the issuing entity
retention option, and includes to sale of asset-backed securities in the (§§ 43.16(a)(8)(iii), 43.17(a)(10)(iii), and
disclosures of the name and form of issuing entity (§§ 43.13(b)(4)(iii) and 43.18(a)(8)(iii)); and the sponsor must
organization of the qualified tender 43.19(g)(2)). In addition, §§ 43.13(c)(3) promptly notify the holders of the asset-
option bond entity, a description of the and 43.19(g)(3) provide that a sponsor backed securities of any loan included
form and subordination features of the that has relied upon the exemptions will in the transaction that is required to be
retained interest in accordance with the not lose the exemptions if, after closing cured or repurchased by the sponsor,
disclosure obligations in section 43.4(d), of the transaction, it is determined that including the principal amount of such
the fair value of any portion of the one or more of the residential mortgage loan and the cause for such cure or
retained interest that is claimed by the loans does not meet all of the criteria; repurchase (§§ 43.16(b)(3), 43.17(b)(3),
sponsor as an eligible horizontal provided that the depositor complies and 43.18(b)(3)). Additionally, a sponsor
residual interest, and the percentage of with certain specified requirements, must retain the disclosures required in
ABS interests issued that is represented including prompt notice to the holders §§ 43.16(a)(8), 43.17(a)(10) and
by any portion of the retained interest of the asset-backed securities of any 43.18(a)(8) in its records and must
that is claimed by the sponsor as an loan that is required to be repurchased provide the disclosure upon request to
eligible vertical interest (§ 43.10(e)(1)– by the sponsor, the amount of such the Commission and the sponsor’s
(4)). In addition, to the extent any repurchased loan, and the cause for appropriate Federal banking agency, if
portion of the retained interest claimed such repurchase. any, until three years after all ABS
by the sponsor is a municipal security Section 43.15 provides exemptions interests are no longer outstanding
held outside of the qualified tender from the risk retention requirements for (§ 43.15(d)).
option bond entity, the sponsor must qualifying commercial loans that meet Estimated Number of Respondents: 35
disclose the name and form of the criteria specified in § 43.16, sponsors; 182 annual offerings per year.
organization of the qualified tender qualifying CRE loans that meet the Total Estimated Annual Burden:
option bond entity, the identity of the criteria specified in § 43.17, and 3,139 hours.
issuer of the municipal securities, the qualifying automobile loans that meet Comments submitted in response to
face value of the municipal securities the criteria specified in § 43.18. Section this notice will be summarized and
deposited into the qualified tender 43.15 also requires the sponsor to included in the request for OMB
option bond entity, and the face value disclose a description of the manner in approval. All comments will become a
of the municipal securities retained which the sponsor determined the matter of public record. Comments are
outside of the qualified tender option aggregate risk retention requirement for invited on:
bond entity by the sponsor or its the securitization transaction after (a) Whether the collection of
majority-owned affiliates (§ 43.10(e)(5)). including qualifying commercial loans, information is necessary for the proper
Section 43.11 sets forth the conditions qualifying CRE loans, or qualifying performance of the functions of the
that apply when the sponsor of a automobile loans with 0 percent risk OCC, including whether the information
securitization allocates to originators of retention (§ 43.15(a)(4)). In addition, the has practical utility;
securitized assets a portion of the credit sponsor is required to disclose (b) The accuracy of the OCC’s
risk the sponsor is required to retain, descriptions of the qualifying estimate of the information collection
including disclosure of the name and commercial loans, qualifying CRE loans, burden;
form of organization of any originator
sradovich on DSK3GMQ082PROD with NOTICES

and qualifying automobile loans (c) Ways to enhance the quality,
that acquires and retains an interest in (‘‘qualifying assets’’), and descriptions utility, and clarity of the information to
the transaction, a description of the of the assets that are not qualifying be collected;
form, amount and nature of such assets, and the material differences (d) Ways to minimize the burden of
interest, and the method of payment for between the group of qualifying assets the collection on respondents, including
such interest (§ 43.11(a)(2)). A sponsor and the group of assets that are not through the use of automated collection
relying on this section is required to qualifying assets with respect to the techniques or other forms of information
maintain and adhere to policies and composition of each group’s loan technology; and

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4124 Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices

(e) Estimates of capital or start-up determination, collection, or refund of DEPARTMENT OF THE TREASURY
costs and costs of operation, any tax, interest, or penalty. Section
maintenance, and purchase of services 301.7430–2(c) of the regulation provides Internal Revenue Service
to provide information. that the IRS will not award
administrative costs under section 7430 Proposed Collection; Comment
Dated: January 23, 2018. Request for Form 8802
Karen Solomon,
unless the taxpayer files a written
request in accordance with the AGENCY: Internal Revenue Service (IRS),
Acting Senior Deputy Comptroller and Chief
Counsel, Office of the Comptroller of the
requirements of the regulation. Treasury.
Currency. Current Actions: There is no change to ACTION: Notice and request for
[FR Doc. 2018–01521 Filed 1–26–18; 8:45 am] this existing regulation. comments.
BILLING CODE 4810–33–P
Type of Review: Extension of a
currently approved collection. SUMMARY: The Internal Revenue Service,
Affected Public: Individuals or as part of its continuing effort to reduce
DEPARTMENT OF THE TREASURY households, and business or other for- paperwork and respondent burden,
profit organizations, not-for-profit invites the general public and other
Internal Revenue Service institutions, farms, and the Federal Federal agencies to take this
government. opportunity to comment on proposed
Proposed Collection; Comment Estimated Number of Respondents: and/or continuing information
Request for Regulation Project 38. collections, as required by the
Estimated Time per Respondent: 2 Paperwork Reduction Act of 1995.
AGENCY: Internal Revenue Service (IRS),
hours, 16 minutes. Currently, the IRS is soliciting
Treasury.
Estimated Total Annual Burden comments concerning Form 8802,
ACTION: Notice and request for Application for United States Residency
comments. Hours: 86.
The following paragraph applies to all Certification.
SUMMARY: The Internal Revenue Service, of the collections of information covered DATES: Written comments should be
as part of its continuing effort to reduce by this notice: received on or before March 30, 2018 to
paperwork and respondent burden, An agency may not conduct or be assured of consideration.
invites the general public and other sponsor, and a person is not required to ADDRESSES: Direct all written comments
Federal agencies to take this respond to, a collection of information to Laurie Brimmer at Internal Revenue
opportunity to comment on proposed unless the collection of information Service, Room 6526, 1111 Constitution
and/or continuing information displays a valid OMB control number. Avenue NW, Washington, DC 20224.
collections, as required by the Books or records relating to a collection FOR FURTHER INFORMATION CONTACT:
Paperwork Reduction Act of 1995. of information must be retained as long Requests for additional information or
Currently, the IRS is soliciting as their contents may become material copies of the form and instructions
comments concerning, Miscellaneous in the administration of any internal should be directed to LaNita Van Dyke
Sections Affected by the Taxpayer Bill revenue law. Generally, tax returns and at Internal Revenue Service, Room 6526,
of Rights 2 and the Personal tax return information are confidential, 1111 Constitution Avenue NW,
Responsibility and Work Opportunity as required by 26 U.S.C. 6103. Washington, DC 20224, or (202) 317–
Reconciliation Act of 1996. Request for Comments: Comments 6009 or, through the internet at
DATES: Written comments should be submitted in response to this notice will Lanita.VanDyke@irs.gov.
received on or before March 30, 2018 to be summarized and/or included in the SUPPLEMENTARY INFORMATION:
be assured of consideration. request for OMB approval. All Title: Application for United States
ADDRESSES: Direct all written comments comments will become a matter of Residency Certification.
to Laurie Brimmer, Internal Revenue public record. Comments are invited on: OMB Number: 1545–1817.
Service, Room 6526, 1111 Constitution (a) Whether the collection of Form Number: Form 8802.
Avenue NW, Washington, DC 20224. information is necessary for the proper Abstract: An entity must use Form
performance of the functions of the 8802 to apply for United States
FOR FURTHER INFORMATION CONTACT:
agency, including whether the Residency Certification. All requests for
Requests for additional information or U.S. residency certification must be
information shall have practical utility;
copies of the regulation should be received on Form 8802, Application for
(b) the accuracy of the agency’s estimate
directed to LaNita Van Dyke, Internal United States Residency Certification.
of the burden of the collection of
Revenue Service, Room 6526, 1111 As proof of residency in the United
information; (c) ways to enhance the
Constitution Avenue NW, Washington, States and of entitlement to the benefits
quality, utility, and clarity of the
DC 20224 or (202) 317–6009 or, through of a tax treaty, U.S. Government
information to be collected; (d) ways to
the internet at Lanita.VanDyke@irs.gov. certification that you are a U.S. citizen,
minimize the burden of the collection of
SUPPLEMENTARY INFORMATION: information on respondents, including U.S. corporation, U.S. partnership, or
Title: Miscellaneous Sections Affected through the use of automated collection resident of the United States for
by the Taxpayer Bill of Rights 2 and the techniques or other forms of information purposes of taxation.
Personal Responsibility and Work technology; and (e) estimates of capital Current Actions: There are no changes
Opportunity Reconciliation Act of 1996. or start-up costs and costs of operation, being made to the form at this time.
OMB Number: 1545–1356.
sradovich on DSK3GMQ082PROD with NOTICES

maintenance, and purchase of services Type of Review: Extension of a
Regulation Project Number: TD 8725. to provide information. currently approved collection.
Abstract: Under Internal Revenue Affected Public: Individuals or
Code section 7430 a prevailing party Approved: January 23, 2018.
households, business or other for-profit
may recover the reasonable Laurie Brimmer, organization, and not-for-profit
administrative or litigation costs Senior Tax Analyst. institution.
incurred in an administrative or civil [FR Doc. 2018–01661 Filed 1–26–18; 8:45 am] Estimated Number of Respondents:
proceeding that relates to the BILLING CODE 4830–01–P 130,132.

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Document Created: 2018-01-27 00:58:00
Document Modified: 2018-01-27 00:58:00
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		Notices
Action		Notice and request for comment.
Dates		You should submit written comments by March 30, 2018.
Contact		Shaquita Merritt, OCC Clearance Officer, (202) 649-5490 or, for persons who are deaf or hearing impaired, TTY, (202) 649-5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.
FR Citation		83 FR 4121
83 FR 4121 - Agency Information Collection Activities: Information Collection Renewal; Comment Request; Credit Risk Retention

DEPARTMENT OF THE TREASURYOffice of the Comptroller of the Currency

Federal Register Volume 83, Issue 19 (January 29, 2018)

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
