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FEDERAL RESERVE BANK OF NEW YORK No. 10668 [ Circular November 29, 1993 J ”1 REA L ESTATE APPRAISAL R EQ U IREM EN TS Interagency Proposal to Amend Real Estate A ppraisal Standards Additional Comments Requested by D ecem b er 10 To All State Member Banks, Bank Holding Companies, and Branches and Agencies of Foreign Banks, in the Second Federal Reserve District: The following statement was issued by the Board of Governors of the Federal Reserve System requesting additional comment on an interagency proposal (see our Circular No. 10644, dated June 17, 1993) to amend the real estate appraisal standards. The agencies have placed supplemental information into the rulemaking record regarding the proposed increase from $ 1 0 0 ,0 0 0 to $ 2 5 0 ,0 0 0 in the threshold level below which an appraisal is not required pursuant to Title X I of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989: The Federal Reserve Board and other financial institutions regulatory agencies have requested comment on supplemental information to the proposed rule on real estate appraisals. Comment is requested by December 10, 1993. On June 4, 1993, the agencies jointly published a proposed rule that would amend their regulations on appraisals. The agencies now request comment on supplemental information that relates primarily to the proposed increase from $100,000 to $250,000 in the threshold level below which a licensed or certified appraisal is not required. The supplemental information includes: • 1992 and 1993 surveys by the Federal Reserve Board of its examination staff relating to the staff’s experience with the existing $100,000 threshold; • comments received from the Federal Reserve Banks that were not previously included in the public file on the proposed rule; • a 1993 survey by the OCC of supervisory examination staff regarding the potential effects of the proposed amendments; • a 1993 OTS survey of its senior examination staff regarding the threshold level; • a 1993 FDIC survey of its senior supervisory staff regarding the proposed amendments; • a publication by the General Accounting Office (GAO) entitled Thrift Failures: Costly Failures Resulted from Regulatory Violations and Unsafe Practices (June 1989); • a GAO publication entitled Bank Regulation: Regulatory Impediments to Small Business Lending Should be Removed (September 1993); • statistics on the size and distribution of small business loans obtained from depository institutions, Federal Reserve 1993, based on the National Survey of Small Business Finances, co-sponsored by the Federal Reserve Board and Small Business Administration (1987); • a summary of data from call reports for commercial banks and thrift financial reports, and other industry and government sources; • FDIC Quarterly Bank profiles (1987-1992); • public comments already received; and • other material incorporated into the administrative records on the proposed rules. The complete package of supplemental information is available from each agency. Printed on the following pages is the text of the Interagency Notice, which has been reprinted from the Federal Register. The supplemental information referred to in the above statement and in the official notice is available from the appropriate agency at the locations indicated therein. Comments on the proposal may be directed to the Board of Governors, at the address indicated in the notice, or to our Domestic Banking Department; questions regarding this matter may be directed, at this Bank, to Barbara A. Klein, Manager of our Domestic Banking Department (Tel. No. 2 1 2 -7 2 0 -8 3 2 4 ). W illiam J. M cD o n o u g h , President. 59688 Federal Register / Vol. 58, No. 216 / Wednesday, November 10, 1993 / Proposed Rules DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 C F R P a rt 3 4 [D ocket No. 9 3 -1 0 ] RIN 1557-AB34 FEDERAL RESERVE SYSTEM 12 CFR Part 225 [R egulation Y; D ocket No. R -0 80 3 ] RIN 7100-A B 20 FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 323 RIN 3 0 6 4 -A B 0 5 DEPARTMENT OF THE TREASURY Office of Thrift Supervision 12 CFR Parts 545,563,564 [Docket No. 93-214] RIN 1550-A A 64 Real Estate Appraisals Office of the Comptroller of the Currency, Treasury; Board of Governors of the Federal Reserve System; Federal Deposit Insurance Corporation; and Office of Thrift Supervision, Treasury. AGENCIES: ACTION: P ro p o sed ru le ; a v a ila b ility o f s u p p le m e n ta l in fo rm atio n . SUMMARY: On June 4 , 1 9 9 3 , the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively the agencies) published a proposed rule that would amend the agencies' regulations regarding appraisals of real estate pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1 9 8 9 . One of the proposed amendments was to increase from 5 1 0 0 ,0 0 0 to $ 2 5 0 ,0 0 0 the threshold level at or below which an appraisal is not required pursuant to Title XI. The agencies are placing supplemental information into the rulemaking record primarily relating to the proposed increase in the threshold level and requesting written comment on those materials as well as on public comments previously received. DATES: Written comments must be received by December 10,1993. ADDRESSES: Please direct comments as indicated below. Documents identified in this notice will be available at the locations for inspection and copying of comments. Office of the Comptroller of the Currency Communications Division, Comptroller of the Currency, 9th Floor, 250 E Street, SW., Washington, DC 20219, Attention: Docket No. 93-10. Comments will be available for public inspection and photocopying at the same location. Board of Governors of the Federal Reserve System Comments, which should refer to Docket No. R-0803, may be mailed to Mr. William Wiles, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. Comments addressed to Mr. Wiles may also be delivered to the Board's mail room between 8:45 a.m. and 5:15 p.m., and to the security control room outside of these hours. Both the mail room and control room are accessible from the courtyard entrance on 20th Street between Constitution Avenue and C Street, NW. Comments may be inspected in room MP-500 [(202) 4523684] between 9 a.m. and 5 p.m., except *as provided in § 261.8 of the Board’s Rules Regarding Availability of Information, 12 CFR 261.8. Federal Deposit Insurance Corporation Send comments to Hoyle L. Robinson, Executive Secretary, Federal Deposit Insurance Corporation, 5 5 0 17th Street. NW., Washington, DC 20429. Comments may be hand delivered to room F-402, 1776 F Street, NW., Washington, DC on business days between 8:30 a.m. and 5 p.m. [FAX number (202) 898-3838] Comments will be available for inspection and photocopying in room 7118, 550 17th Street, NW., Washington DC between 9 a.m. and 4:30 p.m. on business days. Office of Thrift Supervision Send comments to Director, Information Services Division, Public Affairs, Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552, Attention Docket No. 93-214. These submissions may be hand delivered to 1700 G Street, NW., from 9 a.m. to 5 p.m on business days; they may be sent by facsimile transmission to FAX number (202) 906-7755. Submissions must be received by 5 p.m. on the day they are due in order to be considered by the OTS. Late-filed, misaddressed or misidentified submissions will not be considered in this rulemaking. Comments will be available for inspection at 1700 G Street, NW, from 1 p.m. until 4 p.m. on business days. Visitors will be escorted Federal Register / Vol. 58, _No. 216 7 Wednesday, .November 10, 1993 / Proposed -Rules to and from the public reading room at established intervals. FOR FURTHER INFORMATION-CONTACT: Office oT the Comptrollerofthe Currency Thomas E. Watson, National Bank Examiner, Office of the Chief National Bank Examiner, (202) 874-5170; or Horace G. Sneed, Senior Attorney, or Stephen Freeland, Attorney, (202) 8744460,Bank Operations and Assets Division. Board o f Governors of the Federal Reserve System RhogerH Pugh, Assistant Director, (202) 728-5883, Stanley B. Rediger, Supervisory Financial Analyst (202) 452-2629, or Virginia M. Gibbs, Supervisory Financial Analyst, p02) 452-2521, Division of Banking Supervision and Regulation; or Gregory A. Baer, Senior Attorney (202) 452-3236 or Christopher Bellini, Attorney (202) 452-3269, Legal Division. Federal Deposit Insurance Corporation Robert F. Miailovich, Associate Director, (202) 898-6918, James D. Leitner, Examination Specialist, (202) 898-6790, Di vision of Supervision; or Walter P. Doyle, Counsel, (202) 8989682, Legal Division. Office of Thrift Supervision Robert Fishman, Senior Program Manager, Credit Risk, Supervision Policy, (202) 906-5672; Deirdre G. Kvartunas, Policy Analyst, Supervision Policy, (202) 906-7933; Ellen J. Sazzman, Counsel (Banking and Finance), Regulations and Legislation Division, Chief Counsel's Office, (202) 906-7133. SUPPLEMENTARY INFORMATION: On June 4 , 1993, the agencies-published a-proposed rule that would amend the agencies’ regulations regarding appraisals of real estate pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Real Estate Appraisals, 58FR 31878 (June 4, 1993). The notice of proposed rulemaking requested that comments be provided by July 19,1993. The agencies believe the public interest will be served by allowing interested parties to comment on supplemental information relating primarily to the proposed increase in the threshold level bom $100,000 to $250,000. Therefore, the agencies invite written comments on: (i) 1992 and 1993 surveys by the Board of its examination stab with respect to the staffs experience with the$10Q,000 threshold; (ii) comments received by the Board 59689 Da ted :.O cto b er 1 2 , 1 9 9 3 . from the Federal Reserve Banks that Eugene A . L u d w ig , were not .previously included in the C o m p tro lle r o f t h e C urren cy. public file; (iii) a 1993 survey by the OCC of supervisory examination staff D ated: N o v e m b e r 5 ,1 9 9 3 . regarding the potential effects of the Jen n ifer J. Jo h n so n , proposed amendments; (iv) a 1993 A s s o c ia te S e c re t a ry o f th e B o a rd , F e d e r d l survey by the OTS of its senior R e se rv e S y stem . examination staff regarding the D ated: O c t o b e r 2 9 ,1 9 9 3 . threshold level; (v) a 1993 survey by the H oyle L. R ob in son , FDIC of its senior supervisory staff E x e c u t iv e S e c re ta ry , F e d e r a l D eposit regarding the proposed amendments; I n s u r a n c e C o rp o ra tio n . (vi) Thrift Failures: Costly Failures D a te d :N o v e m b e r 3 ,1 9 9 3 . Resulted bom Regulatory Violations and Jon ath an L. F i e c h te r , Unsafe Practices,'General Accounting A c t in g V ir e c t o r , O ffic e o f T h rift S u p e rv isio n . Office (June 1989); (vii)Bank [FR D oc. 9 3 - 2 7 7 2 4 F ile d 1 1 - 9 - 9 3 ; 8 :4 5 am ) Regulation: Regulatory Impediments to BILLING COO ES 4 8 1 0 - 3 3 - * ; 8 2 1 0 * 0 1 - * , 8 7 1 4 - 0 1 - * : Small Business Lending Should Be $ 7 2 0 -0 1 -* Removed, General Accounting Office (Sept. 1993); (viii) statistics on the size and distribution of small business loans obtained from depository institutions, Federal Reserve 1993,based on the National Survey of Small Business Finances, co-sponsored by .the Federal Reserve Board mid Small Business Administration ,(1987); (ix) summaiy of data obtained from the Consolidated Reports of Condition and Income (Call Reports) for commercial banks, Thrift Financial Reports (TFR), and other industry and government sources; (x) FDIC Quarterly Banking Profiles (19871992); and (xi) other material incorporated into the administrative records available for.inspection at the agenctes. A summary prepared by<OCC and OTS staff of the surveys of supervisory examination staff,-Call Report and TFR data, and other material is also included in the OCC, OTS, and FDIC records. The agencies invite-written .comment on these materials and on the public comments already received on the proposal. Comments should focus on the implications of these materials and public comments for the proposed increase in the appraisal threshold to $250,000, or a different level. The agencies also encourage comments on the applicability of thrift data to commercial bank experience and of commercial bank data to thrift experience. Comments already received in response to the June 4,1993 notice of proposed rulemaking will be considered in conjunction with comments received in response to this notice.
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