Notice2022-15815

Agency Information Collection Activities: Announcement of Board Approval under Delegated Authority and Submission to OMB

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Published
July 25, 2022

Issuing agencies

Federal Reserve System

Abstract

The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, with revision, the Recordkeeping and Disclosure Requirements Associated with Loans Secured by Real Estate Located in Flood Hazard Areas Pursuant to Regulation H (FR H-2; OMB 7100-0280) of the Board's rules.

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<title>Federal Register, Volume 87 Issue 141 (Monday, July 25, 2022)</title>
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[Federal Register Volume 87, Number 141 (Monday, July 25, 2022)]
[Notices]
[Pages 44118-44119]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-15815]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, with revision, the 
Recordkeeping and Disclosure Requirements Associated with Loans Secured 
by Real Estate Located in Flood Hazard Areas Pursuant to Regulation H 
(FR H-2; OMB 7100-0280) of the Board's rules.

FOR FURTHER INFORMATION CONTACT: 
    Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of 
the Chief Data Officer, Board of Governors of the Federal Reserve 
System, Washington, DC 20551, (202) 452-3829.
    Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. The OMB inventory, as well as copies of the 
PRA Submission, supporting statements, and approved collection of 
information instrument(s) are available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>. These documents are also available on the Federal 
Reserve Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested from the agency clearance 
officer, whose name appears above.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, With Revision, of the Following Information Collection

    Collection title: Recordkeeping and Disclosure Requirements 
Associated with Loans Secured by Real Estate Located in Flood Hazard 
Areas Pursuant to Section 208.25 of Regulation H.
    Collection identifier: FR H-2.
    OMB control number: 7100-0280.
    Effective date: The revisions are applicable as of July 25, 2022.
    Frequency: On occasion.
    Respondents: State member banks (SMBs).
    Estimated number of respondents: Recordkeeping: Private flood 
insurance (Sections 208.25(c)(3)(iii) and (iv)), 11,171; Retention of 
standard Federal Emergency Management Agency (FEMA) form (Section 
208.25(f)(2)), 728; Notice of special flood insurance (Section 
208.25(i)), 728; Disclosure: Notice of special flood hazards and 
availability of federal disaster relief assistance with escrow notice, 
as applicable (Sections 208.25(i) and (e), as applicable), 728; Notice 
to FEMA of servicer (Section 208.25(j)(1)), 728; Notice to FEMA of 
change of servicer (Section 208.25(j)(2)), 728; Notice to borrowers of 
lapsed mandated flood insurance (Section 208.25(g)), 728; Purchase of 
flood insurance on the borrower's behalf (Section 208.25(g)), 728; 
Notice to borrowers of lapsed mandated flood insurance due to remapping 
(Section 208.25(g)), 728; Purchase of flood insurance on the borrower's 
behalf due to remapping (Section 208.25(g)), 728; One-time notice for 
any designated loan outstanding on July 1 of the year SMB no longer 
qualifies for small lender exception, 12.
    Estimated average time per response: Recordkeeping: Private flood 
insurance (Sections 208.25(c)(3)(iii) and (iv)), 15 minutes; Retention 
of standard FEMA form (Section 208.25(f)(2)), 2.5 minutes; Notice of 
special flood insurance (Section 208.25(i)), 2.5 minutes; Disclosure: 
Notice of special flood hazards and availability of federal disaster 
relief assistance with escrow notice, as applicable (Sections 208.25(i) 
and (e), as applicable), 5 minutes; Notice to FEMA of servicer (Section 
208.25(j)(1)), 5 minutes; Notice to FEMA of change of servicer (Section 
208.25(j)(2)), 5 minutes; Notice to borrowers of lapsed mandated flood 
insurance (Section 208.25(g)), 5 minutes; Purchase of flood insurance 
on the borrower's behalf (Section 208.25(g)), 15 minutes; Notice to 
borrowers of lapsed mandated flood insurance due to remapping (Section 
208.25(g)), 5 minutes; Purchase of flood insurance on the borrower's 
behalf due to remapping (Section 208.25(g)), 15 minutes; One-time 
notice for any designated loan outstanding on July 1 of the year SMB no 
longer qualifies for small lender exception, 40 hours.
    Estimated annual burden hours: Recordkeeping: Private flood 
insurance (Sections 208.25(c)(3)(iii) and (iv)), 2,793; Retention of 
standard FEMA form (Section 208.25(f)(2)), 12,255; Notice of special 
flood insurance (Section 208.25(i)), 2,457; Disclosure: Notice of 
special flood hazards and availability of federal disaster relief 
assistance with escrow notice, as applicable (Sections 208.25(i) and 
(e), as applicable), 4,914; Notice to FEMA of servicer (Section 
208.25(j)(1)), 4,914; Notice to FEMA of change of servicer (Section 
208.25(j)(2)), 2,487; Notice to borrowers of lapsed mandated flood 
insurance (Section 208.25(g)), 971; Purchase of flood insurance on the 
borrower's behalf (Section 208.25(g)), 728; Notice to borrowers of 
lapsed mandated flood insurance due to remapping (Section 208.25(g)), 
485; Purchase of flood insurance on the borrower's behalf due to 
remapping (Section 208.25(g)), 728; One-time notice for any designated 
loan outstanding on July 1 of the year SMB no longer qualifies for 
small lender exception, 480.
    General description of report: In general, the federal flood 
insurance statutes and Regulation H--Membership of State Banking 
Institutions in the Federal Reserve System (12 CFR 208) provide that a 
lender shall not make, increase, extend, or renew a loan secured by a 
building or mobile home located in a special flood hazard area unless 
the secured property is covered by flood insurance for the term of the 
loan. With respect to the recordkeeping and disclosure provisions, the 
regulation generally requires state member banks to retain certain 
flood hazard documentation and to notify borrowers and servicers 
regarding properties in flood hazard areas and requirements related to 
flood insurance. State member banks also must notify FEMA of the 
identity of, and any change in, the servicer of a loan secured by 
improved property in a special flood hazard area.

[[Page 44119]]

    Legal authorization and confidentiality: Section 102 of the Flood 
Disaster Protection Act of 1973, as amended,\1\ and section 1364 of the 
National Flood Insurance Act, as amended,\2\ authorize the Board to 
impose the disclosure and recordkeeping requirements in section 208.25 
of Regulation H. The obligation to comply is mandatory.
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    \1\ 42 U.S.C. 4012a.
    \2\ 42 U.S.C. 4104a.
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    Because the Federal Reserve does not collect information from the 
FR H-2, confidentiality issues generally would not arise. In the event 
the records are obtained by the Board as part of the examination or 
supervision of a financial institution, this information may be 
considered confidential pursuant to exemption 8 of the Freedom of 
Information Act, which protects information contained in ``examination, 
operating, or condition reports'' obtained in the bank supervisory 
process.\3\
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    \3\ 5 U.S.C. 552(b)(8). The Board also has the authority to 
require reports from state member banks. (12 U.S.C. 248(a) and 324).
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    Current actions: On November 4, 2021, the Board published a notice 
in the Federal Register (86 FR 60818) requesting public comment for 60 
days on the extension, with revision, of the Recordkeeping and 
Disclosure Requirements Associated with Loans Secured by Real Estate 
Located in Flood Hazard Areas Pursuant to Section 208.25 of Regulation 
H.
    The Board is finalizing revisions to the FR H-2 information 
collection to account for the recordkeeping provision in section 
208.25(i) of Regulation H that had not been previously cleared by the 
Board under the PRA. When a state member bank makes, increases, 
extends, or renews a loan secured by a building or a mobile home 
located or to be located in a special flood hazard area, Regulation H 
requires that the bank mail or deliver a written notice to the borrower 
and to the servicer in all cases indicating whether flood insurance is 
available under the National Flood Insurance Program (NFIP) for the 
collateral securing the loan. The state member bank must retain a 
record of the receipt of the notices by the borrower and the servicer 
for the period of time the bank owns the loan.
    The comment period for this notice expired on January 3, 2022. The 
Board did not receive any comments. The revisions will be implemented 
as proposed.

    Board of Governors of the Federal Reserve System, July 19, 2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-15815 Filed 7-22-22; 8:45 am]
BILLING CODE 6210-01-P


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Indexed from Federal Register on July 25, 2022.

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