Notice2024-24259

Agency Information Collection Activities: Proposed Collection Renewal; Comment Request

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
October 21, 2024

Issuing agencies

Federal Deposit Insurance Corporation

Abstract

The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to take this opportunity to comment on the renewal of the existing information collections described below (OMB Control No. 3064-0183).

Full Text

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<title>Federal Register, Volume 89 Issue 203 (Monday, October 21, 2024)</title>
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[Federal Register Volume 89, Number 203 (Monday, October 21, 2024)]
[Notices]
[Pages 84134-84136]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-24259]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0183]


Agency Information Collection Activities: Proposed Collection 
Renewal; Comment Request

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The FDIC, as part of its obligations under the Paperwork 
Reduction Act of 1995 (PRA), invites the general public and other 
Federal agencies to take this opportunity to comment on the renewal of 
the existing information collections described below (OMB Control No. 
3064-0183).

DATES: Comments must be submitted on or before December 20, 2024.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
    <bullet> Agency Website: <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#d4b7bbb9b9b1baa0a794b2b0bdb7fab3bba2"><span class="__cf_email__" data-cfemail="f89b9795959d968c8bb89e9c919bd69f978e">[email&#160;protected]</span></a>. Include the name and number of 
the collection in the subject line of the message.
    <bullet> Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
    <bullet> Hand Delivery: Comments may be hand-delivered to the guard 
station at the rear of the 17th Street NW building (located on F Street 
NW), on business days between 7:00 a.m. and 5:00 p.m.
    All comments should refer to the relevant OMB control number. A 
copy of the comments may also be submitted to the OMB desk officer for 
the FDIC: Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, <a href="/cdn-cgi/l/email-protection#402d232122253a2100262429236e272f36"><span class="__cf_email__" data-cfemail="cfa2acaeadaab5ae8fa9aba6ace1a8a0b9">[email&#160;protected]</span></a>, MB-3128, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 
    Proposal to renew the following currently approved collection of 
information:
    1. Title: Credit Risk Retention.
    OMB Number: 3064-0183.
    Form Number: None.
    Affected Public: Insured state nonmember banks, state savings 
institutions, insured state branches of foreign banks, and any 
subsidiary of the aforementioned entities.

                                                                     Burden Estimate
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                                                                                                                                                 Total
                                            Type of burden (obligation                                     Estimated    Number of   Hours per    annual
              IC description                        to respond)               Frequency of response        number of    responses/   response  estimated
                                                                                                          respondents   respondent               burden
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                                                                   Disclosure Burdens
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Sec.   373.4(a)(2) Standard Risk           Disclosure (Mandatory)......  On Occasion....................            2            2        5.5         22
 Retention--Horizontal Interest.
Sec.   373.4(a)(1) Standard Risk           Disclosure (Mandatory)......  On Occasion....................            2            2        2.0          8
 Retention--Vertical Interest.
Sec.   373.4(a)(3) Standard Risk           Disclosure (Mandatory)......  On Occasion....................            1            1        7.5          8
 Retention--Combined Interest *.
Sec.   373.5 Revolving Master Trusts.....  Disclosure (Mandatory)......  On Occasion....................            3            2        7.0         42
Sec.   373.6 Eligible ABCP Conduits *....  Disclosure (Mandatory)......  On Occasion....................            1            1        3.0          3
Sec.   373.7 Commercial MBS *............  Disclosure (Mandatory)......  On Occasion....................            1            1      20.75         21
Sec.   373.10 Qualified Tender Option      Disclosure (Mandatory)......  On Occasion....................            1            1        6.0          6
 Bonds *.
Sec.   373.11 Allocation of Risk           Disclosure (Mandatory)......  On Occasion....................            1            1        2.5          3
 Retention to an Originator *.
Sec.   373.13 Exemption for Qualified      Disclosure (Mandatory)......  On Occasion....................            1            1       1.25          1
 Residential Mortgages *.
Sec.   373.15 Exemption for Qualifying     Disclosure (Mandatory)......  On Occasion....................            1            1       20.0         20
 Commercial Loans, Commercial Real Estate
 and Automobile Loans *.

[[Page 84135]]

 
Sec.   373.16 Underwriting Standards for   Disclosure (Mandatory)......  On Occasion....................            1            1       1.25          1
 Qualifying Commercial Loans *.
Sec.   373.17 Underwriting Standards for   Disclosure (Mandatory)......  On Occasion....................            1            1       1.25          1
 Qualifying Commercial Real Estate Loans
 *.
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Sec.   373.18 Underwriting Standards for   Disclosure (Mandatory)......  On Occasion....................            1            1       1.25          1
 Qualifying Automobile Loans *.
    Disclosure Subtotal..................  ............................  ...............................  ...........  ...........  .........        137
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                                                                  Recordkeeping Burdens
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Sec.   373.4(a)(2) Standard Risk           Recordkeeping (Mandatory)...  On Occasion....................            2            2        0.5          2
 Retention--Horizontal Interest.
Sec.   373.4(a)(1) Standard Risk           Recordkeeping (Mandatory)...  On Occasion....................            2            2        0.5          2
 Retention--Vertical Interest.
Sec.   373.4(a)(3) Standard Risk           Recordkeeping (Mandatory)...  On Occasion....................            1            1        0.5          1
 Retention--Combined Interest *.
Sec.   373.5 Revolving Master Trusts.....  Recordkeeping (Mandatory)...  On Occasion....................            3            2        0.5          3
Sec.   373.6 Eligible ABCP Conduits *....  Recordkeeping (Mandatory)...  On Occasion....................            1            1       20.0         20
Sec.   373.7 Commercial MBS *............  Recordkeeping (Mandatory)...  On Occasion....................            1            1       30.0         30
Sec.   373.11 Allocation of Risk           Recordkeeping (Mandatory)...  On Occasion....................            1            1       20.0         20
 Retention to an Originator *.
Sec.   373.13 Exemption for Qualified      Recordkeeping (Mandatory)...  On Occasion....................            1            1       40.0         40
 Residential Mortgages *.
Sec.   373.15 Exemption for Qualifying     Recordkeeping (Mandatory)...  On Occasion....................            1            1        0.5          1
 Commercial Loans, Commercial Real Estate
 and Automobile Loans *.
Sec.   373.16 Underwriting Standards for   Recordkeeping (Mandatory)...  On Occasion....................            1            1       40.0         40
 Qualifying Commercial Loans *.
Sec.   373.17 Underwriting Standards for   Recordkeeping (Mandatory)...  On Occasion....................            1            1       40.0         40
 Qualifying Commercial Real Estate Loans
 *.
Sec.   373.18 Underwriting Standards for   Recordkeeping (Mandatory)...  On Occasion....................            1            1       40.0         40
 Qualifying Automobile Loans *.
                                          --------------------------------------------------------------------------------------------------------------
    Recordkeeping Subtotal...............  ............................  ...............................  ...........  ...........  .........        239
        Total Annual Burden Hours........  ............................  ...............................  ...........  ...........  .........        376
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    General Description of Collection: This information collection 
request comprises disclosure and recordkeeping requirements under the 
credit risk retention rule issued pursuant to section 15G of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-11), as added by section 
941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Dodd-Frank).\1\ The Credit Risk Retention rule (the Rule) was jointly 
issued in 2015 by the FDIC, the Office of the Comptroller of the 
Currency (OCC), the Federal Reserve Board (Board), the Securities and 
Exchange Commission (SEC) and, with respect to the portions of the Rule 
addressing the securitization of residential mortgages, the Federal 
Housing Finance Agency (FHFA) and the Department of Housing and Urban 
Development (HUD).\2\ The FDIC regulations corresponding to the Rule 
are found at 12 CFR part 373.\3\
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    \1\ Public Law 111-2-3, 124 Stat. 1376 (2010).
    \2\ 79 FR 77740.
    \3\ Each agency adopted the same rule text but each agency's 
version of its rule is codified in different parts of the Code of 
Federal Regulations with substantially identical section numbers 
(e.g. _.01; _.02, etc.). Rule citations herein are to FDIC's version 
of the Rule, which is codified at 12 CFR part 373.
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    Section 941 of Dodd-Frank requires the Board, the FDIC, the OCC, 
the SEC, and, in the case of the securitization of any ``residential 
mortgage asset,'' together with HUD and FHFA, to jointly prescribe 
regulations that (1) require an issuer of an asset-backed security or a 
person who organizes and initiates an asset-backed securities 
transaction by selling or transferring assets, either directly or 
indirectly, including through an affiliate, to the issuer (issuer or 
organizer) to retain not less than five percent of the credit risk of 
any asset that the issuer or organizer, through the issuance of an 
asset-backed security (ABS), transfers, sells or conveys to a third 
party and (2) prohibit an issuer or organizer from directly or 
indirectly hedging or otherwise transferring the credit risk that the 
issuer or organizer is required to retain under section 941 and the 
agencies' implementing rules. Exempted from the credit risk retention 
requirements of section 941 are certain types of securitization 
transactions, including ABS collateralized solely by qualified 
residential mortgages (QRMs), as that term is defined in the Rule. In 
addition, section 941 provides that the agencies must permit an issuer 
or organizer to retain less than five percent of the credit risk of 
residential mortgage loans, commercial real estate (CRE) loans, 
commercial loans and automobile loans that are transferred, sold or 
conveyed through the issuance of ABS by the issuer or organizer, if the 
loans meet underwriting standards established by the Federal banking 
agencies.
    The FDIC implemented section 941 of Dodd-Frank through 12 CFR part 
373 (the Rule). The Rule defines a securitizer as (1) the depositor of 
the asset-backed securities (if the depositor is not the sponsor); or 
(2) the sponsor of the asset-backed securities.\4\ The Rule provides a 
menu of credit risk retention options from which securitizers can 
choose and sets out the standards, including disclosure, recordkeeping, 
and reporting requirements, for each option; identifies the eligibility 
criteria, including certification and disclosure requirements, that 
must be met for ABS offerings to qualify for the QRM and other 
exemptions; specifies the underwriting standards for CRE loans, 
commercial loans and automobile loans, as well as disclosure, 
certification and recordkeeping requirements, that must be met for ABS 
issuances collateralized by such loans to qualify for reduced credit 
risk retention; and sets forth the circumstances under which retention 
obligations may be allocated by sponsors to originators, including 
disclosure and monitoring requirements.
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    \4\ 12 CFR 373.2.
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    The regulations at 12 CFR part 373 contains several requirements 
that qualify as information collections under

[[Page 84136]]

the PRA. The information collection requirements are found in 
Sec. Sec.  373.4, 373, 373.6, 373.7, 373.8, 373.9, 373.10, 373.11, 
373.13, 373.15, 373.16, 373.17, 373.18, and 373.19(g). The 
recordkeeping requirements relate primarily to (1) the adoption and 
maintenance of various policies and procedures to ensure and monitor 
compliance with regulatory requirements; and (2) certifications, 
including as to the effectiveness of internal supervisory controls. The 
required disclosures for each risk retention option are intended to 
provide investors with material information concerning the sponsor's 
retained interest in a securitization transaction (e.g., the amount, 
form and nature of the retained interest, material assumptions and 
methodology, representations and warranties). Compliance with the 
information collection requirements is mandatory, responses to the 
information collections will not be kept confidential and, with the 
exception of the recordkeeping requirements in Sec. Sec.  373.4(d), 
373.5(k)(3), and 373.15(d), the Rule does not specify a mandatory 
retention period for the information.

Request for Comment

    Comments are invited on (a) whether the collections of information 
are necessary for the proper performance of the FDIC's functions, 
including whether the information has practical utility; (b) the 
accuracy of the estimates of the burden of the information collections, 
including the validity of the methodology and assumptions used; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (d) ways to minimize the burden of the collections of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology. All 
comments will become a matter of public record.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on October 15, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-24259 Filed 10-18-24; 8:45 am]
BILLING CODE 6714-01-P


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Indexed from Federal Register on October 21, 2024.

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