[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Page 64996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32159]
[[Page 64995]]
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Part VI
Federal Reserve System
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12 CFR Parts 265 and 225
Rules Regarding Delegation of Authority; Final Rule
Real Estate Appraisals; Proposed Rule
Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 /
Rules and Regulations
[[Page 64996]]
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FEDERAL RESERVE SYSTEM
12 CFR Part 265
[Docket No. R-0991]
Rules Regarding Delegation of Authority
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is delegating to the Director of the Division of Banking Supervision
and Regulation the Board's authority to determine in individual cases
that the services of an appraiser are not necessary in order to protect
Federal financial and public policy interests in real estate-related
financial transactions or to protect the safety and soundness of the
institution. This delegation of authority is intended to aid in the
efficient processing of requests for individual exemptions from the
Board's appraisal regulation.
EFFECTIVE DATE: December 9, 1997.
FOR FURTHER INFORMATION CONTACT: Deneen L. Donnley-Evans, Staff
Attorney (202/736-5567), Legal Division; or Virginia M. Gibbs, Senior
Supervisory Financial Analyst, (202/452-2521), Division of Banking
Supervision and Regulation; Board of Governors of the Federal Reserve
System, 20th Street and Constitution Avenue, N.W., Washington, DC
20551.
SUPPLEMENTARY INFORMATION: In 1990, in accordance with the mandates of
Title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA), 12 USC 3331 et seq., the federal
banking agencies adopted appraisal regulations for federally related
transactions within their jurisdiction, and exempted certain real
estate-related transactions from the appraisal requirements of Title
XI. In June 1994, several existing exemptions to the appraisal
regulation were modified and new exemptions were added, including an
exemption for individual transactions for which the Board determines
that the services of an appraiser are not necessary in order to protect
Federal financial and public policy interests in real estate-related
financial transactions or to protect the safety and soundness of the
institution. See 12 CFR 265.7. The Board is delegating the authority to
determine that an appraisal is not necessary to protect Federal
financial and public policy interest or the safety and soundness of a
financial institution to the Director of the Division of Banking
Supervision and Regulation or the Director's delegee.
Administrative Procedure Act
The Administrative Procedure Act (5 USC 553(b)(A)) exempts ``rules
of agency organization, procedure, or practice'' from the notice of
proposed rulemaking and public comment requirements. As the Board's
delegation rules fall under this exemption, the Board is adopting these
amendments without notice-and-comment procedures.
Regulatory Flexibility Act Analysis
Pursuant to the Regulatory Flexibility Act (5 USC 601 et seq.), the
Board hereby certifies that this rule will not have a significant
economic impact on a substantial number of small entities.
Paperwork Reduction Act of 1995
In accordance with section 3506 of the Paperwork Reduction Act of
1995 (44 USC Ch. 35; 5 CFR part 1320 Appendix A.1), the Board reviewed
the rule under the authority delegated to the Board by the Office of
Management and Budget. No collection of information pursuant to section
3504(h) of the Paperwork Reduction Act (44 USC 3501 et seq.) is
contained in this notice.
List of Subjects in 12 CFR Part 265
Authority delegations (Government agencies) Banks, banking, Federal
Reserve System.
For the reasons set forth in the preamble, the Board amends 12 CFR
part 265 as set forth below:
PART 265--RULES REGARDING DELEGATION OF AUTHORITY
1. The authority citation for part 265 continues to read as
follows:
Authority: 12 U.S.C. 248 (i) and (k).
2. Section 265.7 is amended by adding paragraph (c)(6) to read as
follows:
Sec. 265.7 Functions delegated to Director of Division of Banking
Supervision and Regulation.
* * * * *
(c) * * *
(6) Appraisal not required. To determine pursuant to 12 CFR
225.63(b)(12) that the services of an appraiser are not necessary in
order to protect Federal financial and public policy interests in real
estate-related financial transactions or to protect the safety and
soundness of an institution.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, December 3, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-32159 Filed 12-8-97; 8:45 am]
BILLING CODE 6210-01-P
