[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]]

_______________________________________________________________________

Part VI





Federal Reserve System





_______________________________________________________________________



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]]


-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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