This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

2079 

Vol. 87, No. 9 

Thursday, January 13, 2022 

1The ASC was established by Title XI. The ASC 

Board consists of seven members. Five members are 

designated by the heads of the FFIEC federal 

member agencies (Board of Governors of the Federal 

Reserve System [Board], Bureau of Consumer 

Financial Protection [Bureau], Federal Deposit 

Insurance Corporation [FDIC], Office of the 

Comptroller of the Currency [OCC], and National 

Credit Union Administration [NCUA]). The other 

two members are designated by the heads of the 

Department of Housing and Urban Development 

(HUD) and the Federal Housing Finance Agency 

(FHFA). 

2Title XI § 1101. See also, 12 U.S.C. 3331. 

3Title XI § 1109(1). See also, 12 U.S.C. 3339(1). 

4Title XI § 1121(4), 12 U.S.C. 3350, implemented 

by the Office of the Comptroller of the Currency: 

12 CFR 34.44; Federal Reserve Board: 12 CFR 

225.64; Federal Deposit Insurance Corporation: 12 

CFR 323.4; and National Credit Union 

Administration: 12 CFR 722.4. 

5Title XI § 1116(a) and (c). See also, 12 U.S.C. 

3345(a) and (c). 

6Title XI § 1118. See also, 12 U.S.C. 3347. ‘‘State 

appraiser regulatory agencies’’ are referred to in the 

proposed rule as ‘‘State Appraisal Agencies.’’ 

FEDERAL FINANCIAL INSTITUTIONS 

EXAMINATION COUNCIL 

12 CFR Part 1102 

[Docket No. AS22–01] 

Appraisal Subcommittee; Appraiser 

Regulation; Temporary Waiver 

Requests 

AGENCY: Appraisal Subcommittee of the 

Federal Financial Institutions 

Examination Council. 

ACTION: Notice of proposed rulemaking; 

request for public comment. 

SUMMARY: The Appraisal Subcommittee 

(ASC) of the Federal Financial 

Institutions Examination Council 

(FFIEC) proposes to amend existing 

rules of practice and procedure 

governing temporary waiver 

proceedings, which were promulgated 

in 1992 pursuant to Title XI of the 

Financial Institutions Reform, Recovery, 

and Enforcement Act of 1989, as 

amended (Title XI). The proposed 

amendments are intended to provide for 

greater transparency and clarity on 

temporary waiver proceedings. 

DATES: Comments must be received on 

or before March 14, 2022. 

ADDRESSES: Commenters are encouraged 

to submit comments by the Federal 

eRulemaking Portal or email, if possible. 

You may submit comments, identified 

by Docket Number AS22–01, by any of 

the following methods: 

• Federal eRulemaking Portal: 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

Click on the ‘‘Support’’ button on the 

Regulations.gov home page to get 

information on using Regulations.gov, 

including instructions for submitting 

public comments. 

• Email: webmaster@asc.gov. Include 

the docket number in the subject line of 

the message. 

• Mail: Address to Appraisal 

Subcommittee, Attn: Lori Schuster, 

Management and Program Analyst, 1325 

G Street NW, Suite 500, Washington, DC 

20005. 

• Hand Delivery/Courier: 1325 G 

Street NW, Suite 500, Washington, DC 

20005. 

In general, the ASC will enter all 

comments received into the docket and 

publish those comments on the 

Regulations.gov website without 

change, including any business or 

personal information that you provide, 

such as name and address information, 

email addresses, or phone numbers. 

Comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. At 

the close of the comment period, all 

public comments will also be made 

available on the ASC’s website at 

https://www.asc.gov (follow link in 

‘‘What’s New’’) as submitted, unless 

modified for technical reasons. 

You may review comments and other 

related materials that pertain to this 

rulemaking action by the following 

method: 

• Viewing Comments Electronically: 

Go to https://www.regulations.gov. Enter 

‘‘Docket ID AS22–01’’ in the Search box 

and click ‘‘Search.’’ Click on the 

‘‘Support’’ tab on the Regulations.gov 

home page to get information on using 

Regulations.gov, including instructions 

for viewing public comments, viewing 

other supporting and related materials, 

and viewing the docket after the close 

of the comment period. 

FOR FURTHER INFORMATION CONTACT: Lori 

Schuster, Management and Program 

Analyst, lori@asc.gov, (202) 595–7578, 

or Alice M. Ritter, General Counsel, 

alice@asc.gov, (202) 595–7577, ASC, 

1325 G Street NW, Suite 500, 

Washington, DC 20005. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The purpose of Title XI 1 is ‘‘to 

provide that Federal financial and 

public policy interests in real estate 

related transactions will be protected by 

requiring that real estate appraisals 

utilized in connection with federally 

related transactions [FRTs] are 

performed in writing, in accordance 

with uniform standards, by individuals 

whose competency has been 

demonstrated and whose professional 

conduct will be subject to effective 

supervision.’’ 2

Title XI requires that real property 

appraisals performed in connection 

with FRTs be performed in accordance 

with the Uniform Standards of 

Professional Appraisal Practice 

(USPAP) 3 as promulgated by the 

Appraisal Standards Board (ASB) of the 

Appraisal Foundation. The Federal 

financial institutions regulatory 

agencies’ appraisal regulations require 

appraisals for FRTs to meet these 

minimum appraisal standards as 

evidenced by USPAP.4 Title XI also 

requires that certified and licensed 

appraisers meet the minimum 

qualification criteria as set forth in The 

Real Property Appraiser Qualification 

Criteria (AQB Criteria) issued by the 

Appraiser Qualifications Board (AQB) of 

the Appraisal Foundation.5 The State 

appraiser regulatory agencies enforce 

these federal minimum requirements for 

credentialed appraisers in their 

respective States and are subject to 

federal oversight by the ASC.6

Section 1119(b) of Title XI authorizes 

the ASC to waive, on a temporary basis, 

subject to approval of the FFIEC: 

any requirement relating to certification or 

licensing of a person to perform appraisals 

under [Title XI] if the [ASC] or a [State 

appraiser regulatory agency] makes a written 

determination that there is a scarcity of 

certified or licensed appraisers to perform 

appraisals in connection with [FRTs] in a 

State, or in any geographical political 

subdivision of a State, leading to significant 

delays in the performance of such appraisals. 


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7Title XI § 1119(b). See also, 12 U.S.C. 3348(b). 

8House Comm. on Banking, Finance and Urban 

Affairs, Report Together with Additional 

Supplemental, Minority, Individual, and Dissenting 

Views, Financial Institutions Reform, Recovery, and 

Enforcement Act of 1989, H.R. Rep. No. 101–54 Part 

1, 101st Cong., 1st Sess., at 482–83. 

9 12 CFR part 1102, subpart A. 10 5 U.S.C. 553(b). 11Title XI § 1119(b). See also, 12 U.S.C. 3348(b). 

A waiver terminates when the [ASC] 

determines that such significant delays have 

been eliminated.7

Congress intended that the ASC exercise 

this waiver authority ‘‘cautiously.’’ 8

The ASC published rules of practice 

and procedure governing temporary 

waiver proceedings in 1992.9 The ASC 

has ordered temporary waiver relief on 

two occasions. The first was for the 

Commonwealth of the Northern Mariana 

Islands in February 1993 (preceded by 

an interim order for relief issued in 

December 1992). The second was in 

August 2019 for the State of North 

Dakota (which was extended in part for 

one additional year in 2020). 

Under the existing rules of practice 

and procedure, when the ASC receives 

a request from a State appraiser 

regulatory agency that meets the 

requirements set forth in 12 CFR 1102.2, 

Requirements for requests, including a 

written duly authorized determination 

that there is a scarcity of certified or 

licensed appraisers leading to 

significant delays in obtaining 

appraisals in FRTs, the request is 

published promptly in the Federal 

Register for comment. In the absence of 

such a written determination, the State 

appraiser regulatory agency must ask 

the ASC for such a determination. When 

the ASC receives a submission pursuant 

to 12 CFR 1102.3, Other requests and 

information submissions, the ASC has 

the discretion to determine whether or 

not to initiate a temporary waiver 

proceeding. If the ASC makes a 

determination to initiate a temporary 

waiver proceeding, the ASC will 

promptly publish notice of the 

proceeding in the Federal Register. 

Within 45 calendar days of the date of 

publication in the Federal Register, the 

existing rules provide that the ASC will 

grant or deny a waiver, in whole or in 

part, by Order. The ASC must seek 

FFIEC approval if the waiver is granted, 

and the waiver cannot take effect unless 

approved by the FFIEC. 

Application of the existing rules of 

practice and procedure in the present 

day led the ASC to recognize there may 

be advantages in proposing revisions to 

the existing rules to define terms and 

provide greater clarity on the 

proceedings. The ASC also believes 

there may be advantages in proposing 

revisions to the timeframes in the 

existing rules of practice and procedure 

(as established in 1992 to accommodate 

newly formed State appraiser regulatory 

agencies) to be more conducive to 

deliberation by the ASC or FFIEC. 

Accordingly, the ASC proposes to 

amend the existing rules of practice and 

procedure as set forth below. The ASC 

created a flow chart for temporary 

waiver proceedings as set forth in this 

notice of proposed rulemaking: https:// 

www.asc.gov/Documents/FedralRegister

Documents/Temporary%20Waiver%20

Flow%20Chart%20for%20NPRM%20- 

%20Docket%20No.%20AS22-01.pdf. 

The ASC is also proposing 

interpretations of several of the terms 

used in § 1119(b) of Title XI. These 

interpretations are proposed to be 

included in the ‘‘definitions’’ section of 

the rule. 

Though neither procedural rules nor 

published agency interpretations of 

their statutory authority require notice 

and comment under the Administrative 

Procedure Act (APA),10 the ASC is 

voluntarily submitting this proposed 

rule and interpretations for public 

comment in order to seek feedback from 

interested parties. 

II. The Proposed Rule 

Authority, Purpose, and Scope 

Proposed § 1102.1 would clarify the 

purpose and scope of the processes 

available for ASC consideration of 

temporary waiver relief by making a 

clear distinction between: (1) A request 

from a State appraiser regulatory agency 

accompanied by a written 

determination, referred to in the 

proposed rule as a ‘‘Request for 

Temporary Waiver’’; and (2) information 

received from other persons or entities 

(which could include a State appraiser 

regulatory agency) referred to in the 

proposed rule as a ‘‘Petition.’’ As 

subsequent sections in the proposed 

amended rule clarify, the procedure 

followed varies depending on whether 

the ASC has received a Request for 

Temporary Waiver or a Petition 

requesting that the ASC initiate a 

temporary waiver proceeding. 

The basis for this distinction is in the 

statute itself. Section 1119(b) of Title XI 

authorizes the ASC to grant a temporary 

waiver only when the ASC or a State 

appraiser regulatory agency has made 

the statutorily required written 

determination that: (1) There is a 

scarcity of certified or licensed 

appraisers to perform appraisals in 

connection with FRTs in a State, or in 

any geographical political subdivision 

of a State; and (2) such scarcity is 

leading to significant delays in the 

performance of such appraisals for 

FRTs.11 Accordingly, the proposed rules 

seek to clarify the procedural 

differences in processing a Request for 

Temporary Waiver accompanied by a 

written determination as compared to a 

Petition requesting the ASC exercise its 

discretion to initiate a temporary waiver 

proceeding. 

Definitions 

Proposed § 1102.2 would establish 

definitions for the following terms: 

Federally related transaction (FRT). 

Proposed § 1102.2(a) proposes to define 

federally related transaction (FRT) to 

mean any real estate-related financial 

transaction which: (a) A Federal 

financial institutions regulatory agency 

engages in, contracts for, or regulates; 

and (b) requires the services of an 

appraiser under the interagency 

appraisal rules. [(Title XI § 1121(4), 12 

U.S.C. 3350), implemented by the Office 

of the Comptroller of the Currency: 12 

CFR 34.42(g) and 34.43(a); Federal 

Reserve Board: 12 CFR 225.62 and 

225.63(a); Federal Deposit Insurance 

Corporation: 12 CFR 323.2(f) and 

323.3(a); and National Credit Union 

Administration: 12 CFR 722.2(f) and 

722.3(a)]. 

Performance of appraisals. Proposed 

§ 1102.2(b) proposes to define 

performance of appraisals to mean that 

the appraisal service requested of an 

appraiser has been provided to the 

lender or appraisal management 

company (AMC). 

Petition. Proposed § 1102.2(c) 

proposes to define Petition to mean 

information submitted to the ASC by the 

Federal financial institutions regulatory 

agencies, their respective regulated 

financial institutions, or other persons 

or institutions with a demonstrable 

interest in appraiser regulation, 

including a State Appraisal Agency 

(defined below), asking the ASC to 

exercise its discretionary authority to 

initiate a temporary waiver proceeding, 

and that meets the requirements, as 

determined by the ASC, set forth in 

proposed § 1102.4. 

Request for Temporary Waiver. 

Proposed § 1102.2(d) proposes to define 

Request for Temporary Waiver to mean 

information submitted to the ASC with 

a written determination from a State 

Appraisal Agency (defined below) 

requesting a temporary waiver that 

meets the requirements, as determined 

by the ASC, set forth in proposed 

§ 1102.3. 

Scarcity of certified or licensed 

appraisers. Proposed § 1102.2(e) 

proposes to define scarcity of certified 


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12Title XI § 1121(1). See also, 12 U.S.C. 3350(1). 

13The regulations of the Federal financial 

institutions regulatory agencies (agencies’ appraisal 

regulations) require appraisals for FRTs to meet 

minimum appraisal standards including 

conformance to generally accepted appraisal 

standards as evidenced by USPAP. The ASC cannot 

waive the requirement for USPAP-compliant 

appraisals where applicable under the agencies’ 

appraisal regulations. Therefore, when a waiver is 

in effect, appraisals that comply with the agencies’ 

appraisal regulations (including conformance with 

USPAP) would still be required when applicable 

under those regulations, but they could be 

performed by persons who are not credentialed. 

(See 12 CFR 34.44(a); 12 CFR 225.64(a); 12 CFR 

323.4(a); and 12 CFR 722.4(a)). 

14 ‘‘The rules provide persons other than the State 

appraisal regulatory agencies (‘State agencies’) with 

the opportunity to submit informational 

submissions to the ASC. They also may request that 

the ASC exercise its discretionary authority to 

provide temporary waiver relief. The ASC will 

consider such submissions and requests in 

determining whether it should initiate a temporary 

waiver proceeding.’’ 57 Federal Register 10980 

(April 1992). 

or licensed appraisers to mean the 

number of active certified or licensed 

appraisers within a State or a specified 

geographical political subdivision is 

insufficient to meet the demand for 

appraisal services and such appraisers 

are difficult to retain. 

Significant delays in the performance 

of appraisals. Proposed § 1102.2(f) 

proposes to define significant delays in 

the performance of appraisals to mean 

delays that are substantially out of the 

ordinary when compared to 

performance of appraisals for similarly 

situated federally related transactions 

based on factors such as geographic 

location (e.g., rural versus urban) and 

assignment type, and the delay is not 

the result of intervening circumstances 

outside the appraiser’s control or 

brought about by the appraiser’s client 

(e.g., inability to access the subject 

property). 

State Appraisal Agency. Proposed 

§ 1102.2(g) proposes to define State 

Appraisal Agency to mean the State 

appraiser certifying and licensing 

agency.12

Temporary waiver. Proposed 

§ 1102.2(h) proposes to define 

Temporary waiver to mean a waiver of 

any or all credentialing requirements for 

persons eligible to perform appraisals 

for FRTs; if granted, a temporary waiver 

does not waive the requirement for a 

USPAP-compliant appraisal.13

Request for Temporary Waiver 

Proposed § 1102.3 clarifies: Who can 

file a Request for Temporary Waiver; 

what a Request for Temporary Waiver 

should contain; ASC review of a 

Request for Temporary Waiver for 

purposes of determining sufficiency of 

the document’s content and receipt by 

the ASC; and what is required in the 

event a Request for Temporary Waiver 

is not deemed to be received, and 

thereby is either denied or referred back 

to the State Appraisal Agency. 

Proposed § 1102.3(a) states that the 

State Appraisal Agency for the State in 

which temporary waiver relief is sought 

may file a Request for Temporary 

Waiver as distinguished from a Petition 

from other persons or entities as 

proposed in § 1102.4. A State Appraisal 

Agency may alternatively submit a 

Petition as set forth in proposed 

§ 1102.4. The ASC believes this is 

consistent with the intent of the existing 

rules.14

Proposed § 1102.3(b) states that a 

Request for Temporary Waiver will not 

be deemed to have been received by the 

ASC unless it fully and accurately sets 

out: 

(1) A written determination by the State 

Appraisal Agency that there is a scarcity of 

certified or licensed appraisers leading to 

significant delays in the performance of 

appraisals for FRTs or a specified class of 

FRTs within either a portion of, or the entire 

State; 

(2) the requirement(s) of State law from 

which relief is being sought; 

(3) the nature of the scarcity of certified or 

licensed appraisers (including supporting 

documentation, statistical or otherwise 

verifiable); 

(4) the extent of the delays anticipated or 

experienced in the performance of appraisals 

by certified or licensed appraisers (including 

supporting documentation, statistical or 

otherwise verifiable); 

(5) how complaints concerning appraisals 

by persons who are not certified or licensed 

would be processed in the event a temporary 

waiver is granted; and 

(6) meaningful suggestions and 

recommendations for remedying the 

situation. 

The existing rules state that in the 

absence of a written determination by 

the State Appraisal Agency, it must ask 

the ASC for such a determination. That 

language is removed from this proposed 

subsection for the reason that if the ASC 

were to make such a determination 

when asked to do so by a State 

Appraisal Agency, it would be 

processed as an ASC Order initiating a 

temporary waiver proceeding pursuant 

to proposed § 1102.5(a). 

The proposed amendments to this 

subsection seek to provide clarity on 

information that should be included in 

a Request for Temporary Waiver and to 

remove redundancy from that 

information. For example, the existing 

rules, in addition to the above, ask for 

‘‘[a] description of all significant 

problems currently being encountered 

in efforts to comply with [T]itle XI’’ 

which would be captured in the 

information sought in proposed 

§ 1102.3(b). The proposed amendments 

also modify the requirement for a State 

Appraisal Agency to provide ‘‘a specific 

plan for expeditiously alleviating the 

scarcity and service delays’’ to 

‘‘meaningful suggestions and 

recommendations for remedying the 

situation’’ recognizing that the situation 

creating scarcity and delay may be 

completely outside the control of the 

State Appraisal Agency. 

The proposed amendments include 

the phrase ‘‘supporting documentation, 

statistical or otherwise verifiable.’’ This 

is intended to provide clarification as to 

what a Request for Temporary Waiver 

should include to support the existence 

of a scarcity of certified or licensed 

appraisers leading to significant delays 

in the performance of appraisals for 

FRTs or a specified class of FRTs for 

either a portion of, or the entire State, 

and what the ASC will consider in 

determining receipt (see proposed 

§ 1102.3(c) below). A Request for 

Temporary Waiver should include clear 

and specific data to support a claim that 

there is a scarcity of appraisers leading 

to significant delays in the performance 

of covered appraisals. The data 

supporting such a claim may vary from 

location to location and situation to 

situation. Information about the 

following could assist the ASC in 

reviewing a Request for Temporary 

Waiver: 

1. Geography—location(s) of the scarcity 

leading to significant delay. 

2. Transactions—types of FRTs impacted 

(i.e., property and transaction type(s) and 

transaction amount(s)). 

3. Time—length of time for waiver 

requested. 

Proposed § 1102.3(b) includes that a 

Request for Temporary Waiver address 

how complaints concerning appraisals 

by persons who are not certified or 

licensed would be processed in the 

event a temporary waiver is granted. 

Proposed § 1102.3(c) is intended to 

clarify that a Request for Temporary 

Waiver shall be deemed received for 

purposes of publication in the Federal 

Register for notice and comment if the 

ASC determines that the information 

submitted meets the requirements of 

§ 1102.3(b). 

Proposed § 1102.3(d) sets forth what 

is required in the event a Request for 

Temporary Waiver is not deemed to be 

received, and thereby is either denied or 

referred back to the State Appraisal 

Agency. In either case, written notice 

from the ASC would be required with 

an explanation for such a determination. 


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Petition Requesting the ASC Initiate a 

Temporary Waiver Proceeding 

Proposed § 1102.4 clarifies: Who can 

file a Petition requesting that the ASC 

exercise its discretionary authority to 

issue an Order, thereby initiating a 

temporary waiver proceeding; what a 

Petition should contain; the need to 

forward a copy of a Petition to the State 

Appraisal Agency of the impacted State; 

what the ASC may review for purposes 

of determining whether the Petition may 

be processed for further action; what is 

required in the event a Petition does not 

meet the requirements of § 1102.4(b), 

Contents of a Petition, and thereby is 

either denied or referred back to the 

petitioner; and what further action may 

be taken. 

Proposed § 1102.4(a) states that a 

Petition may be filed by the Federal 

financial institutions regulatory 

agencies, their respective regulated 

financial institutions, and other persons 

or institutions with a demonstrable 

interest in appraiser regulation, 

including a State Appraisal Agency. 

Proposed § 1102.4(b) states that a 

Petition should include: 

(1) Information (statistical or otherwise 

verifiable) to support the existence of a 

scarcity of certified or licensed appraisers 

leading to significant delays in the 

performance of appraisals for FRTs or a 

specified class of FRTs for either a portion of, 

or the entire State; and 

(2) the extent of the delays anticipated or 

experienced in the performance of appraisals 

by certified or licensed appraisers (including 

supporting documentation, statistical or 

otherwise verifiable). 

A Petition may also include meaningful 

suggestions and recommendations for 

remedying the situation. 

The existing rules generally request 

the same information from State 

Appraisal Agencies as they do from 

other persons or institutions seeking 

consideration of temporary waiver relief 

(with the exception of ‘‘a specific plan 

to alleviate scarcity and service delays’’ 

which is unique to State Appraisal 

Agencies). The proposed amendments 

to this subsection seek to provide clarity 

on information that should be included 

in a Petition while easing the 

expectation that a Petition contain the 

specificity of a Request for Temporary 

Waiver from a State Appraisal Agency. 

The proposed amendments include 

the phrase ‘‘supporting documentation, 

statistical or otherwise verifiable.’’ This 

is intended to clarify what a Petition 

should include to support the existence 

of a scarcity of certified or licensed 

appraisers leading to significant delays 

in the performance of appraisals for 

FRTs or a specified class of FRTs for 

either a portion of, or the entire State, 

and what the ASC will consider in 

determining whether to process a 

Petition for further action (see proposed 

§ 1102.4(d) below). 

Proposed § 1102.4(c) clarifies the 

existing requirement for a petitioner to 

provide a copy of their Petition to the 

State Appraisal Agency, unless the party 

filing the Petition is the State Appraisal 

Agency. 

Proposed § 1102.4(d) provides that a 

Petition may be processed for further 

action if the ASC determines that the 

information submitted meets the 

requirements of proposed § 1102.4(b) 

and that further action should be taken 

to determine whether a scarcity of 

appraisers exists and that the scarcity is 

leading to significant delays in the 

performance of appraisals for FRTs or a 

specified class of FRTs within either a 

portion of, or the entire State. 

Proposed § 1102.4(e) sets forth what is 

required in the event a Petition does not 

meet the requirements of § 1102.4(b), 

Contents of a Petition, and thereby is 

either denied or referred back to the 

petitioner. In either case, written notice 

from the ASC would be required with 

an explanation for such a determination. 

Proposed § 1102.4(f) states that if a 

Petition is processed for further action, 

the ASC may initially refer a Petition to 

the State Appraisal Agency where 

temporary waiver relief is sought for 

evaluation and further study, or the ASC 

may take further action without 

referring a Petition to the State 

Appraisal Agency. Alternatively, a 

Petition may be denied or referred back 

to the petitioner for further action. 

Proposed § 1102.4(g) states that in the 

event the State Appraisal Agency opts to 

conduct evaluation and further study on 

a Petition, the State Appraisal Agency 

may issue a written determination that 

there is a scarcity of certified or licensed 

appraisers leading to significant delays 

in the performance of appraisals for 

FRTs or a class of FRTs within either a 

portion of, or the entire State. Assuming 

the State Appraisal Agency has 

addressed the items that would be 

included in a Request for Temporary 

Waiver as set forth in proposed 

§ 1102.3(b), the Petition would now be 

subject to the procedures and 

requirements for a Request for 

Temporary Waiver. 

The State Appraisal Agency could 

alternatively recommend that the ASC 

take no further action on the Petition, or 

moreover decline to conduct evaluation 

and further study on a Petition. In either 

case, the ASC may exercise its 

discretion in determining whether to 

issue an Order initiating a temporary 

waiver proceeding. 

Proposed § 1102.5 clarifies that an 

Order initiating a temporary waiver 

proceeding may be in response to a 

Petition or may be initiated by the ASC 

without a Petition having been 

submitted. In either event, such an 

Order would include consideration of 

certain items that would be addressed in 

a Request for Temporary Waiver. (See 

e.g., § 1102.3(b)(2)–(6), Contents and 

Receipt of a Request for Temporary 

Waiver). If such an Order is issued, the 

ASC shall publish a Federal Register 

notice in accordance with § 1102.6(b). 

This is consistent with the existing rules 

of practice and procedure. 

Notice and Comment 

Proposed § 1102.6 does not vary in 

substance from the existing rules of 

practice and procedure, § 1102.4, Notice 

and comment, which provides for a 30- 

day notice and comment period on 

either a Request for Temporary Waiver 

or an Order initiating a temporary 

waiver proceeding. 

ASC Determination 

Proposed § 1102.7 would expand the 

existing 45-day deadline, which 

commences on the date of publication 

above, for the ASC to make a 

determination. With respect to recent 

requests for temporary waivers, or other 

information submissions requesting the 

ASC initiate a proceeding, the 45-day 

turnaround limited the time available to 

process and evaluate information 

submitted, including comments 

received during the notice and comment 

period. 

The ASC believes that the 45-day time 

period was imposed in 1992 primarily 

because States were still in the process 

of setting up State appraiser regulatory 

programs, and absent a temporary 

waiver, could have been left without 

any means to provide appraisals for 

FRTs. That is not the case today. Even 

absent a temporary waiver, a State 

would likely be able to continue to 

provide appraisals, especially given the 

use of temporary practice permits and 

reciprocity. 

The ASC proposes to expand the 

timeframe for an ASC determination, on 

either a Request for Temporary Waiver 

or an Order initiating a temporary 

waiver proceeding, from 45 calendar 

days to 90 calendar days from the date 

of publication in the Federal Register to 

allow sufficient time for thorough 

processing and consideration. Proposed 

§ 1102.7 also seeks to clarify that in the 

event the ASC issues an Order 

approving a temporary waiver, which is 

only effective upon FFIEC approval of 

the waiver, that the FFIEC consideration 

of the waiver would not be subject to 


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15 5 U.S.C. 553(b). 

16 5 U.S.C. 553(d). 

17 5 U.S.C. 603(a) and 604(a). 

18 44 U.S.C. 3501–3521. 

the ASC’s proposed 90-day timeframe 

for a determination. 

The existing rules of practice and 

procedure allow the ASC to issue an 

interim approval Order simultaneously 

with a publication for notice and 

comment, and apply when the ASC 

determines that an emergency exists. A 

waiver approved by such an Order also 

requires approval by the FFIEC. For the 

reasons stated above, the ASC believes 

the existing rules were intended to 

accommodate nascent State Programs, 

which is not applicable today. States 

now have options to cope with an 

emergency that were not available when 

the existing rules of practice and 

procedure were finalized. Additionally, 

the ASC believes that notice and 

comment is critical to thorough 

processing of a Request for Temporary 

Waiver or a Petition. Therefore, as 

proposed, § 1102.6 would eliminate the 

interim Order from the rules of practice 

and procedure. 

Waiver Extension 

Proposed § 1102.8 does not vary in 

substance from the existing rules of 

practice and procedure, § 1102.6, 

Waiver extension. 

Waiver Termination 

Proposed § 1102.9 would clarify the 

distinction between mandatory waiver 

termination versus discretionary waiver 

termination. Section 1119(b) of Title XI 

states, ‘‘[t]he waiver terminates when 

the [ASC] determines that such 

significant delays have been 

eliminated.’’ Therefore, proposed 

§ 1102.9 would require termination in 

the event of such a finding by the ASC. 

Proposed § 1102.9 would retain the 

provision for a discretionary 

termination in the event the ASC finds 

that the terms and conditions of the 

waiver Order are not being satisfied and 

the procedure for the ASC’s publication 

in the Federal Register for notice and 

comment in the case of discretionary 

waiver termination, which does not vary 

in substance from the existing rules of 

practice and procedure, § 1102.7, 

Waiver termination. In the absence of 

further ASC action to the contrary, the 

finding of a discretionary waiver 

termination automatically shall become 

final 21 calendar days after the close of 

the comment period. 

III. Request for Comment 

The ASC requests comment on all 

aspects of the proposed amendments to 

the existing rules of practice and 

procedure governing temporary waiver 

proceedings. 

IV. Regulatory Requirements 

The ASC has concluded that, if 

finalized, the proposed amendments to 

the procedural rule would, like the 

current rule, constitute a rule of agency 

organization, procedure, or practice, and 

that they would therefore be exempt 

from the notice-and-comment 

rulemaking requirements of the APA.15

For the same reason, the proposed 

amendments would not be subject to the 

30-day delayed effective date for 

substantive rules under the APA.16

Moreover, agency interpretations of 

terms used in their statutory authority 

are exempt from the notice and 

comment requirement. Because no 

notice of proposed rulemaking is 

required, the Regulatory Flexibility Act 

does not require an initial or final 

regulatory flexibility analysis.17

Paperwork Reduction Act 

There is no collection of information 

that would be required by this proposed 

rule that would be subject to the 

Paperwork Reduction Act of 1995, 44 

U.S.C. 3501 et seq. The Paperwork 

Reduction Act of 1995 18 (PRA) states 

that no agency may conduct or sponsor, 

nor is the respondent required to 

respond to, an information collection 

unless it displays a currently valid 

Office of Management and Budget 

(OMB) control number. The ASC has 

reviewed this notice of proposed 

rulemaking and determined that it does 

not contain any information collection 

requirements subject to the PRA. 

Accordingly, no submissions to OMB 

will be made with respect to this 

proposed rule. 

Unfunded Mandates Reform Act of 1995 

Determination 

This proposed rule if finalized would 

not have a significant or unique effect 

on State, local, or tribal governments or 

the private sector. The proposed rule 

would amend the existing rule to 

provide definitions of terms and greater 

clarity on the proceedings for a 

temporary waiver. A statement 

containing the information required by 

the Unfunded Mandates Reform Act, 2 

U.S.C. 1531 et seq. is not required. 

List of Subjects in 12 CFR Part 1102 

Administrative practice and 

procedure, Appraisers, Appraisal 

Management Company Registry Fees, 

Banks, Banking, Freedom of 

information, Mortgages, Reporting and 

recordkeeping requirements. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the ASC proposes to amend 

12 CFR part 1102 as follows: 

PART 1102—APPRAISER 

REGULATION 

■ 1. The authority citation for part 1102, 

subpart A continues to read as follows: 

Authority: 12 U.S.C. 3348(b). 

■ 2. Revise part 1102, subpart A to read 

as follows: 

Subpart A—Temporary Waiver 

Requests 

Sec. 

1102.1 Authority, purpose, and scope. 

1102.2 Definitions. 

1102.3 Request for Temporary Waiver. 

1102.4 Petition requesting the ASC initiate 

a temporary waiver proceeding. 

1102.5 Order initiating a temporary waiver 

proceeding. 

1102.6 Notice and comment. 

1102.7 ASC determination. 

1102.8 Waiver extension. 

1102.9 Waiver termination. 

§ 1102.1 Authority, purpose and scope. 

(a) Authority. This subpart is issued 

under § 1119(b) of Title XI of the 

Financial Institutions Reform, Recovery, 

and Enforcement Act of 1989 (Title XI; 

12 U.S.C. 3348(b)). 

(b) Purpose and scope. This subpart 

prescribes rules of practice and 

procedure governing temporary waiver 

proceedings under § 1119(b) of Title XI 

(12 U.S.C. 3348(b)). These procedures 

apply whenever a Request for 

Temporary Waiver is submitted to the 

Appraisal Subcommittee (ASC) of the 

Federal Financial Institutions 

Examination Council (FFIEC) for a 

temporary waiver of any requirement 

relating to State certification or 

licensing (credentialing requirements) of 

persons eligible to perform appraisals 

for federally related transactions (FRTs) 

under Title XI. These procedures also 

apply in the event the ASC receives a 

Petition requesting the ASC initiate a 

temporary waiver proceeding. This 

subpart also contains the ASC’s 

interpretations of terms used in 

§ 1119(b) of Title XI. 

§ 1102.2 Definitions. 

For purposes of this subpart: 

(a) Federally related transaction (FRT) 

means any real estate-related financial 

transaction which: (a) A Federal 

financial institutions regulatory agency 

engages in, contracts for, or regulates; 

and (b) requires the services of an 

appraiser under the interagency 

appraisal rules. [(Title XI § 1121(4), 12 

U.S.C. 3350), implemented by the Office 


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19Title XI § 1121(1). See also, 12 U.S.C. 3350(1). 

of the Comptroller of the Currency: 12 

CFR 34.42(g) and 34.43(a); Federal 

Reserve Board: 12 CFR 225.62and 

225.63(a); Federal Deposit Insurance 

Corporation: 12 CFR 323.2(f) and 

323.3(a); and National Credit Union 

Administration: 12 CFR 722.2(f) and 

722.3(a)]. 

(b) Performance of appraisals means 

the appraisal service requested of an 

appraiser is provided to the lender or 

appraisal management company (AMC). 

(c) Petition means information 

submitted to the ASC by the Federal 

financial institutions regulatory 

agencies, their respective regulated 

financial institutions, or other persons 

or institutions with a demonstrable 

interest in appraiser regulation, 

including a State Appraisal Agency, 

asking the ASC to exercise its 

discretionary authority to initiate a 

temporary waiver proceeding, and that 

meets the requirements, as determined 

by the ASC, set forth in § 1102.4. 

(d) Request for Temporary Waiver 

means information submitted to the 

ASC by a State Appraisal Agency with 

a written determination requesting a 

temporary waiver that meets the 

requirements, as determined by the 

ASC, set forth in § 1102.3. 

(e) Scarcity of certified or licensed 

appraisers means the number of active 

certified or licensed appraisers within a 

State or a specified geographical 

political subdivision is insufficient to 

meet the demand for appraisal services 

and such appraisers are difficult to 

retain. 

(f) Significant delays in the 

performance of appraisals means delays 

that are substantially out of the ordinary 

when compared to performance of 

appraisals for similarly situated FRTs 

based on factors such as geographic 

location (e.g., rural versus urban) and 

assignment type, and the delay is not 

the result of intervening circumstances 

outside the appraiser’s control or 

brought about by the appraiser’s client 

(e.g., inability to access the subject 

property). 

(g) State Appraisal Agency means the 

State appraiser certifying and licensing 

agency.19

(h) Temporary waiver means a waiver 

of any or all credentialing requirements 

for persons eligible to perform 

appraisals for FRTs; if granted, a 

temporary waiver does not waive the 

requirement for a Uniform Standards of 

Professional Appraisal Practice 

(USPAP)-compliant appraisal. 

§ 1102.3 Request for Temporary Waiver. 

(a) Who can file a Request for 

Temporary Waiver. The State Appraisal 

Agency for the State in which the 

temporary waiver relief is sought may 

file a Request for Temporary Waiver. 

(b) Contents and Receipt of a Request 

for Temporary Waiver. A Request for 

Temporary Waiver from a State 

Appraisal Agency will not be deemed 

received by the ASC unless it fully and 

accurately sets out: 

(1) A written determination by the 

State Appraisal Agency that there is a 

scarcity of certified or licensed 

appraisers leading to significant delays 

in the performance of appraisals for 

FRTs or a specified class of FRTs within 

either a portion of, or the entire State; 

(2) The requirement(s) of State law 

from which relief is being sought; 

(3) The nature of the scarcity of 

certified or licensed appraisers 

(including supporting documentation, 

statistical or otherwise verifiable); 

(4) The extent of the delays 

anticipated or experienced in the 

performance of appraisals by certified or 

licensed appraisers (including 

supporting documentation, statistical or 

otherwise verifiable); 

(5) How complaints concerning 

appraisals by persons who are not 

certified or licensed would be processed 

in the event a temporary waiver is 

granted; and 

(6) Meaningful suggestions and 

recommendations for remedying the 

situation. 

(c) Receipt of a Request for Temporary 

Waiver. A Request for Temporary 

Waiver shall be deemed received for 

purposes of publication in the Federal 

Register for notice and comment if the 

ASC determines that the information 

submitted meets the requirements of 

§ 1102.3(b), Contents and Receipt of a 

Request for Temporary Waiver, to 

support that a scarcity of appraisers 

exists and that the scarcity is leading to 

significant delays in the performance of 

appraisals for FRTs or a specified class 

of FRTs within either a portion of, or the 

entire State. 

(d) Deny or Refer back. In the event 

the Request for Temporary Waiver is not 

deemed received, it may be denied in its 

entirety or referred back to the State 

Appraisal Agency for further action. In 

either case, the ASC shall provide 

written notice to the State Appraisal 

Agency providing an explanation for the 

determination. 

§ 1102.4 Petition requesting the ASC 

initiate a temporary waiver proceeding. 

(a) Who can file a Petition requesting 

the ASC initiate a temporary waiver 

proceeding. The Federal financial 

institutions regulatory agencies, their 

respective regulated financial 

institutions, and other persons or 

institutions with a demonstrable interest 

in appraiser regulation, including a 

State Appraisal Agency, may petition 

the ASC to exercise its discretionary 

authority to initiate a temporary waiver 

proceeding. 

(b) Contents of a Petition. (1) A 

Petition should include: 

(i) Information (statistical or 

otherwise verifiable) to support the 

existence of a scarcity of certified or 

licensed appraisers leading to 

significant delays in the performance of 

appraisals for FRTs or a specified class 

of FRTs for either a portion of, or the 

entire State; 

and 

(ii) The extent of the delays 

anticipated or experienced in the 

performance of appraisals by certified or 

licensed appraisers (including 

supporting documentation, statistical or 

otherwise verifiable). 

(2) A Petition may also include 

meaningful suggestions and 

recommendations for remedying the 

situation. 

(c) Copy of Petition to State Appraisal 

Agency. In the case of a Petition from a 

party other than a State Appraisal 

Agency, the party must promptly 

provide a copy of its Petition to the 

State Appraisal Agency. 

(d) ASC review of a Petition. A 

Petition may be processed for further 

action if the ASC determines that the 

information submitted meets the 

requirements of § 1102.4(b), Contents of 

a Petition, and that further action 

should be taken to determine whether a 

scarcity of appraisers exists and that the 

scarcity is leading to significant delays 

in the performance of appraisals for 

FRTs or a specified class of FRTs within 

either a portion of, or the entire State. 

(e) Deny or Refer back. In the event a 

Petition does not meet the requirements 

of § 1102.4(b), Contents of a Petition, it 

may be denied in its entirety or referred 

back to the petitioner for further action. 

In either event, the ASC shall provide 

written notice to the petitioner 

providing an explanation for the 

determination. 

(f) Further action on a Petition. If the 

ASC determines that a Petition should 

be processed for further action, at its 

discretion the ASC may: 

(1) Refer a Petition to the State 

Appraisal Agency where temporary 

waiver relief is sought for further 

evaluation and study, to include items 

that would be addressed in a Request for 

Temporary Waiver (see § 1102.3(b), 

Contents and Receipt of a Request for 

Temporary Waiver); or 


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(2) Take further action without 

referring the Petition to the State 

Appraisal Agency. 

(g) State Appraisal Agency Action. 

(1) In the event the State Appraisal 

Agency opts to conduct further 

evaluation and study on a Petition, the 

State Appraisal Agency may: 

(i) Issue a written determination that 

there is a scarcity of certified or licensed 

appraisers leading to significant delays 

in the performance of appraisals for 

FRTs or a class of FRTs within either a 

portion of, or the entire State (or request 

that the ASC issue such a written 

determination), in which case, the 

procedures and requirements of § 1102.3 

and 1102.6(a) shall apply; or 

(ii) Recommend that the ASC take no 

further action. 

(2) In the event the State Appraisal 

Agency either recommends no further 

action or declines to conduct further 

evaluation and study on a Petition, the 

ASC may exercise its discretion in 

determining whether to issue an Order 

initiating a temporary waiver 

proceeding in accordance with 

§ 1102.5(a). 

§ 1102.5 Order initiating a temporary 

waiver proceeding. 

The ASC may exercise discretion in 

determining whether to issue an Order 

initiating a temporary waiver 

proceeding in response to a Petition, or 

alternatively, the ASC may exercise 

discretion to initiate a temporary waiver 

proceeding on its own initiative without 

a Petition being submitted. In either 

event, such an Order would include 

consideration of certain items that 

would be addressed in a Request for 

Temporary Waiver. (See e.g., 

§ 1102.3(b)(2) through (6), Contents and 

Receipt of a Request for Temporary 

Waiver). If such an Order is issued, the 

ASC shall publish a Federal Register 

notice in accordance with § 1102.6(b). 

§ 1102.6 Notice and comment. 

The ASC shall publish promptly in 

the Federal Register a notice respecting: 

(a) A received Request for Temporary 

Waiver (see § 1102.3(c)); or 

(b) An ASC Order initiating a 

temporary waiver proceeding (see 

§ 1102.5). 

The notice of a received Request for 

Temporary Waiver or ASC Order 

initiating a temporary waiver 

proceeding shall contain a concise 

statement of the nature and basis for the 

action and shall give interested persons 

30 calendar days from its publication in 

which to submit written data, views, 

and arguments. 

§ 1102.7 ASC determination. 

(a) Order by the ASC. Within 90 

calendar days of the date of publication 

of the notice in the Federal Register, the 

ASC, by Order, shall either grant or 

deny a waiver, in whole or in part, and 

upon specified terms and conditions, 

including provisions for waiver 

termination. The Order shall be 

published in the Federal Register, 

which in the case of an Order approving 

a waiver, shall only be published after 

FFIEC approval of the waiver (see 

paragraph (b) of this section). Such 

Order shall respond to comments 

received from interested members of the 

public and shall provide the reasons for 

the ASC’s finding(s). 

(b) Approval by the FFIEC. Any ASC 

Order approving a waiver shall be 

effective only upon FFIEC approval of 

the waiver. FFIEC consideration of a 

waiver is not subject to the ASC’s 90- 

day timeframe for a determination. 

§ 1102.8 Waiver extension. 

The ASC may initiate an extension of 

temporary waiver relief and shall follow 

§§ 1102.6, 1102.7 and 1102.9 of this 

subpart. A State Appraisal Agency also 

may seek an extension of temporary 

waiver relief by forwarding an 

additional written Request for 

Temporary Waiver to the ASC. A 

request for an extension from a State 

Appraisal Agency shall be subject to all 

the requirements of this subpart. 

§ 1102.9 Waiver termination. 

(a) Mandatory waiver termination. 

The ASC shall terminate a temporary 

waiver Order when the ASC determines 

that significant delays in the 

performance of appraisals by certified or 

licensed appraisers no longer exist. 

(b) Discretionary waiver termination. 

The ASC at any time may terminate a 

waiver Order on the finding that the 

terms and conditions of the waiver 

Order are not being satisfied. In the case 

of a discretionary waiver termination, 

the ASC shall publish a finding of 

waiver termination promptly in the 

Federal Register, giving interested 

persons no less than 30 calendar days 

from publication in which to submit 

written data, views, and arguments. In 

the absence of further ASC action to the 

contrary, the finding of discretionary 

waiver termination automatically shall 

become final 21 calendar days after the 

close of the comment period. 

By the Appraisal Subcommittee. 

Dated: January 6, 2022. 

Tim Segerson, 

Chairman. 

[FR Doc. 2022–00342 Filed 1–12–22; 8:45 am] 

BILLING CODE 6700–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2021–1176; Project 

Identifier MCAI–2021–00755–R] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for 

certain Airbus Helicopters Model 

SA330J helicopters. This proposed AD 

was prompted by a review of Model 

EC225LP helicopter data that revealed 

potential tightening torque loss of the 

attachment screws of the upper deck 

fittings of the three main gearbox (MGB) 

suspension bars. Due to design 

similarities, the MGB right-hand (RH) 

rear fittings and MGB RH rear fitting 

attachment screws on Model SA330J 

helicopters could also be affected. 

Additional analysis confirmed that the 

service life limit (life limit) (SLL) for 

these affected MGB RH rear fittings 

needs to be reduced for helicopters on 

which these affected parts were 

operated concurrently with metallic 

main rotor blades installed. This 

proposed AD would require 

determining the damage value and SLL 

of each affected MGB RH rear fitting, 

replacing each affected MGB RH rear 

fitting with a new part, and replacing 

the MGB RH rear fitting attachment 

screws, as specified in a European 

Union Aviation Safety Agency (EASA) 

AD, which is proposed for incorporation 

by reference (IBR). The FAA is 

proposing this AD to address the unsafe 

condition on these products. 

DATES: The FAA must receive comments 

on this proposed AD by February 28, 

2022. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 


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