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[Federal Register Volume 89, Number 239 (Thursday, December 12, 2024)]
[Notices]
[Pages 100492-100495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29295]

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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0165; -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, invites the general public and other Federal 
agencies to take this opportunity to comment on the request to renew 
the existing information collections described below (OMB Control No. 
3064-0165 and -0183). The notices of proposed renewal for these 
information collections were previously published in the Federal 
Register on October 10, 2024, and October 21, 2024, allowing for a 60-
day comment period.

DATES: Comments must be submitted on or before January 13, 2025.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     Agency website: https://www.fdic.gov/resources/regulations/federal-register-publications/.
     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.

[[Page 100493]]

     Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     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 a.m. and 5 p.m.
    Written comments and recommendations for the proposed information 
collection also should be sent within 30 days of publication of this 
notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comment'''' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, [email protected], 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: Pillar 2 Guidance--Advanced Capital Framework.
    OMB Number: 3064-0165.
    Form Number: None.
    Affected Public: Insured state nonmember banks and certain 
subsidiaries of these entities.
    Burden Estimate:

                                       Summary of Estimated Annual Burden
                                               [OMB No. 3064-0165]
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                                 Type of burden                      Number of       Time per
  Information collection (IC)     (frequency of      Number of    responses  per     response      Annual burden
    (obligation to respond)         response)       respondents      respondent       (HH:MM)         (hours)
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Supervisory Guidance:           Recordkeeping                  1               4          105:00             420
 Supervisory Process of          (Quarterly).
 Capital Adequacy (Pillar 2)
 Related to the Implementation
 of the Basel II Advanced
 Capital Framework (Voluntary).
                                                 ---------------------------------------------------------------
    Total Annual Burden         ................  ..............  ..............  ..............             420
     (Hours):.
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Source: FDIC.

    General Description of Collection. In 2008, the Office of the 
Comptroller of the Currency, the Board of Governors of the Federal 
Reserve System, and the FDIC issued a supervisory guidance document 
related to the supervisory review process of capital adequacy (Pillar 
2) in connection with the implementation of the Basel II Advanced 
Capital Framework. Sections 37, 41, 43 and 46 of the guidance include 
possible information collections. Section 37 provides that banks should 
state clearly the definition of capital used in any aspect of its 
internal capital adequacy assessment process (ICAAP) and document any 
changes in the internal definition of capital. Section 41 provides that 
banks should maintain thorough documentation of its ICAAP. Section 43 
specifies that the board of directors should approve the bank's ICAAP, 
review it on a regular basis, and approve any changes. Section 46 
recommends that boards of directors periodically review the assessment 
of overall capital adequacy and analyze how measures of internal 
capital adequacy compare with other capital measures such as regulatory 
or accounting. There has been no change in the method or substance of 
this information collection, the burden is unchanged from the 2021 
burden estimate.
    2. 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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                                                                                             Estimated       Number of                     Total annual
            IC description                  Type of burden        Frequency of response      number of      responses/       Hours per       estimated
                                        (obligation to respond)                             respondents     respondent       response         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            Disclosure (Mandatory)..  On Occasion............               1               1            20.0              20
 Qualifying Commercial Loans,
 Commercial Real Estate and
 Automobile Loans *.
Sec.   373.16 Underwriting Standards   Disclosure (Mandatory)..  On Occasion............               1               1            1.25               1
 for Qualifying Commercial Loans *.
Sec.   373.17 Underwriting Standards   Disclosure (Mandatory)..  On Occasion............               1               1            1.25               1
 for Qualifying Commercial Real
 Estate Loans *.

[[Page 100494]]

 
Sec.   373.18 Underwriting Standards   Disclosure (Mandatory)..  On Occasion............               1               1            1.25               1
 for Qualifying Automobile Loans *.
                                                                                         ---------------------------------------------------------------
    Disclosure Subtotal..............  ........................  .......................  ..............  ..............  ..............             137
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                                                                  Recordkeeping Burdens
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Sec.   373.4(a)(2) Standard Risk       Recordkeeping             On Occasion............               2               2             0.5               2
 Retention--Horizontal Interest.        (Mandatory).
Sec.   373.4(a)(1) Standard Risk       Recordkeeping             On Occasion............               2               2             0.5               2
 Retention--Vertical Interest.          (Mandatory).
Sec.   373.4(a)(3) Standard Risk       Recordkeeping             On Occasion............               1               1             0.5               1
 Retention--Combined Interest *.        (Mandatory).
Sec.   373.5 Revolving Master Trusts.  Recordkeeping             On Occasion............               3               2             0.5               3
                                        (Mandatory).
Sec.   373.6 Eligible ABCP Conduits *  Recordkeeping             On Occasion............               1               1            20.0              20
                                        (Mandatory).
Sec.   373.7 Commercial MBS *........  Recordkeeping             On Occasion............               1               1            30.0              30
                                        (Mandatory).
Sec.   373.11 Allocation of Risk       Recordkeeping             On Occasion............               1               1            20.0              20
 Retention to an Originator *.          (Mandatory).
Sec.   373.13 Exemption for Qualified  Recordkeeping             On Occasion............               1               1            40.0              40
 Residential Mortgages *.               (Mandatory).
Sec.   373.15 Exemption for            Recordkeeping             On Occasion............               1               1             0.5               1
 Qualifying Commercial Loans,           (Mandatory).
 Commercial Real Estate and
 Automobile Loans *.
Sec.   373.16 Underwriting Standards   Recordkeeping             On Occasion............               1               1            40.0              40
 for Qualifying Commercial Loans *.     (Mandatory).
Sec.   373.17 Underwriting Standards   Recordkeeping             On Occasion............               1               1            40.0              40
 for Qualifying Commercial Real         (Mandatory).
 Estate Loans *.
Sec.   373.18 Underwriting Standards   Recordkeeping             On Occasion............               1               1            40.0              40
 for Qualifying Automobile Loans *.     (Mandatory).
                                                                                         ---------------------------------------------------------------
    Recordkeeping Subtotal...........  ........................  .......................  ..............  ..............  ..............             239
                                                                                         ---------------------------------------------------------------
        Total Annual Burden Hours....  ........................  .......................  ..............  ..............  ..............       376 hours
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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 (the Commission) 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 
(collectively, the Federal banking agencies), the Commission and, in 
the case of the securitization of any ``residential mortgage asset,'' 
together with HUD and FHFA, to jointly prescribe regulations that (i) 
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 (ii) 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

[[Page 100495]]

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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    Part 373 contains several requirements that qualify as information 
collections under the Paperwork Reduction Act of 1995 (PRA). The 
information collection requirements are found in 12 CFR 373.4, 373.5, 
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 (i) the adoption and maintenance of various policies and 
procedures to ensure and monitor compliance with regulatory 
requirements and (ii) 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 12 CFR 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 collection of information 
is 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 collection, 
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 collection 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 December 9, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-29295 Filed 12-11-24; 8:45 am]
BILLING CODE 6714-01-P
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