[Federal Register Volume 82, Number 204 (Tuesday, October 24, 2017)]
[Rules and Regulations]
[Pages 49089-49091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22957]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 34

[Docket No. OCC-2017-0024]

FEDERAL RESERVE SYSTEM

12 CFR Part 225

[Docket No. OP-1577]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 323

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 722


Temporary Exceptions to the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (FIRREA) Appraisal Requirements 
in Areas Affected by Severe Storms and Flooding Related to Hurricanes 
Harvey, Irma, and Maria

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of

[[Page 49090]]

Governors of the Federal Reserve System (Board); Federal Deposit 
Insurance Corporation (FDIC); and National Credit Union Administration 
(NCUA), collectively referred to as the agencies.

ACTION: Statement and order; temporary exceptions.

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SUMMARY: Section 2 of the Depository Institutions Disaster Relief Act 
of 1992 (DIDRA) authorizes the agencies to make exceptions to statutory 
and regulatory appraisal requirements under Title XI of FIRREA. The 
exceptions are available for transactions involving real property 
located within an area in a state or territory declared to be a major 
disaster by the President if the agencies determine, and describe by 
publication of a regulation or order, that the exceptions would 
facilitate recovery from the disaster and would be consistent with 
safety and soundness.
    In this statement and order, the agencies exercise their authority 
to grant temporary exceptions to the FIRREA appraisal requirements for 
real estate-related financial transactions, provided certain criteria 
are met, in areas of Florida, Georgia, Puerto Rico, Texas, and the U.S. 
Virgin Islands that have been declared major disasters by President 
Trump as a result of the severe storms and flooding caused by 
Hurricanes Harvey, Irma, and Maria. The expiration date for the 
exceptions in each area is three years after the date the President 
declared the state or territory a major disaster.

DATES: This order is applicable on October 24, 2017 and expires three 
years after the date the President declared the relevant state or 
territory a major disaster, as follows.
    Hurricane Harvey: The expiration date for the exceptions for areas 
declared a major disaster is August 24, 2020, for Texas.
    Hurricane Irma: The expiration dates for the exceptions for areas 
declared a major disaster are September 6, 2020, for the U.S. Virgin 
Islands, September 9, 2020, for Florida and Puerto Rico, and September 
14, 2020, for Georgia.
    Hurricane Maria: The expiration dates for the exceptions for areas 
declared a major disaster are September 19, 2020, for Puerto Rico and 
September 20, 2020, for the U.S. Virgin Islands.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Kevin Lawton, Appraisal Specialist, Chief National Bank 
Examiner's Office, at (202) 649-7152; Christopher Manthey, Special 
Counsel, Chief Counsel's Office, at (202) 649-6203; or Mitchell Plave, 
Special Counsel, Chief Counsel's Office, at (202) 649-6285 or, for 
persons who are deaf or hearing impaired, TTY (202) 649-5597.
    Board: Carmen D. Holly, Senior Supervisory Financial Analyst, 
Division of Supervision and Regulation at (202) 973-6122; Gillian 
Burgess, Counsel, Legal Division, at (202) 736-5564; or Kirin Walsh, 
Attorney, Legal Division, at (202) 452-3058.
    FDIC: Beverlea S. Gardner, Senior Examination Specialist, Division 
of Risk Management and Supervision, at (202) 898-3640; Mark Mellon, 
Counsel, Legal Division, at (202) 898-3884; Federal Deposit Insurance 
Corporation, 550 17th Street NW., Washington, DC 20429.
    NCUA: D. Scott Neat, Director of Supervision, Office of Examination 
and Insurance, at (703) 518-6363; John Brolin, Staff Attorney, Office 
of General Counsel, at (703) 518-6438; National Credit Union 
Administration, 1775 Duke Street, Alexandria, VA 22314.

SUPPLEMENTARY INFORMATION:

Statement

    Section 2 of DIDRA, which added section 1123 to Title XI of 
FIRREA,\1\ authorizes the agencies to make exceptions to statutory and 
regulatory appraisal requirements for certain transactions. These 
exceptions are available for transactions involving real property 
located in an area in which the President has determined a major 
disaster exists, pursuant to section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act,\2\ provided that the 
exception would facilitate recovery from the major disaster and is 
consistent with safety and soundness.
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    \1\ 12 U.S.C. 3352.
    \2\ 42 U.S.C. 5170.
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    On August 25, 2017, the President declared a major disaster existed 
in areas in the state of Texas \3\ due to extensive damage that 
occurred as a result of severe storms and subsequent flooding in 
connection with Hurricane Harvey. On September 7, 2017, the President 
declared a major disaster existed in areas in the U.S. Virgin Islands 
\4\ as a result of the severe storms and subsequent flooding from 
Hurricane Irma. On September 10, 2017, the President declared a major 
disaster existed in areas in the state of Florida \5\ and the 
Commonwealth of Puerto Rico \6\ as a result of the severe storms and 
subsequent flooding from Hurricane Irma. Further, on September 15, 
2017, the President declared a major disaster existed in areas in the 
state of Georgia as a result of the severe storms and subsequent 
flooding related to Hurricane Irma.\7\
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    \3\ Press Release, The White House (August 25, 2017), available 
at https://www.whitehouse.gov/the-press-office/2017/08/25/president-donald-j-trump-approves-texas-disaster-declaration.
    \4\ Press Release, The White House (September 7, 2017), 
available at https://www.whitehouse.gov/the-press-office/2017/09/07/president-donald-j-trump-approves-us-virgin-islands-disaster-declaration.
    \5\ Press Release, The White House (September 10, 2017), 
available at https://www.whitehouse.gov/the-press-office/2017/09/10/president-donald-j-trump-approves-florida-disaster-declaration.
    \6\ Press Release, The White House (September 10, 2017), 
available at https://www.whitehouse.gov/the-press-office/2017/09/10/president-donald-j-trump-approves-puerto-rico-disaster-declaration.
    \7\ Press Release, The White House (September 15, 2017), 
available at https://www.whitehouse.gov/the-press-office/2017/09/15/president-donald-j-trump-approves-georgia-disaster-declaration.
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    In addition, on September 20, 2017, and September 21, 2017, the 
President declared a major disaster existed in areas in Puerto Rico \8\ 
and the U.S. Virgin Islands,\9\ respectively, as a result of the severe 
storms and subsequent flooding from Hurricane Maria. The agencies 
believe that granting relief from the appraisal requirements set forth 
in Title XI of FIRREA, and in the agencies' appraisal regulations, for 
real estate-related financial transactions in areas declared a major 
disaster is consistent with the provisions of DIDRA.
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    \8\ Press Release, The White House (September 21, 2017), 
available at https://www.whitehouse.gov/the-press-office/2017/09/21/president-donald-j-trump-approves-puerto-rico-disaster-declaration.
    \9\ Press Release, The White House (September 21, 2017), 
available at https://www.whitehouse.gov/the-press-office/2017/09/21/president-donald-j-trump-approves-us-virgin-islands-disaster-declaration.
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Facilitation of Recovery From the Major Disasters

    The agencies have determined that the disruption of real estate 
markets in each of the areas declared a major disaster interferes with 
the ability of depository institutions to obtain appraisals that comply 
with Title XI statutory and regulatory requirements. Further, the 
agencies have determined that the disruption may impede institutions in 
making loans and engaging in other transactions that would aid in the 
reconstruction and rehabilitation of the affected areas. Accordingly, 
the agencies have determined that recovery from these major disasters 
would be facilitated by exempting transactions involving real estate 
and requiring the services of an appraiser located in the area directly 
affected by the severe storms and flooding from the real estate 
appraisal requirements of Title XI of FIRREA and its implementing 
regulations.\10\
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    \10\ 12 U.S.C. 3331-3355; 12 CFR 34.41-34.47 (OCC); 12 CFR part 
225, subpart G (Board); 12 CFR part 323, subpart A (FDIC); 12 CFR 
part 722 (NCUA).

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[[Page 49091]]

Consistency With Safety and Soundness

    The agencies also have determined that the exceptions are 
consistent with safety and soundness, provided that the depository 
institution determines and maintains appropriate documentation of the 
following: (1) The property involved was located in the major disaster 
area; (2) there is a binding commitment to fund the transaction that 
was entered into on or within 36 months of the date that the area was 
declared a major disaster; and (3) the value of the real property 
supports the institution's decision to enter into the transaction. In 
addition, the transaction must continue to be subject to review by 
management and by the agencies in the course of examinations of the 
institution.

Expiration Date

    Exceptions made under section 1123 of FIRREA may be provided for no 
more than three years after the President determines a major disaster 
exists in an area.\11\ The agencies have determined that the exceptions 
provided for by this order shall expire three years after the date the 
President declared a major disaster in each state or territory.
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    \11\ 12 U.S.C. 3352(b).
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Order

    In accordance with section 2 of DIDRA, relief is hereby granted 
from the provisions of Title XI of FIRREA and the agencies' appraisal 
regulations for any real estate-related financial transaction that 
requires the services of an appraiser under those provisions, provided 
that the institution determines each of the following and maintains 
supporting documentation made available to the agencies upon request:
    (1) The transaction involves real property located in an area of a 
state or territory that has been declared a major disaster by the 
President as a result of severe storms and flooding related to 
Hurricanes Harvey, Irma, or Maria. The specific areas covered are 
identified in the Appendix and include:
    a. The 39 counties in Texas under the declaration of August 25, 
2017 (as amended); \12\
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    \12\ See https://www.fema.gov/disaster/4332.
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    b. The two islands in the U.S. Virgin Islands under the declaration 
of September 7, 2017; \13\
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    \13\ See https://www.fema.gov/disaster/4335.
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    c. The 48 counties in Florida under the declaration of September 
10, 2017 (as amended); \14\
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    \14\ See https://www.fema.gov/disaster/4337.
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    d. The four municipalities in Puerto Rico under the declaration of 
September 10, 2017; \15\
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    \15\ See https://www.fema.gov/disaster/4336.
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    e. The three counties in Georgia under the declaration of September 
15, 2017; \16\
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    \16\ See https://www.fema.gov/disaster/4338.
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    f. The 54 municipalities in Puerto Rico under the declaration of 
September 20, 2017; \17\ and
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    \17\ See https://www.fema.gov/disaster/4339.
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    g. The island in the U.S. Virgin Islands under the declaration of 
September 21, 2017.\18\
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    \18\ See https://www.fema.gov/disaster/4340.
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    (2) There is a binding commitment to fund a transaction that was 
entered into on or after:
    (a) August 25, 2017, but no later than August 24, 2020, for areas 
declared a major disaster in Texas as a result of Hurricane Harvey;
    (b) September 7, 2017, but no later than September 6, 2020, for 
areas declared a major disaster in the U.S. Virgin Islands as a result 
of Hurricane Irma;
    (c) September 10, 2017, but no later than September 9, 2020, for 
areas declared a major disaster in Florida and Puerto Rico as a result 
of Hurricane Irma;
    (d) September 15, 2017, but no later than September 14, 2020, for 
areas declared a major disaster in Georgia as a result of Hurricane 
Irma;
    (e) September 20, 2017, but no later than September 19, 2020, for 
areas declared a major disaster in Puerto Rico as a result of Hurricane 
Maria; or
    (f) September 21, 2017, but no later than September 20, 2020, for 
areas declared a major disaster in the U.S. Virgin Islands as a result 
of Hurricane Maria.
    (3) The value of the real property supports the institution's 
decision to enter into the transaction.

Appendix: Areas Declared a Major Disaster

Hurricane Harvey

    Texas: Aransas, Austin, Bastrop, Bee, Brazoria, Calhoun, 
Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, 
Gonzales, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, 
Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, 
Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, 
Tyler, Victoria, Walker, Waller, and Wharton counties.

Hurricane Irma

    Florida: Alachua, Baker, Bradford, Brevard, Broward, Charlotte, 
Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, 
Gilchrist, Glades, Hardee, Hendry, Hernando, Highlands, 
Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Manatee, 
Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, 
Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, 
Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Union, and Volusia 
counties.
    Georgia: Camden, Chatham, and Glynn counties.
    Puerto Rico: Canovanas, Culebra, Loiza, and Vieques 
Municipalities.
    U.S. Virgin Islands: St. John (Island), St. Thomas (Island).

Hurricane Maria

    U.S. Virgin Islands: St. Croix (Island).
    Puerto Rico: Aguas Buenas, Aibonito, Arecibo, Arroyo, 
Barceloneta, Barranquitas, Bayam[oacute]n, Caguas, Can[oacute]vanas, 
Carolina, Cata[ntilde]o, Cayey, Ceiba, Ciales, Cidra, Coamo, 
Comerio, Corozal, Culebra, Dorado, Fajardo, Florida, Guayama, 
Guaynabo, Gurabo, Humacao, Jayuya, Juana D[iacute]az, Juncos, Las 
Piedras, Lo[iacute]za, Luquillo, Manati, Maunabo, Morovis, Naguabo, 
Naranjito, Orocovis, Patillas, Ponce, Rio Grande, Salinas, San Juan, 
San Lorenzo, Santa Isabel, Toa Alta, Toa Baja, Trujillo Alto, 
Utuado, Vega Alta, Vega Baja, Vieques, Villalba, and Yabucoa 
Municipalities.

    Dated: October 6, 2017.
Keith A. Noreika,
Acting Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, October 16, 2017.
Michele Taylor Fennell,
Assistant Secretary of the Board.
    Dated at Washington, DC, this 12th day of October, 2017.

    By order of the Board of Directors.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
    Dated at Alexandria, VA, this 16th day of October, 2017.

    By order of the Board of Directors.

National Credit Union Administration.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2017-22957 Filed 10-23-17; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P; 7535-01-P