[Federal Register Volume 78, Number 139 (Friday, July 19, 2013)]
[Notices]
[Pages 43238-43239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17342]
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NATIONAL CREDIT UNION ADMINISTRATION
Agency Information Collection Activities: Submission to OMB for
Reinstatement, Without Change, of a Previously Approved Collection;
Comment Request
AGENCY: National Credit Union Administration (NCUA).
ACTION: Request for comment.
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SUMMARY: The NCUA intends to submit the following information
collection to the Office of Management and Budget (OMB) for review and
clearance under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44
U.S.C. Chapter 35). This information collection is published to obtain
comments from the public. The information collection applies to credit
unions that engage in member business lending and requires written loan
policies that address the various aspects of the member business loan
program. Credit unions desiring a waiver from appraisal requirements,
aggregate construction and development loan, loan-to-value ratios,
personal liability and guarantee requirements, unsecured lending limits
to one borrower, aggregate unsecured lending limits, or outstanding
loans to one borrower limits of Part 723 must submit certain
information to NCUA for consideration. Finally, a credit union seeking
regulatory approval to purchase certain business loans in addition to
those, which are statutorily limited, must submit certain information
to NCUA for consideration.
DATES: Comments will be accepted until September 17, 2013.
ADDRESSES: Interested parties are invited to submit written comments to
the NCUA Contact and the OMB Reviewer listed below:
NCUA Contact: Tracy Crews, National Credit Union Administration,
1775 Duke Street, Alexandria, Virginia 22314-3428, Fax No. 703-837-
2861, Email: [email protected].
OMB Contact: Office of Management and Budget, ATTN: Desk Officer
for the
[[Page 43239]]
National Credit Union Administration, Office of Information and
Regulatory Affairs, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Request for additional information, a
copy of the information collection request, or a copy of submitted
comments should be directed to Tracy Crews at the National Credit Union
Administration, 1775 Duke Street, Alexandria, VA 22314-3428, or at
(703) 518-6444.
SUPPLEMENTARY INFORMATION:
I. Abstract and Request for Comments
NCUA is amending/reinstating the collection for 3133-0101. Part 723
of NCUA's regulations implements provisions in the Federal Credit Union
Act (Act) for business loans and addresses NCUA's safety and soundness
concerns regarding this activity. Part 723 requires that credit unions
that engage in business lending maintain written loan policies that
address various aspects of the activity, including identification of
the types of business loans the credit union will make, qualifications
of loan officers, documentation requirements for creditworthiness of
borrowers, collateral requirements, loan procedures, interest rates and
maturities, and so forth. 12 CFR 723.6. Business lending is recognized
as inherently riskier than consumer lending and requires particular
expertise. Before promulgation of the member business loan regulation
in the 1980s, business loans caused significant losses to the credit
unions and the National Credit Union Share Insurance Fund (NCUSIF).
Requiring federally-insured credit unions to develop specific business
loan policies and procedures protects the safety and soundness of
credit unions and the NCUSIF.
Part 723 also permits credit unions to apply for a waiver from
certain regulatory requirements. 12 CFR 723.10-.11. Specifically, the
rule permits waivers from the following requirements or limitations:
appraisal requirements, aggregate construction and development loan
limits, minimum borrower equity requirements for construction and
development loans, loan-to-value ratios, personal liability and
guarantee requirements, unsecured lending limits to one borrower,
aggregate unsecured lending limits, and outstanding loans to one
borrower limits. NCUA needs certain information from a credit union to
consider the waiver request and evaluate the risks and impact of the
waiver on the credit union and potential effect on the NCUSIF.
Finally, Part 723 permits a credit union to obtain regulatory
approval so that it may purchase certain business purpose loans in
addition to those which are statutorily limited. 12 CFR 723.16(b)(2).
NCUA needs certain information from a credit union to evaluate its
request so that NCUA may assess safety and soundness considerations and
potential effect on the NCUSIF.
NCUA examiners review the credit union policies during regulatory
examinations. These reviews allow examiners to determine the
appropriateness and risks of the programs they address for both the
credit union and the NCUSIF. Written policies enable examiners to
determine that the credit union is, in fact, following its own business
planning in engaging member business lending. As part of the
examination process, this review helps prevent losses to credit unions
and the NCUSIF.
For waiver requests, the information in the requests permits NCUA
staff to make a reasonable determination of the appropriateness of the
requests. For loan approval requests, the information in the requests
permits NCUA staff to determine the appropriateness and risks of the
loan purchases the credit union proposes for both the credit union and
the NCUSIF.
An increase in the reporting burden from the prior submission
occurred due to an adjustment to the estimated responses based upon
current credit union activity. While the number of respondents
decreased, the estimated waiver activity increased resulting in an
overall increase in annual response hours.
The NCUA requests that you send your comments on this collection to
the location listed in the addresses section. Your comments should
address: (a) The necessity of the information collection for the proper
performance of NCUA, including whether the information will have
practical utility; (b) the accuracy of our estimate of the burden
(hours and cost) of the collection of information, including the
validity of the methodology and assumptions used; (c) ways we could
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways we could minimize the burden of the collection
of the information on the respondents such as through the use of
automated collection techniques or other forms of information
technology. It is NCUA's policy to make all comments available to the
public for review.
II. Data
OMB Number: 3133-0101.
Form Number: N/A.
Type of Review: Reinstatement, without change.
Title: 12 CFR Parts 723.5--Develop written loan policies--and
723.11--Provide waiver requests.
Description: The general purpose of the requirements imposed by the
rule is to ensure that loans are made, documented, and accounted for
properly and for the ultimate protection of the National Credit Union
Share Insurance Fund. Respondents are federally insured credit unions
who make business loans as defined in the regulation.
Respondents: Federally Insured Credit Unions.
Estimated No. of Respondents/Recordkeepers: 1,116.
Estimated Burden Hours per Response: 4-17 hours.
Frequency of Response: Recordkeeping, reporting and on occasion.
Estimated Total Annual Burden Hours: 9,492 hours.
Estimated Total Annual Cost: $0.
By the National Credit Union Administration Board on July 15,
2013.
Mary Rupp,
Secretary of the Board.
[FR Doc. 2013-17342 Filed 7-18-13; 8:45 am]
BILLING CODE 7535-01-P