[Federal Register Volume 79, Number 123 (Thursday, June 26, 2014)]
[Proposed Rules]
[Pages 36248-36252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14889]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 701 and 722
RIN 3133-AE36
Appraisals--Availability to Applicants and Requirements for
Transactions Involving an Existing Extension of Credit
AGENCY: National Credit Union Administration (NCUA).
ACTION: Proposed rule.
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SUMMARY: As part of NCUA's Regulatory Modernization Initiative, the
NCUA Board (Board) is proposing to revise two of NCUA's regulations
regarding appraisals. Firstly, the Board is proposing to amend NCUA's
regulations to eliminate the now duplicative requirement that federal
credit unions (FCUs) make available, to any requesting member/
applicant, a copy of the appraisal used in connection with that
member's application for a loan secured by a first lien on a dwelling.
A recent amendment to the Consumer Financial Protection Bureau's (CFPB)
Regulation B requires that all creditors, including FCUs, now
automatically provide applicants with free copies of all appraisals and
other written valuations developed in connection with an application
for a loan to be secured by a first lien on a dwelling. Secondly, the
proposed rule would amend NCUA's appraisal regulations by expanding the
current exemption for certain transactions involving an existing
extension of credit. Under the expanded exemption, federally insured
credit unions (FICUs) would be able to refinance or modify a real
estate-related loan held by the FICU, without having to obtain an
appraisal, if there is no advancement of new monies or if there is
adequate collateral protection, even with the advancement of new
monies.
The proposal would also make a minor technical amendment to the
definition of the term ``application.'' These changes will modernize
NCUA's regulations by better aligning them with the modern marketplace,
while also reducing costs for FICUs and their members, and removing
outdated regulatory requirements.
DATES: Comments must be received on or before August 25, 2014.
ADDRESSES: You may submit comments, identified by RIN 3133-AE36, by any
of the following methods (Please send comments by one method only):
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
[[Page 36249]]
NCUA Web site: http://www.ncua.gov/Legal/Regs/Pages/PropRegs.aspx. Follow the instructions for submitting comments.
Email: Address to [email protected]. Include ``[Your
name]--Comments on Proposed Rule: Appraisals'' in the email subject
line.
Fax: (703) 518-6319. Use the subject line described above
for email.
Mail: Address to Gerard Poliquin, Secretary of the Board,
National Credit Union Administration, 1775 Duke Street, Alexandria,
Virginia 22314-3428.
Hand Delivery/Courier: Same as mail address.
You can view all public comments on NCUA's Web site at http://www.ncua.gov/Legal/Regs/Pages/PropRegs.aspx as submitted, except for
those we cannot post for technical reasons. NCUA will not edit or
remove any identifying or contact information from the public comments
submitted. You may inspect paper copies of comments in NCUA's law
library at 1775 Duke Street, Alexandria, Virginia 22314, by appointment
weekdays between 9:00 a.m. and 3:00 p.m. To make an appointment, call
(703) 518-6546 or send an email to [email protected].
FOR FURTHER INFORMATION CONTACT: John H. Brolin, Staff Attorney, Office
of General Counsel, at 1775 Duke Street, Alexandria, VA 22314 or
telephone: (703) 518-6438.
SUPPLEMENTARY INFORMATION:
I. Background
II. Proposed Rule
III. Regulatory Procedures
I. Background
NCUA is committed to regulatory modernization, including modifying,
streamlining, refining, or repealing outdated rules that are not
required by statute and would not jeopardize the safety and soundness
of the credit union industry. Each year, NCUA reviews one-third of its
regulations for substance and clarity, and provides notice to the
public of those regulations under review so that the public may have an
opportunity to provide comments. In 2013, NCUA reviewed part 722, along
with several other parts of NCUA's regulations.\1\ Part 722 sets forth
the appraisal requirements for federally-related real estate
transactions. The appraisal requirements in part 722 are generally
equivalent to the appraisal requirements of the other federal financial
regulatory agencies (Other Banking Agencies).\2\ However, NCUA received
numerous responses during the public comment period requesting a
specific change to Sec. 722.3(a)(5) to better align NCUA's appraisal
requirements with those of the Other Banking Agencies. Specifically,
commenters requested that NCUA expand the current appraisal exemption
for existing extensions of credit to allow FICUs to refinance or modify
a real estate-related loan held by the credit union in a declining
housing market without having to obtain an additional appraisal.
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\1\ As part of the 2013 Regulatory Review process, NCUA also
reviewed parts 711, 712, 713, 714, 715, 716, 717, 721, 723, 724,
725, 740, 741, 745, and 747 of NCUA's regulations.
\2\ The Board of Governors of the Federal Reserve System (FRB),
Federal Deposit Insurance Corporation (FDIC), and Office of the
Comptroller of Currency (OCC).
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In addition, a number of commenters requested that NCUA eliminate
the duplicative portion of the requirements in Sec. 701.31(c)(5) that
mandate that FCUs make available, to any requesting member/applicant, a
copy of the appraisal used in connection with that member's application
for a loan secured by a first lien on a dwelling. A recent amendment to
Sec. 1002.14 of Regulation B by the CFPB requires that all creditors,
including FCUs, now automatically provide applicants free copies of all
appraisals and other written valuations developed in connection with an
application for a loan to be secured by a first lien on a dwelling. As
a result of this recent amendment to Regulation B, the requirements of
Sec. 701.31(c)(5) in NCUA's regulations and Sec. 1002.14 in
Regulation B now overlap with respect to providing copies of appraisals
used in connection with an application for a loan secured by a first
lien on a dwelling.
In response to the comments received and NCUA's regulatory review,
the Board proposes to broaden the scope of Sec. 722.3(a)(5), which
exempts certain transactions involving an existing extension of credit
from the section's requirement to obtain appraisals, and to narrow the
scope of its requirements to provide copies of appraisals under Sec.
701.31(c)(5). In addition, the Board is proposing to make a technical
amendment to correct and bring up to date the definition of the term
``application'' in Sec. 701.31(a)(1).
* * * * *
II. Proposed Rule
A. What changes are being proposed to the requirement in Sec.
701.31(c)(5) to provide copies of appraisals to any requesting member/
applicants?
The Board is proposing to amend Sec. 701.31(c)(5), which requires
an FCU to retain the appraisal used in connection with a real estate-
related loan application for a period of 25 months and to make a copy
of the appraisal available to the applicant upon request. The proposed
amendment is in response to recent changes by the CFPB to Sec. 1002.14
of Regulation B.\3\ Under revised Sec. 1002.14, all creditors,\4\
including FCUs, are now required to automatically provide applicants
free copies of all appraisals and other written valuations developed in
connection with an application for a loan to be secured by a first lien
on a dwelling. In amending the requirements of Sec. 1002.14, the CFPB
eliminated a longstanding provision that exempted FCUs from the
requirements of the section.\5\ As a result of that change, FCUs are
now required to comply with the requirements of revised Sec. 1002.14,
to automatically provide a free copy of appraisals to applicants, and
Sec. 701.31(c)(5), to retain real estate-related appraisals and make a
copy available to applicants upon request.
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\3\ See 12 CFR 1002.14; and 78 FR 7216 (Jan. 31. 2013) (Amending
Regulation B to implement an ECOA amendment concerning appraisals
and other valuations that was enacted as part of the Dodd-Frank Wall
Street Reform and Consumer Protection Act.); see also Public Law
111-203, 124 Stat. 1376, section 1474 (2010).
\4\ See 12 CFR 1002.2(l), providing in relevant part:
Creditor means a person who, in the ordinary course of business,
regularly participates in a credit decision, including setting the
terms of the credit. The term creditor includes a creditor's
assignee, transferee, or subrogee who so participates. For purposes
of Sec. Sec. 1002.4(a) and (b), the term creditor also includes a
person who, in the ordinary course of business, regularly refers
applicants or prospective applicants to creditors, or selects or
offers to select creditors to whom requests for credit may be made.
\5\ See 78 FR 7216, 7234-7235 (Jan. 31, 2013) (Explaining that
the amendments to the appraisal requirements in section 701(e) of
ECOA made by section 1474 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act broadened the scope of the original
appraisal requirement and eliminated the prior justification for
exempting credit unions from the requirements of the provision.);
compare with 12 CFR 1002.14(b) (2013) (which previously provided:
``A creditor that is subject to the regulations of the National
Credit Union Administration on making copies of appraisal reports
available is not subject to this section.'').
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While the two sections differ slightly in scope and mechanism,\6\
the requirements in Sec. 701.31(c)(5) relating to loans secured by a
first lien on a
[[Page 36250]]
dwelling are largely duplicative of the requirements of revised Sec.
1002.14. Section 701.31 of NCUA's regulations sets forth
nondiscrimination requirements that, among other things, assist FCUs in
distinguishing legitimate reasons for denying a loan from those that
are prohibited by the Fair Housing Act.\7\ NCUA amended its regulations
in 1979 to add Sec. 701.31(c), including the current version of
paragraph (c)(5), to specifically prohibit an FCU from relying on an
appraisal that the FCU knew or should have known was discriminatory.\8\
Although not expressly stated in the rulemaking, NCUA intended this
requirement to provide the member/applicant with an opportunity to see
whether the appraisal on which the FCU relied to approve or deny the
loan application is discriminatory. The protections provided by current
Sec. 701.31(c)(5), with respect to applications for loans secured by a
first lien on a dwelling, appear to be the same protections that are
now also provided by the requirement to automatically provide a copy of
appraisals in revised Sec. 1002.14. Under both sections, FCU members
applying for a loan secured by a first lien on a dwelling are provided
an opportunity to see whether the appraisal relied on by the credit
union to approve or deny their loan application is discriminatory.
Moreover, the requirements of Sec. 1002.14 of Regulation B, which
require FCUs to provide copies of appraisals and other written
valuations to the applicant without the member/applicant having to
request a copy, go well beyond the limited requirement of Sec.
701.31(c)(5) to provide a copy of only the appraisal and only upon the
applicant's request.
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\6\ Under Sec. 701.31(c)(5) FCUs are only required to provide a
copy of an appraisal to the application if the applicant requests a
copy, while Sec. 1002.14 requires that the creditor provide a copy
of the appraisal regardless of whether or not a copy is requested by
the applicant. In addition, Sec. 701.31(c)(5) only requires FCUs to
provide copies of the appraisal, while Sec. 1002.14 requires that
applicants provide free copies of all appraisals and other written
valuations developed. Finally, Sec. 701.31(c)(5) applies to all
real estate-related loan applications, while Sec. 1002.14 of
Regulation B applies only to applications for loans to be secured by
a first lien on a dwelling.
\7\ 42 U.S.C. 3601 et seq.
\8\ 44 FR 51191.
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The consumer protections provided by the two sections do not,
however, overlap entirely. Under current Sec. 701.31(c)(5), FCUs are
required to provide copies of appraisals used in connection with an
application for a real estate-related loan, which includes any loan to
be secured by a first lien or a subordinate lien on a dwelling.\9\ The
protections provided in revised Sec. 1002.14 of Regulation B extend
only to appraisals developed in connection with an application for a
loan secured by a first lien on a dwelling. To avoid reducing
protections for FCU members, the requirements of Sec. 701.31(c)(5)
relating to appraisals used in connection with an application for a
loan to be secured by a subordinate lien on a dwelling must be
retained. Accordingly, the Board proposes to amend current Sec.
701.31(c)(5) to narrow the scope of the current requirement to cover
only loans secured by a subordinate lien on a dwelling.
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\9\ See 12 CFR 701.31(a)(3) (``Real estate-related loan means
any loan for which application is made to finance or refinance the
purchase, construction, improvement, repair, or maintenance of a
dwelling.'').
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Proposed Sec. 701.31(c)(5) would require FCUs to make available,
to any requesting member/applicant, a copy of the appraisal used in
connection with the member's application for a loan to be secured by a
subordinate lien on a dwelling. Consistent with the amendment to the
first sentence of that section, the second sentence in proposed Sec.
701.31(c)(5) would also be amended to require that the appraisal be
available for a period of 25 months after the applicant has received
notice from the FCU of the action taken by the credit union on the
application for a loan secured by a subordinate lien on a dwelling.
By limiting the requirements to apply only to applications for
loans secured by a subordinate lien on a dwelling, NCUA believes the
proposed rule would eliminate the duplicative portion of the current
requirement while maintaining the current protections provided under
Sec. 701.31(c)(5) for FCU member/applicants not covered by new Sec.
1002.14 of Regulation B. The Board requests comment on if there are
other real estate-related loan transactions that are covered under
current Sec. 1002.14 or current Sec. 701.31(c)(5) that would not be
covered if the amendments being made in this proposed rule were
finalized. If there are such transactions, the Board requests comment
on if those types of transactions should continue to be covered under
Sec. 701.31(c)(5). Similarly, the Board requests comment on if there
are additional real estate-related loan transactions that would be
covered under current Sec. 1002.14 and current Sec. 701.31(c)(5) and
that would continue to impose duplicative requirements on credit unions
if the amendments being made in this proposed rule are finalized.
B. What changes are being proposed to the exemption in Sec.
722.3(a)(5) for transactions involving an existing extension of credit?
Part 722 of NCUA's regulations implements Title XI of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(FIRREA),\10\ setting forth, among other things, minimum requirements
for real estate-related appraisals used in connection with ``federally
related transactions.'' \11\ Section 722.3(a) requires FICUs to obtain
an appraisal for all real estate-related financial transactions unless
the transaction meets one of nine specifically enumerated exemptions.
Current Sec. 722.3(a)(5) exempts from the appraisal requirement
transactions that involve an existing extension of credit at the FICU,
provided that: (i) There is no advancement of new monies, other than
funds necessary to cover reasonable closing costs, and (ii) there has
been no obvious and material change in market conditions or physical
aspects of the property that threatens the adequacy of the credit
union's real estate collateral protection after the transaction. Under
NCUA's current regulation, for a transaction involving an existing
extension of credit to be exempt from the general requirement to obtain
an appraisal, the transaction must satisfy both the criteria in
paragraph (i) and the criteria in paragraph (ii) of current Sec.
722.3(a)(5).
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\10\ Public Law 101-73, Title XI, 103 Stat. 511 (1989); 12
U.S.C. 3331 et seq.
\11\ 12 U.S.C. 3339.
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Although much of the language is identical, the exemption in Sec.
722.3(a)(5) differs significantly from the analogous appraisal
exemption in the Other Banking Agencies' regulations.\12\ The Other
Banking Agencies' regulations provide an appraisal exemption for an
existing extension of credit at a lending institution, provided that:
(1) There is no advancement of new monies, other than funds necessary
to cover reasonable closing costs, or (2) there has been no obvious and
material change in market conditions or physical aspects of the
property that threatens the adequacy of the institution's real estate
collateral protection after the transaction, even with the advancement
of new monies.\13\ Under the Other Banking Agencies' exemptions for
existing extensions of credit, a creditor is exempt from the general
requirement to obtain an appraisal in a transaction involving an
existing extension of credit if the transaction satisfies only one of
the two criteria listed above.
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\12\ OCC: 12 CFR part 34, subpart C; FRB: 12 CFR part 208,
subpart E and 12 CFR part 225, subpart G; and FDIC: 12 CFR part 323.
\13\ OCC: 12 CFR 34.43(a)(7); FRB: 12 CFR 225.63(a)(7); and
FDIC: 12 CFR 323.3(a)(7).
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NCUA has received a number of comments regarding the lack of parity
between NCUA's and the Other Banking Agencies' appraisal exemptions and
the added burden of Sec. 722.3(a)(5) on credit unions. Most of the
commenters recommend amending Sec. 722.3(a)(5) to match the Other
Banking Agencies' appraisal regulations, which they argue would help
reduce costs and processing times for members seeking to refinance or
modify loans already held by a FICU.
[[Page 36251]]
Commenters have also suggested that amending current Sec. 722.3(a)(5)
to match the Other Banking Agencies' regulations will give FICUs the
ability to address appropriate residential mortgage loan modifications
on a more timely basis, and help prevent potential credit union losses
without increasing risks to the credit union or the National Credit
Union Share Insurance Fund (NCUSIF).
Section 722.3(a)(5) was originally issued in its current form in
1995 as part of a larger final rule making several amendments to NCUA's
appraisal regulations.\14\ In the preamble to that final rule, the
Board specifically explained that it did not adopt an exemption in
Sec. 722.3(a)(5) that matched the exemption provided by the Other
Banking Agencies' appraisal regulations, citing general safety and
soundness concerns.\15\ However, after reviewing the public comments
received, comparing current Sec. 722.3(a)(5) to the corresponding
provisions of the Other Banking Agencies' appraisal rules, and
considering relevant loan performance data, the Board believes that
amending the requirements of Sec. 722.3(a)(5) to match the Other
Banking Agencies' appraisal regulations is appropriate.
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\14\ 60 FR 51889 (Oct. 4, 1995).
\15\ See, id. at 51891 (Providing in relevant part: One
``commenter stated that banks . . . have this exemption and credit
unions would be at a competitive disadvantage without it. The Board
believes that an appraisal is necessary if new funds are advanced.
The Board believes that safety and soundness concerns outweigh the
possible minimal effects on competition.'').
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The financial crisis that began in 2008 left large numbers of
financially distressed homeowners owing more on their mortgages than
their homes were worth. During this same period, financial institutions
across the nation experienced high levels of mortgage loan defaults and
foreclosures. Many borrowers were unable to make their mortgage
payments because of unemployment or a reduction in income. Others were
unable to afford significant payment increases when their adjustable
rate mortgages reset, and they were unable to refinance their loans
because of declines in their properties' values. Some borrowers who
owed more on their mortgages than their homes were worth simply walked
away from their homes because they lacked the incentive to keep their
mortgage payments current.
In response to the levels of mortgage loan defaults and
foreclosures that occurred in the wake of the financial crisis, NCUA
issued guidance to credit unions in 2009 regarding providing loan
modifications to residential mortgage borrowers who were unable to meet
their contractual payment obligations by offering them loan
modification options.\16\ The letter encouraged credit unions to take
action to identify and potentially assist borrowers whose financial
stress may lead to future impairment in mortgage loan performance. By
proactively identifying ``at risk'' loans, credit unions could measure
the potential impacts of borrower defaults on net worth, assess
internal liquidity available to help borrowers through loan
modifications, and closely monitor the performance of these loans.
Moreover, by identifying and assisting ``at risk'' members before
delinquency occurs, a credit union could improve chances for successful
modifications and reduce potential losses.
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\16\ 09-CU-19 (Sept. 2009).
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Consistent with the positions noted above, the Board believes that
extending the appraisal exemption in Sec. 722.3(a)(5) to cover loan
modifications and refinancings in distressed housing markets will
improve the timeliness and chances for successful modifications and
refinancings that could reduce potential losses to FICUs in the future.
Obtaining an appraisal can take a significant amount of time, weeks or
months depending on demand and the location of the home. Further, the
cost of the appraisal itself, which is almost always paid for by the
borrower, can stand as a significant impediment to a distressed
borrower being able to refinance or obtain a loan modification.
Moreover, obtaining a new appraisal is of little value to a credit
union when it was the originating lender and the ``at risk'' loan is
still held by the credit union. Accordingly, the Board proposes to
amend Sec. 722.3(a)(5).
Proposed Sec. 722.3(a)(5) would exempt a transaction from the
appraisal requirement in Sec. 722.3(a), a transaction that involves an
existing extension of credit at the lending FICU, provided that: (i)
There is no advancement of new monies, other than funds necessary to
cover reasonable closing costs; or (ii) there has been no obvious and
material change in market conditions or physical aspects of the
property that threatens the adequacy of the credit union's real estate
collateral protection after the transaction, even with the advancement
of new monies. The amendments would provide parity between NCUA and the
Other Banking Agencies' exemptions from the requirement to obtain an
appraisal for certain transactions involving existing extensions of
credit. Current Sec. 722.3(d) would continue to require that
transactions exempted from the appraisal requirement under proposed
Sec. 722.3(a)(5) be supported by a written estimate of market
value.\17\ The Board believes these changes will reduce regulatory
burdens on credit unions, and pose no increase in risk to the NCUSIF.
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\17\ Sec. 722.3(d) providing:
Valuation requirement. Secured transactions exempted from
appraisal requirements pursuant to paragraphs (a)(1) and (a)(5) of
this section and not otherwise exempted from this regulation or
fully insured shall be supported by a written estimate of market
value, as defined in this regulation, performed by an individual
having no direct or indirect interest in the property, and qualified
and experienced to perform such estimates of value for the type and
amount of credit being considered.
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C. What other changes would the proposed rule make?
For clarity, the proposed rule would also make a technical
amendment to the definition of the term ``application'' in Sec.
701.31(a)(1). Current Sec. 701.31(a)(1) defines the term
``application'' for purposes of part 701 as carrying the same ``meaning
of that term as defined in 12 CFR 1002.2(f) (Regulation B)'' and then
provides a parenthetical quoting the text of the Regulation B
definition of application, which has since been revised.\18\ As a
result, the definition of application in Sec. 1002.2(f) no longer
matches the quote in Sec. 701.31(a)(1).\19\ Accordingly, the Board is
now proposing to make a technical amendment to Sec. 701.31(a)(1) to
update the definition.
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\18\ See Sec. 701.31(a)(1) (Quoting regulation B as follows:
``Application means an oral or written request for an extension of
credit that is made in accordance with procedures established by a
creditor for the type of credit requested.'' (emphasis added).).
\19\ See Sec. 1002.2(f) (Defining the term ``application'' as
follows: Application means an oral or written request for an
extension of credit that is made in accordance with procedures used
by a creditor for the type of credit requested. The term application
does not include the use of an account or line of credit to obtain
an amount of credit that is within a previously established credit
limit. A completed application means an application in connection
with which a creditor has received all the information that the
creditor regularly obtains and considers in evaluating applications
for the amount and type of credit requested (including, but not
limited to, credit reports, any additional information requested
from the applicant, and any approvals or reports by governmental
agencies or other persons that are necessary to guarantee, insure,
or provide security for the credit or collateral). The creditor
shall exercise reasonable diligence in obtaining such information.
(emphasis added)).
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To avoid the possibility of a similar situation arising in the
future, NCUA proposes to remove the parenthetical quote in Sec.
701.31(a)(1) and maintain just the cross citation to the definition of
``application'' in Regulation B. Proposed Sec. 701.31(a)(1) would
provide that for purposes of part 701 the term ``application'' carries
the meaning of that term as defined in 12 CFR 1002.2(f)
[[Page 36252]]
(Regulation B). This amendment would avoid the possibility, in the case
of future amendments to the text of Sec. 1002.2(f), of discrepancies
between the text of the definition of ``application'' in Regulation B
and the parenthetical in Sec. 701.31(a)(1) which simply quotes the
text of the Regulation B definition. This revision would not make any
substantive changes to the requirements of NCUA's regulations.
III. Regulatory Procedures
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) \20\ requires NCUA to provide
an initial regulatory flexibility analysis with a proposed rule to
certify that the rule will not have a significant economic impact on a
substantial number of small entities (defined for purposed of the RFA
to include credit unions with assets less than or equal to $50 million)
and publish its certification and a short explanatory statement in the
Federal Register also with the proposed rule.\21\ The proposed
amendments to parts 701 and 722 will only reduce regulatory impacts on
credit unions by exempting credit unions from current regulatory
requirements. Accordingly, the Board certifies the proposed rule will
not have a significant economic impact on a substantial number of small
credit unions.
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\20\ 5 U.S.C. 601 et seq.
\21\ 78 FR 4032 (Jan. 18, 2013).
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Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in
which an agency by rule creates a new paperwork burden on regulated
entities or increases an existing burden.\22\ For purposes of the PRA,
a paperwork burden may take the form of a reporting or recordkeeping
requirement, both referred to as information collections. This proposed
rule would not impose or expand upon any existing reporting or
recordkeeping requirements. Accordingly, this proposed rule would not
create new paperwork burdens or increase any existing paperwork
burdens.
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\22\ 44 U.S.C. 3507(d); 5 CFR part 1320.
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Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests.
NCUA, an independent regulatory agency, as defined in 44 U.S.C.
3502(5), voluntarily complies with the executive order to adhere to
fundamental federalism principles. The proposed rule would not have
substantial direct effects on the states, on the relationship between
the national government and the states, or the distribution of power
and responsibilities among the various levels of government. NCUA has,
therefore, determined that this proposal does not constitute a policy
that has federalism implications for purposes of the executive order.
Assessment of Federal Regulations and Policies on Families
NCUA has determined that this proposed rule will not affect family
well-being within the meaning of Sec. 654 of the Treasury and General
Government Appropriations Act, 1999, Public Law 105-277, 112 Stat. 2681
(1998).
List of Subjects
12 CFR Part 701
Advertising, Aged, Civil rights, Credit, Credit unions, Fair
housing, Individuals with disabilities, Insurance, Marital status
discrimination, Mortgages, Religious discrimination, Reporting and
recordkeeping requirements, Sex discrimination.
12 CFR Part 722
Appraisals, Credit unions, Mortgages, Reporting and recordkeeping
requirements.
By the National Credit Union Administration Board on June 19,
2014.
Gerard Poliquin,
Secretary of the Board.
For the reasons discussed above, the NCUA Board proposes to amend
12 CFR parts 701 and 722 as follows:
PART 701--ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS
0
1. The authority citation for part 701 continues to read as follows:
Authority: 12 U.S.C. 1752(5), 1755, 1756, 1757, 1758, 1759,
1761a, 1761b, 1766, 1767, 1782, 1784, 1786, 1787, 1789. Section
701.6 is also authorized by 15 U.S.C. 3717. Section 701.31 is also
authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601-3610.
Section 701.35 is also authorized by 42 U.S.C. 4311-4312.
0
2. Amend Sec. 701.31 as follows:
Sec. 701.31 [Amended]
0
a. In paragraph (a)(1) delete the words ``, which is as follows:'' and
delete the parenthetical ``an oral or written request for an extension
of credit that is made in accordance with procedures established by a
creditor for the type of credit requested'';
0
b. In paragraph (c)(5) in the first sentence, remove the words ``a copy
of the appraisal used in connection with that member's real estate
related loan application'' and add in their place the words ``a copy of
the appraisal used in connection with that member's application for a
loan to be secured by a subordinate lien on a dwelling'', and, in the
second sentence, remove the words ``real estate-related loan
application'' and add in their place the words ``application for a loan
to be secured by a subordinate lien on a dwelling''.
PART 722--APPRAISALS
0
4. The authority citation for part 722 continues to read as follows:
Authority: 12 U.S.C. 1766, 1789 and 3339. Section 722.3(f) is
also issued under 15 U.S.C. 1639h.
0
5. Amend Sec. 722.3 as follows:
Sec. 722.3 [Amended]
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a. In paragraph (a)(5) add the word ``lending'' before the words
``credit union'';
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b. In paragraph (a)(5)(i) remove the word ``and'' and add in its place
the word ``or''; and
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c. In paragraph (a)(5)(ii) add the words ``, even with the advancement
of new monies'' to the end of the paragraph.
[FR Doc. 2014-14889 Filed 6-25-14; 8:45 am]
BILLING CODE 7535-01-P