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Federal Register / Vol. 86, No. 151 / Tuesday, August 10, 2021 / Notices Email: comments@fdic.gov. Include the name and number of the collection in the subject line of the message.
Mail: Manny Cabeza 202898
3767, Regulatory Counsel, MB3128, 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 building located on F Street, on business days between 7:00 a.m. and 5:00 p.m.
All comments should refer to the relevant OMB control number. A copy of the comments may also be submitted to the OMB desk officer for the FDIC:
Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT:
Manny Cabeza, Regulatory Counsel, 2028983767, mcabeza@fdic.gov, MB
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION: Proposal to renew the following currently approved collections of information:
1. Title: Credit Risk Retention.
OMB Number: 30640183.
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.
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. 78o11, 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 Federal Deposit Insurance Corporation FDIC, the Office of the Comptroller of the Currency OCC, the Federal Reserve Board Board, the Securities and Exchange Commission SEC 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
1 Public
Law 11123, 124 Stat. 1376 2010.
2 79 FR 77740.
3 Each agency adopted the same rule text but each agencys version of its rule is codified in different parts of the Code of Federal Regulations with
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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 a 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 substantially identical section numbers e.g.__.01;
_.02, etc. Rule citations herein are to FDICs version of the Rule which is codified at 12 CFR part 373.
4 12 CFR 373.2.

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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 obligations may be allocated by sponsors to originators, including disclosure and monitoring requirements.
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 sections 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 373.19g. 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 sponsors 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 sections 373.4d, 373.5k3 and 373.15d, the Rule does not specify a mandatory retention period for the information.
Burden Estimate:
Change Is Burden Estimation Methodology 1 Prior Methodology To determine the total paperwork burden for the requirements contained in the Credit Risk Retention Rule, FDIC
first estimated the universe of sponsors that would be required to comply with the disclosure and recordkeeping requirements. FDIC estimated that approximately 270 unique sponsors conduct ABS offerings each year.5 This estimate was based on the average number of ABS offerings from 2007
through 2017 reported by the ABS
database Asset-Backed Alert for all nonCMBS transactions and by Commercial Mortgage Alert for all CMBS
5 By agreement among the agencies, the FDICs Division of Insurance Research, in consultation with its counterparts at the other agencies, prepared and documented the burden estimation methodology used by all agencies in their respective ICRs.

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