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The Federal Reserve Board and the other federal banking agencies have the authority to
waive real estate-related appraisal regulations in certain instances. More specifically, the
Depository Institutions Disaster Relief Act of 1992 (DIDRA)
8
provides the agencies with the
authority to waive their real estate appraisal regulations for real estate-related financial
transactions involving property affected by a major disaster.
9
Consistent with the DIDRA, the
Federal Reserve Board will consider issuing such a waiver if regulated institutions encounter
difficulty in obtaining appraisals for transactions that would aid reconstruction and rehabilitation
in designated areas. Banking organizations are encouraged to notify the responsible Federal
Reserve Bank if they encounter difficulties in complying with the Federal Reserve Board’s
appraisal regulations as a result of damage caused by a major disaster. If applicable, Federal
Reserve Board staff, in consultation with the responsible Federal Reserve Bank, will take the
steps necessary for the Federal Reserve Board to grant appraisal waivers under the DIDRA,
including meeting Federal Register notice requirements.
In accordance with Regulation BB, which implements the Community Reinvestment Act
(CRA) and related guidance, the Federal Reserve will consider activities that revitalize or
stabilize a designated disaster area in evaluating a bank’s record of helping to meet the credit
needs of its community, even if the loans, investments, or services provided are to middle- or
upper-income individuals. Examiners will consider bank activities related to disaster recovery in
a designated area for 36 months following the date of designation or longer if a demonstrable
community need in a particular disaster area requires an extension of the period.
10
However,
examiners will give greater weight to activities designed to benefit low- or moderate-income
individuals or areas.
With regard to the conduct of safety and soundness or consumer compliance supervision,
the Federal Reserve will work with affected banking organizations in scheduling on-site
examinations or inspections to minimize disruption and burden. Moreover, the Federal Reserve
will use appropriate discretion in establishing the scope and frequency of examinations and
inspections, consistent with principles of safety and soundness and applicable legal and
regulatory requirements.
Submission of Regulatory Reports
The Federal Reserve recognizes that a major disaster or emergency may adversely affect
the ability of some affected banking organizations to submit accurate and timely regulatory
reports to the Federal Reserve, including, for example, the Consolidated Financial Statements for
Bank Holding Companies (FR Y-9C), Financial Statements of U.S. Nonbank Subsidiaries of
U.S. Bank Holding Companies (FR Y-11), and Call Reports. A banking organization having
8
See 12 U.S.C. 3357.
9
Pursuant to section 2 of the DIDRA, 12 U.S.C. 3352, the agencies have the authority to make exceptions to
statutory and regulatory appraisal requirements for certain transactions. These exceptions are available for
transactions involving real property located in areas that the President has determined, pursuant to 42 U.S.C. 5170,
that a major disaster exists, provided that the exception would facilitate recovery from the major disaster and is
consistent with safe and sound banking practices.
10
See 12 CFR 228.12(g)(4)(ii) and “Interagency Questions and Answers Regarding Community Reinvestment,” 75
Federal Register 11642, 11647 (March 11, 2010).