FEDERAL RESERVE SYSTEM 12 CFR Part 225 [Regulation Y; Docket No. R-0990] Real Estate Appraisals AGENCY: Board of Governors of the Federal Reserve System. ACTION: Notice of Proposed Rulemaking. SUMMARY: The Board of Governors of the Federal Reserve System is soliciting comments on a proposed amendment to Subpart G of the Board's Regulation Y, Appraisal Standards for Federally Related Transactions, to exempt any transaction involving the underwriting or dealing of mortgage-backed securities from the Board's appraisal requirements. This amendment would permit a bank holding company or a nonbank subsidiary of a bank holding company engaged in underwriting and dealing in securities (a so-called section 20 subsidiary) to underwrite and deal in mortgage-backed securities without demonstrating that the loans underlying the securities are supported by appraisals that meet the Board's appraisal requirements. The Board is proposing this amendment to address concerns raised by bank holding companies regarding the inability of section 20 subsidiaries to actively participate in the commercial mortgage-backed securities (CMBS) market due to the appraisal restrictions of Subpart G. DATES: Comments must be received on or before January 8, 1998. ADDRESSES: Comments should refer to Docket No. R-0990 and may be mailed to Mr. William W. Wiles, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, D.C., 20551. Comments addressed to Mr. Wiles may also be delivered to the Board's mail room between 8:45am and 5:15pm, and to the security control room outside of those hours. Both the mail room and the security control room are accessible from the courtyard entrance on 20th Street between Constitution Avenue and C Street, N.W. Comments may be inspected in Room MP-500 between 9:00am and 5:00pm weekdays, except as provided in ยง 261.8 of the Board of Governors' Rules Regarding Availability of Information, 12 CFR 261.8. FOR FURTHER INFORMATION CONTACT: Norah M. Barger, Assistant Director (202/452-2402), or Virginia M. Gibbs, Senior Supervisory Financial Analyst, (202/452-2521), Division of Banking Supervision and Regulation; or Deneen L. Donnley-Evans, Staff Attorney (202/736-5567), Legal Division; Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, DC 20551.
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1997 Banking and consumer regulatory policy