Organization and Operations of Federal Credit Unions - Loan Participation, 12 CFR 701.22

Forms and Documents

Document Name	Status
signed Memo_Emgy Justification_Organization and Operation of FINAL_041620.pdf Supplementary Document	2020-04-22
FINAL 3133-0141_EMGY SS_042220.docx Supporting Statement A	2020-04-22

IC Document Collections

IC ID	Document Title	Status
234843	Loan Participation	Modified

ICR Details

OMB Control No: 3133-0141	ICR Reference No: 202004-3133-003
Status: Active	Previous ICR Reference No: 201810-3133-002
Agency/Subagency: NCUA	Agency Tracking No: E&I
Title: Organization and Operations of Federal Credit Unions - Loan Participation, 12 CFR 701.22
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 04/22/2020
OIRA Conclusion Action: Approved without change	Conclusion Date: 04/23/2020
	Date Received in OIRA: 04/22/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2020	6 Months From Approved	03/31/2022
Responses	3,806	0	3,806
Time Burden (Hours)	3,025	0	3,045
Cost Burden (Dollars)	0	0	0

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Abstract: NCUA Rules and Regulations, sections 701.22 and 741.225, outline the requirements for a loan participation program. FICUs are required to execute a written loan participation agreement with the lead lender. Additionally, the rule requires all FICUs to maintain a loan participation policy that establishes underwriting standards and maximum concentration limits. Credit unions may apply for waivers on certain key provisions of the rule.

Emergency Justfication: Pursuant to the Office of Management and Budget (OMB) procedures established at 5 CFR § 1320.13, the National Credit Union Administration (NCUA) requests emergency OMB approval of information collection requirements under §701.22, Organization and Operation of Federal Credit Union – Loan Participations; §701.23, Purchase, Sale, and Pledge of Eligible Obligations, and §701.36, Federal Credit Union Occupancy, Planning, and disposal of Acquired and Abandoned Premises of part 701 “Organization and Operation of Federal Credit Unions.” The NCUA has determined that certain information collection requirements must be temporarily modified and must be collected prior to the expiration of time periods established under Part 1320, and is essential to the NCUA’s ability to help ensure that federally insured credit unions (FICUs) remain operational and liquid for the duration of the economic disruption stemming from the threat posed by the Novel (new) Coronavirus (“2019-nCoV”). NCUA is temporarily raising the maximum aggregate amount of loan participation that a FICU may purchase from a single originating lender that will help safeguard the stability of FICUs during the crisis. The NCUA is also temporarily suspending limitations on eligible obligations that a Federal Credit Union (FCU) may purchase and hold, and by doing so, it recognizes the urgent need to encourage the extension of credit and facilitate downstream loan purchases. In addition, the NCUA is suspending the required timeframes for the occupancy or disposition of properties not being used for FCU business or that have been abandoned due to the physical distancing measures put in place by many states and localities. These temporary modifications will be in place through December 31, 2020, unless extended. Given the inability to seek public comment during such a short timeframe, NCUA requests a waiver from the requirement to publish a notice in the Federal Register seeking public comment during the period of OMB review. To avoid any substantial delay, NCUA will publish a separate notice and seek public comment on the revisions to the information collection requirements currently covered by OMB control numbers 3133-0141, 3133-0127 and 3133-0040, Organization and Operation of FCUs.

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Authorizing Statute(s): US Code: 12 USC 1751, 1766, 1781, 1782, 1789 Name of Law: Federal Credit Union Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3133-AF15	Final or interim final rulemaking	85 FR 22010	04/21/2020

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Loan Participation

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	3,806	3,806	0	0	0	0
Annual Time Burden (Hours)	3,025	3,045	0	-20	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Changing Regulations

Short Statement: This information collection request is being submitted as an emergency request for OMB approval. The NCUA has determined that certain information collection requirements must be temporarily modified and must be collected prior to the expiration of time periods established under Part 1320, and is essential to the NCUA’s ability to help ensure that federally insured credit unions (FICUs) remain operational and liquid for the duration of the economic disruption stemming from the threat posed by the Novel (new) Coronavirus (“2019-nCoV”). NCUA is temporarily raising the maximum aggregate amount of loan participation that a FICU may purchase from a single originating lender from $5,000,000 or 100% of net worth, to $5,000,000 or 200% of net worth, whichever is greater. This will help safeguard the stability of FICUs during the crisis. It is anticipated that there will be no increase in the number of credit unions currently participating. It is estimated that these credit unions may see a slight increase in the number of loan participation agreements. The recordkeeping requirement to retain and maintain a copy of the agreement is minimal, and would not impact the recordkeeping burden. Because of the net worth increase, NCUA estimates that the waiver request on the limits will be reduced by 50 percent, for an estimated reduction of 20 burden hours. A total of 3,025 burden hours is requested.

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Annual Cost to Federal Government: $1,938

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 04/22/2020

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