FINAL RULE--AMENDMENT TO REGULATION Y.The Board of Governors is amending 12 C.F.R. Part 225, Subpart G of its Regulation Y (Appraisal Standards for Federally Related Transactions), which exempts from the Board's appraisal requirements transactions involving the underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. or dealing of mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. . This amendment permits bank holding company subsidiaries engaged in underwriting and dealing in securities (so-called section 20 subsidiaries) to underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. 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. Effective December 28, 1998, 12 C.F.R. Part 225 is amended as follows: Part 225--Bank Holding Companies and Change in Bank Control (Regulation Y) 1. The authority citation Citation (foaled 1945) U.S. Thoroughbred racehorse. In four seasons he won 32 of 45 races, finished second in ten, and third in two. He won the 1948 Triple Crown, and became the first horse to win $1 million. He set a world record in 1950 by running a mile in 1:33 3/5. for Part 225 continues to read as follows: Authority: 12 U.S.C. 1817(j)(13), 1818, 1828o, 1831i, 1831p-1, 1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 3331-3351, 3907, and 3909. 2. In Subpart G, section 225.63 is amended by removing the word "or" at the end of paragraph (a)(11), by redesignating paragraph (a)(12) as paragraph (a)(13), and by adding a new paragraph (a)(12) to read as follows: Section 225.63 Appraisals required; transactions requiring a State certified See certification. or licensed appraiser A person selected or appointed by a competent authority or an interested party to evaluate the financial worth of property. Appraisers are frequently appointed in probate and condemnation proceedings and are also used by banks and real estate concerns to determine the market . (a) * * * (12) The transaction involves underwriting or dealing in mortgage-backed securities; or |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion