Proposed Agency Information Collection Activities; Comment Request-Thrift Financial Report: Schedules SC, SO, LD, CF, SI, SQ, and HC, 43286-43291 [E6-12251]
Download as PDF
<![CDATA[
sroberts on PROD1PC70 with NOTICES
43286
Federal Register / Vol. 71, No. 146 / Monday, July 31, 2006 / Notices
that Conrail’s past switching service of
the BRI facility is not controlling in
determining whether the BRI facility is
within the NJSAA.
Therefore, NS’s motion to dismiss the
petition for clarification will be denied,
and the Board will allow for limited
discovery, a supplement to the petition,
and the filing of comments by all
interested persons, as described below.
Petition For Supplemental Order. In
the alternative, should the Board find
that the BRI facility is located outside
the NJSAA, petitioners request a
supplemental order that would allow
Conrail to perform switching service
between the BRI facility and CSXT’s
Manville Yard.
Under 49 U.S.C. 11327, the Board has
continuing authority to enter
supplemental orders to modify
decisions entered in merger and control
proceedings under 49 U.S.C. 11323.
Citing what they consider to be NS’s
failure to provide adequate service,
petitioners argue that the public interest
favors a change in the carriers
authorized to serve the BRI facility by
including Conrail in that authorization.
In seeking a supplemental order that
would authorize Conrail to provide its
switching service outside the NJSAA,
petitioners essentially request what the
Board explicitly denied in Decision No.
89: ‘‘The ICC and the Board have
consistently declined to attempt to
equalize the rail transportation options
of shippers who receive merger benefits
with all those who do not. * * * [T]his
is not the kind of harm that the agency
rectifies under its conditioning power.’’
3 S.T.B. at 269–270. As the Board has
dismissed similar claims seeking
additional relief in previous Conrail
decisions, it will decline to issue a
supplemental order here. See, e.g., CSX
Corp. et al.—Control—Conrail Inc. et al.,
4 S.T.B. 107 (1999). Therefore,
petitioners’ request for a supplemental
order is denied.
Discovery. The Board will allow for
limited discovery pertaining to the
parties’ intent in defining the NJSAA
boundaries in the original transaction
agreement. The Board is particularly
interested in what the parties meant by
the use of the term ‘‘CP,’’ or control
point, in defining the SAAs. Therefore,
the NS and Conrail motions for
protective order are denied to the extent
needed to permit the limited discovery.
Procedural Schedule. The Board has
arranged to publish this decision in the
Federal Register on July 31, 2006, to
provide notice of this proceeding to all
interested persons, and to provide an
opportunity for public participation.
Petition Available to Interested
Persons. Interested persons may view
VerDate Aug<31>2005
17:34 Jul 28, 2006
Jkt 208001
the petition (and/or other related filings)
on the Board’s Web site at https://
www.stb.dot.gov, at the ‘‘Filings’’
button.
Any person wishing to obtain a paper
copy of the petition may request a copy
in writing or by phone from petitioners’
representatives (1) Christopher A. Mills,
Slover & Loftus, 1224 Seventeenth
Street, NW., Washington, DC 20036; and
(2) Kendra A. Ericson, Slover & Loftus,
1224 Seventeenth Street, NW.,
Washington, DC 20036.
Comments and Replies. Any person
who wishes to file comments regarding
the petition as supplemented must file
such comments by October 19, 2006.
Petitioners will have until October 30,
2006, to reply to any comments filed by
interested persons.
Decision by the Board. The Board will
act as promptly as possible to issue its
decision on the merits of the petition as
supplemented.
This action will not significantly
affect either the quality of the human
environment or the conservation of
energy resources.
It is ordered:
1. NS’s motion to dismiss the petition
for clarification is denied. Petitioners
are permitted to pursue limited
discovery pertaining to the parties’
intent in defining the NJSAA’s
boundaries in the original transaction
agreement.
2. Petitioners’ request in the
alternative for a supplemental order is
denied.
3. Limited discovery, as described in
this decision, must be completed by
August 30, 2006.
4. Petitioners’ supplement to the
petition is due by September 29, 2006.
5. Comments of interested persons on
the petition as supplemented are due by
October 19, 2006.
6. Petitioners’ reply is due by October
30, 2006.
7. This decision is effective on its
service date.
Decided: July 24, 2006.
By the Board, Chairman Buttrey and Vice
Chairman Mulvey.
Vernon A. Williams,
Secretary.
[FR Doc. E6–12182 Filed 7–28–06; 8:45 am]
BILLING CODE 4915–01–P
PO 00000
Frm 00193
Fmt 4703
Sfmt 4703
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
Proposed Agency Information
Collection Activities; Comment
Request—Thrift Financial Report:
Schedules SC, SO, LD, CF, SI, SQ, and
HC
Office of Thrift Supervision
(OTS), Treasury.
ACTION: Notice and request for comment.
AGENCY:
SUMMARY: The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to comment on
proposed and continuing information
collections, as required by the
Paperwork Reduction Act of 1995, 44
U.S.C. 3507. Today, the Office of Thrift
Supervision within the Department of
the Treasury solicits comments on
proposed changes to the Thrift Financial
Report (TFR), Schedule SC—
Consolidated Statement of Condition,
Schedule SO—Consolidated Statement
of Operations, Schedule LD—Loan Data,
Schedule CF—Consolidated Cash Flow
Information, Schedule SI—
Supplemental Information, Schedule
SQ—Consolidated Supplemental
Questions, and Schedule HC—Thrift
Holding Company. The proposed
changes are to become effective with the
March 31, 2007, report.
At the end of the comment period,
OTS will analyze the comments and
recommendations received to determine
if it should modify the proposed
revisions prior to giving its final
approval. OTS will then submit the
revisions to the Office of Management
and Budget (OMB) for review and
approval.
DATES: Submit written comments on or
before September 29, 2006.
ADDRESSES: Send comments to
Information Collection Comments, Chief
Counsel’s Office, Office of Thrift
Supervision, 1700 G Street, NW.,
Washington, DC 20552; send facsimile
transmissions to FAX number (202)
906–6518; send e-mails to
infocollection.comments@ots.treas.gov;
or hand deliver comments to the
Guard’s Desk, east lobby entrance, 1700
G Street, NW., on business days
between 9 a.m. and 4 p.m.. All
comments should refer to ‘‘TFR
Revisions—March 2007, OMB No.
1550–0023.’’ OTS will post comments
and the related index on the OTS
Internet Site at https://www.ots.treas.gov.
In addition, interested persons may
inspect comments at the Public Reading
Room, 1700 G Street, NW., by
E:\FR\FM\31JYN1.SGM
31JYN1
Federal Register / Vol. 71, No. 146 / Monday, July 31, 2006 / Notices
appointment. To make an appointment,
call (202) 906–5922, send an e-mail to
publicinfo@ots.treas.gov, or send a
facsimile transmission to (202) 906–
7755.
You can
access sample copies of the proposed
March 2007 TFR form on OTS’s Web
site at https://www.ots.treas.gov or you
may request them by electronic mail
from tfr.instructions@ots.treas.gov. You
can request additional information
about this proposed information
collection from James Caton, Director,
Financial Monitoring and Analysis
Division, (202) 906–5680, Office of
Thrift Supervision, 1700 G Street, NW.,
Washington, DC 20552.
SUPPLEMENTARY INFORMATION:
Title: Thrift Financial Report.
OMB Number: 1550–0023.
Form Number: OTS 1313.
Abstract: All OTS-regulated savings
associations must comply with the
information collections described in this
notice. OTS collects this information
each calendar quarter, or less frequently
if so stated. OTS uses this information
to monitor the condition, performance,
and risk profile of individual
institutions and systemic risk among
groups of institutions and the industry
as a whole. Except for selected items,
these information collections are not
given confidential treatment.
Current Action: OTS last revised the
form and content of the TFR in a
manner that significantly affected a
substantial percentage of institutions in
March 2004. Revisions since March
2004 focused on specific activities and
were primarily made in response to
changes in generally accepted
accounting principles (GAAP). These
focused revisions meant that the new or
revised TFR items were minor or
applicable to only a small percentage of
institutions.
During the past year OTS has
evaluated its ongoing information
needs. OTS recognizes that the TFR
imposes reporting requirements, which
are a component of the regulatory
burden facing institutions. Another
contributor to this regulatory burden is
the examination process, particularly
on-site examinations during which
institution staff spend time and effort
responding to inquiries and requests for
information designed to assist
examiners in evaluating the condition
and risk profile of the institution. The
amount of attention that examiners
direct to risk areas of the institution
under examination is, in large part,
determined from TFR data. These data,
and analytical reports including the
Uniform Thrift Performance Report,
sroberts on PROD1PC70 with NOTICES
FOR FURTHER INFORMATION:
VerDate Aug<31>2005
17:34 Jul 28, 2006
Jkt 208001
assist examiners in scoping and making
their preliminary assessments of risks
during the planning phase of the
examination.
A risk-focused review of the
information from an institution’s TFR
allows examiners to make preliminary
risk assessments prior to onsite work.
The degree of perceived risk determines
the extent of the examination
procedures that examiners initially plan
for each risk area. If the outcome of
these procedures reveals a higher level
of risk in a particular area, the examiner
adjusts the examination scope and
procedures accordingly.
TFR data are also a vital source of
information for the monitoring and
regulatory activities of OTS. Among
their benefits, these activities aid in
determining whether the frequency of
an institution’s examination cycle
should remain at maximum allowed
time intervals, thereby lessening overall
regulatory burden. More risk-focused
TFR data enhance the ability of OTS to
assess whether an institution is
experiencing changes in its risk profile
that warrant immediate follow-up,
which may include accelerating the
timing of an on-site examination.
In developing this proposal, OTS
considered a range of potential
information needs, particularly in the
areas of credit risk, liquidity, and
liabilities, and identified those
additions to the TFR that are most
critical and relevant to OTS in fulfilling
its supervisory responsibilities. At the
same time, OTS has identified certain
existing TFR line items that are no
longer sufficiently critical or useful to
warrant their continued collection. OTS
recognizes that the reporting burden
that would result from the addition to
the TFR of the new items discussed in
this proposal would not be fully offset
by the proposed elimination of, or
establishment of reporting thresholds
for, a limited number of other TFR
items, thereby resulting in a net increase
in reporting burden. Nevertheless, when
viewing these proposed revisions to the
TFR within a larger context, they help
to enhance the on- and off-site
supervision capabilities of OTS, which
assist with controlling the overall
regulatory burden on institutions.
Thus, OTS is requesting comment on
the following proposed revisions to the
TFR, which would take effect as of
March 31, 2007. This proposal would
eliminate ten line items from the TFR,
revise six existing items, add 16 new
items, and eliminate confidential
treatment of Schedule HC data. For each
of the proposed revisions of existing
items or proposed new items, OTS is
particularly interested in comments
PO 00000
Frm 00194
Fmt 4703
Sfmt 4703
43287
from institutions on whether the
information that is proposed to be
collected is readily available from
existing institution records. OTS also
invites comment on whether there are
particular proposed revisions for which
the new data would be of limited
relevance for purposes of assessing risks
in a specific segment of the savings
association industry. In such cases, OTS
requests comments on what criteria,
e.g., an asset size threshold or some
other measure, we should establish for
identifying the specific segment of the
savings association industry that we
should be require to report the proposed
information. Finally, OTS seeks
comment on whether, for a particular
proposed revision, there is an
alternative set of information that could
satisfy OTS data needs and be less
burdensome for institutions to report
than the new or revised items that OTS
has proposed. OTS will consider all of
the comments it receives as it
formulates a final set of revisions to the
TFR for implementation in March 2007.
In addition to the revisions proposed
in this notice, OTS expects to join the
Federal Deposit Insurance Corporation
(FDIC), the Board of Governors of the
Federal Reserve System (Board), and the
Office of the Comptroller of the
Currency (OCC), Treasury, in publishing
a proposal and request for comments to
revise certain deposit information
collected in the Call Report and the
TFR. These revisions—on Schedule DI
for TFR filers—would be proposed to
facilitate calculation of the deposit
insurance assessment pursuant to the
Federal Deposit Insurance Reform Act of
2005 and the Federal Deposit Insurance
Reform Conforming Amendments Act of
2005 (collectively, the Reform Act), and
pursuant to amendments to 12 CFR Part
327 proposed by the FDIC in the
Federal Register, Vol. 71, No. 96,
Thursday, May 18, 2006, page 28790.
A. Burden-Reducing Revisions
1. Eliminating SC745, Other
Mortgage-Collateralized Securities
Issued;
2. Eliminating CF340, Mortgage
Loans—Cash Repayment of Principal;
3. Eliminating CF350, Mortgage
Loans—Debits Less Credits Other Than
Repayment of Principal;
4. Eliminating CF420, New Deposits
Received Less Deposits Withdrawn;
5. Eliminating CF435, Deposits
Acquired, Net of Dispositions in Bulk
Transactions;
6. Eliminating consolidated
supplemental question SQ100, ‘‘Did you
acquire any assets through merger with
another depository institution?’’;
E:\FR\FM\31JYN1.SGM
31JYN1
43288
Federal Register / Vol. 71, No. 146 / Monday, July 31, 2006 / Notices
7. Eliminating consolidated
supplemental question SQ110, ‘‘Did you
include in your balance sheet for the
first time assets and/or liabilities
acquired as a result of a branch or other
bulk deposit purchase?’’;
8. Eliminating consolidated
supplemental question SQ130, ‘‘Has
there been a change in control?’’;
9. Eliminating consolidated
supplemental question SQ160, ‘‘Has
there been a merger accounted for under
the purchase method?’’; and
10. Eliminating consolidated
supplemental question SQ170, ‘‘If you
restated your balance sheet for the first
time this quarter as a result of applying
push-down accounting, enter the date of
reorganization.’’
A. Revisions of Existing Items
1. Revising the instructions to SC740,
Mortgage-Collateralized Securities
Issued—CMOs (Including REMICs), to
report total mortgage collateralized
securities issued;
2. Revising the instructions to SO141,
Interest Income on Mortgage Loans, to
exclude prepayment penalties, late fees,
and assumption fees from the line total;
3. Revising the instructions to SO160,
Interest Income on Commercial Loans
and Leases, to exclude prepayment
penalties, late fees, and assumption fees
from the line total;
4. Revising the instructions to SO171,
Interest Income on Consumer Loans and
Leases, to exclude prepayment
penalties, late fees, and assumption fees
from the line total;
5. Revising the instructions to SO410,
Loan Servicing Fees, to exclude from
the reported amount (a) amortization of
loan servicing assets or liabilities and
valuation adjustments for classes of loan
servicing accounted for using the
amortization method, and (b) fair value
adjustments for classes of servicing
carried at fair value; and
6. Revising the language for question
HC840 from ‘‘Is the holding company or
any of its subsidiaries regulated by a
foreign financial services regulator?’’ to
‘‘Is the holding company or any of its
affiliates conducting operations outside
of the U.S. through a foreign branch or
subsidiary?’’
sroberts on PROD1PC70 with NOTICES
B. New Items
1. Adding a line, SO142, Prepayment
Fees, Late Fees, and Assumption Fees
for Mortgage Loans;
2. Adding a line, SO162, Prepayment
Fees, Late, Fees, and Assumption Fees
for Commercial Loans;
3. Adding a line, SO172, Prepayment
Fees, Late Fees, and Assumption Fees
for Consumer Loans;
VerDate Aug<31>2005
17:34 Jul 28, 2006
Jkt 208001
4. Adding a line, SO411, Servicing
Amortization and Valuation
Adjustments;
5. Adding a line, LD510, 1–4 Dwelling
Units Construction-to-Permanent Loans;
6. Adding a line, LD520, OwnerOccupied Multifamily Permanent
Loans;
7. Adding a line, LD530, OwnerOccupied Nonresidential Property
(Except Land) Permanent Loans;
8. Adding a line, LD610, 1–4 Dwelling
Option ARM Loans;
9. Adding a line, LD620, 1–4 Dwelling
ARM Loans with Negative
Amortization;
10. Adding a line, LD650, Total
Capitalized Negative Amortization;
11. Adding a line, CF226, Mortgage
Loans Disbursed—Permanent Loans—
Home Equity and Junior Liens;
12. Adding a line, CF281, Loans and
Participations Purchased—Secured by
1–4 Dwelling Units—Purchased from
Entities Other Than Federally-Insured
Depository Institutions or Their
Subsidiaries;
13. Adding a line, CF282, Loans and
Participations Purchased—Secured by
1–4 Dwelling Units—Home Equity and
Junior Liens;
14. Adding a line, CF311, Loans and
Participations Sold—Secured by 1–4
Dwelling Units—Home Equity and
Junior Liens;
15. Adding a line, SI376, Assets
Recorded on Schedule SC Under a Fair
Value Option; and
16. Adding a line, SI377, Liabilities
Recorded on Schedule SC Under a Fair
Value Option.
C. Eliminating Confidential Treatment
of Schedule HC Data
The specific wording of the captions
for the new and revised TFR items
discussed in this proposal and the
numbering of these items in the report
is preliminary.
Discussion of Proposed Revisions
A. Burden-Reducing Revisions
1. Other Mortgage-Collateralized
Securities Issued
OTS proposes to eliminate TFR line
SC745, Other Mortgage-Collateralized
Securities Issued. For the five quarters
through December 2005, no data were
reported in this line. These data will be
included in a redefined TFR line SC740,
Mortgage-Collateralized Securities
Issued.
The following three line items are
proposed for elimination as several
thrifts indicated these data were
particularly burdensome to report and
these data are not critical to supervisory
efforts.
PO 00000
Frm 00195
Fmt 4703
Sfmt 4703
2. Cash Repayment of Principal
OTS proposes to eliminate TFR line
CF340, Mortgage Loans-Cash
Repayment of Principal.
3. Mortgage Loans—Debits Less Credits
Other Than Repayment of Principal
OTS proposes to eliminate TFR line
CF350, Mortgage Loans-Debits Less
Credits Other Than Repayment of
Principal.
4. New Deposits Received Less Deposits
Withdrawn
OTS proposes to eliminate TFR line
CF420, New Deposits Received Less
Deposits Withdrawn.
The following six line items are
proposed for elimination as OTS can
gather these data through other means
such as through our Application
Tracking System.
5. Deposits Acquired, Net of
Dispositions in Bulk Transactions
OTS proposes to eliminate TFR line
CF435, Deposits Acquired, Net of
Dispositions in Bulk Transactions.
6. Assets Acquired Through Merger
With Another Depository Institution
OTS proposes to eliminate
consolidated supplemental question
SQ100, ‘‘Did you acquire any assets
through merger with another depository
institution?’’
7. Assets and/or Liabilities Acquired as
Result of Branch or Other Bulk Deposit
Purchase
OTS proposes to eliminate
consolidated supplemental question
SQ110, ‘‘Did you include in your
balance sheet for the first time assets
and/or liabilities acquired as a result of
a branch or other bulk deposit
purchase?’’
8. Change In Control
OTS proposes to eliminate
consolidated supplemental question
SQ130, ‘‘Has there been a change in
control?’’
9. Merger Accounted for Under the
Purchase Method
OTS proposes to eliminate
consolidated supplemental question
SQ160, ‘‘Has there been a merger
accounted for under the purchase
method?’’
10. Balance Sheet Restatement as Result
of Applying Push-Down Accounting
OTS proposes to eliminate
consolidated supplemental question
SQ170, ‘‘If you restated your balance
sheet for the first time this quarter as a
result of applying push-down
E:\FR\FM\31JYN1.SGM
31JYN1
Federal Register / Vol. 71, No. 146 / Monday, July 31, 2006 / Notices
SO411, Servicing Amortization and
Valuation Adjustments, noted below;
and
accounting, enter the date of
reorganization.’’
B. Revisions of Existing Items
1. Mortgage-Collateralized Securities
Issued—CMOs (Including REMICs)
OTS proposes to revise the
instructions to TFR line SC740 to
include all mortgage-collateralized
securities issued by the reporting
institution. SC740 would be renamed as
‘‘Mortgage-Collateralized Securities
Issued’’. This change will incorporate
the data from the elimination of SC745,
Other Mortgage-Collateralized Securities
Issued.
2. Interest Income on Mortgage Loans
OTS proposes to revise the
instructions to TFR line SO141, Interest
Income on Mortgage Loans, to exclude
prepayment penalties, late fees, and
assumption fees from the line total. The
excluded data would be reported in the
proposed new line item, SO142,
Prepayment Fees, Late Fees, and
Assumption Fees for Mortgage Loans.
3. Interest Income on Commercial Loans
and Leases
OTS proposes to revise the
instructions to TFR line SO160, Interest
Income on Commercial Loans and
Leases, to exclude prepayment
penalties, late fees, and assumption fees
from the line total. The excluded data
would be reported in the proposed new
line item, SO162, Prepayment Fees, Late
Fees, and Assumption Fees for
Commercial Loans and Leases.
sroberts on PROD1PC70 with NOTICES
4. Interest Income on Consumer Loans
and Leases
OTS proposes to revise the
instructions to TFR line SO171, Interest
Income on Consumer Loans and Leases,
to exclude prepayment penalties, late
fees, and assumption fees from the line
total. The excluded data would be
reported in the proposed new line item,
SO172, Prepayment Fees, Late Fees, and
Assumption Fees for Consumer Loans
and Leases.
5. Loan Servicing Fees
OTS proposes to revise the
instructions to TFR line SO410 to
require reporting of total servicing
income and expense exclusive of (a)
amortization of servicing assets and
liabilities, and valuation adjustments,
for classes of servicing accounted for
using the amortization method; and (b)
fair value adjustments for classes of
servicing classes carried at fair value.
Excluding these data will provide a
better measure of core servicing income
in SO410. The excluded data would be
collected through the addition of
VerDate Aug<31>2005
17:34 Jul 28, 2006
Jkt 208001
43289
of prepayment fees, late fees, and
assumption fees relative to total interest
income on commercial loans.
6. Holding Company or Affiliates
Conducting Operations Outside of the
U.S. Through a Foreign Branch or
Subsidiary
3. SO172, Prepayment Fees, Late Fees,
and Assumption Fees for Consumer
Loans
OTS proposes to add TFR line SO172,
Prepayment Fees, Late Fees, and
Assumption Fees for Consumer Loans,
to collect data as a memorandum item
to total interest income on consumer
loans to monitor changes in the volume
of prepayment fees, late fees, and
assumption fees relative to total interest
income on consumer loans.
OTS proposes to revise the question
asked in TFR line HC840, ‘‘Is the
holding company or any of its
subsidiaries regulated by a foreign
financial services regulator?’’ to ‘‘Is the
holding company or any of its affiliates
conducting operations outside of the
U.S. through a foreign branch or
subsidiary?’’ This line is being revised
to more fully identify holding
companies with foreign operations,
including parallel banking operations. A
parallel banking organization exists
when at least one U.S. bank and one
foreign financial institution are
controlled either directly or indirectly
by the same person or group of persons
who are closely associated in their
business dealings or otherwise acting
together, but are not subject to
consolidated supervision by a single
home country supervisor. A foreign
financial institution includes a holding
company of the foreign bank and any
U.S. or foreign affiliates of the foreign
bank.
C. New Items
1. SO142, Prepayment Fees, Late Fees,
and Assumption Fees for Mortgage
Loans
OTS proposes to add TFR line SO142,
Prepayment Fees, Late Fees, and
Assumption Fees for Mortgage Loans, to
collect data as a memorandum item to
total interest income on mortgage loans
to monitor changes in the volume of
prepayment fees, late fees, and
assumption fees relative to total interest
income on mortgage loans. Beginning in
2006, pursuant to several institutions’
requests and consistent with GAAP,
prepayment fees, late fees, and
assumption fees were included in
interest income. Adding memorandum
items SO142, SO162, and SO172 for
these fees will allow for analysis of loan
yields and the impact of these fees on
interest income during interest rate and
prepayment cycles.
2. SO162, Prepayment Fees, Late, Fees,
and Assumption Fees for Commercial
Loans
OTS proposes to add TFR line SO162,
Prepayment Fees, Late Fees, and
Assumption Fees for Commercial Loans,
to collect data as a memorandum item
to total interest income on commercial
loans to monitor changes in the volume
PO 00000
Frm 00196
Fmt 4703
Sfmt 4703
4. SO411, Servicing Amortization and
Valuation Adjustments
OTS proposes to add TFR line SO411,
Servicing Amortization and Valuation
Adjustments, to collect these data
separately from SO410, Loan Servicing
Fees, as noted under revisions to SO410.
Separating amortization of servicing
assets and liabilities and servicing
valuation adjustments for classes of
servicing assets and liabilities
accounted for using the amortization
method, and fair value adjustments for
classes of servicing assets and liabilities
accounted for using the fair value
method, will allow for analysis of core
income in SO410 and the volatility the
adjustments in SO411 add to servicing
income.
5. LD510, 1–4 Dwelling Units
Construction-to-Permanent Loans
OTS proposes to add TFR line LD510,
1–4 Dwelling Units Construction-toPermanent Loans, to collect data as a
memorandum item to SC230,
Construction Loans—Total for
Residential 1–4 Dwelling Units. Several
savings associations requested this
change. Some analysts consider
construction loans made to the eventual
homeowner to pose less credit risk than
other construction loans. Adding this
line will allow OTS to monitor the
activity for such loans and monitor the
overall construction loan credit
performance of thrifts engaging in such
lending.
6. LD520, Owner-Occupied Multifamily
Permanent Loans
OTS proposes to add TFR line LD520,
Owner-Occupied Multifamily
Permanent Loans, to collect data as a
memorandum item to SC256, Permanent
Loans—Total for Multifamily (5 or
more) Dwelling Units. Planned TFR
lines LD520 and LD530 will enable OTS
to improve monitoring of commercial
real estate (CRE) loan portfolios. The
risk profiles of loans captured in these
two line items are generally less
E:\FR\FM\31JYN1.SGM
31JYN1
43290
Federal Register / Vol. 71, No. 146 / Monday, July 31, 2006 / Notices
influenced by the condition of the
broader CRE markets than other forms of
CRE lending.
7. LD530, Owner-Occupied
Nonresidential Property (Except Land)
Permanent Loans
OTS proposes to add TFR line LD530,
Owner-Occupied Nonresidential
Property (Except Land) Permanent
Loans, to collect data as a memorandum
item to SC260, Permanent Loans—
Nonresidential Property (Except Land).
8. LD610, 1–4 Dwelling Option ARM
Loans
OTS proposes to add TFR line LD610,
1–4 Dwelling Option ARM Loans. The
data will provide OTS with information
to monitor the volume of option ARM
loans within 1–4 dwelling unit mortgage
loan portfolios.
9. LD620, 1–4 Dwelling ARM Loans
with Negative Amortization
OTS proposes to add TFR line LD620,
1–4 Dwelling ARM Loans with Negative
Amortization. The data will be used to
monitor the volume of ARM loans with
negative amortization features within 1–
4 dwelling unit mortgage loan
portfolios.
10. LD650, Total Capitalized Negative
Amortization
OTS proposes to add TFR line LD650,
Total Capitalized Negative
Amortization. The data will allow OTS
to monitor the amount of capitalized
negative amortization.
11. CF226, Mortgage Loans Disbursed—
Permanent Loans—Home Equity and
Junior Liens Disbursed—Permanent
Loans—Home Equity and Junior Liens
OTS proposes to add TFR line CF226,
Mortgage Loans Disbursed—Permanent
Loans—Home Equity and Junior Liens.
Aggregate home equity loans have
increased strongly in recent years.
Among OTS-regulated thrifts, such
loans have increased over 70 percent to
$91.6 billion in the first quarter of 2006
from $53.5 billion two years earlier. The
proposed line items CF226, CF281, and
C311 will provide OTS with data to
monitor the activity of these loans.
sroberts on PROD1PC70 with NOTICES
12. CF281, Loans and Participations
Purchased—Secured by 1–4 Dwelling
Units—Purchased from Entities Other
Than Federally-Insured Depository
Institutions or Their Subsidiaries
OTS proposes to add TFR line CF281,
Loans and Participations Purchased—
Secured by 1–4 Dwelling Units—
Purchased from Entities Other Than
Federally-Insured Depository
Institutions or Their Subsidiaries.
VerDate Aug<31>2005
17:34 Jul 28, 2006
Jkt 208001
14. CF311, Loans and Participations
Sold—Secured by 1–4 Dwelling Units—
Home Equity and Junior Liens
OTS proposes to add TFR line CF311,
Loans and Participations Sold—Secured
by 1–4 Dwelling Units—Home Equity
and Junior Liens.
servicing assets for subsequent
accounting for which they may elect
amortization method (pre-FAS 156
method) or fair-value accounting. The
FVO exposure draft proposes to allow
companies to irrevocably elect fair value
as the measurement attribute for certain
financial assets and financial liabilities,
with changes in fair value recognized in
earnings as those changes occur.
FAS 155 and FAS 156 are effective for
fiscal years beginning after December
15, 2006, though they may be adopted
early in certain circumstances, and the
FVO exposure draft is proposed to be
effective for fiscal years beginning after
December 15, 2006. Under the FVO
exposure draft, as of the date of initial
adoption, an entity would also be
permitted to elect the fair value option
for any existing financial asset or
financial liability within the scope of
the proposed Statement, with the
difference between the fair value and its
prior carrying amount recorded through
retained earnings. OTS anticipates that
relatively few institutions will elect fair
value options, and therefore propose to
collect minimal data. Institutions
adopting fair value options may be
asked to provide more detailed
information separate from the TFR
directly to supervisory staff.
15. SI376, Assets Recorded On Schedule
SC Under a Fair Value Option
OTS proposes to add TFR line SI376,
Assets Recorded On Schedule SC Under
a Fair Value Option. Two outstanding
and one proposed Statements of
Financial Accounting Standards (FAS)
include options for entities to elect to
measure certain assets and liabilities at
fair value, with changes in fair value
reported in income. These outstanding
and proposed standards comprise FAS
155, Accounting for Certain Hybrid
Financial Instruments—an Amendment
of FASB (Financial Accounting
Standards Board) Statements No. 133
and 140; FAS 156, Accounting for
Servicing of Financial Assets—an
Amendment of FASB Statement No.
140; and an exposure draft, The Fair
Value Option for Financial Assets and
Financial Liabilities—Including an
Amendment of FASB Statement No. 115
(the fair value option (FVO) exposure
draft).
FAS 155 allows entities to elect fair
value accounting for certain hybrid
financial instruments that were
previously required to be bifurcated
pursuant to FAS 133 with the embedded
derivative accounted for separately from
the host contract. FAS 156 requires
institutions to initially measure
servicing assets and liabilities at fair
value, then to establish classes of
16. SI377, Liabilities Recorded on
Schedule SC Under a Fair Value Option
OTS proposes to add TFR line SI377,
Liabilities Recorded On Schedule SC
Under a Fair Value Option as described
in FAS 155, FAS 156, and in the FVO
exposure draft. FAS 155 allows entities
to elect fair value accounting for certain
hybrid financial instruments that were
previously bifurcated pursuant to FAS
133 with the embedded derivative
accounted for separately. FAS 156
requires institutions to initially measure
servicing assets and liabilities at fair
value, then to establish classes of
servicing assets for subsequent
accounting for which they may elect
amortization method (current method)
or fair value accounting. The FVO
exposure draft proposes to allow
companies to irrevocably elect fair value
as the measurement attribute for certain
financial assets and financial liabilities,
with changes in fair value recognized in
earnings as those changes occur.
FAS 155 and FAS 156 are effective for
fiscal years beginning after December
15, 2006, though they may be adopted
early in certain circumstances, and the
proposed standard is also scheduled to
be effective for fiscal years beginning
after December 15, 2006. Under FASB’s
proposed fair value option standard, as
of the date of initial adoption, an entity
would also be permitted to elect the fair
Aggregate thrift industry loan purchases
from third party originators are strong,
totaling $356 billion in 2005, or 35.2
percent of total 1–4 dwelling unit
mortgage loans originated and
purchased. The addition of this line
item will provide OTS with information
regarding the source of these purchases.
13. CF282, Loans and Participations
Purchased—Secured by 1–4 Dwelling
Units—Home Equity and Junior Liens
OTS proposes to add TFR line CF282,
Loans and Participations Purchased—
Secured by 1–4 Dwelling Units—Home
Equity and Junior Liens. Industry
holdings of home equity loans have
increased significantly since 2004,
rising over 70 percent to $91.6 billion in
the first quarter of 2006 from $53.5
billion two years earlier. The growing
volumes and importance of such loans
to savings associations warrants the
collection of additional data to monitor
them.
PO 00000
Frm 00197
Fmt 4703
Sfmt 4703
E:\FR\FM\31JYN1.SGM
31JYN1
Federal Register / Vol. 71, No. 146 / Monday, July 31, 2006 / Notices
value option for any existing financial
asset or financial liability within the
scope of the proposed statement, with
the difference between the fair value
and its prior carrying amount recorded
through retained earnings.
sroberts on PROD1PC70 with NOTICES
D. Eliminating Confidential Treatment
of Schedule HC Data
OTS is requesting comments on the
continued confidential treatment of data
filed by individual thrift holding
companies on Schedule HC. OTS
presently does not publicly release
Schedule HC data filed by holding
companies. However, many public
requests are received for these data. In
addition, some rating agencies have
indicated thrift holding company debt
ratings suffer due to the lack of publicly
available data. One option under
consideration by OTS would permit
holding companies filing these data to
opt to maintain the confidentiality on a
case-by-case basis.
Request for Comments: OTS may not
conduct or sponsor an information
collection, and respondents are not
required to respond to an information
collection, unless the information
collection displays a currently valid
OMB control number.
In this notice, OTS is soliciting
comments concerning the following
information collection.
Statutory Requirement: 12 U.S.C.
1464(v) imposes reporting requirements
for savings associations.
Type of Review: Revision of currently
approved collections.
VerDate Aug<31>2005
17:34 Jul 28, 2006
Jkt 208001
Affected Public: Business or for profit.
Estimated Number of Respondents
and Recordkeepers: 856.
Estimated Burden Hours per
Respondent: 36.5 hours average for
quarterly schedules and 1.9 hours
average for schedules required only
annually plus recordkeeping of an
average of one hour per quarter.
Estimated Frequency of Response:
Quarterly.
Estimated Total Annual Burden:
130,026 hours.
OTS is proposing to revise the TFR,
which is currently an approved
collection of information. The effect on
reporting burden of the proposed
revisions to the TFR requirements will
vary from institution to institution
depending on the institution’s asset size
and its involvement with the types of
activities or transactions to which the
proposed changes apply. This proposal
would eliminate ten line items from the
TFR, revise six existing items, add 16
new items, and eliminate confidential
treatment of Schedule HC data.
OTS estimates that the
implementation of these reporting
revisions will result in a nominal
increase in the current reporting burden
imposed by the TFR on all savings
associations.
As part of the approval process, we
invite comments addressing one or more
of the following points:
a. Whether the proposed revisions to
the TFR collections of information are
necessary for the proper performance of
the agency’s functions, including
PO 00000
Frm 00198
Fmt 4703
Sfmt 4703
43291
whether the information has practical
utility;
b. The accuracy of the agency’s
estimate of the burden of the collection
of information;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collections on respondents,
including through the use of automated
collection techniques, the Internet, or
other forms of information technology;
and
e. Estimates of capital or start up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
OTS will summarize the comments
received and include them in the
request for OMB approval. All
comments will become a matter of
public record.
Clearance Officer: Marilyn K. Burton,
(202) 906–6467, Office of Thrift
Supervision, 1700 G Street, NW.,
Washington, DC 20552.
OMB Reviewer: Desk Officer for OTS,
FAX: (202) 395–6974, U.S. Office of
Management and Budget, 725—17th
Street, NW., Room 10235, Washington,
DC 20503.
Dated: July 26, 2006.
Deborah Dakin,
Senior Deputy Chief Counsel, Regulations and
Legislation Division.
[FR Doc. E6–12251 Filed 7–28–06; 8:45 am]
BILLING CODE 6720–01–P
E:\FR\FM\31JYN1.SGM
31JYN1
]]>Agencies
[Federal Register Volume 71, Number 146 (Monday, July 31, 2006)]
[Notices]
[Pages 43286-43291]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12251]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
Proposed Agency Information Collection Activities; Comment
Request--Thrift Financial Report: Schedules SC, SO, LD, CF, SI, SQ, and
HC
AGENCY: Office of Thrift Supervision (OTS), Treasury.
ACTION: Notice and request for comment.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury, as part of its continuing
effort to reduce paperwork and respondent burden, invites the general
public and other Federal agencies to comment on proposed and continuing
information collections, as required by the Paperwork Reduction Act of
1995, 44 U.S.C. 3507. Today, the Office of Thrift Supervision within
the Department of the Treasury solicits comments on proposed changes to
the Thrift Financial Report (TFR), Schedule SC--Consolidated Statement
of Condition, Schedule SO--Consolidated Statement of Operations,
Schedule LD--Loan Data, Schedule CF--Consolidated Cash Flow
Information, Schedule SI--Supplemental Information, Schedule SQ--
Consolidated Supplemental Questions, and Schedule HC--Thrift Holding
Company. The proposed changes are to become effective with the March
31, 2007, report.
At the end of the comment period, OTS will analyze the comments and
recommendations received to determine if it should modify the proposed
revisions prior to giving its final approval. OTS will then submit the
revisions to the Office of Management and Budget (OMB) for review and
approval.
DATES: Submit written comments on or before September 29, 2006.
ADDRESSES: Send comments to Information Collection Comments, Chief
Counsel's Office, Office of Thrift Supervision, 1700 G Street, NW.,
Washington, DC 20552; send facsimile transmissions to FAX number (202)
906-6518; send e-mails to infocollection.comments@ots.treas.gov; or
hand deliver comments to the Guard's Desk, east lobby entrance, 1700 G
Street, NW., on business days between 9 a.m. and 4 p.m.. All comments
should refer to ``TFR Revisions--March 2007, OMB No. 1550-0023.'' OTS
will post comments and the related index on the OTS Internet Site at
https://www.ots.treas.gov. In addition, interested persons may inspect
comments at the Public Reading Room, 1700 G Street, NW., by
[[Page 43287]]
appointment. To make an appointment, call (202) 906-5922, send an e-
mail to publicinfo@ots.treas.gov, or send a facsimile transmission to
(202) 906-7755.
FOR FURTHER INFORMATION: You can access sample copies of the proposed
March 2007 TFR form on OTS's Web site at https://www.ots.treas.gov or
you may request them by electronic mail from
tfr.instructions@ots.treas.gov. You can request additional information
about this proposed information collection from James Caton, Director,
Financial Monitoring and Analysis Division, (202) 906-5680, Office of
Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION:
Title: Thrift Financial Report.
OMB Number: 1550-0023.
Form Number: OTS 1313.
Abstract: All OTS-regulated savings associations must comply with
the information collections described in this notice. OTS collects this
information each calendar quarter, or less frequently if so stated. OTS
uses this information to monitor the condition, performance, and risk
profile of individual institutions and systemic risk among groups of
institutions and the industry as a whole. Except for selected items,
these information collections are not given confidential treatment.
Current Action: OTS last revised the form and content of the TFR in
a manner that significantly affected a substantial percentage of
institutions in March 2004. Revisions since March 2004 focused on
specific activities and were primarily made in response to changes in
generally accepted accounting principles (GAAP). These focused
revisions meant that the new or revised TFR items were minor or
applicable to only a small percentage of institutions.
During the past year OTS has evaluated its ongoing information
needs. OTS recognizes that the TFR imposes reporting requirements,
which are a component of the regulatory burden facing institutions.
Another contributor to this regulatory burden is the examination
process, particularly on-site examinations during which institution
staff spend time and effort responding to inquiries and requests for
information designed to assist examiners in evaluating the condition
and risk profile of the institution. The amount of attention that
examiners direct to risk areas of the institution under examination is,
in large part, determined from TFR data. These data, and analytical
reports including the Uniform Thrift Performance Report, assist
examiners in scoping and making their preliminary assessments of risks
during the planning phase of the examination.
A risk-focused review of the information from an institution's TFR
allows examiners to make preliminary risk assessments prior to onsite
work. The degree of perceived risk determines the extent of the
examination procedures that examiners initially plan for each risk
area. If the outcome of these procedures reveals a higher level of risk
in a particular area, the examiner adjusts the examination scope and
procedures accordingly.
TFR data are also a vital source of information for the monitoring
and regulatory activities of OTS. Among their benefits, these
activities aid in determining whether the frequency of an institution's
examination cycle should remain at maximum allowed time intervals,
thereby lessening overall regulatory burden. More risk-focused TFR data
enhance the ability of OTS to assess whether an institution is
experiencing changes in its risk profile that warrant immediate follow-
up, which may include accelerating the timing of an on-site
examination.
In developing this proposal, OTS considered a range of potential
information needs, particularly in the areas of credit risk, liquidity,
and liabilities, and identified those additions to the TFR that are
most critical and relevant to OTS in fulfilling its supervisory
responsibilities. At the same time, OTS has identified certain existing
TFR line items that are no longer sufficiently critical or useful to
warrant their continued collection. OTS recognizes that the reporting
burden that would result from the addition to the TFR of the new items
discussed in this proposal would not be fully offset by the proposed
elimination of, or establishment of reporting thresholds for, a limited
number of other TFR items, thereby resulting in a net increase in
reporting burden. Nevertheless, when viewing these proposed revisions
to the TFR within a larger context, they help to enhance the on- and
off-site supervision capabilities of OTS, which assist with controlling
the overall regulatory burden on institutions.
Thus, OTS is requesting comment on the following proposed revisions
to the TFR, which would take effect as of March 31, 2007. This proposal
would eliminate ten line items from the TFR, revise six existing items,
add 16 new items, and eliminate confidential treatment of Schedule HC
data. For each of the proposed revisions of existing items or proposed
new items, OTS is particularly interested in comments from institutions
on whether the information that is proposed to be collected is readily
available from existing institution records. OTS also invites comment
on whether there are particular proposed revisions for which the new
data would be of limited relevance for purposes of assessing risks in a
specific segment of the savings association industry. In such cases,
OTS requests comments on what criteria, e.g., an asset size threshold
or some other measure, we should establish for identifying the specific
segment of the savings association industry that we should be require
to report the proposed information. Finally, OTS seeks comment on
whether, for a particular proposed revision, there is an alternative
set of information that could satisfy OTS data needs and be less
burdensome for institutions to report than the new or revised items
that OTS has proposed. OTS will consider all of the comments it
receives as it formulates a final set of revisions to the TFR for
implementation in March 2007.
In addition to the revisions proposed in this notice, OTS expects
to join the Federal Deposit Insurance Corporation (FDIC), the Board of
Governors of the Federal Reserve System (Board), and the Office of the
Comptroller of the Currency (OCC), Treasury, in publishing a proposal
and request for comments to revise certain deposit information
collected in the Call Report and the TFR. These revisions--on Schedule
DI for TFR filers--would be proposed to facilitate calculation of the
deposit insurance assessment pursuant to the Federal Deposit Insurance
Reform Act of 2005 and the Federal Deposit Insurance Reform Conforming
Amendments Act of 2005 (collectively, the Reform Act), and pursuant to
amendments to 12 CFR Part 327 proposed by the FDIC in the Federal
Register, Vol. 71, No. 96, Thursday, May 18, 2006, page 28790.
A. Burden-Reducing Revisions
1. Eliminating SC745, Other Mortgage-Collateralized Securities
Issued;
2. Eliminating CF340, Mortgage Loans--Cash Repayment of Principal;
3. Eliminating CF350, Mortgage Loans--Debits Less Credits Other
Than Repayment of Principal;
4. Eliminating CF420, New Deposits Received Less Deposits
Withdrawn;
5. Eliminating CF435, Deposits Acquired, Net of Dispositions in
Bulk Transactions;
6. Eliminating consolidated supplemental question SQ100, ``Did you
acquire any assets through merger with another depository
institution?'';
[[Page 43288]]
7. Eliminating consolidated supplemental question SQ110, ``Did you
include in your balance sheet for the first time assets and/or
liabilities acquired as a result of a branch or other bulk deposit
purchase?'';
8. Eliminating consolidated supplemental question SQ130, ``Has
there been a change in control?'';
9. Eliminating consolidated supplemental question SQ160, ``Has
there been a merger accounted for under the purchase method?''; and
10. Eliminating consolidated supplemental question SQ170, ``If you
restated your balance sheet for the first time this quarter as a result
of applying push-down accounting, enter the date of reorganization.''
A. Revisions of Existing Items
1. Revising the instructions to SC740, Mortgage-Collateralized
Securities Issued--CMOs (Including REMICs), to report total mortgage
collateralized securities issued;
2. Revising the instructions to SO141, Interest Income on Mortgage
Loans, to exclude prepayment penalties, late fees, and assumption fees
from the line total;
3. Revising the instructions to SO160, Interest Income on
Commercial Loans and Leases, to exclude prepayment penalties, late
fees, and assumption fees from the line total;
4. Revising the instructions to SO171, Interest Income on Consumer
Loans and Leases, to exclude prepayment penalties, late fees, and
assumption fees from the line total;
5. Revising the instructions to SO410, Loan Servicing Fees, to
exclude from the reported amount (a) amortization of loan servicing
assets or liabilities and valuation adjustments for classes of loan
servicing accounted for using the amortization method, and (b) fair
value adjustments for classes of servicing carried at fair value; and
6. Revising the language for question HC840 from ``Is the holding
company or any of its subsidiaries regulated by a foreign financial
services regulator?'' to ``Is the holding company or any of its
affiliates conducting operations outside of the U.S. through a foreign
branch or subsidiary?''
B. New Items
1. Adding a line, SO142, Prepayment Fees, Late Fees, and Assumption
Fees for Mortgage Loans;
2. Adding a line, SO162, Prepayment Fees, Late, Fees, and
Assumption Fees for Commercial Loans;
3. Adding a line, SO172, Prepayment Fees, Late Fees, and Assumption
Fees for Consumer Loans;
4. Adding a line, SO411, Servicing Amortization and Valuation
Adjustments;
5. Adding a line, LD510, 1-4 Dwelling Units Construction-to-
Permanent Loans;
6. Adding a line, LD520, Owner-Occupied Multifamily Permanent
Loans;
7. Adding a line, LD530, Owner-Occupied Nonresidential Property
(Except Land) Permanent Loans;
8. Adding a line, LD610, 1-4 Dwelling Option ARM Loans;
9. Adding a line, LD620, 1-4 Dwelling ARM Loans with Negative
Amortization;
10. Adding a line, LD650, Total Capitalized Negative Amortization;
11. Adding a line, CF226, Mortgage Loans Disbursed--Permanent
Loans--Home Equity and Junior Liens;
12. Adding a line, CF281, Loans and Participations Purchased--
Secured by 1-4 Dwelling Units--Purchased from Entities Other Than
Federally-Insured Depository Institutions or Their Subsidiaries;
13. Adding a line, CF282, Loans and Participations Purchased--
Secured by 1-4 Dwelling Units--Home Equity and Junior Liens;
14. Adding a line, CF311, Loans and Participations Sold--Secured by
1-4 Dwelling Units--Home Equity and Junior Liens;
15. Adding a line, SI376, Assets Recorded on Schedule SC Under a
Fair Value Option; and
16. Adding a line, SI377, Liabilities Recorded on Schedule SC Under
a Fair Value Option.
C. Eliminating Confidential Treatment of Schedule HC Data
The specific wording of the captions for the new and revised TFR
items discussed in this proposal and the numbering of these items in
the report is preliminary.
Discussion of Proposed Revisions
A. Burden-Reducing Revisions
1. Other Mortgage-Collateralized Securities Issued
OTS proposes to eliminate TFR line SC745, Other Mortgage-
Collateralized Securities Issued. For the five quarters through
December 2005, no data were reported in this line. These data will be
included in a redefined TFR line SC740, Mortgage-Collateralized
Securities Issued.
The following three line items are proposed for elimination as
several thrifts indicated these data were particularly burdensome to
report and these data are not critical to supervisory efforts.
2. Cash Repayment of Principal
OTS proposes to eliminate TFR line CF340, Mortgage Loans-Cash
Repayment of Principal.
3. Mortgage Loans--Debits Less Credits Other Than Repayment of
Principal
OTS proposes to eliminate TFR line CF350, Mortgage Loans-Debits
Less Credits Other Than Repayment of Principal.
4. New Deposits Received Less Deposits Withdrawn
OTS proposes to eliminate TFR line CF420, New Deposits Received
Less Deposits Withdrawn.
The following six line items are proposed for elimination as OTS
can gather these data through other means such as through our
Application Tracking System.
5. Deposits Acquired, Net of Dispositions in Bulk Transactions
OTS proposes to eliminate TFR line CF435, Deposits Acquired, Net of
Dispositions in Bulk Transactions.
6. Assets Acquired Through Merger With Another Depository Institution
OTS proposes to eliminate consolidated supplemental question SQ100,
``Did you acquire any assets through merger with another depository
institution?''
7. Assets and/or Liabilities Acquired as Result of Branch or Other Bulk
Deposit Purchase
OTS proposes to eliminate consolidated supplemental question SQ110,
``Did you include in your balance sheet for the first time assets and/
or liabilities acquired as a result of a branch or other bulk deposit
purchase?''
8. Change In Control
OTS proposes to eliminate consolidated supplemental question SQ130,
``Has there been a change in control?''
9. Merger Accounted for Under the Purchase Method
OTS proposes to eliminate consolidated supplemental question SQ160,
``Has there been a merger accounted for under the purchase method?''
10. Balance Sheet Restatement as Result of Applying Push-Down
Accounting
OTS proposes to eliminate consolidated supplemental question SQ170,
``If you restated your balance sheet for the first time this quarter as
a result of applying push-down
[[Page 43289]]
accounting, enter the date of reorganization.''
B. Revisions of Existing Items
1. Mortgage-Collateralized Securities Issued--CMOs (Including REMICs)
OTS proposes to revise the instructions to TFR line SC740 to
include all mortgage-collateralized securities issued by the reporting
institution. SC740 would be renamed as ``Mortgage-Collateralized
Securities Issued''. This change will incorporate the data from the
elimination of SC745, Other Mortgage-Collateralized Securities Issued.
2. Interest Income on Mortgage Loans
OTS proposes to revise the instructions to TFR line SO141, Interest
Income on Mortgage Loans, to exclude prepayment penalties, late fees,
and assumption fees from the line total. The excluded data would be
reported in the proposed new line item, SO142, Prepayment Fees, Late
Fees, and Assumption Fees for Mortgage Loans.
3. Interest Income on Commercial Loans and Leases
OTS proposes to revise the instructions to TFR line SO160, Interest
Income on Commercial Loans and Leases, to exclude prepayment penalties,
late fees, and assumption fees from the line total. The excluded data
would be reported in the proposed new line item, SO162, Prepayment
Fees, Late Fees, and Assumption Fees for Commercial Loans and Leases.
4. Interest Income on Consumer Loans and Leases
OTS proposes to revise the instructions to TFR line SO171, Interest
Income on Consumer Loans and Leases, to exclude prepayment penalties,
late fees, and assumption fees from the line total. The excluded data
would be reported in the proposed new line item, SO172, Prepayment
Fees, Late Fees, and Assumption Fees for Consumer Loans and Leases.
5. Loan Servicing Fees
OTS proposes to revise the instructions to TFR line SO410 to
require reporting of total servicing income and expense exclusive of
(a) amortization of servicing assets and liabilities, and valuation
adjustments, for classes of servicing accounted for using the
amortization method; and (b) fair value adjustments for classes of
servicing classes carried at fair value. Excluding these data will
provide a better measure of core servicing income in SO410. The
excluded data would be collected through the addition of SO411,
Servicing Amortization and Valuation Adjustments, noted below; and
6. Holding Company or Affiliates Conducting Operations Outside of the
U.S. Through a Foreign Branch or Subsidiary
OTS proposes to revise the question asked in TFR line HC840, ``Is
the holding company or any of its subsidiaries regulated by a foreign
financial services regulator?'' to ``Is the holding company or any of
its affiliates conducting operations outside of the U.S. through a
foreign branch or subsidiary?'' This line is being revised to more
fully identify holding companies with foreign operations, including
parallel banking operations. A parallel banking organization exists
when at least one U.S. bank and one foreign financial institution are
controlled either directly or indirectly by the same person or group of
persons who are closely associated in their business dealings or
otherwise acting together, but are not subject to consolidated
supervision by a single home country supervisor. A foreign financial
institution includes a holding company of the foreign bank and any U.S.
or foreign affiliates of the foreign bank.
C. New Items
1. SO142, Prepayment Fees, Late Fees, and Assumption Fees for Mortgage
Loans
OTS proposes to add TFR line SO142, Prepayment Fees, Late Fees, and
Assumption Fees for Mortgage Loans, to collect data as a memorandum
item to total interest income on mortgage loans to monitor changes in
the volume of prepayment fees, late fees, and assumption fees relative
to total interest income on mortgage loans. Beginning in 2006, pursuant
to several institutions' requests and consistent with GAAP, prepayment
fees, late fees, and assumption fees were included in interest income.
Adding memorandum items SO142, SO162, and SO172 for these fees will
allow for analysis of loan yields and the impact of these fees on
interest income during interest rate and prepayment cycles.
2. SO162, Prepayment Fees, Late, Fees, and Assumption Fees for
Commercial Loans
OTS proposes to add TFR line SO162, Prepayment Fees, Late Fees, and
Assumption Fees for Commercial Loans, to collect data as a memorandum
item to total interest income on commercial loans to monitor changes in
the volume of prepayment fees, late fees, and assumption fees relative
to total interest income on commercial loans.
3. SO172, Prepayment Fees, Late Fees, and Assumption Fees for Consumer
Loans
OTS proposes to add TFR line SO172, Prepayment Fees, Late Fees, and
Assumption Fees for Consumer Loans, to collect data as a memorandum
item to total interest income on consumer loans to monitor changes in
the volume of prepayment fees, late fees, and assumption fees relative
to total interest income on consumer loans.
4. SO411, Servicing Amortization and Valuation Adjustments
OTS proposes to add TFR line SO411, Servicing Amortization and
Valuation Adjustments, to collect these data separately from SO410,
Loan Servicing Fees, as noted under revisions to SO410. Separating
amortization of servicing assets and liabilities and servicing
valuation adjustments for classes of servicing assets and liabilities
accounted for using the amortization method, and fair value adjustments
for classes of servicing assets and liabilities accounted for using the
fair value method, will allow for analysis of core income in SO410 and
the volatility the adjustments in SO411 add to servicing income.
5. LD510, 1-4 Dwelling Units Construction-to-Permanent Loans
OTS proposes to add TFR line LD510, 1-4 Dwelling Units
Construction-to-Permanent Loans, to collect data as a memorandum item
to SC230, Construction Loans--Total for Residential 1-4 Dwelling Units.
Several savings associations requested this change. Some analysts
consider construction loans made to the eventual homeowner to pose less
credit risk than other construction loans. Adding this line will allow
OTS to monitor the activity for such loans and monitor the overall
construction loan credit performance of thrifts engaging in such
lending.
6. LD520, Owner-Occupied Multifamily Permanent Loans
OTS proposes to add TFR line LD520, Owner-Occupied Multifamily
Permanent Loans, to collect data as a memorandum item to SC256,
Permanent Loans--Total for Multifamily (5 or more) Dwelling Units.
Planned TFR lines LD520 and LD530 will enable OTS to improve monitoring
of commercial real estate (CRE) loan portfolios. The risk profiles of
loans captured in these two line items are generally less
[[Page 43290]]
influenced by the condition of the broader CRE markets than other forms
of CRE lending.
7. LD530, Owner-Occupied Nonresidential Property (Except Land)
Permanent Loans
OTS proposes to add TFR line LD530, Owner-Occupied Nonresidential
Property (Except Land) Permanent Loans, to collect data as a memorandum
item to SC260, Permanent Loans--Nonresidential Property (Except Land).
8. LD610, 1-4 Dwelling Option ARM Loans
OTS proposes to add TFR line LD610, 1-4 Dwelling Option ARM Loans.
The data will provide OTS with information to monitor the volume of
option ARM loans within 1-4 dwelling unit mortgage loan portfolios.
9. LD620, 1-4 Dwelling ARM Loans with Negative Amortization
OTS proposes to add TFR line LD620, 1-4 Dwelling ARM Loans with
Negative Amortization. The data will be used to monitor the volume of
ARM loans with negative amortization features within 1-4 dwelling unit
mortgage loan portfolios.
10. LD650, Total Capitalized Negative Amortization
OTS proposes to add TFR line LD650, Total Capitalized Negative
Amortization. The data will allow OTS to monitor the amount of
capitalized negative amortization.
11. CF226, Mortgage Loans Disbursed--Permanent Loans--Home Equity and
Junior Liens Disbursed--Permanent Loans--Home Equity and Junior Liens
OTS proposes to add TFR line CF226, Mortgage Loans Disbursed--
Permanent Loans--Home Equity and Junior Liens. Aggregate home equity
loans have increased strongly in recent years. Among OTS-regulated
thrifts, such loans have increased over 70 percent to $91.6 billion in
the first quarter of 2006 from $53.5 billion two years earlier. The
proposed line items CF226, CF281, and C311 will provide OTS with data
to monitor the activity of these loans.
12. CF281, Loans and Participations Purchased--Secured by 1-4 Dwelling
Units--Purchased from Entities Other Than Federally-Insured Depository
Institutions or Their Subsidiaries
OTS proposes to add TFR line CF281, Loans and Participations
Purchased--Secured by 1-4 Dwelling Units--Purchased from Entities Other
Than Federally-Insured Depository Institutions or Their Subsidiaries.
Aggregate thrift industry loan purchases from third party originators
are strong, totaling $356 billion in 2005, or 35.2 percent of total 1-4
dwelling unit mortgage loans originated and purchased. The addition of
this line item will provide OTS with information regarding the source
of these purchases.
13. CF282, Loans and Participations Purchased--Secured by 1-4 Dwelling
Units--Home Equity and Junior Liens
OTS proposes to add TFR line CF282, Loans and Participations
Purchased--Secured by 1-4 Dwelling Units--Home Equity and Junior Liens.
Industry holdings of home equity loans have increased significantly
since 2004, rising over 70 percent to $91.6 billion in the first
quarter of 2006 from $53.5 billion two years earlier. The growing
volumes and importance of such loans to savings associations warrants
the collection of additional data to monitor them.
14. CF311, Loans and Participations Sold--Secured by 1-4 Dwelling
Units--Home Equity and Junior Liens
OTS proposes to add TFR line CF311, Loans and Participations Sold--
Secured by 1-4 Dwelling Units--Home Equity and Junior Liens.
15. SI376, Assets Recorded On Schedule SC Under a Fair Value Option
OTS proposes to add TFR line SI376, Assets Recorded On Schedule SC
Under a Fair Value Option. Two outstanding and one proposed Statements
of Financial Accounting Standards (FAS) include options for entities to
elect to measure certain assets and liabilities at fair value, with
changes in fair value reported in income. These outstanding and
proposed standards comprise FAS 155, Accounting for Certain Hybrid
Financial Instruments--an Amendment of FASB (Financial Accounting
Standards Board) Statements No. 133 and 140; FAS 156, Accounting for
Servicing of Financial Assets--an Amendment of FASB Statement No. 140;
and an exposure draft, The Fair Value Option for Financial Assets and
Financial Liabilities--Including an Amendment of FASB Statement No. 115
(the fair value option (FVO) exposure draft).
FAS 155 allows entities to elect fair value accounting for certain
hybrid financial instruments that were previously required to be
bifurcated pursuant to FAS 133 with the embedded derivative accounted
for separately from the host contract. FAS 156 requires institutions to
initially measure servicing assets and liabilities at fair value, then
to establish classes of servicing assets for subsequent accounting for
which they may elect amortization method (pre-FAS 156 method) or fair-
value accounting. The FVO exposure draft proposes to allow companies to
irrevocably elect fair value as the measurement attribute for certain
financial assets and financial liabilities, with changes in fair value
recognized in earnings as those changes occur.
FAS 155 and FAS 156 are effective for fiscal years beginning after
December 15, 2006, though they may be adopted early in certain
circumstances, and the FVO exposure draft is proposed to be effective
for fiscal years beginning after December 15, 2006. Under the FVO
exposure draft, as of the date of initial adoption, an entity would
also be permitted to elect the fair value option for any existing
financial asset or financial liability within the scope of the proposed
Statement, with the difference between the fair value and its prior
carrying amount recorded through retained earnings. OTS anticipates
that relatively few institutions will elect fair value options, and
therefore propose to collect minimal data. Institutions adopting fair
value options may be asked to provide more detailed information
separate from the TFR directly to supervisory staff.
16. SI377, Liabilities Recorded on Schedule SC Under a Fair Value
Option
OTS proposes to add TFR line SI377, Liabilities Recorded On
Schedule SC Under a Fair Value Option as described in FAS 155, FAS 156,
and in the FVO exposure draft. FAS 155 allows entities to elect fair
value accounting for certain hybrid financial instruments that were
previously bifurcated pursuant to FAS 133 with the embedded derivative
accounted for separately. FAS 156 requires institutions to initially
measure servicing assets and liabilities at fair value, then to
establish classes of servicing assets for subsequent accounting for
which they may elect amortization method (current method) or fair value
accounting. The FVO exposure draft proposes to allow companies to
irrevocably elect fair value as the measurement attribute for certain
financial assets and financial liabilities, with changes in fair value
recognized in earnings as those changes occur.
FAS 155 and FAS 156 are effective for fiscal years beginning after
December 15, 2006, though they may be adopted early in certain
circumstances, and the proposed standard is also scheduled to be
effective for fiscal years beginning after December 15, 2006. Under
FASB's proposed fair value option standard, as of the date of initial
adoption, an entity would also be permitted to elect the fair
[[Page 43291]]
value option for any existing financial asset or financial liability
within the scope of the proposed statement, with the difference between
the fair value and its prior carrying amount recorded through retained
earnings.
D. Eliminating Confidential Treatment of Schedule HC Data
OTS is requesting comments on the continued confidential treatment
of data filed by individual thrift holding companies on Schedule HC.
OTS presently does not publicly release Schedule HC data filed by
holding companies. However, many public requests are received for these
data. In addition, some rating agencies have indicated thrift holding
company debt ratings suffer due to the lack of publicly available data.
One option under consideration by OTS would permit holding companies
filing these data to opt to maintain the confidentiality on a case-by-
case basis.
Request for Comments: OTS may not conduct or sponsor an information
collection, and respondents are not required to respond to an
information collection, unless the information collection displays a
currently valid OMB control number.
In this notice, OTS is soliciting comments concerning the following
information collection.
Statutory Requirement: 12 U.S.C. 1464(v) imposes reporting
requirements for savings associations.
Type of Review: Revision of currently approved collections.
Affected Public: Business or for profit.
Estimated Number of Respondents and Recordkeepers: 856.
Estimated Burden Hours per Respondent: 36.5 hours average for
quarterly schedules and 1.9 hours average for schedules required only
annually plus recordkeeping of an average of one hour per quarter.
Estimated Frequency of Response: Quarterly.
Estimated Total Annual Burden: 130,026 hours.
OTS is proposing to revise the TFR, which is currently an approved
collection of information. The effect on reporting burden of the
proposed revisions to the TFR requirements will vary from institution
to institution depending on the institution's asset size and its
involvement with the types of activities or transactions to which the
proposed changes apply. This proposal would eliminate ten line items
from the TFR, revise six existing items, add 16 new items, and
eliminate confidential treatment of Schedule HC data.
OTS estimates that the implementation of these reporting revisions
will result in a nominal increase in the current reporting burden
imposed by the TFR on all savings associations.
As part of the approval process, we invite comments addressing one
or more of the following points:
a. Whether the proposed revisions to the TFR collections of
information are necessary for the proper performance of the agency's
functions, including whether the information has practical utility;
b. The accuracy of the agency's estimate of the burden of the
collection of information;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques, the Internet, or other forms of information technology; and
e. Estimates of capital or start up costs and costs of operation,
maintenance, and purchase of services to provide information.
OTS will summarize the comments received and include them in the
request for OMB approval. All comments will become a matter of public
record.
Clearance Officer: Marilyn K. Burton, (202) 906-6467, Office of
Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.
OMB Reviewer: Desk Officer for OTS, FAX: (202) 395-6974, U.S.
Office of Management and Budget, 725--17th Street, NW., Room 10235,
Washington, DC 20503.
Dated: July 26, 2006.
Deborah Dakin,
Senior Deputy Chief Counsel, Regulations and Legislation Division.
[FR Doc. E6-12251 Filed 7-28-06; 8:45 am]
BILLING CODE 6720-01-P
