Examination Rating System for the Federal Home Loan Banks and the Office of Finance, 55181-55201 [06-7848]

Download as PDF Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices Potomac Yard (South Building), 2777 S. Crystal Drive Arlington, VA. The hours of operation of this Docket Facility are from 8:30 a.m. to 4 p.m., Monday through Friday, excluding legal holidays. The Docket telephone number is (703) 305–5805. 2. Electronic access. You may access this Federal Register document electronically through the EPA Internet under the ‘‘Federal Register’’ listings at http://www.epa.gov/fedrgstr. II. Tentative Agenda Tentatively, the following items are on the agenda: 1. Overview of GHS. 2. NAFTA Perspectives. 3. Goals of Harmonization: EPA and Stakeholder Perspectives. 4. Building Block and Sample Label Presentation. 5. Key Issues and Concerns Raised in Comments. 6. Options for Implementation Mechanisms. 7. Key State Issues. 8. Education, Training and Outreach. III. How Can I Request to Participate in this Meeting? You may submit a request to participate in this meeting to the person listed under FOR FURTHER INFORMATION CONTACT. Do not submit any information in your request that is considered CBI. Requests to participate in the meeting, identified by docket ID number EPA– HQ–OPP–2004–0205, must be received on or before October 5, 2006. List of Subjects Environmental protection, global harmonization, labeling, occupational safety and health, pesticides and pests, reporting and recordkeeping requirements. Dated: September 18, 2006. Jay S. Ellenberger, Acting Director, Field External Affairs Division, Office of Pesticide Programs. [FR Doc. 06–8057 Filed 9–20–06; 8:45 am] BILLING CODE 6560–50–S EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Sunshine Act Meeting Equal Employment Opportunity Commission jlentini on PROD1PC65 with NOTICES AGENCY HOLDING THE MEETING: FEDERAL REGISTER CITATION OF PREVIOUS ANNOUNCEMENT: 71 FR 54282, Thursday, September 14, 2006. PREVIOUSLY ANNOUNCED TIME AND DATE OF MEETING: Thursday, September 21, 2006, 10 a.m. (Eastern Time). VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 CHANGE IN THE MEETING: The meeting has been cancelled. CONTACT PERSON FOR MORE INFORMATION: Stephen Llewellyn, Acting Executive Officer on (202) 663–4070. Dated: September 19, 2006. Stephen Llewellyn, Acting Executive Officer, Executive Secretariat. [FR Doc. 06–8118 Filed 9–19–06; 3:26 pm] BILLING CODE 6570–01–M FEDERAL COMMUNICATIONS COMMISSION Public Information Collections Approved by Office of Management and Budget September 8, 2006. SUMMARY: The Federal Communications Commission (FCC) has received Office of Management and Budget (OMB) approval for the following public information collections pursuant to the Paperwork Reduction Act of 1995, Public Law 104–13. An agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid control number. DATES: Emergency revision of a currently approved collection effective on September 8, 2006. FOR FURTHER INFORMATION CONTACT: Nicole R. On’gele, Federal Communications Commission, 445 12th Street, SW., Washington, DC 20554, (202) 418–2991 or via the Internet at nicole.ongele@fcc.gov. OMB Control No.: 3060–0798. OMB Approval Date: September 8, 2006. Expiration Date: 2/28/07. Title: FCC Application for Wireless Telecommunications Bureau Radio Service Authorization. Form No.: FCC Form 601. Estimated Annual Burdens: 250,920 responses; 219,505 hours, and $50,144,000. Needs and Uses: The Commission has received emergency OMB approval to implement a modified information collection in connection with FCC Form 601 (OMB Control No. 3060–0798), pursuant to a Commission order that became effective on June 5, 2006. The information collection associated with the FCC Form 601, specifically Schedule B, is being modified in order to ensure that the Commission will receive from winning bidders claiming special designated entity benefits all information necessary to permit the Frm 00022 Fmt 4703 Sfmt 4703 Commission to review the qualifications of that winning bidder to receive such benefits. While the FCC Form 601, Schedule B, already requires the submission of most of the information that the Commission requires to conduct this review, the modified information collection will ensure that the Commission receives additional information as mandated by a recent Commission order revising the rules applicable to entities seeking designated entity benefits. Until the electronic version of the form (specifically, the Schedule B) can be updated in the Commission’s Universal Licensing System (ULS), applicants will be requested to provide this same information in an attachment to the existing version of Form 601, filed electronically. The Commission uses the information provided by applicants on FCC Form 601 to update its database and to determine if the applicant is legally, technically and financially qualified to provide licensed services and to make proper use of the frequency spectrum. The information collected pursuant to this modified information collection will be used to ensure that only legitimate designated entities, as defined by the Commission’s rules, reap the benefits of the Commission’s designated entity program. Federal Communications Commission. Marlene H. Dortch, Secretary. [FR Doc. 06–7901 Filed 9–20–06; 8:45 am] BILLING CODE 6712–01–P FEDERAL HOUSING FINANCE BOARD SUPPLEMENTARY INFORMATION: PO 00000 55181 [No. 2006–N–05] Examination Rating System for the Federal Home Loan Banks and the Office of Finance AGENCY: Federal Housing Finance Board. Notice with request for comments. ACTION: SUMMARY: The Federal Housing Finance Board (Finance Board) is requesting comments on a proposed examination rating system to be known as the Federal Home Loan Bank Rating System (Rating System). DATES: The Finance Board will accept comments in writing on or before October 23, 2006. Comments: Submit comments to the Finance Board only once, using any one of the following methods: E-mail: comments@fhfb.gov. Fax: 202–408–2580. E:\FR\FM\21SEN1.SGM 21SEN1 55182 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices Mail/Hand Delivery: Federal Housing Finance Board, 1625 Eye Street, NW., Washington, DC 20006, Attention: Public Comments. Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. If you submit your comment to the Federal eRulemaking Portal, please also send it by e-mail to the Finance Board at comments@fhfb.gov to ensure timely receipt by the agency. Include the following information in the subject line of your submission: Federal Housing Finance Board. Notice: Examination Rating System for the Federal Home Loan Banks and the Office of Finance. Docket Number 2006–N–05. We will post all public comments we receive without change, including any personal information you provide, such as your name and address, on the Finance Board Web site at http:// www.fhfb.gov/ Default.aspx?Page=93&Top=93. FOR FURTHER INFORMATION CONTACT: Anthony Cornyn, Associate Director, Supervision and Examination, Office of Supervision, cornyna@fhfb.gov or 202– 408–2522, or Kari Walter, Associate Director, Supervisory and Regulatory Policy, Office of Supervision, walterk@fhfb.gov or 202–408–2829. You can send regular mail to the Federal Housing Finance Board, 1625 Eye Street, NW., Washington, DC 20006. SUPPLEMENTARY INFORMATION: jlentini on PROD1PC65 with NOTICES I. Background The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) provides that the primary duty of the Finance Board is to ensure that the Federal Home Loan Banks (Banks) operate in a financially safe and sound manner. To the extent consistent with the safety and soundness charge, the other statutory duties of the Finance Board are to: (1) Supervise the Banks; (2) ensure that the Banks carry out their housing finance mission; and (3) ensure that the Banks remain adequately capitalized and able to raise funds in the capital markets. See 12 U.S.C. 1422a(a)(3). The Banks are privately capitalized, government-sponsored enterprises that provide wholesale credit to members and housing associates for use in mortgage lending and related activities. The Banks have a statutory mandate to promote housing and community investment finance. See 12 U.S.C. 1430(g), (i), and (j); 1430b. The Banks provide long-term, flexible financing to more than 8,100 member financial institutions around the country. In addition to supervising the Banks, the Finance Board has regulatory VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 authority and supervisory oversight responsibility for the Office of Finance (OF), which is a joint office of the Banks that issues consolidated obligations in the public capital markets on behalf of the Banks. See 12 U.S.C. 1422b(b)(2); 12 CFR part 985. The Banks fund themselves principally by issuing consolidated obligations, which are the joint and several obligations of all 12 Banks’ and consist of bonds (original maturity of 1 year or longer) and discount notes (original maturity of less than 1 year). Although consolidated obligations are not guaranteed or insured by the federal government, the Banks’ status as government sponsored enterprises enables them to raise funds at rates slightly above comparable obligations issued by the Department of the Treasury. To carry out its mission of ensuring that the Banks and the OF are safe and sound so the Banks can serve as a reliable source of liquidity and funding for the nation’s housing finance and community investment needs, the Finance Board has one major program area: supervision of the Banks. See 12 U.S.C. 1440 (requiring the Finance Board to perform annual examinations of the Banks). Staff monitors the performance, condition, and risk profile of each Bank through on-site examinations and other supervisory activities. Examinations are the cornerstone of the Finance Board’s safety and soundness supervisory program. In order to execute an effective risk-based supervisory program that promptly identifies and addresses current and emerging risks to the Banks, the Office of Supervision plans to implement the risk rating system discussed below for use beginning in calendar year 2007. II. The Proposed Federal Home Loan Bank Rating System The Finance Board is requesting comments on a proposed examination rating system to be known as the Federal Home Loan Bank Rating System. The proposed Rating System is attached as an Exhibit to this Notice. In 2005, the Office of Supervision began to provide an overall conclusion—Satisfactory, Fair, Marginal, or Unsatisfactory—as part of its Report of Examination. The proposed Rating System, which is the next step in communicating exam results to the Banks, is a risk-focused system under which each Bank and the OF would be assigned a composite rating based on an evaluation of various aspects of their operations. The composite rating of each Bank would be based on an evaluation and rating of 5 key components: PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 Corporate governance, market risk, credit risk, operational risk, and financial condition and performance. The composite rating of the OF would be based primarily on an evaluation of 2 components: corporate governance and operational risk. Under the Rating System, we would take administration of a Bank’s affordable housing and community investment activities into account in assigning component ratings for corporate governance and operational risk. Given the importance of affordable housing and community investment activities to the mission of the Bank System, the Office of Supervision may consider the need for a separate rating system or a separate ratings component to evaluate and rate the affordable housing and community investment programs of each Bank after gaining experience with the proposed Rating System. The Rating System is intended to serve 2 purposes. First, it is designed to reflect in a comprehensive, systematic, and consistent fashion the overall condition and performance of an institution, taking into consideration all significant financial, operational, and compliance factors addressed in the Finance Board’s examination. Second, the Rating System is meant to further enhance communication and transparency between the Office of Supervision and each Bank and the OF regarding the results of the examination process. The ratings for individual Banks and the OF would not be made public or released to other Banks, but would be supplied to the individual Banks and the OF on a confidential basis as part of the examination and supervisory process. Under the Rating System, each of the 5 components would be assigned a numeric rating from ‘‘1’’ to ‘‘4.’’ A ‘‘1’’ rating indicates the lowest degree of supervisory concern, while a ‘‘4’’ rating indicates the highest degree of supervisory concern. The composite rating of each Bank and the OF also would be rated on a scale of ‘‘1’’ to ‘‘4’’ based on the ratings of the underlying components. The composite rating would be based on the component ratings but it would not be a simple arithmetic average of the component ratings. Instead, the relative importance of each component would be determined on a case-by-case basis within the parameters established by this rating framework. As proposed, an examiner would take a Bank’s performance in administering its affordable housing and community investment activities into consideration in assigning a composite rating to the E:\FR\FM\21SEN1.SGM 21SEN1 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices jlentini on PROD1PC65 with NOTICES Bank. More specifically, a Bank’s performance in administrating it affordable housing and community investment activities would be given special consideration in the corporate governance and operational risk components of the Rating System. The Rating System would become operative when issued by the Office of Supervision, which is anticipated to occur before year end 2006 for implementation in 2007. VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 III. Request for Comments The Finance Board requests comment on all aspects of the proposed Rating System. In addition, the Finance Board invites specific comments on the following questions: 1. Does the proposed Rating System capture the essential components of an institution’s performance and condition that are relevant to assigning a composite rating to a Bank and the OF? If not, what additional or different components should be considered? PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 55183 2. Do the factors to be considered under each of the 5 components (corporate governance, market risk, credit risk, operational risk, and financial condition and performance) address the factors that should be considered in assessing each of the components? If not, what additional or different factors should be considered? Dated: September 13, 2006. By the Federal Housing Finance Board. John P. Kennedy, General Counsel. BILLING CODE 6725–01–P E:\FR\FM\21SEN1.SGM 21SEN1 VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00025 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.000</GPH> jlentini on PROD1PC65 with NOTICES 55184 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00026 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55185 EN21SE06.001</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00027 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.002</GPH> jlentini on PROD1PC65 with NOTICES 55186 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00028 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55187 EN21SE06.003</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00029 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.004</GPH> jlentini on PROD1PC65 with NOTICES 55188 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00030 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55189 EN21SE06.005</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00031 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.006</GPH> jlentini on PROD1PC65 with NOTICES 55190 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00032 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55191 EN21SE06.007</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00033 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.008</GPH> jlentini on PROD1PC65 with NOTICES 55192 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00034 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55193 EN21SE06.009</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00035 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.010</GPH> jlentini on PROD1PC65 with NOTICES 55194 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00036 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55195 EN21SE06.011</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00037 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.012</GPH> jlentini on PROD1PC65 with NOTICES 55196 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00038 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55197 EN21SE06.013</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00039 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.014</GPH> jlentini on PROD1PC65 with NOTICES 55198 VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00040 Fmt 4703 Sfmt 4725 E:\FR\FM\21SEN1.SGM 21SEN1 55199 EN21SE06.015</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices VerDate Aug<31>2005 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 16:30 Sep 20, 2006 Jkt 208001 PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 E:\FR\FM\21SEN1.SGM 21SEN1 EN21SE06.016</GPH> jlentini on PROD1PC65 with NOTICES 55200 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices [FR Doc. 06–7848 Filed 9–20–06; 8:45 am] DEPARTMENT OF HEALTH AND HUMAN SERVICES BILLING CODE 6725–01–C Office of the Secretary [Document Identifier: OS–0990–NEW] FEDERAL LABOR RELATIONS AUTHORITY 60-Day Notice Membership of the Federal Labor Relations Authority’s Senior Executive Service Performance Review Board Federal Labor Relations Authority. AGENCY: ACTION: Notice. SUMMARY: Notice is hereby given of the members of the Performance Review Board. DATES: September 21, 2006. Jill M. Crumpacker, Executive Director, Federal Labor Relations Authority (FLRA); 1400 K Street, NW., Washington, DC 20424–0001; (202) 218– 7945. FOR FURTHER INFORMATION CONTACT: Section 4314(c) of Title 5, U.S.C. (as amended by the Civil Service Reform Act of 1978) requires each agency to establish, in accordance with regulations prescribed by the Office of Personnel Management, one or more Performance Review Boards (PRB). Section 4314 (c)(4) requires that notice of appointment of the PRB be published in the Federal Register. As required by 5 CFR 430.310, Chairman Dale Cabaniss has appointed the following executives to serve on the 2006–2007 PRB for the FLRA, beginning September 2006 through September 2007: Frank Battle, Deputy Director of Administration, National Labor Relations Board; Jill Crumpacker, Executive Director, Federal Labor Relations Authority; Russell G. Harris, Deputy Administrator, Wage and Hour Division, U.S. Department of Labor; Kent Baum, Chief Human Capital Officer, U.S. Patent and Trademark Office; Steve Nelson, Director, Office of Policy and Evaluation, Merit Systems Protection Board. SUPPLEMENTARY INFORMATION: jlentini on PROD1PC65 with NOTICES Authority: 5 U.S.C. 4134(c)(4). Dated: September 15, 2006. Jill M. Crumpacker, Executive Director. [FR Doc. 06–7938 Filed 9–20–06; 8:45 am] BILLING CODE 6727–01–P VerDate Aug<31>2005 16:30 Sep 20, 2006 Jkt 208001 AGENCY: Office of the Secretary. Agency Information Collection Activities: Proposed Collection; Comment Request In compliance with the requirement of section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, the Office of the Secretary (OS), Department of Health and Human Services, is publishing the following summary of a proposed collection for public comment. Interested persons are invited to send comments regarding this burden estimate or any other aspect of this collection of information, including any of the following subjects: (1) The necessity and utility of the proposed information collection for the proper performance of the agency’s functions; (2) the accuracy of the estimated burden; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) the use of automated collection techniques or other forms of information technology to minimize the information collection burden. Type of Information Collection Request: New collection. Title of Information Collection: Evaluation of Office on Women’s Health Publications. Form/OMB No.: 0990–NEW. Use: To improve future publications and to demonstrate accountability of efforts, the Office of Women’s Health (OWH) will evaluate four health communications materials. Discussion groups and web-based or paper- based surveys will be used from randomly selected participants and returned response cards. Frequency: 1. Affected Public: Individuals or households. Annual Number of Respondents: 1648. Total Annual Responses: 1648. Average Burden per Response: 1 hour. Total Annual Hours: 472. To obtain copies of the supporting statement and any related forms for the proposed paperwork collections referenced above, e-mail your request, including your address, phone number, OMB number, and OS document identifier, to Sherette.funncoleman@hhs.gov, or call the Reports Clearance Office on (202) 690–6162. Written comments and PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 55201 recommendations for the proposed information collections must be received with 60 days, and directed to the OS Paperwork Clearance Officer at the following address: Department of Health and Human Services, Office of the Secretary, Assistant Secretary for Research and Technology, Office of Resource Management, Attention: Sherrette Funn-Coleman (0990–NEW), Room 537–H, 200 Independence Avenue, SW., Washington DC 20201. Dated: September 12, 2006. Alice Bettencourt, Office of the Secretary, Paperwork Reduction Act Reports Clearance Officer. [FR Doc. 06–7835 Filed 9–20–06; 8:45 am] BILLING CODE 4150–33–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Office of the Secretary [Document Identifier: OS–0990–new] 60-Day Notice Office of the Secretary, Office on Women’s Health. AGENCY: Agency Information Collection Activities: Proposed Collection; Comment Request In compliance with the requirement of section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, the Office of the Secretary (OS), Department of Health and Human Services, is publishing the following summary of a proposed collection for public comment. Interested persons are invited to send comments regarding this burden estimate or any other aspect of this collection of information, including any of the following subjects: (1) The necessity and utility of the proposed information collection for the proper performance of the agency’s functions; (2) the accuracy of the estimated burden; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) the use of automated collection techniques or other forms of information technology to minimize the information collection burden. Type of Information Collection Request: New Collection. Title of Information Collection: The Heart Truth Professional Materials Program Evaluation. Form/OMB No.: 0990-New Use: The Heart Truth Campaign was launched by the National Heart, Lung, and Blood Institute (NHLBI) in September 2002 to increase women’s awareness of heart disease. The Heart Truth joins together leaders in women’s E:\FR\FM\21SEN1.SGM 21SEN1

Agencies

[Federal Register Volume 71, Number 183 (Thursday, September 21, 2006)]
[Notices]
[Pages 55181-55201]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7848]


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FEDERAL HOUSING FINANCE BOARD

[No. 2006-N-05]


Examination Rating System for the Federal Home Loan Banks and the 
Office of Finance

AGENCY: Federal Housing Finance Board.

ACTION: Notice with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Federal Housing Finance Board (Finance Board) is 
requesting comments on a proposed examination rating system to be known 
as the Federal Home Loan Bank Rating System (Rating System).

DATES: The Finance Board will accept comments in writing on or before 
October 23, 2006.
    Comments: Submit comments to the Finance Board only once, using any 
one of the following methods:
    E-mail: comments@fhfb.gov.
    Fax: 202-408-2580.

[[Page 55182]]

    Mail/Hand Delivery: Federal Housing Finance Board, 1625 Eye Street, 
NW., Washington, DC 20006, Attention: Public Comments.
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments. If you submit your comment to the 
Federal eRulemaking Portal, please also send it by e-mail to the 
Finance Board at comments@fhfb.gov to ensure timely receipt by the 
agency. Include the following information in the subject line of your 
submission: Federal Housing Finance Board. Notice: Examination Rating 
System for the Federal Home Loan Banks and the Office of Finance. 
Docket Number 2006-N-05.
    We will post all public comments we receive without change, 
including any personal information you provide, such as your name and 
address, on the Finance Board Web site at http://www.fhfb.gov/
Default.aspx?Page=93&Top=93.

FOR FURTHER INFORMATION CONTACT: Anthony Cornyn, Associate Director, 
Supervision and Examination, Office of Supervision, cornyna@fhfb.gov or 
202-408-2522, or Kari Walter, Associate Director, Supervisory and 
Regulatory Policy, Office of Supervision, walterk@fhfb.gov or 202-408-
2829. You can send regular mail to the Federal Housing Finance Board, 
1625 Eye Street, NW., Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

I. Background

    The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) provides 
that the primary duty of the Finance Board is to ensure that the 
Federal Home Loan Banks (Banks) operate in a financially safe and sound 
manner. To the extent consistent with the safety and soundness charge, 
the other statutory duties of the Finance Board are to: (1) Supervise 
the Banks; (2) ensure that the Banks carry out their housing finance 
mission; and (3) ensure that the Banks remain adequately capitalized 
and able to raise funds in the capital markets. See 12 U.S.C. 
1422a(a)(3).
    The Banks are privately capitalized, government-sponsored 
enterprises that provide wholesale credit to members and housing 
associates for use in mortgage lending and related activities. The 
Banks have a statutory mandate to promote housing and community 
investment finance. See 12 U.S.C. 1430(g), (i), and (j); 1430b. The 
Banks provide long-term, flexible financing to more than 8,100 member 
financial institutions around the country.
    In addition to supervising the Banks, the Finance Board has 
regulatory authority and supervisory oversight responsibility for the 
Office of Finance (OF), which is a joint office of the Banks that 
issues consolidated obligations in the public capital markets on behalf 
of the Banks. See 12 U.S.C. 1422b(b)(2); 12 CFR part 985. The Banks 
fund themselves principally by issuing consolidated obligations, which 
are the joint and several obligations of all 12 Banks' and consist of 
bonds (original maturity of 1 year or longer) and discount notes 
(original maturity of less than 1 year). Although consolidated 
obligations are not guaranteed or insured by the federal government, 
the Banks' status as government sponsored enterprises enables them to 
raise funds at rates slightly above comparable obligations issued by 
the Department of the Treasury.
    To carry out its mission of ensuring that the Banks and the OF are 
safe and sound so the Banks can serve as a reliable source of liquidity 
and funding for the nation's housing finance and community investment 
needs, the Finance Board has one major program area: supervision of the 
Banks. See 12 U.S.C. 1440 (requiring the Finance Board to perform 
annual examinations of the Banks). Staff monitors the performance, 
condition, and risk profile of each Bank through on-site examinations 
and other supervisory activities. Examinations are the cornerstone of 
the Finance Board's safety and soundness supervisory program. In order 
to execute an effective risk-based supervisory program that promptly 
identifies and addresses current and emerging risks to the Banks, the 
Office of Supervision plans to implement the risk rating system 
discussed below for use beginning in calendar year 2007.

II. The Proposed Federal Home Loan Bank Rating System

    The Finance Board is requesting comments on a proposed examination 
rating system to be known as the Federal Home Loan Bank Rating System. 
The proposed Rating System is attached as an Exhibit to this Notice.
    In 2005, the Office of Supervision began to provide an overall 
conclusion--Satisfactory, Fair, Marginal, or Unsatisfactory--as part of 
its Report of Examination. The proposed Rating System, which is the 
next step in communicating exam results to the Banks, is a risk-focused 
system under which each Bank and the OF would be assigned a composite 
rating based on an evaluation of various aspects of their operations. 
The composite rating of each Bank would be based on an evaluation and 
rating of 5 key components: Corporate governance, market risk, credit 
risk, operational risk, and financial condition and performance. The 
composite rating of the OF would be based primarily on an evaluation of 
2 components: corporate governance and operational risk.
    Under the Rating System, we would take administration of a Bank's 
affordable housing and community investment activities into account in 
assigning component ratings for corporate governance and operational 
risk. Given the importance of affordable housing and community 
investment activities to the mission of the Bank System, the Office of 
Supervision may consider the need for a separate rating system or a 
separate ratings component to evaluate and rate the affordable housing 
and community investment programs of each Bank after gaining experience 
with the proposed Rating System.
    The Rating System is intended to serve 2 purposes. First, it is 
designed to reflect in a comprehensive, systematic, and consistent 
fashion the overall condition and performance of an institution, taking 
into consideration all significant financial, operational, and 
compliance factors addressed in the Finance Board's examination. 
Second, the Rating System is meant to further enhance communication and 
transparency between the Office of Supervision and each Bank and the OF 
regarding the results of the examination process. The ratings for 
individual Banks and the OF would not be made public or released to 
other Banks, but would be supplied to the individual Banks and the OF 
on a confidential basis as part of the examination and supervisory 
process.
    Under the Rating System, each of the 5 components would be assigned 
a numeric rating from ``1'' to ``4.'' A ``1'' rating indicates the 
lowest degree of supervisory concern, while a ``4'' rating indicates 
the highest degree of supervisory concern. The composite rating of each 
Bank and the OF also would be rated on a scale of ``1'' to ``4'' based 
on the ratings of the underlying components. The composite rating would 
be based on the component ratings but it would not be a simple 
arithmetic average of the component ratings. Instead, the relative 
importance of each component would be determined on a case-by-case 
basis within the parameters established by this rating framework. As 
proposed, an examiner would take a Bank's performance in administering 
its affordable housing and community investment activities into 
consideration in assigning a composite rating to the

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Bank. More specifically, a Bank's performance in administrating it 
affordable housing and community investment activities would be given 
special consideration in the corporate governance and operational risk 
components of the Rating System.
    The Rating System would become operative when issued by the Office 
of Supervision, which is anticipated to occur before year end 2006 for 
implementation in 2007.

III. Request for Comments

    The Finance Board requests comment on all aspects of the proposed 
Rating System. In addition, the Finance Board invites specific comments 
on the following questions:
    1. Does the proposed Rating System capture the essential components 
of an institution's performance and condition that are relevant to 
assigning a composite rating to a Bank and the OF? If not, what 
additional or different components should be considered?
    2. Do the factors to be considered under each of the 5 components 
(corporate governance, market risk, credit risk, operational risk, and 
financial condition and performance) address the factors that should be 
considered in assessing each of the components? If not, what additional 
or different factors should be considered?

    Dated: September 13, 2006.

    By the Federal Housing Finance Board.
John P. Kennedy,
General Counsel.
BILLING CODE 6725-01-P

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[FR Doc. 06-7848 Filed 9-20-06; 8:45 am]
BILLING CODE 6725-01-C