Change in Bank Control Notices; Acquisition of Shares of Bank or Bank Holding Companies, 14109 [E7-5437]
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Federal Register / Vol. 72, No. 57 / Monday, March 26, 2007 / Notices
Current actions: On January 11, 2007,
the Federal Reserve published a notice
in the Federal Register (72 FR 1325)
requesting public comment for 60 days
on the revision, without extension, of
the Financial Statements of Foreign
Subsidiaries of U.S. Banking
Organizations. The comment period
expired on March 12, 2007. The Federal
Reserve did not receive any comment
letters. All reporting changes will be
implemented effective with the March
31, 2007, report date.
Recently, the volume of 1–4 family
residential mortgage loan products
whose terms allow for negative
amortization and the number of
institutions providing borrowers with
such loans has increased significantly.
Loans with this feature are structured in
a manner that may result in an increase
in the loan’s principal balance even
when the borrower’s payments are
technically current. When loans with
negative amortization are not prudently
underwritten and not properly
monitored, they raise safety and
soundness concerns. Currently the
Federal Reserve has no readily available
means of identifying the industry’s
exposure to such loans. Therefore, the
Federal Reserve proposed to collect four
data items at the nonbank subsidiary
level to monitor the extension of
negatively amortizing residential
mortgage loans in the industry and to
parallel the data items being proposed
for inclusion on the FR Y–9C.
The Federal Reserve proposed to
collect one memorandum item from all
nonbank subsidiaries on Schedule BS–
A, Loan and Leases Financing
Receivables, for the total amount of
closed–end loans with negative
amortization features secured by 1–4
family residential properties in order to
obtain an overall measure of this
potentially higher risk lending activity.
In addition, the Federal Reserve
proposed to collect two memorandum
items on Schedule BS–A and one
memorandum item on Schedule IS,
Income Statement, from nonbank
subsidiaries with a significant volume of
negatively amortizing 1–4 family
residential mortgage loans. The
threshold for significant volume would
be based on the aggregate carrying
amount of negatively amortizing loans
in excess of 5 percent of the total loans
and leases reported on Schedule BS–A.
A nonbank with negatively amortizing
loans would determine whether it met
the size threshold for reporting the three
additional memorandum items based on
data reported from the previous year–
end FR 2314.
The Federal Reserve also proposed
two additional Schedule BS–A
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memorandum items to collect (1) the
total maximum remaining amount of
negative amortization contractually
permitted on closed–end loans secured
by 1–4 family residential properties and
(2) the total amount of negative
amortization on closed–end loans
secured by 1–4 family residential
properties that is included in the
carrying amount of these loans. The first
memorandum item would provide a
measure of the maximum exposure that
could be incurred for negative
amortization loans in the current 1–4
family residential property loan
portfolio. The second memorandum
item would then identify what
component of 1–4 family mortgage loans
is comprised of negative amortization
loans. The Schedule IS memorandum
item is year–to–date non–cash income
on closed–end loans with a negative
amortization feature secured by 1–4
family residential properties. This
memorandum item would identify the
amount and extent of interest revenue
accrued and uncollected to ascertain the
degree this potentially higher risk
lending activity supports the BHC’s
overall net income. All nonbank
subsidiaries with negatively amortizing
1–4 family residential loans in excess of
the reporting threshold would report
these data items for the entire calendar
year following the end of any calendar
year when the threshold was exceeded.
The Federal Reserve proposed to add
the section Notes to the Financial
Statements to allow respondents the
opportunity to provide, at their option,
any material information included in
specific data items on the financial
statements that the parent U.S. banking
organization wishes to explain. The
addition of this section would enable
the Federal Reserve to automate
information that respondents may want
to report as footnotes to various reported
data items and provide for release of
this information to the public. This
section is currently included on the FR
Y–11.
Board of Governors of the Federal
Reserve System, March 21, 2007.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E7–5503 Filed 3–23–07; 8:45 am]
BILLING CODE 6210–01–S
FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisition of Shares of Bank or Bank
Holding Companies
The notificants listed below have
applied under the Change in Bank
Control Act (12 U.S.C. 1817(j)) and
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14109
§ 225.41 of the Board’s Regulation Y (12
CFR 225.41) to acquire a bank or bank
holding company. The factors that are
considered in acting on the notices are
set forth in paragraph 7 of the Act (12
U.S.C. 1817(j)(7)).
The notices are available for
immediate inspection at the Federal
Reserve Bank indicated. The notices
also will be available for inspection at
the office of the Board of Governors.
Interested persons may express their
views in writing to the Reserve Bank
indicated for that notice or to the offices
of the Board of Governors. Comments
must be received not later than April 10,
2007.
A. Federal Reserve Bank of Kansas
City (Donna J. Ward, Assistant Vice
President) 925 Grand Avenue, Kansas
City, Missouri 64198-0001:
1. William Scott Martin Trust and
William S. Martin, Miami Beach,
Florida, as trustee; to acquire control of
Green Country Bancorporation, Inc., and
thereby indirectly acquire control of The
First State Bank, both in Ketchum,
Oklahoma.
Board of Governors of the Federal Reserve
System, March 21, 2007.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E7–5437 Filed 3–23–07; 8:45 am]
BILLING CODE 6210–01–S
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The application also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
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[Federal Register Volume 72, Number 57 (Monday, March 26, 2007)]
[Notices]
[Page 14109]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5437]
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FEDERAL RESERVE SYSTEM
Change in Bank Control Notices; Acquisition of Shares of Bank or
Bank Holding Companies
The notificants listed below have applied under the Change in Bank
Control Act (12 U.S.C. 1817(j)) and Sec. 225.41 of the Board's
Regulation Y (12 CFR 225.41) to acquire a bank or bank holding company.
The factors that are considered in acting on the notices are set forth
in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).
The notices are available for immediate inspection at the Federal
Reserve Bank indicated. The notices also will be available for
inspection at the office of the Board of Governors. Interested persons
may express their views in writing to the Reserve Bank indicated for
that notice or to the offices of the Board of Governors. Comments must
be received not later than April 10, 2007.
A. Federal Reserve Bank of Kansas City (Donna J. Ward, Assistant
Vice President) 925 Grand Avenue, Kansas City, Missouri 64198-0001:
1. William Scott Martin Trust and William S. Martin, Miami Beach,
Florida, as trustee; to acquire control of Green Country
Bancorporation, Inc., and thereby indirectly acquire control of The
First State Bank, both in Ketchum, Oklahoma.
Board of Governors of the Federal Reserve System, March 21,
2007.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E7-5437 Filed 3-23-07; 8:45 am]
BILLING CODE 6210-01-S
