Proposed Agency Information Collection Activities; Comment Request-Thrift Financial Report: Schedules SC, RM, CC, DI, and SB, 41981-41986 [E9-19908]

Download as PDF Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices or more,’’ to include loans held for trading and measured at fair value that are in nonaccrual status. The agencies proposed to collect this information to improve their ability to assess the quality of assets held for trading purposes and generally enhance surveillance and examination planning efforts. One commenter on these proposed reporting changes questioned the meaningfulness of delinquency and nonaccrual data for trading assets because they are accounted for at fair value through earnings. After fully considering this commenter’s views, the agencies have decided not to implement the proposed revisions to Schedule RC– N, item 9, and Schedule RC–D, Memorandum item 3. These items will remain in their current form. jlentini on DSKJ8SOYB1PROD with NOTICES C. Unpaid Premiums on Certain Credit Derivatives The agencies’ proposed Call Report revisions for 2009 also included the addition of new Memorandum items 3.a and 3.b to Schedule RC–R, Regulatory Capital, to collect the present value of unpaid premiums on credit derivatives for which the bank is the protection seller that are defined as covered positions under the agencies’ market risk capital guidelines. This present value information was to be reported by remaining maturity and with a breakdown between investment grade and subinvestment grade for the rating of the underlying reference asset. One commenter on this proposed credit derivative data requested clarification of the impact of the reporting requirement on a bank’s risk-based capital calculations. The agencies have reconsidered this proposed reporting change and have decided not to add these new Memorandum items to Schedule RC–R. IV. Request for Comment Public comment is requested on all aspects of this joint notice. Comments are invited specifically on: (a) Whether the proposed revisions to the Call Report collections of information are necessary for the proper performance of the agencies’ functions, including whether the information has practical utility; (b) The accuracy of the agencies’ estimates of the burden of the information collections as they are proposed to be revised, including the validity of the methodology and assumptions used; (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, VerDate Nov<24>2008 16:53 Aug 18, 2009 Jkt 217001 including through the use of automated collection techniques 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. Comments submitted in response to this joint notice will be shared among the agencies and will be summarized or included in the agencies’ requests for OMB approval. All comments will become a matter of public record. Dated: August 12, 2009. Michele Meyer, Assistant Director, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency. Board of Governors of the Federal Reserve System, August 13, 2009. Jennifer J. Johnson, Secretary of the Board. Dated at Washington, DC, this 11th day of August 2009. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. E9–19911 Filed 8–18–09; 8:45 am] BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P DEPARTMENT OF THE TREASURY Office of Thrift Supervision Proposed Agency Information Collection Activities; Comment Request—Thrift Financial Report: Schedules SC, RM, CC, DI, and SB 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 CC—Consolidated Commitments and Contingencies, Schedule DI—Consolidated Deposit Information, Schedule SB— Consolidated Small Business Loans, and on a proposed new schedule, Schedule RM—Annual Supplemental Consolidated Data on Reverse Mortgages. The changes are proposed to become effective in March 2010 except for the proposed new schedule RM PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 41981 which would become effective in December 2010. 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 October 19, 2009. 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—2010, OMB No. 1550–0023.’’ OTS will post comments and the related index on the OTS Internet Site at http://www.ots.treas.gov. In addition, interested persons may inspect comments at the Public Reading Room, 1700 G Street, NW., by 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 CONTACT: You can access sample copies of the proposed 2010 TFR forms on OTS’s Web site at http://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: OTS is proposing to revise and extend for three years the TFR, which is currently an approved collection of information. 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 E:\FR\FM\19AUN1.SGM 19AUN1 jlentini on DSKJ8SOYB1PROD with NOTICES 41982 Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices 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 June 2009, and has additional revisions scheduled to become effective in December 2009. Since the beginning of 2009 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 different 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 VerDate Nov<24>2008 16:53 Aug 18, 2009 Jkt 217001 critical and relevant to OTS in fulfilling its supervisory responsibilities. OTS recognizes that increased reporting burden will result from the addition to the TFR of the new items discussed in this proposal. 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 that would take effect as of March 31, 2010, unless otherwise noted. These revisions would change the reporting frequency for small business and small farm data reported in Schedule SB from annually to quarterly, revise three lines, and add 24 new lines to the TFR, including the 16 lines proposed for a new Schedule RM. For each of the proposed revisions or 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 require to report the proposed information. Finally, OTS seeks comment on whether, for a particular proposed revision, there is an alternative information set 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 2010. A. Revisions of Existing Items 1. Revising line CC423 from ‘‘Lines and Letters of Credit: Open-End Consumer Lines: Credit Cards’’ to ‘‘Lines and Letters of Credit: Open-End Lines: Credit Cards—Consumer’’; 2. Revising line DI100 from ‘‘Total Broker-Originated Deposits: Fully Insured’’ to ‘‘Total Broker-Originated Deposits: Fully Insured: With Balances Less than $100,000’’; 3. Revising line DI350 from ‘‘Time Deposits of $100,000 or Greater (Excluding Brokered Time Deposits Participated Out by the Broker in Shares PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 of Less Than $100,000 and Brokered Certificates of Deposit Issued in $1,000 Amounts Under a Master Certificate of Deposit)’’ to ‘‘Time Deposits of $100,000 through $250,000 (Excluding Brokered Time Deposits Participated Out by the Broker in Shares of Less Than $100,000 and Brokered Certificates of Deposit Issued in $1,000 Amounts Under a Master Certificate of Deposit)’’; and 4. Revising the reporting frequency for Schedule SB—Consolidated Small Business Loans from annually to quarterly. B. New Items 1. Adding a line, SC304, Credit Card Loans Outstanding—Business; 2. Adding a line, CC424, Lines and Letters of Credit: Open-End Lines: Credit Cards—Other; 3. Adding a line, DI102, Total BrokerOriginated Deposits: Fully Insured: With Balances of $100,000 through $250,000; 4. Adding a line, DI114, Total BrokerOriginated Deposits: Interest Expense for Fully Insured Brokered Deposits; 5. Adding a line, DI116, Total BrokerOriginated Deposits: Interest Expense for Other Brokered Deposits; 6. Adding a line, DI352, Time Deposits Greater than $250,000; 7. Adding a line, DI544, Average Daily Deposit Totals: Fully Insured Brokered Time Deposits; 8. Adding a line, DI545, Average Daily Deposit Totals: Other Brokered Time Deposits; 9. Adding a line, RM110, Amount of Home Equity Conversion Mortgage Loans Outstanding; 10. Adding a line, RM112, Amount of Proprietary (Non-HECM) Reverse Mortgage Loans Outstanding; 11. Adding a line, RM310, Annual Interest Income from Home Equity Conversion Mortgage Loans; 12. Adding a line, RM312, Annual Interest Income from Proprietary (NonHECM) Reverse Mortgage Loans; 13. Adding a line, RM330, Annual Referral Fee Income from Home Equity Conversion Mortgage Loans; 14. Adding a line, RM332, Annual Referral Fee Income from Proprietary (Non-HECM) Reverse Mortgage Loans; 15. Adding a line, RM420, Annual Origination Fee Income from Home Equity Conversion Mortgage Loans; 16. Adding a line, RM422, Annual Origination Fee Income from Proprietary (Non-HECM) Reverse Mortgage Loans; 17. Adding a line, RM510, Commitments Outstanding to Originate Mortgages Secured by Home Equity Conversion Mortgage Loans; 18. Adding a line, RM512, Commitments Outstanding to Originate E:\FR\FM\19AUN1.SGM 19AUN1 Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices A. Additional Detail on Credit Card Loans and Commitments is not sufficiently detailed for monitoring the supply of credit because it mixes consumer credit card lines with credit card lines for businesses and other entities. As a result of this aggregation, it is not possible to fully monitor credit available specifically to households. Furthermore, bank supervisors would benefit from the split, because the usage patterns, profitability, and evolution of credit quality through the business cycle are likely to differ for consumer credit cards and business credit cards. Therefore, the OTS proposes to revise line CC423 to collect data on unused credit card lines to consumers, and to add a line, CC424, to collect data on unused credit card lines to other entities. Outstanding balances from draws on these credit lines that have not been sold are already reported on Schedule SC. Thrifts report draws on credit cards issued to consumers on line SC328. Draws on credit cards issued to businesses are included with unsecured commercial loans on line SC303. OTS proposes to add a line, SC304, to collect data on the amount of business-related credit card loans outstanding that are included in line SC303. The extent to which the supply of credit has declined during the current financial crisis has been of great interest to the federal banking agencies and to Congress. Credit provided by financial institutions plays a central role in any economic recovery. The federal banking agencies need data to better determine when credit conditions have eased. One way to measure the supply of credit is to analyze the change in total lending commitments by financial institutions, considering both the amount of loans outstanding and the volume of unused credit lines. These data are also needed for safety and soundness purposes because draws on commitments during periods when financial institutions face significant funding pressures, such as during the fall of 2008, can place significant and unexpected demands on the liquidity and capital positions of these institutions. Therefore, OTS proposes to collect further detail on credit card lending in TFR Schedules SC and CC. These new data items would improve the OTS’s ability to timely and accurately evaluate trends in thrift institutions’ supply of credit available to households and businesses. These data would also be useful in determining thrift institutions’ impact on the effectiveness of the government’s economic stabilization programs. Unused commitments associated with open-end credit card lines are currently reported in line CC423. This data item B. Time Deposits of $100,000 or Greater On October 3, 2008, the Emergency Economic Stabilization Act of 2008 temporarily raised the standard maximum deposit insurance amount (SMDIA) from $100,000 to $250,000 per depositor. Under this legislation, the SMDIA was to return to $100,000 after December 31, 2009. However, on May 20, 2009, the Helping Families Save Their Homes Act extended this temporary increase in the SMDIA to $250,000 per depositor through December 31, 2013, after which the SMDIA is scheduled to return to $100,000. At present, thrifts report time deposits in TFR Schedule DI, Consolidated Deposit Information, including total time deposits in line DI340, time deposits of $100,000 or greater in line DI350, and time deposits in IRA or Keogh accounts of $100,000 or greater. In response to the extension of the temporary increase in the limit on deposit insurance coverage, the federal banking agencies understand that time deposits with balances in excess of $100,000, but less than or equal to $250,000, have been growing and can be expected to increase further. However, given the existing Schedule DI reporting requirements, OTS is unable to monitor growth in thrifts’ time deposits with balances within the temporarily increased limit on deposit insurance coverage. Mortgages Secured by Proprietary (NonHECM) Reverse Mortgage Loans; 19. Adding a line, RM610, Annual Mortgage Loans Disbursed for Permanent Loans on Home Equity Conversion Mortgage Loans; 20. Adding a line, RM612, Annual Mortgage Loans Disbursed for Permanent Loans on Proprietary (NonHECM) Reverse Mortgage Loans; 21. Adding a line, RM620, Annual Loans and Participations Purchased Secured By Home Equity Conversion Mortgage Loans; 22. Adding a line, RM622, Annual Loans and Participations Purchased Secured By Proprietary (Non-HECM) Reverse Mortgage Loans; 23. Adding a line, RM630 Annual Loans and Participations Sold Secured By Home Equity Conversion Mortgage Loans; and 24. Adding a line, RM632, Annual Loans and Participations Sold Secured By Proprietary (Non-HECM) Reverse Mortgage Loans. jlentini on DSKJ8SOYB1PROD with NOTICES I. Discussion of Revisions Proposed for March 2010 VerDate Nov<24>2008 16:53 Aug 18, 2009 Jkt 217001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 41983 Therefore, OTS is proposing to revise line DI350 from ‘‘Time Deposits of $100,000 or Greater (Excluding Brokered Time Deposits Participated Out by the Broker in Shares of Less Than $100,000 and Brokered Certificates of Deposit Issued in $1,000 Amounts Under a Master Certificate of Deposit)’’ to ‘‘Time Deposits of $100,000 through $250,000 (Excluding Brokered Time Deposits Participated Out by the Broker in Shares of Less Than $100,000 and Brokered Certificates of Deposit Issued in $1,000 Amounts Under a Master Certificate of Deposit)’’, and to add a line DI352 for ‘‘Time Deposits Greater than $250,000’’. Existing line DI340, Total Time Deposits, and DI360, IRA/Keogh Accounts of $100,000 or Greater Included in Time Deposits, would not change. C. Revisions of Brokered Deposit Items As described above in Section II.B., the SMDIA has been increased temporarily from $100,000 to $250,000 through year-end 2013. However, the data that thrifts currently report in the TFR on fully insured brokered deposits in TFR line DI100 is based on the $100,000 insurance limit (except for brokered retirement deposit accounts for which the deposit insurance limit was already $250,000). Therefore, in response to the temporary increase in the SMDIA, OTS is proposing to revise line DI100 from ‘‘Total BrokerOriginated Deposits: Fully Insured’’ to ‘‘Total Broker-Originated Deposits: Fully Insured: With Balances Less than $100,000’’, and to add a line DI102 for ‘‘Total Broker-Originated Deposits: Fully Insured: With Balances of $100,000 through $250,000’’. Furthermore, given the linkage between the deposit insurance limits and the reporting on fully insured brokered deposits in Schedule DI, the scope of these items needs to be changed whenever deposit insurance limits change. To ensure that the scope of these lines, including the dollar amounts cited in the captions for these items, changes automatically as a function of the deposit insurance limit in effect on the report date, the TFR instructions would be revised to state that the specific dollar amounts used as the basis for reporting fully insured brokered deposits in lines DI100 and DI102 reflect the deposit insurance limits in effect on the report date. In addition, consistent with the reporting of time deposits in other items of Schedule DI, brokered deposits would be reported based on their balances rather than the denominations in which they were issued. Line DI100 would include time deposits issued to E:\FR\FM\19AUN1.SGM 19AUN1 41984 Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices deposit brokers in the form of large ($100,000 or more) certificates of deposit that have been participated out by the broker in shares with balances of less than $100,000. For brokered deposits that represent retirement deposit accounts eligible for $250,000 in deposit insurance coverage, report such brokered deposits in this item only if their balances are less than $100,000. Line DI102 would include brokered deposits (including brokered retirement deposit accounts) with balances of $100,000 through $250,000. Also report in this item brokered deposits that represent retirement deposit accounts eligible for $250,000 in deposit insurance coverage that have been issued in denominations of more than $250,000 that have been participated out by the broker in shares of $100,000 through exactly $250,000. jlentini on DSKJ8SOYB1PROD with NOTICES D. Interest Expense and Quarterly Averages for Brokered Deposits Under Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f), an insured depository institution that is less than well capitalized generally may not pay a rate of interest that significantly exceeds the prevailing rate in the institution’s ‘‘normal market area’’ and/or the prevailing rate in the ‘‘market area’’ from which the deposit is accepted. In the case of an adequately capitalized institution with a waiver to accept brokered deposits, the institution may not pay a rate of interest on brokered deposits accepted from outside the bank’s ‘‘normal market area’’ that significantly exceeds the ‘‘national rate’’ as defined by the FDIC. On May 29, 2009, the FDIC’s Board of Directors adopted a final rule making certain revisions to the interest rate restrictions under Section 337.6 of the FDIC’s regulations. Under the final rule, the ‘‘national rate’’ is a simple average of rates paid by U.S. depository institutions as calculated by the FDIC.1 When evaluating compliance with the interest rate restrictions in Section 337.6 by an institution that is less than well capitalized, the FDIC generally will deem the national rate to be the prevailing rate in all market areas. The final rule is effective January 1, 2010. At present, the federal banking agencies are unable to evaluate the level and trend of the cost of brokered time deposits to institutions that have acquired such funds, nor can the agencies compare the cost of such deposits across institutions with 1 The FDIC publishes a weekly schedule of national rates and national interest-rate caps by maturity, which can be accessed at http:// www.fdic.gov/regulations/resources/rates/. VerDate Nov<24>2008 16:53 Aug 18, 2009 Jkt 217001 brokered time deposits. Data on the cost of brokered deposits would also assist the agencies in evaluating the overall cost of institutions’ time deposits, for which data have long been collected in the Call Report for banks and TFR for thrifts. Furthermore, many of the financial institutions that have failed since the beginning of 2008 have relied extensively on brokered deposits to support their asset growth. Therefore, to enhance OTS’s ability to evaluate funding costs and the impact of brokered time deposits on these costs, OTS is proposing to add four new line items to TFR Schedule DI. The other federal banking agencies are proposing to add similar line items to the Call Report with two Memorandum items to Schedule RC–K, Quarterly Averages, and two items Schedule RI, Income Statement. In these new line items to TFR Schedule DI, thrifts would report lines DI114 for ‘‘Total Broker-Originated Deposits: Interest Expense for Fully Insured Brokered Deposits’’, DI116 for ‘‘Total Broker-Originated Deposits: Interest Expense for Other Brokered Deposits’’, DI544 for ‘‘Average Daily Deposit Totals: Fully Insured Brokered Time Deposits’’, and DI545 for ‘‘Average Daily Deposit Totals: Other Brokered Time Deposits’’. E. Change in Reporting Frequency for Schedule SB—Consolidated Small Business Loans Section 122 of the Federal Deposit Insurance Corporation Improvement Act requires the federal banking agencies to collect from insured institutions annually the information the agencies ‘‘may need to assess the availability of credit to small businesses and small farms.’’ The OTS meets this requirement through Schedule SB which requests information on the number and amount currently outstanding of ‘‘loans to small businesses’’ and ‘‘loans to small farms,’’ as defined in the TFR instructions, which all thrift institutions must report annually as of June 30. With the United States now more than a year into a recession, the current administration ‘‘firmly believes that economic recovery will be driven in large part by America’s small businesses,’’ but ‘‘small business owners are finding it harder to get the credit necessary to stay in business.’’ 2 Because ‘‘[c]redit is essential to economic recovery,’’ Treasury Secretary Geithner stated on March 16, 2009, that ‘‘we need our nation’s banks to go the extra mile in keeping credit lines in place on 2 http://www.financialstability.gov/ roadtostability/smallbusinesscommunity.html. PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 reasonable terms for viable businesses.’’ 3 Accordingly, Secretary Geithner asked the federal banking agencies ‘‘to call for quarterly, as opposed to annual reporting of small business loans, so that we can carefully monitor the degree that credit is flowing to our nation’s entrepreneurs and small business owners.’’ 4 In response to Secretary Geithner’s request and to improve the agencies’ own ability to assess the availability of credit to small businesses and small farms, the OTS proposes to change the frequency with which thrifts must submit TFR Schedule SB from annually to quarterly beginning March 31, 2010. OTS is not proposing to make any revisions to the information that thrifts are required to report on this schedule. The other federal banking agencies are proposing a similar change in reporting frequency with which banks must submit Call Report Schedule RC–C, Part II. II. Discussion of Revisions Proposed for December 2010 A. Reverse Mortgage Data Reverse mortgages are complex loan products that leverage equity in homes to provide lump sum cash payments or lines of credit to borrowers. These products are typically marketed to senior citizens who own homes. The federal banking agencies are currently unable to effectively identify and monitor institutions that offer these products due to a lack of reverse mortgage data. The reverse mortgage market currently consists of two basic types of products: proprietary products designed and originated by financial institutions and a federally-insured product known as a Home Equity Conversion Mortgage (HECM). Some reverse mortgages provide for a lump sum payment to the borrower at closing, with no ability for the borrower to receive additional funds under the mortgage at a later date. Other reverse mortgages are structured like home equity lines of credit in that they provide the borrower with additional funds after closing, either as fixed monthly payments, under a line of credit, or both. There are also reverse mortgages that provide a combination of a lump sum payment to the borrower at closing and additional payments to the borrower after the closing of the loan. The volume of reverse mortgage activity is expected to dramatically increase in the coming years as the U.S. population ages. A number of consumer protection related risks and safety and 3 http://www.financialstability.gov/latest/tg58remarks.html. 4 Ibid. E:\FR\FM\19AUN1.SGM 19AUN1 jlentini on DSKJ8SOYB1PROD with NOTICES Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices soundness related risks are associated with these products and the agencies need to collect information from financial institutions involved in the reverse mortgage activities to monitor and mitigate those risks. For example, proprietary reverse mortgages structured as lines of credit, which are not insured by the federal government, expose borrowers to the risk that the lender will be unwilling or unable to meet its obligation to make payments due to the borrower. Additionally, in those circumstances in which housing prices are declining, there is the risk that the reverse mortgage loan balance may exceed the value of the underlying collateral value of the home. As stated above, access to data regarding loan volumes, dollar amounts outstanding, and the institutions offering reverse mortgages or participating in reverse mortgage activity is severely limited. The U.S. Department of Housing and Urban Development provides a monthly report for reverse mortgages endorsed for federal insurance, by fiscal year, for those loans that are part of the federally sponsored HECM program. While this monthly report provides information such as average expected interest rates, average property values, average age of the borrower, and the number of active insured accounts, there is no aggregate monthly data nor is there institutionspecific information that identifies the institutions participating in the program. For proprietary reverse mortgage loans, there is no known data on the volume of reverse mortgages, dollar amounts outstanding, or the institutions offering these products. Therefore, OTS is proposing that a new Schedule RM—Annual Supplemental Consolidated Data on Reverse Mortgages be added to the TFR to collect reverse mortgage data on an annual basis beginning on December 31, 2010. The other federal banking agencies are similarly proposing new items for the Call Report to collect reverse mortgage data on an annual basis beginning on December 31, 2010. Collecting this information will provide the agencies the necessary information for policy development and the management of risk exposures posed by institutions’ involvement with reverse mortgages. OTS is proposing the following 16 new line items for Schedule RM: 1. RM110, Amount of Home Equity Conversion Mortgage Loans Outstanding; 2. RM112, Amount of Proprietary (Non-HECM) Reverse Mortgage Loans Outstanding; VerDate Nov<24>2008 16:53 Aug 18, 2009 Jkt 217001 3. RM310, Annual Interest Income from Home Equity Conversion Mortgage Loans; 4. RM312, Annual Interest Income from Proprietary (Non-HECM) Reverse Mortgage Loans; 5. RM330, Annual Referral Fee Income from Home Equity Conversion Mortgage Loans; 6. RM332, Annual Referral Fee Income from Proprietary (Non-HECM) Reverse Mortgage Loans; 7. RM420, Annual Origination Fee Income from Home Equity Conversion Mortgage Loans; 8. RM422, Annual Origination Fee Income from Proprietary (Non-HECM) Reverse Mortgage Loans; 9. RM510, Commitments Outstanding to Originate Mortgages Secured by Home Equity Conversion Mortgage Loans; 10. RM512, Commitments Outstanding to Originate Mortgages Secured by Proprietary (Non-HECM) Reverse Mortgage Loans; 11. RM610, Annual Mortgage Loans Disbursed for Permanent Loans on Home Equity Conversion Mortgage Loans; 12. RM612, Annual Mortgage Loans Disbursed for Permanent Loans on Proprietary (Non-HECM) Reverse Mortgage Loans; 13. RM620, Annual Loans and Participations Purchased Secured By Home Equity Conversion Mortgage Loans; 14. RM622, Annual Loans and Participations Purchased Secured By Proprietary (Non-HECM) Reverse Mortgage Loans; 15. RM630 Annual Loans and Participations Sold Secured By Home Equity Conversion Mortgage Loans; and 16. RM632, Annual Loans and Participations Sold Secured By Proprietary (Non-HECM) Reverse Mortgage Loans. 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: 794. Estimated Burden Hours per Respondent: 57.4 hours average for PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 41985 quarterly schedules and 2.0 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: 190,828 hours. OTS is proposing to revise the TFR, which is currently an approved collection of information, in March and December 2010. 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. The proposed TFR changes that would take effect as of March 31, 2010, would revise the captions for three existing items, add eight new items, and change the reporting frequency of data in Schedule SB from annual to quarterly. The proposed TFR revisions that would take effect December 31, 2010, would add a new Schedule RM— Annual Supplemental Consolidated Data on Reverse Mortgages which would add 16 new line items in an annual collection of data on reverse mortgages. OTS estimates that the implementation of these reporting revisions will result in an 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. E:\FR\FM\19AUN1.SGM 19AUN1 41986 Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices Clearance Officer: Ira L. Mills, (202) 906–6531, 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: August 14, 2009. Deborah Dakin, Acting Chief Counsel, Office of Thrift Supervision. [FR Doc. E9–19908 Filed 8–18–09; 8:45 am] jlentini on DSKJ8SOYB1PROD with NOTICES BILLING CODE 6720–01–P VerDate Nov<24>2008 16:53 Aug 18, 2009 Jkt 217001 PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 E:\FR\FM\19AUN1.SGM 19AUN1

Agencies

[Federal Register Volume 74, Number 159 (Wednesday, August 19, 2009)]
[Notices]
[Pages 41981-41986]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19908]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision


Proposed Agency Information Collection Activities; Comment 
Request--Thrift Financial Report: Schedules SC, RM, CC, DI, and SB

AGENCY: Office of Thrift Supervision (OTS), Treasury.

ACTION: Notice and request for comment.

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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 CC--Consolidated Commitments and Contingencies, 
Schedule DI--Consolidated Deposit Information, Schedule SB--
Consolidated Small Business Loans, and on a proposed new schedule, 
Schedule RM--Annual Supplemental Consolidated Data on Reverse 
Mortgages. The changes are proposed to become effective in March 2010 
except for the proposed new schedule RM which would become effective in 
December 2010.
    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 October 19, 2009.

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--2010, OMB No. 1550-0023.'' OTS will 
post comments and the related index on the OTS Internet Site at http://www.ots.treas.gov. In addition, interested persons may inspect comments 
at the Public Reading Room, 1700 G Street, NW., by 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 CONTACT: You can access sample copies of the 
proposed 2010 TFR forms on OTS's Web site at http://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: OTS is proposing to revise and extend for three years the 
TFR, which is currently an approved collection of information.
    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

[[Page 41982]]

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 June 2009, and has additional revisions scheduled to 
become effective in December 2009. Since the beginning of 2009 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 different 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. OTS recognizes that increased reporting burden will 
result from the addition to the TFR of the new items discussed in this 
proposal. 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 that would take effect as of March 31, 2010, unless 
otherwise noted. These revisions would change the reporting frequency 
for small business and small farm data reported in Schedule SB from 
annually to quarterly, revise three lines, and add 24 new lines to the 
TFR, including the 16 lines proposed for a new Schedule RM.
    For each of the proposed revisions or 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 require to report the 
proposed information. Finally, OTS seeks comment on whether, for a 
particular proposed revision, there is an alternative information set 
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 
2010.

A. Revisions of Existing Items

    1. Revising line CC423 from ``Lines and Letters of Credit: Open-End 
Consumer Lines: Credit Cards'' to ``Lines and Letters of Credit: Open-
End Lines: Credit Cards--Consumer'';
    2. Revising line DI100 from ``Total Broker-Originated Deposits: 
Fully Insured'' to ``Total Broker-Originated Deposits: Fully Insured: 
With Balances Less than $100,000'';
    3. Revising line DI350 from ``Time Deposits of $100,000 or Greater 
(Excluding Brokered Time Deposits Participated Out by the Broker in 
Shares of Less Than $100,000 and Brokered Certificates of Deposit 
Issued in $1,000 Amounts Under a Master Certificate of Deposit)'' to 
``Time Deposits of $100,000 through $250,000 (Excluding Brokered Time 
Deposits Participated Out by the Broker in Shares of Less Than $100,000 
and Brokered Certificates of Deposit Issued in $1,000 Amounts Under a 
Master Certificate of Deposit)''; and
    4. Revising the reporting frequency for Schedule SB--Consolidated 
Small Business Loans from annually to quarterly.

B. New Items

    1. Adding a line, SC304, Credit Card Loans Outstanding--Business;
    2. Adding a line, CC424, Lines and Letters of Credit: Open-End 
Lines: Credit Cards--Other;
    3. Adding a line, DI102, Total Broker-Originated Deposits: Fully 
Insured: With Balances of $100,000 through $250,000;
    4. Adding a line, DI114, Total Broker-Originated Deposits: Interest 
Expense for Fully Insured Brokered Deposits;
    5. Adding a line, DI116, Total Broker-Originated Deposits: Interest 
Expense for Other Brokered Deposits;
    6. Adding a line, DI352, Time Deposits Greater than $250,000;
    7. Adding a line, DI544, Average Daily Deposit Totals: Fully 
Insured Brokered Time Deposits;
    8. Adding a line, DI545, Average Daily Deposit Totals: Other 
Brokered Time Deposits;
    9. Adding a line, RM110, Amount of Home Equity Conversion Mortgage 
Loans Outstanding;
    10. Adding a line, RM112, Amount of Proprietary (Non-HECM) Reverse 
Mortgage Loans Outstanding;
    11. Adding a line, RM310, Annual Interest Income from Home Equity 
Conversion Mortgage Loans;
    12. Adding a line, RM312, Annual Interest Income from Proprietary 
(Non-HECM) Reverse Mortgage Loans;
    13. Adding a line, RM330, Annual Referral Fee Income from Home 
Equity Conversion Mortgage Loans;
    14. Adding a line, RM332, Annual Referral Fee Income from 
Proprietary (Non-HECM) Reverse Mortgage Loans;
    15. Adding a line, RM420, Annual Origination Fee Income from Home 
Equity Conversion Mortgage Loans;
    16. Adding a line, RM422, Annual Origination Fee Income from 
Proprietary (Non-HECM) Reverse Mortgage Loans;
    17. Adding a line, RM510, Commitments Outstanding to Originate 
Mortgages Secured by Home Equity Conversion Mortgage Loans;
    18. Adding a line, RM512, Commitments Outstanding to Originate

[[Page 41983]]

Mortgages Secured by Proprietary (Non-HECM) Reverse Mortgage Loans;
    19. Adding a line, RM610, Annual Mortgage Loans Disbursed for 
Permanent Loans on Home Equity Conversion Mortgage Loans;
    20. Adding a line, RM612, Annual Mortgage Loans Disbursed for 
Permanent Loans on Proprietary (Non-HECM) Reverse Mortgage Loans;
    21. Adding a line, RM620, Annual Loans and Participations Purchased 
Secured By Home Equity Conversion Mortgage Loans;
    22. Adding a line, RM622, Annual Loans and Participations Purchased 
Secured By Proprietary (Non-HECM) Reverse Mortgage Loans;
    23. Adding a line, RM630 Annual Loans and Participations Sold 
Secured By Home Equity Conversion Mortgage Loans; and
    24. Adding a line, RM632, Annual Loans and Participations Sold 
Secured By Proprietary (Non-HECM) Reverse Mortgage Loans.

I. Discussion of Revisions Proposed for March 2010

A. Additional Detail on Credit Card Loans and Commitments

    The extent to which the supply of credit has declined during the 
current financial crisis has been of great interest to the federal 
banking agencies and to Congress. Credit provided by financial 
institutions plays a central role in any economic recovery. The federal 
banking agencies need data to better determine when credit conditions 
have eased. One way to measure the supply of credit is to analyze the 
change in total lending commitments by financial institutions, 
considering both the amount of loans outstanding and the volume of 
unused credit lines. These data are also needed for safety and 
soundness purposes because draws on commitments during periods when 
financial institutions face significant funding pressures, such as 
during the fall of 2008, can place significant and unexpected demands 
on the liquidity and capital positions of these institutions. 
Therefore, OTS proposes to collect further detail on credit card 
lending in TFR Schedules SC and CC. These new data items would improve 
the OTS's ability to timely and accurately evaluate trends in thrift 
institutions' supply of credit available to households and businesses. 
These data would also be useful in determining thrift institutions' 
impact on the effectiveness of the government's economic stabilization 
programs.
    Unused commitments associated with open-end credit card lines are 
currently reported in line CC423. This data item is not sufficiently 
detailed for monitoring the supply of credit because it mixes consumer 
credit card lines with credit card lines for businesses and other 
entities. As a result of this aggregation, it is not possible to fully 
monitor credit available specifically to households. Furthermore, bank 
supervisors would benefit from the split, because the usage patterns, 
profitability, and evolution of credit quality through the business 
cycle are likely to differ for consumer credit cards and business 
credit cards. Therefore, the OTS proposes to revise line CC423 to 
collect data on unused credit card lines to consumers, and to add a 
line, CC424, to collect data on unused credit card lines to other 
entities. Outstanding balances from draws on these credit lines that 
have not been sold are already reported on Schedule SC. Thrifts report 
draws on credit cards issued to consumers on line SC328. Draws on 
credit cards issued to businesses are included with unsecured 
commercial loans on line SC303. OTS proposes to add a line, SC304, to 
collect data on the amount of business-related credit card loans 
outstanding that are included in line SC303.

B. Time Deposits of $100,000 or Greater

    On October 3, 2008, the Emergency Economic Stabilization Act of 
2008 temporarily raised the standard maximum deposit insurance amount 
(SMDIA) from $100,000 to $250,000 per depositor. Under this 
legislation, the SMDIA was to return to $100,000 after December 31, 
2009. However, on May 20, 2009, the Helping Families Save Their Homes 
Act extended this temporary increase in the SMDIA to $250,000 per 
depositor through December 31, 2013, after which the SMDIA is scheduled 
to return to $100,000.
    At present, thrifts report time deposits in TFR Schedule DI, 
Consolidated Deposit Information, including total time deposits in line 
DI340, time deposits of $100,000 or greater in line DI350, and time 
deposits in IRA or Keogh accounts of $100,000 or greater. In response 
to the extension of the temporary increase in the limit on deposit 
insurance coverage, the federal banking agencies understand that time 
deposits with balances in excess of $100,000, but less than or equal to 
$250,000, have been growing and can be expected to increase further. 
However, given the existing Schedule DI reporting requirements, OTS is 
unable to monitor growth in thrifts' time deposits with balances within 
the temporarily increased limit on deposit insurance coverage.
    Therefore, OTS is proposing to revise line DI350 from ``Time 
Deposits of $100,000 or Greater (Excluding Brokered Time Deposits 
Participated Out by the Broker in Shares of Less Than $100,000 and 
Brokered Certificates of Deposit Issued in $1,000 Amounts Under a 
Master Certificate of Deposit)'' to ``Time Deposits of $100,000 through 
$250,000 (Excluding Brokered Time Deposits Participated Out by the 
Broker in Shares of Less Than $100,000 and Brokered Certificates of 
Deposit Issued in $1,000 Amounts Under a Master Certificate of 
Deposit)'', and to add a line DI352 for ``Time Deposits Greater than 
$250,000''. Existing line DI340, Total Time Deposits, and DI360, IRA/
Keogh Accounts of $100,000 or Greater Included in Time Deposits, would 
not change.

C. Revisions of Brokered Deposit Items

    As described above in Section II.B., the SMDIA has been increased 
temporarily from $100,000 to $250,000 through year-end 2013. However, 
the data that thrifts currently report in the TFR on fully insured 
brokered deposits in TFR line DI100 is based on the $100,000 insurance 
limit (except for brokered retirement deposit accounts for which the 
deposit insurance limit was already $250,000). Therefore, in response 
to the temporary increase in the SMDIA, OTS is proposing to revise line 
DI100 from ``Total Broker-Originated Deposits: Fully Insured'' to 
``Total Broker-Originated Deposits: Fully Insured: With Balances Less 
than $100,000'', and to add a line DI102 for ``Total Broker-Originated 
Deposits: Fully Insured: With Balances of $100,000 through $250,000''.
    Furthermore, given the linkage between the deposit insurance limits 
and the reporting on fully insured brokered deposits in Schedule DI, 
the scope of these items needs to be changed whenever deposit insurance 
limits change. To ensure that the scope of these lines, including the 
dollar amounts cited in the captions for these items, changes 
automatically as a function of the deposit insurance limit in effect on 
the report date, the TFR instructions would be revised to state that 
the specific dollar amounts used as the basis for reporting fully 
insured brokered deposits in lines DI100 and DI102 reflect the deposit 
insurance limits in effect on the report date.
    In addition, consistent with the reporting of time deposits in 
other items of Schedule DI, brokered deposits would be reported based 
on their balances rather than the denominations in which they were 
issued. Line DI100 would include time deposits issued to

[[Page 41984]]

deposit brokers in the form of large ($100,000 or more) certificates of 
deposit that have been participated out by the broker in shares with 
balances of less than $100,000. For brokered deposits that represent 
retirement deposit accounts eligible for $250,000 in deposit insurance 
coverage, report such brokered deposits in this item only if their 
balances are less than $100,000.
    Line DI102 would include brokered deposits (including brokered 
retirement deposit accounts) with balances of $100,000 through 
$250,000. Also report in this item brokered deposits that represent 
retirement deposit accounts eligible for $250,000 in deposit insurance 
coverage that have been issued in denominations of more than $250,000 
that have been participated out by the broker in shares of $100,000 
through exactly $250,000.

D. Interest Expense and Quarterly Averages for Brokered Deposits

    Under Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 
1831f), an insured depository institution that is less than well 
capitalized generally may not pay a rate of interest that significantly 
exceeds the prevailing rate in the institution's ``normal market area'' 
and/or the prevailing rate in the ``market area'' from which the 
deposit is accepted. In the case of an adequately capitalized 
institution with a waiver to accept brokered deposits, the institution 
may not pay a rate of interest on brokered deposits accepted from 
outside the bank's ``normal market area'' that significantly exceeds 
the ``national rate'' as defined by the FDIC. On May 29, 2009, the 
FDIC's Board of Directors adopted a final rule making certain revisions 
to the interest rate restrictions under Section 337.6 of the FDIC's 
regulations. Under the final rule, the ``national rate'' is a simple 
average of rates paid by U.S. depository institutions as calculated by 
the FDIC.\1\ When evaluating compliance with the interest rate 
restrictions in Section 337.6 by an institution that is less than well 
capitalized, the FDIC generally will deem the national rate to be the 
prevailing rate in all market areas. The final rule is effective 
January 1, 2010.
---------------------------------------------------------------------------

    \1\ The FDIC publishes a weekly schedule of national rates and 
national interest-rate caps by maturity, which can be accessed at 
http://www.fdic.gov/regulations/resources/rates/.
---------------------------------------------------------------------------

    At present, the federal banking agencies are unable to evaluate the 
level and trend of the cost of brokered time deposits to institutions 
that have acquired such funds, nor can the agencies compare the cost of 
such deposits across institutions with brokered time deposits. Data on 
the cost of brokered deposits would also assist the agencies in 
evaluating the overall cost of institutions' time deposits, for which 
data have long been collected in the Call Report for banks and TFR for 
thrifts. Furthermore, many of the financial institutions that have 
failed since the beginning of 2008 have relied extensively on brokered 
deposits to support their asset growth. Therefore, to enhance OTS's 
ability to evaluate funding costs and the impact of brokered time 
deposits on these costs, OTS is proposing to add four new line items to 
TFR Schedule DI. The other federal banking agencies are proposing to 
add similar line items to the Call Report with two Memorandum items to 
Schedule RC-K, Quarterly Averages, and two items Schedule RI, Income 
Statement.
    In these new line items to TFR Schedule DI, thrifts would report 
lines DI114 for ``Total Broker-Originated Deposits: Interest Expense 
for Fully Insured Brokered Deposits'', DI116 for ``Total Broker-
Originated Deposits: Interest Expense for Other Brokered Deposits'', 
DI544 for ``Average Daily Deposit Totals: Fully Insured Brokered Time 
Deposits'', and DI545 for ``Average Daily Deposit Totals: Other 
Brokered Time Deposits''.

E. Change in Reporting Frequency for Schedule SB--Consolidated Small 
Business Loans

    Section 122 of the Federal Deposit Insurance Corporation 
Improvement Act requires the federal banking agencies to collect from 
insured institutions annually the information the agencies ``may need 
to assess the availability of credit to small businesses and small 
farms.'' The OTS meets this requirement through Schedule SB which 
requests information on the number and amount currently outstanding of 
``loans to small businesses'' and ``loans to small farms,'' as defined 
in the TFR instructions, which all thrift institutions must report 
annually as of June 30.
    With the United States now more than a year into a recession, the 
current administration ``firmly believes that economic recovery will be 
driven in large part by America's small businesses,'' but ``small 
business owners are finding it harder to get the credit necessary to 
stay in business.'' \2\ Because ``[c]redit is essential to economic 
recovery,'' Treasury Secretary Geithner stated on March 16, 2009, that 
``we need our nation's banks to go the extra mile in keeping credit 
lines in place on reasonable terms for viable businesses.'' \3\ 
Accordingly, Secretary Geithner asked the federal banking agencies ``to 
call for quarterly, as opposed to annual reporting of small business 
loans, so that we can carefully monitor the degree that credit is 
flowing to our nation's entrepreneurs and small business owners.'' \4\ 
In response to Secretary Geithner's request and to improve the 
agencies' own ability to assess the availability of credit to small 
businesses and small farms, the OTS proposes to change the frequency 
with which thrifts must submit TFR Schedule SB from annually to 
quarterly beginning March 31, 2010. OTS is not proposing to make any 
revisions to the information that thrifts are required to report on 
this schedule. The other federal banking agencies are proposing a 
similar change in reporting frequency with which banks must submit Call 
Report Schedule RC-C, Part II.
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    \2\ http://www.financialstability.gov/roadtostability/smallbusinesscommunity.html.
    \3\ http://www.financialstability.gov/latest/tg58-remarks.html.
    \4\ Ibid.
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II. Discussion of Revisions Proposed for December 2010

A. Reverse Mortgage Data

    Reverse mortgages are complex loan products that leverage equity in 
homes to provide lump sum cash payments or lines of credit to 
borrowers. These products are typically marketed to senior citizens who 
own homes. The federal banking agencies are currently unable to 
effectively identify and monitor institutions that offer these products 
due to a lack of reverse mortgage data.
    The reverse mortgage market currently consists of two basic types 
of products: proprietary products designed and originated by financial 
institutions and a federally-insured product known as a Home Equity 
Conversion Mortgage (HECM). Some reverse mortgages provide for a lump 
sum payment to the borrower at closing, with no ability for the 
borrower to receive additional funds under the mortgage at a later 
date. Other reverse mortgages are structured like home equity lines of 
credit in that they provide the borrower with additional funds after 
closing, either as fixed monthly payments, under a line of credit, or 
both. There are also reverse mortgages that provide a combination of a 
lump sum payment to the borrower at closing and additional payments to 
the borrower after the closing of the loan.
    The volume of reverse mortgage activity is expected to dramatically 
increase in the coming years as the U.S. population ages. A number of 
consumer protection related risks and safety and

[[Page 41985]]

soundness related risks are associated with these products and the 
agencies need to collect information from financial institutions 
involved in the reverse mortgage activities to monitor and mitigate 
those risks. For example, proprietary reverse mortgages structured as 
lines of credit, which are not insured by the federal government, 
expose borrowers to the risk that the lender will be unwilling or 
unable to meet its obligation to make payments due to the borrower. 
Additionally, in those circumstances in which housing prices are 
declining, there is the risk that the reverse mortgage loan balance may 
exceed the value of the underlying collateral value of the home.
    As stated above, access to data regarding loan volumes, dollar 
amounts outstanding, and the institutions offering reverse mortgages or 
participating in reverse mortgage activity is severely limited. The 
U.S. Department of Housing and Urban Development provides a monthly 
report for reverse mortgages endorsed for federal insurance, by fiscal 
year, for those loans that are part of the federally sponsored HECM 
program. While this monthly report provides information such as average 
expected interest rates, average property values, average age of the 
borrower, and the number of active insured accounts, there is no 
aggregate monthly data nor is there institution-specific information 
that identifies the institutions participating in the program. For 
proprietary reverse mortgage loans, there is no known data on the 
volume of reverse mortgages, dollar amounts outstanding, or the 
institutions offering these products.
    Therefore, OTS is proposing that a new Schedule RM--Annual 
Supplemental Consolidated Data on Reverse Mortgages be added to the TFR 
to collect reverse mortgage data on an annual basis beginning on 
December 31, 2010. The other federal banking agencies are similarly 
proposing new items for the Call Report to collect reverse mortgage 
data on an annual basis beginning on December 31, 2010. Collecting this 
information will provide the agencies the necessary information for 
policy development and the management of risk exposures posed by 
institutions' involvement with reverse mortgages.
    OTS is proposing the following 16 new line items for Schedule RM:
    1. RM110, Amount of Home Equity Conversion Mortgage Loans 
Outstanding;
    2. RM112, Amount of Proprietary (Non-HECM) Reverse Mortgage Loans 
Outstanding;
    3. RM310, Annual Interest Income from Home Equity Conversion 
Mortgage Loans;
    4. RM312, Annual Interest Income from Proprietary (Non-HECM) 
Reverse Mortgage Loans;
    5. RM330, Annual Referral Fee Income from Home Equity Conversion 
Mortgage Loans;
    6. RM332, Annual Referral Fee Income from Proprietary (Non-HECM) 
Reverse Mortgage Loans;
    7. RM420, Annual Origination Fee Income from Home Equity Conversion 
Mortgage Loans;
    8. RM422, Annual Origination Fee Income from Proprietary (Non-HECM) 
Reverse Mortgage Loans;
    9. RM510, Commitments Outstanding to Originate Mortgages Secured by 
Home Equity Conversion Mortgage Loans;
    10. RM512, Commitments Outstanding to Originate Mortgages Secured 
by Proprietary (Non-HECM) Reverse Mortgage Loans;
    11. RM610, Annual Mortgage Loans Disbursed for Permanent Loans on 
Home Equity Conversion Mortgage Loans;
    12. RM612, Annual Mortgage Loans Disbursed for Permanent Loans on 
Proprietary (Non-HECM) Reverse Mortgage Loans;
    13. RM620, Annual Loans and Participations Purchased Secured By 
Home Equity Conversion Mortgage Loans;
    14. RM622, Annual Loans and Participations Purchased Secured By 
Proprietary (Non-HECM) Reverse Mortgage Loans;
    15. RM630 Annual Loans and Participations Sold Secured By Home 
Equity Conversion Mortgage Loans; and
    16. RM632, Annual Loans and Participations Sold Secured By 
Proprietary (Non-HECM) Reverse Mortgage Loans.

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: 794.
    Estimated Burden Hours per Respondent: 57.4 hours average for 
quarterly schedules and 2.0 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: 190,828 hours.
    OTS is proposing to revise the TFR, which is currently an approved 
collection of information, in March and December 2010. 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.
    The proposed TFR changes that would take effect as of March 31, 
2010, would revise the captions for three existing items, add eight new 
items, and change the reporting frequency of data in Schedule SB from 
annual to quarterly.
    The proposed TFR revisions that would take effect December 31, 
2010, would add a new Schedule RM--Annual Supplemental Consolidated 
Data on Reverse Mortgages which would add 16 new line items in an 
annual collection of data on reverse mortgages.
    OTS estimates that the implementation of these reporting revisions 
will result in an 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.

[[Page 41986]]

    Clearance Officer: Ira L. Mills, (202) 906-6531, 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: August 14, 2009.
Deborah Dakin,
Acting Chief Counsel, Office of Thrift Supervision.
[FR Doc. E9-19908 Filed 8-18-09; 8:45 am]
BILLING CODE 6720-01-P