[Federal Register Volume 64, Number 225 (Tuesday, November 23, 1999)]
[Notices]
[Pages 65712-65713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30433]


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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL


Uniform Retail Credit Classification and Account Management 
Policy; Extension of Implementation Period

AGENCY: Federal Financial Institutions Examination Council.

ACTION: Final notice; extension of implementation period.

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SUMMARY: The Federal Financial Institutions Examination Council 
(FFIEC), on behalf of the Board of Governors of the Federal Reserve 
System (FRB), the Federal Deposit Insurance Corporation (FDIC), the 
Office of the Comptroller of the Currency (OCC), and the Office of 
Thrift Supervision (OTS), collectively referred to as the Agencies, is 
extending the implementation period for the Uniform Retail Credit 
Classification and Account Management Policy. The Uniform Retail Credit 
Classification and Account Management Policy is a supervisory policy 
used by the Agencies for uniform classification and treatment of retail 
credit loans in financial institutions.

DATES: November 23, 1999.

FOR FURTHER INFORMATION CONTACT:
    FRB: David Adkins, Supervisory Financial Analyst, (202) 452-5259, 
Division of Banking Supervision and Regulation, Board of Governors of 
the Federal Reserve System. For the hearing impaired only, 
Telecommunication Device for the Deaf (TDD), Dorothea Thompson, (202) 
452-3544, Board of Governors of the Federal Reserve System, 20th and C 
Streets NW, Washington, DC 20551.
    FDIC: James Leitner, Examination Specialist, (202) 898-6790, 
Division of Supervision. For legal issues, Michael Phillips, Counsel, 
(202) 898-3581, Supervision and Legislation Branch, Federal Deposit 
Insurance Corporation, 550 17th Street NW, Washington, DC 20429.
    OCC: Daniel L. Pearson, National Bank Examiner, Credit Risk 
Division, (202) 874-5170; or Ron Shimabukuro, Senior Attorney, 
Legislative and Regulatory Activities Division, (202) 874-5090, Office 
of the Comptroller of the Currency, 250 E Street SW, Washington, DC 
20219.
    OTS: Donna M. Deale, Manager, Supervision Policy (202) 906-7488; or 
Karen A. Osterloh, Assistant Chief Counsel, Regulations and Legislation 
Division, Chief Counsel's Office, (202) 906-6639, Office of Thrift 
Supervision, 1700 G Street NW, Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION:

Background Information

    On February 10, 1999, the FFIEC published final revisions to the 
Uniform Retail Credit Classification and Account Management Policy (64 
FR 6655). The Agencies undertook a review of the 1980 policy as part of 
their review of all written policies mandated by section 303(a) of the 
Riegle Community Development and Regulatory Improvement Act of 1994. 
The Agencies determined that the 1980 policy should be revised due to 
changes that have taken place within the industry. In general, the 
final policy statement:
     Established a uniform charge-off policy for open-end 
credit at 180 days delinquency and closed-end credit at 120 days 
delinquency.
     Provided uniform guidance for loans affected by 
bankruptcy, fraud, and death.
     Established guidelines for re-aging, extending, deferring, 
or rewriting past due accounts.
     Classified certain delinquent residential mortgage and 
home equity loans.
     Broadened recognition of partial payments that qualify as 
full payments.

Implementation Period

    The final policy became effective for manual adjustments to an 
institution's policies and procedures as of the June 30, 1999, Call 
Report or Thrift Financial Report (Reports), as appropriate. In 
addition, the final policy allowed institutions until the December 31, 
2000, Reports to make changes involving programming resources. At the 
time of publishing the final policy, the Agencies were primarily 
concerned about drawing away programming resources from the Year 2000

[[Page 65713]]

compliance effort. The Agencies recognize that the staggered 
implementation date imposes a shorter adjustment period on banks that 
are less automated. Additionally, the Agencies received recommendations 
from the industry, subsequent to the publication of the policy in the 
Federal Register, to delay the implementation of the policy for all 
financial institutions to December 31, 2000.
    In order to allow all institutions to meet the implementation 
deadlines within the same time period, including those that are not 
highly automated, the FFIEC is modifying the effective date. This 
notice extends the implementation date for manual changes to the 
December 31, 2000, Call Report or Thrift Financial Report. Institutions 
that have already implemented manual changes to meet the revised 
guidelines may continue to use their revised policies and procedures, 
but are not required to do so.

    Dated: November 17, 1999.
Keith J. Todd,
Executive Secretary, Federal Financial Institutions Examination 
Council.
[FR Doc. 99-30433 Filed 11-22-99; 8:45 am]
BILLING CODE 6210-01-P; 6714-01-P; 6720-01-P; 4810-33-P