[Federal Register Volume 65, Number 41 (Wednesday, March 1, 2000)]
[Notices]
[Pages 11108-11110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4931]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision


Proposed Agency Information Collection Activities

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury 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. Today, the Office of Thrift Supervision within the Department of 
the Treasury solicits comments on proposed changes to the Thrift 
Financial Report. The proposed changes, which are discussed in more 
detail below, are comprised of collection of additional information on: 
(1) High loan-to-value loans; (2) trust assets administered; (3) 
residual interests in financial assets sold; and (4) structured 
liabilities. OTS would also delete asset maturity data in Schedule SI 
and margin accounts in Schedule CMR.

DATES: Submit comments on or before May 1, 2000.

ADDRESSES: Send comments to Manager, Dissemination Branch, Records 
Management and Information Policy, Office of Thrift Supervision, 1700 G 
Street, NW, Washington, DC 20552, Attention 1550-0223. Hand deliver 
comments to 1700 G Street, NW, from 9 a.m. to 5 p.m. on business days. 
Send facsimile transmissions to FAX Number (202) 906-7755 or (202) 906-
6956 (if the comment is over 25 pages). Send e-mails to 
public.info@ots.treas.gov">public.info@ots.treas.gov and include your name and telephone number. 
Interested persons may inspect comments at 1700 G Street, NW, from 9 
a.m. until 4 p.m. on business days.

FOR FURTHER INFORMATION CONTACT: Trudy Reeves, Financial Reporting 
Division, Office of Thrift Supervision, 1700 G Street, NW, Washington, 
DC 20552, (202) 906-7317. Interested persons may also obtain additional 
information on the Internet at www.ots.treas.gov/tfrpage.html, or by 
calling (202) 906-6078.

SUPPLEMENTARY INFORMATION:
    Title: Thrift Financial Report.

[[Page 11109]]

    OMB Number: 1550-0023.
    Form Number: OTS 1313.
    Abstract: All Office of Thrift Supervision (OTS) regulated savings 
associations must comply with the information collections described in 
this notice. OTS collects this information each calendar quarter. OTS 
needs this information to monitor and supervise the thrift industry.
    Current Actions: After reviewing its current supervisory and 
examination needs, OTS proposes to revise the Thrift Financial Report 
(TFR), effective with the September 30, 2000 report. OTS deferred the 
decision to propose changes until after the impact of the rollover to 
2000 was known.

High Loan-to-Value Loans

    OTS has considerable supervisory concerns regarding high loan-to-
value (LTV) lending. Currently, OTS expects associations to report 
loans with LTV ratios in excess of supervisory limits to their board of 
directors quarterly (12 CFR 560.101 (Appendix A. Interagency Guidelines 
for Real Estate Lending Policies)). However, OTS does not require 
associations to report LTV data on the TFR. Due to increased 
supervisory concern regarding high LTV lending, coupled with OTS's need 
to effectively monitor potential high risk lending, OTS proposes to 
collect high LTV balances in Schedule SI (Supplemental Information). 
With this change, the TFR will be more useful in promptly identifying 
regulated institutions involved in this activity.

Trust Assets

    There has been a substantial increase in the number of institutions 
granted fiduciary powers as well as in the assets administered by those 
institutions. Currently all institutions with fiduciary powers file the 
Federal Financial Institutions Examination Council's (FFIEC's) Annual 
Report of Trust Assets. Quarterly data would enable OTS to better 
monitor and analyze trust activities, would provide information used in 
examination planning, and would provide information to be used in the 
OTS assessment. OTS proposes to add six items and delete one item in 
Schedule SI (Supplemental Information) to collect the volume and amount 
of fiduciary accounts and nonfiduciary accounts with administrative 
responsibilities. OTS proposes to not publicly release the detail 
information on trust activities at the thrift level, but to publicly 
release the market value of total assets administered at the individual 
thrift level. All items collected will be released in the aggregate. 
After collection of this data for several periods, OTS will reconsider 
its policy on the public release of trust information.
    OTS recently issued Thrift Bulletin 48-16, which addressed how OTS 
will compute assessments under the complexity component for trust 
assets administered by a savings association. See 12 CFR 502.25. The 
Thrift Bulletin provides different assessment rates for trust assets 
administered in a fiduciary and non-fiduciary capacity. OTS will use 
the information reported under the new items to compute assessments.

Residual Interests in Financial Assets Sold

    Residual interests in financial assets sold (RIFAS) are certain 
financial assets retained after the transfer of loans, securities, or 
other financial assets, where the transfer is recorded as a sale under 
Statement of Financial Accounting Standards (SFAS) No. 125. RIFAS 
represent the right to receive ``residual'' cash flows from the 
transferred assets. The ``residual'' cash flows are those that are 
available after payment of all other contractual obligations to holders 
of other beneficial interests in the transferred assets, and after all 
payments for servicing fees and other costs. RIFAS may be acquired by 
either origination or purchase, and may be in either security or 
nonsecurity form. Examples of RIFAS include, but are not limited to, 
interest-only strips, spread accounts, and cash collateral accounts.
    Credit enhancement RIFAS are those that are structured, through 
subordination provisions or other credit enhancement techniques, to 
absorb more than a pro rata share of credit loss in relation to the 
transferred assets. Depending on their form, RIFAS may be included in 
Schedule SC (Statement of Condition in four lines: Mortgage Derivatives 
(SC150), Other Investment Securities (SC185), Interest-only Strip 
Receivables and Certain Other Instruments (SC655, and Other Assets 
(SC690). Because three of these lines (SC150, SC185, and SC690) may 
contain other instruments, OTS cannot currently determine the total 
residual interests retained or purchased by an institution. Therefore, 
OTS proposes to add two memoranda lines in Schedule SI (Supplemental 
Information); one to collect credit enhancement residual interests in 
financial assets sold and one to collect other residual interests in 
financial assets sold. The addition of these two items will provide OTS 
with more complete information for monitoring and supervisory purposes.

Federal Home Loan Bank (FHLB) Structured Advances and Other 
Structured Liabilities

    In recent years, structured liabilities (especially FHLB structured 
advances) have become an increasingly popular funding source for 
savings associations. Because such liabilities often have complex 
embedded options, the use of these instruments can raise safety and 
soundness concerns. OTS proposes to change Schedule CMR (Consolidated 
Maturity/Rate) to collect estimates of the market value of structured 
liabilities to better evaluate the interest rate risk they pose. Market 
value data for structured liabilities may be provided at the option of 
the institution, unless otherwise directed by OTS.

Asset Maturity Data

    OTS proposes to delete five lines that collect data on asset 
maturities on Schedule SI (Supplemental Information). Currently, only 
savings associations that meet the Schedule CMR (Consolidated Maturity/
Rate) exemption criteria (assets less than $300 million and risk-based 
capital in excess of 12%) and that opt not to file Schedule CMR must 
provide these data. OTS no longer needs to collect these data.

Margin Accounts

    OTS proposes to delete CMR452, Margin Accounts, as it is no longer 
used.

A Detailed Description of the Proposed Changes Follows

I. Schedule SI (Supplemental Information)

A. Delete Five Lines as Follows

Asset Repricing/Maturing Data

    S1700: Will the reporting association file Schedule CMR for this 
quarter?
Assets Repricing/Maturing in Three Years or Less:
    S1710: Mortgage Loans and Securities
    S1720: Nonmortgage Loans, Interest-earning Deposits and 
Investment Securities
Assets Repricing/Maturing in More Than Three Years:
    S1730: Mortgage Loans and Securities
    S1740: Nonmortgage Loans, Interest-earning Deposits and 
Investment Securities

B. Add the Following 12 Lines

High Loan-to-Value Loans (Outstanding Balances)

Loans Without PMI or Government Guarantee

Permanent Mortgages on 1-4 Dwelling Units:
    S1412: 90 to 100 LTV
    S1415: Over 100 LTV
Consumer Loans Secured (In whole or in part) by Real Estate, 
Reported on SC316 and SC340:
    S1422: 90 to 100 LTGV

[[Page 11110]]

    S1425: Over 100 LTV

    Note:
    Savings Associations should determined Loan-to-Value ratios at 
origination in accordance with the definition in the interagency 
guidelines attached to 12 CFR 5670.101.

Trust Assets

Fiduciary accounts for which you have discretion
    S1351: Value
    S1352: Number
Fiduciary accounts for which you have no discretion
    S1353: Value
    S1354: Number
Nonfiduciary accounts for which you have administrative 
responsibilities
    S1355: Value
    S1356: Number

Residual Interests in Financial Assets Sold

    S1490: Credit Enhancement Residual Interests in Financial Assets 
Sold
    SI495. Other Residual Interests in Financial Assets Sold

II. Schedule CMR (Consolidated Maturity/Rate)

A. Delete:
    CMR542: Margin Account
B. Variable-rate, Fixed-maturity Liabilities, Page 32:
    Delete all existing cells under this heading. Outstanding 
balances for these instruments will be reported in new fields for 
deposits and borrowings as described below. Additionally, detailed 
information will be reported on these instruments on page 36 in 
Supplemental Reporting for Assets/Liabilities.
1. Delete:
    CMR721 through CMR748
2. Add:
    Liabilities Reported in Supplemental Reporting for Assets and 
Liabilities
    CMR749: Outstanding Balance of Variable-Rate, Fixed-Maturity 
Deposits (reported under liability code 200)
    CMR751: Outstanding Balance of Variable-Rate Fixed-Maturity 
Borrowings (reported under liability codes 220 or 229)
    CMR753: Outstanding Balance of FHLB Structured Advances 
(reported under liability codes 280, 281, 282, 283 or 289)
    CMR754: Outstanding Balance of Other Structured Liabilities 
(reported under liability code 290)
C. Reporting of Market Value Estimates, Page 35:
    Delete the values for the plus and minus 400 basis point rate 
shocks. Thrift Bulletin 13a no longer requires institutions to 
maintain interest rate risk limits for the plus and minus 400 basis 
point interest rate scenarios. Also delete the column for Options on 
Liabilities, which will be replaced by the new reporting of 
structured liabilities.
    Delete: CMR911, CMR921, CMR941 through CMR949, CMR951, CMR961, 
CMR919, CMR929, CMR949, CMR959, and CMR969
D. Optional Supplemental Reporting for Assets/Liabilities, Page 36:
    Rename this section as ``Supplemental Reporting for Assets/
Liabilities.'' The current nine column headings (for example, 
``asset/liability code,'' ``rate index code,'' etc.) will continue 
to apply for existing instruments. New codes will be added for 
reporting: (a) internal valuations of nonmortgage servicing rights 
(as reported on SC644); (b) certain nonsecurity financial 
instruments (as reported on SC655); (c) FHLB structured advances (as 
reported on SC720); and (d) other structured liabilities (as 
reported on SC730 through SC760). The nine columns will be modified 
for these instrument codes to collect the instrument's code, book 
value, and institution-reported valuation in the seven interest-rate 
scenarios (plus/minus 300, plus/minus 200, plus/minus 100, and no 
change). These instrument-specific fields (rather than fixed column 
definitions) will improve the ability of institutions to report 
financial information in a more detailed manner than is currently 
collected and will improve interest rate risk measures produced by 
the OTS model. This change to the form will also facilitie the 
addition of future codes for new instruments with customized cell 
content.
    Type of Review: Revision.
    Affected Public: Business or For Profit.
    Estimated Number of Respondents and Recordkeepers: 1100.
    Estimated Time Per Respondent: 33 hours average.
    Estimated Total Annual Burden Hours: 145,200 hours.
    Because these proposed changes will not affect all savings 
associations that file the TFR, the burden hours reflected above are 
unchanged from the current burden. We invite comment on how savings 
associations think the burden will change given these form changes.
    Request for Comments: OTS will summarize or include comments 
submitted in response to this notice with the request for OMB approval, 
and will include these comments in the public record. OTS invites 
comments on: (a) Whether the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information shall have practical utility; (b) the accuracy 
of the agency's estimate of the burden of the collection of 
information; (c) ways to enhance the quality; (d) ways to minimize the 
burden of the collection of information on respondents, including 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.

    Dated: February 25, 2000.
Margaret Celia Winter,
Manager, Dissemination Branch.
[FR Doc. 00-4931 Filed 2-29-00; 8:45 am]
BILLING CODE 6720-01-M