[Federal Register Volume 71, Number 146 (Monday, July 31, 2006)]
[Notices]
[Pages 43286-43291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12251]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision


Proposed Agency Information Collection Activities; Comment 
Request--Thrift Financial Report: Schedules SC, SO, LD, CF, SI, SQ, and 
HC

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 SO--Consolidated Statement of Operations, 
Schedule LD--Loan Data, Schedule CF--Consolidated Cash Flow 
Information, Schedule SI--Supplemental Information, Schedule SQ--
Consolidated Supplemental Questions, and Schedule HC--Thrift Holding 
Company. The proposed changes are to become effective with the March 
31, 2007, report.
    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 September 29, 2006.

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 [email protected]; 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--March 2007, 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

[[Page 43287]]

appointment. To make an appointment, call (202) 906-5922, send an e-
mail to [email protected], or send a facsimile transmission to 
(202) 906-7755.

FOR FURTHER INFORMATION: You can access sample copies of the proposed 
March 2007 TFR form on OTS's Web site at http://www.ots.treas.gov or 
you may request them by electronic mail from 
[email protected]. 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: 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 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 March 2004. Revisions since March 2004 focused on 
specific activities and were primarily made in response to changes in 
generally accepted accounting principles (GAAP). These focused 
revisions meant that the new or revised TFR items were minor or 
applicable to only a small percentage of institutions.
    During the past year 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 higher 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. At the same time, OTS has identified certain existing 
TFR line items that are no longer sufficiently critical or useful to 
warrant their continued collection. OTS recognizes that the reporting 
burden that would result from the addition to the TFR of the new items 
discussed in this proposal would not be fully offset by the proposed 
elimination of, or establishment of reporting thresholds for, a limited 
number of other TFR items, thereby resulting in a net increase in 
reporting burden. 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, which would take effect as of March 31, 2007. This proposal 
would eliminate ten line items from the TFR, revise six existing items, 
add 16 new items, and eliminate confidential treatment of Schedule HC 
data. For each of the proposed revisions of existing items or proposed 
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 be require 
to report the proposed information. Finally, OTS seeks comment on 
whether, for a particular proposed revision, there is an alternative 
set of information 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 March 2007.
    In addition to the revisions proposed in this notice, OTS expects 
to join the Federal Deposit Insurance Corporation (FDIC), the Board of 
Governors of the Federal Reserve System (Board), and the Office of the 
Comptroller of the Currency (OCC), Treasury, in publishing a proposal 
and request for comments to revise certain deposit information 
collected in the Call Report and the TFR. These revisions--on Schedule 
DI for TFR filers--would be proposed to facilitate calculation of the 
deposit insurance assessment pursuant to the Federal Deposit Insurance 
Reform Act of 2005 and the Federal Deposit Insurance Reform Conforming 
Amendments Act of 2005 (collectively, the Reform Act), and pursuant to 
amendments to 12 CFR Part 327 proposed by the FDIC in the Federal 
Register, Vol. 71, No. 96, Thursday, May 18, 2006, page 28790.

A. Burden-Reducing Revisions

    1. Eliminating SC745, Other Mortgage-Collateralized Securities 
Issued;
    2. Eliminating CF340, Mortgage Loans--Cash Repayment of Principal;
    3. Eliminating CF350, Mortgage Loans--Debits Less Credits Other 
Than Repayment of Principal;
    4. Eliminating CF420, New Deposits Received Less Deposits 
Withdrawn;
    5. Eliminating CF435, Deposits Acquired, Net of Dispositions in 
Bulk Transactions;
    6. Eliminating consolidated supplemental question SQ100, ``Did you 
acquire any assets through merger with another depository 
institution?'';

[[Page 43288]]

    7. Eliminating consolidated supplemental question SQ110, ``Did you 
include in your balance sheet for the first time assets and/or 
liabilities acquired as a result of a branch or other bulk deposit 
purchase?'';
    8. Eliminating consolidated supplemental question SQ130, ``Has 
there been a change in control?'';
    9. Eliminating consolidated supplemental question SQ160, ``Has 
there been a merger accounted for under the purchase method?''; and
    10. Eliminating consolidated supplemental question SQ170, ``If you 
restated your balance sheet for the first time this quarter as a result 
of applying push-down accounting, enter the date of reorganization.''

A. Revisions of Existing Items

    1. Revising the instructions to SC740, Mortgage-Collateralized 
Securities Issued--CMOs (Including REMICs), to report total mortgage 
collateralized securities issued;
    2. Revising the instructions to SO141, Interest Income on Mortgage 
Loans, to exclude prepayment penalties, late fees, and assumption fees 
from the line total;
    3. Revising the instructions to SO160, Interest Income on 
Commercial Loans and Leases, to exclude prepayment penalties, late 
fees, and assumption fees from the line total;
    4. Revising the instructions to SO171, Interest Income on Consumer 
Loans and Leases, to exclude prepayment penalties, late fees, and 
assumption fees from the line total;
    5. Revising the instructions to SO410, Loan Servicing Fees, to 
exclude from the reported amount (a) amortization of loan servicing 
assets or liabilities and valuation adjustments for classes of loan 
servicing accounted for using the amortization method, and (b) fair 
value adjustments for classes of servicing carried at fair value; and
    6. Revising the language for question HC840 from ``Is the holding 
company or any of its subsidiaries regulated by a foreign financial 
services regulator?'' to ``Is the holding company or any of its 
affiliates conducting operations outside of the U.S. through a foreign 
branch or subsidiary?''

B. New Items

    1. Adding a line, SO142, Prepayment Fees, Late Fees, and Assumption 
Fees for Mortgage Loans;
    2. Adding a line, SO162, Prepayment Fees, Late, Fees, and 
Assumption Fees for Commercial Loans;
    3. Adding a line, SO172, Prepayment Fees, Late Fees, and Assumption 
Fees for Consumer Loans;
    4. Adding a line, SO411, Servicing Amortization and Valuation 
Adjustments;
    5. Adding a line, LD510, 1-4 Dwelling Units Construction-to-
Permanent Loans;
    6. Adding a line, LD520, Owner-Occupied Multifamily Permanent 
Loans;
    7. Adding a line, LD530, Owner-Occupied Nonresidential Property 
(Except Land) Permanent Loans;
    8. Adding a line, LD610, 1-4 Dwelling Option ARM Loans;
    9. Adding a line, LD620, 1-4 Dwelling ARM Loans with Negative 
Amortization;
    10. Adding a line, LD650, Total Capitalized Negative Amortization;
    11. Adding a line, CF226, Mortgage Loans Disbursed--Permanent 
Loans--Home Equity and Junior Liens;
    12. Adding a line, CF281, Loans and Participations Purchased--
Secured by 1-4 Dwelling Units--Purchased from Entities Other Than 
Federally-Insured Depository Institutions or Their Subsidiaries;
    13. Adding a line, CF282, Loans and Participations Purchased--
Secured by 1-4 Dwelling Units--Home Equity and Junior Liens;
    14. Adding a line, CF311, Loans and Participations Sold--Secured by 
1-4 Dwelling Units--Home Equity and Junior Liens;
    15. Adding a line, SI376, Assets Recorded on Schedule SC Under a 
Fair Value Option; and
    16. Adding a line, SI377, Liabilities Recorded on Schedule SC Under 
a Fair Value Option.

C. Eliminating Confidential Treatment of Schedule HC Data

    The specific wording of the captions for the new and revised TFR 
items discussed in this proposal and the numbering of these items in 
the report is preliminary.

 Discussion of Proposed Revisions

A. Burden-Reducing Revisions

1. Other Mortgage-Collateralized Securities Issued
    OTS proposes to eliminate TFR line SC745, Other Mortgage-
Collateralized Securities Issued. For the five quarters through 
December 2005, no data were reported in this line. These data will be 
included in a redefined TFR line SC740, Mortgage-Collateralized 
Securities Issued.
    The following three line items are proposed for elimination as 
several thrifts indicated these data were particularly burdensome to 
report and these data are not critical to supervisory efforts.
2. Cash Repayment of Principal
    OTS proposes to eliminate TFR line CF340, Mortgage Loans-Cash 
Repayment of Principal.
3. Mortgage Loans--Debits Less Credits Other Than Repayment of 
Principal
    OTS proposes to eliminate TFR line CF350, Mortgage Loans-Debits 
Less Credits Other Than Repayment of Principal.
4. New Deposits Received Less Deposits Withdrawn
    OTS proposes to eliminate TFR line CF420, New Deposits Received 
Less Deposits Withdrawn.
    The following six line items are proposed for elimination as OTS 
can gather these data through other means such as through our 
Application Tracking System.
5. Deposits Acquired, Net of Dispositions in Bulk Transactions
    OTS proposes to eliminate TFR line CF435, Deposits Acquired, Net of 
Dispositions in Bulk Transactions.
6. Assets Acquired Through Merger With Another Depository Institution
    OTS proposes to eliminate consolidated supplemental question SQ100, 
``Did you acquire any assets through merger with another depository 
institution?''
7. Assets and/or Liabilities Acquired as Result of Branch or Other Bulk 
Deposit Purchase
    OTS proposes to eliminate consolidated supplemental question SQ110, 
``Did you include in your balance sheet for the first time assets and/
or liabilities acquired as a result of a branch or other bulk deposit 
purchase?''
8. Change In Control
    OTS proposes to eliminate consolidated supplemental question SQ130, 
``Has there been a change in control?''
9. Merger Accounted for Under the Purchase Method
    OTS proposes to eliminate consolidated supplemental question SQ160, 
``Has there been a merger accounted for under the purchase method?''
10. Balance Sheet Restatement as Result of Applying Push-Down 
Accounting
    OTS proposes to eliminate consolidated supplemental question SQ170, 
``If you restated your balance sheet for the first time this quarter as 
a result of applying push-down

[[Page 43289]]

accounting, enter the date of reorganization.''

B. Revisions of Existing Items

1. Mortgage-Collateralized Securities Issued--CMOs (Including REMICs)
    OTS proposes to revise the instructions to TFR line SC740 to 
include all mortgage-collateralized securities issued by the reporting 
institution. SC740 would be renamed as ``Mortgage-Collateralized 
Securities Issued''. This change will incorporate the data from the 
elimination of SC745, Other Mortgage-Collateralized Securities Issued.
2. Interest Income on Mortgage Loans
    OTS proposes to revise the instructions to TFR line SO141, Interest 
Income on Mortgage Loans, to exclude prepayment penalties, late fees, 
and assumption fees from the line total. The excluded data would be 
reported in the proposed new line item, SO142, Prepayment Fees, Late 
Fees, and Assumption Fees for Mortgage Loans.
3. Interest Income on Commercial Loans and Leases
    OTS proposes to revise the instructions to TFR line SO160, Interest 
Income on Commercial Loans and Leases, to exclude prepayment penalties, 
late fees, and assumption fees from the line total. The excluded data 
would be reported in the proposed new line item, SO162, Prepayment 
Fees, Late Fees, and Assumption Fees for Commercial Loans and Leases.
4. Interest Income on Consumer Loans and Leases
    OTS proposes to revise the instructions to TFR line SO171, Interest 
Income on Consumer Loans and Leases, to exclude prepayment penalties, 
late fees, and assumption fees from the line total. The excluded data 
would be reported in the proposed new line item, SO172, Prepayment 
Fees, Late Fees, and Assumption Fees for Consumer Loans and Leases.
5. Loan Servicing Fees
    OTS proposes to revise the instructions to TFR line SO410 to 
require reporting of total servicing income and expense exclusive of 
(a) amortization of servicing assets and liabilities, and valuation 
adjustments, for classes of servicing accounted for using the 
amortization method; and (b) fair value adjustments for classes of 
servicing classes carried at fair value. Excluding these data will 
provide a better measure of core servicing income in SO410. The 
excluded data would be collected through the addition of SO411, 
Servicing Amortization and Valuation Adjustments, noted below; and
6. Holding Company or Affiliates Conducting Operations Outside of the 
U.S. Through a Foreign Branch or Subsidiary
    OTS proposes to revise the question asked in TFR line HC840, ``Is 
the holding company or any of its subsidiaries regulated by a foreign 
financial services regulator?'' to ``Is the holding company or any of 
its affiliates conducting operations outside of the U.S. through a 
foreign branch or subsidiary?'' This line is being revised to more 
fully identify holding companies with foreign operations, including 
parallel banking operations. A parallel banking organization exists 
when at least one U.S. bank and one foreign financial institution are 
controlled either directly or indirectly by the same person or group of 
persons who are closely associated in their business dealings or 
otherwise acting together, but are not subject to consolidated 
supervision by a single home country supervisor. A foreign financial 
institution includes a holding company of the foreign bank and any U.S. 
or foreign affiliates of the foreign bank.

C. New Items

1. SO142, Prepayment Fees, Late Fees, and Assumption Fees for Mortgage 
Loans
    OTS proposes to add TFR line SO142, Prepayment Fees, Late Fees, and 
Assumption Fees for Mortgage Loans, to collect data as a memorandum 
item to total interest income on mortgage loans to monitor changes in 
the volume of prepayment fees, late fees, and assumption fees relative 
to total interest income on mortgage loans. Beginning in 2006, pursuant 
to several institutions' requests and consistent with GAAP, prepayment 
fees, late fees, and assumption fees were included in interest income. 
Adding memorandum items SO142, SO162, and SO172 for these fees will 
allow for analysis of loan yields and the impact of these fees on 
interest income during interest rate and prepayment cycles.
2. SO162, Prepayment Fees, Late, Fees, and Assumption Fees for 
Commercial Loans
    OTS proposes to add TFR line SO162, Prepayment Fees, Late Fees, and 
Assumption Fees for Commercial Loans, to collect data as a memorandum 
item to total interest income on commercial loans to monitor changes in 
the volume of prepayment fees, late fees, and assumption fees relative 
to total interest income on commercial loans.
3. SO172, Prepayment Fees, Late Fees, and Assumption Fees for Consumer 
Loans
    OTS proposes to add TFR line SO172, Prepayment Fees, Late Fees, and 
Assumption Fees for Consumer Loans, to collect data as a memorandum 
item to total interest income on consumer loans to monitor changes in 
the volume of prepayment fees, late fees, and assumption fees relative 
to total interest income on consumer loans.
4. SO411, Servicing Amortization and Valuation Adjustments
    OTS proposes to add TFR line SO411, Servicing Amortization and 
Valuation Adjustments, to collect these data separately from SO410, 
Loan Servicing Fees, as noted under revisions to SO410. Separating 
amortization of servicing assets and liabilities and servicing 
valuation adjustments for classes of servicing assets and liabilities 
accounted for using the amortization method, and fair value adjustments 
for classes of servicing assets and liabilities accounted for using the 
fair value method, will allow for analysis of core income in SO410 and 
the volatility the adjustments in SO411 add to servicing income.
5. LD510, 1-4 Dwelling Units Construction-to-Permanent Loans
    OTS proposes to add TFR line LD510, 1-4 Dwelling Units 
Construction-to-Permanent Loans, to collect data as a memorandum item 
to SC230, Construction Loans--Total for Residential 1-4 Dwelling Units. 
Several savings associations requested this change. Some analysts 
consider construction loans made to the eventual homeowner to pose less 
credit risk than other construction loans. Adding this line will allow 
OTS to monitor the activity for such loans and monitor the overall 
construction loan credit performance of thrifts engaging in such 
lending.
6. LD520, Owner-Occupied Multifamily Permanent Loans
    OTS proposes to add TFR line LD520, Owner-Occupied Multifamily 
Permanent Loans, to collect data as a memorandum item to SC256, 
Permanent Loans--Total for Multifamily (5 or more) Dwelling Units. 
Planned TFR lines LD520 and LD530 will enable OTS to improve monitoring 
of commercial real estate (CRE) loan portfolios. The risk profiles of 
loans captured in these two line items are generally less

[[Page 43290]]

influenced by the condition of the broader CRE markets than other forms 
of CRE lending.
7. LD530, Owner-Occupied Nonresidential Property (Except Land) 
Permanent Loans
    OTS proposes to add TFR line LD530, Owner-Occupied Nonresidential 
Property (Except Land) Permanent Loans, to collect data as a memorandum 
item to SC260, Permanent Loans--Nonresidential Property (Except Land).
 8. LD610, 1-4 Dwelling Option ARM Loans
    OTS proposes to add TFR line LD610, 1-4 Dwelling Option ARM Loans. 
The data will provide OTS with information to monitor the volume of 
option ARM loans within 1-4 dwelling unit mortgage loan portfolios.
9. LD620, 1-4 Dwelling ARM Loans with Negative Amortization
    OTS proposes to add TFR line LD620, 1-4 Dwelling ARM Loans with 
Negative Amortization. The data will be used to monitor the volume of 
ARM loans with negative amortization features within 1-4 dwelling unit 
mortgage loan portfolios.
10. LD650, Total Capitalized Negative Amortization
    OTS proposes to add TFR line LD650, Total Capitalized Negative 
Amortization. The data will allow OTS to monitor the amount of 
capitalized negative amortization.
11. CF226, Mortgage Loans Disbursed--Permanent Loans--Home Equity and 
Junior Liens Disbursed--Permanent Loans--Home Equity and Junior Liens
    OTS proposes to add TFR line CF226, Mortgage Loans Disbursed--
Permanent Loans--Home Equity and Junior Liens. Aggregate home equity 
loans have increased strongly in recent years. Among OTS-regulated 
thrifts, such loans have increased over 70 percent to $91.6 billion in 
the first quarter of 2006 from $53.5 billion two years earlier. The 
proposed line items CF226, CF281, and C311 will provide OTS with data 
to monitor the activity of these loans.
12. CF281, Loans and Participations Purchased--Secured by 1-4 Dwelling 
Units--Purchased from Entities Other Than Federally-Insured Depository 
Institutions or Their Subsidiaries
    OTS proposes to add TFR line CF281, Loans and Participations 
Purchased--Secured by 1-4 Dwelling Units--Purchased from Entities Other 
Than Federally-Insured Depository Institutions or Their Subsidiaries. 
Aggregate thrift industry loan purchases from third party originators 
are strong, totaling $356 billion in 2005, or 35.2 percent of total 1-4 
dwelling unit mortgage loans originated and purchased. The addition of 
this line item will provide OTS with information regarding the source 
of these purchases.
13. CF282, Loans and Participations Purchased--Secured by 1-4 Dwelling 
Units--Home Equity and Junior Liens
    OTS proposes to add TFR line CF282, Loans and Participations 
Purchased--Secured by 1-4 Dwelling Units--Home Equity and Junior Liens. 
Industry holdings of home equity loans have increased significantly 
since 2004, rising over 70 percent to $91.6 billion in the first 
quarter of 2006 from $53.5 billion two years earlier. The growing 
volumes and importance of such loans to savings associations warrants 
the collection of additional data to monitor them.
14. CF311, Loans and Participations Sold--Secured by 1-4 Dwelling 
Units--Home Equity and Junior Liens
    OTS proposes to add TFR line CF311, Loans and Participations Sold--
Secured by 1-4 Dwelling Units--Home Equity and Junior Liens.
15. SI376, Assets Recorded On Schedule SC Under a Fair Value Option
    OTS proposes to add TFR line SI376, Assets Recorded On Schedule SC 
Under a Fair Value Option. Two outstanding and one proposed Statements 
of Financial Accounting Standards (FAS) include options for entities to 
elect to measure certain assets and liabilities at fair value, with 
changes in fair value reported in income. These outstanding and 
proposed standards comprise FAS 155, Accounting for Certain Hybrid 
Financial Instruments--an Amendment of FASB (Financial Accounting 
Standards Board) Statements No. 133 and 140; FAS 156, Accounting for 
Servicing of Financial Assets--an Amendment of FASB Statement No. 140; 
and an exposure draft, The Fair Value Option for Financial Assets and 
Financial Liabilities--Including an Amendment of FASB Statement No. 115 
(the fair value option (FVO) exposure draft).
    FAS 155 allows entities to elect fair value accounting for certain 
hybrid financial instruments that were previously required to be 
bifurcated pursuant to FAS 133 with the embedded derivative accounted 
for separately from the host contract. FAS 156 requires institutions to 
initially measure servicing assets and liabilities at fair value, then 
to establish classes of servicing assets for subsequent accounting for 
which they may elect amortization method (pre-FAS 156 method) or fair-
value accounting. The FVO exposure draft proposes to allow companies to 
irrevocably elect fair value as the measurement attribute for certain 
financial assets and financial liabilities, with changes in fair value 
recognized in earnings as those changes occur.
    FAS 155 and FAS 156 are effective for fiscal years beginning after 
December 15, 2006, though they may be adopted early in certain 
circumstances, and the FVO exposure draft is proposed to be effective 
for fiscal years beginning after December 15, 2006. Under the FVO 
exposure draft, as of the date of initial adoption, an entity would 
also be permitted to elect the fair value option for any existing 
financial asset or financial liability within the scope of the proposed 
Statement, with the difference between the fair value and its prior 
carrying amount recorded through retained earnings. OTS anticipates 
that relatively few institutions will elect fair value options, and 
therefore propose to collect minimal data. Institutions adopting fair 
value options may be asked to provide more detailed information 
separate from the TFR directly to supervisory staff.
16. SI377, Liabilities Recorded on Schedule SC Under a Fair Value 
Option
    OTS proposes to add TFR line SI377, Liabilities Recorded On 
Schedule SC Under a Fair Value Option as described in FAS 155, FAS 156, 
and in the FVO exposure draft. FAS 155 allows entities to elect fair 
value accounting for certain hybrid financial instruments that were 
previously bifurcated pursuant to FAS 133 with the embedded derivative 
accounted for separately. FAS 156 requires institutions to initially 
measure servicing assets and liabilities at fair value, then to 
establish classes of servicing assets for subsequent accounting for 
which they may elect amortization method (current method) or fair value 
accounting. The FVO exposure draft proposes to allow companies to 
irrevocably elect fair value as the measurement attribute for certain 
financial assets and financial liabilities, with changes in fair value 
recognized in earnings as those changes occur.
    FAS 155 and FAS 156 are effective for fiscal years beginning after 
December 15, 2006, though they may be adopted early in certain 
circumstances, and the proposed standard is also scheduled to be 
effective for fiscal years beginning after December 15, 2006. Under 
FASB's proposed fair value option standard, as of the date of initial 
adoption, an entity would also be permitted to elect the fair

[[Page 43291]]

value option for any existing financial asset or financial liability 
within the scope of the proposed statement, with the difference between 
the fair value and its prior carrying amount recorded through retained 
earnings.

D. Eliminating Confidential Treatment of Schedule HC Data

    OTS is requesting comments on the continued confidential treatment 
of data filed by individual thrift holding companies on Schedule HC. 
OTS presently does not publicly release Schedule HC data filed by 
holding companies. However, many public requests are received for these 
data. In addition, some rating agencies have indicated thrift holding 
company debt ratings suffer due to the lack of publicly available data. 
One option under consideration by OTS would permit holding companies 
filing these data to opt to maintain the confidentiality on a case-by-
case basis.
    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: 856.
    Estimated Burden Hours per Respondent: 36.5 hours average for 
quarterly schedules and 1.9 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: 130,026 hours.
    OTS is proposing to revise the TFR, which is currently an approved 
collection of information. 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. This proposal would eliminate ten line items 
from the TFR, revise six existing items, add 16 new items, and 
eliminate confidential treatment of Schedule HC data.
    OTS estimates that the implementation of these reporting revisions 
will result in a nominal 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.
    Clearance Officer: Marilyn K. Burton, (202) 906-6467, 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: July 26, 2006.
Deborah Dakin,
Senior Deputy Chief Counsel, Regulations and Legislation Division.
 [FR Doc. E6-12251 Filed 7-28-06; 8:45 am]
BILLING CODE 6720-01-P