[Federal Register Volume 71, Number 231 (Friday, December 1, 2006)]
[Notices]
[Pages 69619-69621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-20379]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision


Submission for OMB Review; 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: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3507), OTS may not conduct or sponsor, and the 
respondent is not required to respond to, an information collection 
unless it displays a currently valid OMB control number. On July 31, 
2006, OTS requested public comment for 60 days (71 FR 43286) on 
proposed revisions to the Thrift Financial Report (TFR), which is 
currently an approved collection of information. The notice described 
regulatory reporting revisions proposed for the 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 revisions would 
eliminate ten line items from the TFR, revise six existing items, add 
16 new items, and eliminate confidential treatment of Schedule HC data.
    After considering the comments received, OTS has adopted the 
proposed revisions, with the exception of the proposals to revise the 
language of the question in line HC840 and to eliminate the 
confidential treatment of data in Schedule HC. OTS is setting the 
effective date for the revisions at March 31, 2007. OTS is submitting 
the adopted revisions to OMB for review and approval.

DATES: Submit written comments on or before January 2, 2007. The 
regulatory reporting revisions described herein take effect March 31, 
2007.

ADDRESSES: Send comments, referring to the collection by ``1550-0023 
(TFR Revisions--March 2007)'', to OMB and OTS at these addresses: 
Office of Information and Regulatory Affairs, Attention: Desk Officer 
for OTS, U.S. Office of Management and Budget, 725--17th Street, NW., 
Room 10235, Washington, DC 20503, or by fax to (202) 395-6974; and 
Information Collection Comments, Chief Counsel's Office, Office of 
Thrift Supervision, 1700 G Street, NW., Washington, DC 20552, by fax to 
(202) 906-6518, or by e-mail to [email protected]. 
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., 
Washington, DC, by appointment. To make an appointment, call (202) 906-
5922, send an e-mail to public.info@ots.treas.gov">public.info@ots.treas.gov, or send a facsimile 
transmission to (202) 906-7755.

FOR FURTHER INFORMATION CONTACT: For further information or to obtain a 
copy of the submission to OMB, please contact Marilyn K. Burton, OTS 
Clearance Officer, at [email protected], (202) 906-6467, or 
facsimile number (202) 906-6518, Litigation Division, Chief Counsel's 
Office, Office of Thrift Supervision, 1700 G Street, NW., Washington, 
DC 20552.
    You can obtain a copy of the March 2007 Thrift Financial Report 
form from the OTS Web site at http://www.ots.treas.gov or you may 
request it 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: The effect of the proposed revisions to the 
reporting requirements of these information collections will vary from 
institution to institution, depending on the institution's involvement 
with the types of activities or transactions to which the proposed 
changes apply. OTS estimates that implementation of these reporting 
changes will result in a small increase in the current reporting burden 
imposed by the TFR. The following burden estimates include the effect 
of the proposed revisions.
    Title: Thrift Financial Report.
    OMB Number: 1550-0023.
    Form Number: OTS 1313.
    Statutory Requirement: 12 U.S.C. 1464(v) imposes reporting 
requirements for savings associations. Except for

[[Page 69620]]

selected items, these information collections are not given 
confidential treatment.
    Type of Review: Revision of currently approved collections.
    Affected Public: Savings associations.
    Estimated Number of Respondents and Recordkeepers: 852.
    Estimated Burden Hours per Respondent: 36.6 burden hours.
    Estimated Frequency of Response: Quarterly.
    Estimated Total Annual Burden: 124,733 burden hours.
    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.

I. Background

    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 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. After savings 
associations make any necessary changes to their systems and records, 
OTS estimated that these reporting changes would produce an average net 
increase of 0.4 hours per institution per year in the ongoing reporting 
burden of the TFR. Nevertheless, when viewing these proposed revisions 
to the TFR within a larger context, they are intended to maintain the 
effectiveness of the on- and off-site supervision activities of the 
OTS, which should help to control the overall regulatory burden on 
institutions.
    In addition to the revisions that become effective pursuant to this 
notice, OTS is joining 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.

II. Current Actions

    OTS received four comment letters on the July 2006 proposal from 
the National Association of Home Builders (NAHB), a trade group whose 
members include savings associations, from the Bureau of Economic 
Analysis (BEA), an agency of the U.S. Department of Commerce, and from 
two OTS-supervised savings associations. The BEA was supportive of the 
proposed changes and indicated the changes would allow it to continue 
certain data and statistical series derived in part from TFR data.
    The NAHB supported the proposed changes and encouraged the addition 
of line items to collect data on the volume and performance of loans 
for the development of land for 1-4 family dwelling residential 
housing, and loans for the development of land for multifamily housing. 
The NAHB believes this additional reporting detail would assist in 
improving efficiency and competition in the market for residential 
acquisition and development loans, and would demonstrate different 
performance characteristics between construction and land development 
loans. After careful consideration of the NAHB comments, OTS has 
decided to consider these additional line items in a future revision of 
the TFR.
    Both comments from savings associations focused on the proposal to 
eliminate confidential treatment of data filed by individual thrift 
holding companies on Schedule HC. One savings association commenter 
suggested permitting filers of Schedule HC data to opt to maintain the 
confidentiality of the individual company's data, citing competitive 
concerns and privacy issues.
    The other savings association commenter requested maintaining the 
confidentiality of individual companies' Schedule HC data, citing the 
already

[[Page 69621]]

extensive reporting and disclosure requirements of companies with 
registered securities. This commenter also asserted that much of the 
consolidated financial information required by Schedule HC is included 
in the financial statements filed by public savings and loan holding 
companies with the Securities and Exchange Commission (SEC) pursuant to 
the Securities Act of 1934. The commenter stated that quarterly parent 
company only information is not normally available to the public. He 
noted that parent company only financial data of large bank holding 
companies collected by the Federal Reserve Board on Form FR Y-9LP may 
be released by the Board upon request on an individual basis, but that 
any data released is limited to financial information. He also noted 
that some of the definitions in Schedule HC are different than similar 
definitions applied in the SEC reporting context.
    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. 
After careful consideration of the comments related to Schedule HC, OTS 
has decided to maintain the confidentiality of individual company 
Schedule HC data.
    OTS has considered these comments and has decided to proceed with 
the proposed changes to Schedules SC, SO, LD, CF, SI, and SQ, but will 
not revise the language for question HC840. OTS decided to maintain the 
existing language of line HC840 after determining that the current 
wording more accurately captures the foreign operations OTS is most 
interested in without placing undue burden on the holding company 
enterprise to identify all foreign operations. Further, OTS will 
continue to maintain the confidential treatment of Schedule HC. These 
changes will become effective on March 31, 2007, and are detailed 
below.

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?'';
    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.''

B. 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

C. 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.

    Dated: November 27, 2006.
Deborah Dakin,
Senior Deputy Chief Counsel, Regulations and Legislation Division.
[FR Doc. E6-20379 Filed 11-30-06; 8:45 am]
BILLING CODE 6720-01-P