[Federal Register Volume 79, Number 56 (Monday, March 24, 2014)]
[Notices]
[Pages 15999-16001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06258]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority, pursuant to 5 CFR 1320.16 
(OMB Regulations on Controlling Paperwork

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Burdens on the Public). Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. Copies of the Paperwork Reduction Act 
Submission, supporting statement and approved collection of information 
instrument(s) are placed into OMB's public docket files. The Federal 
Reserve may not conduct or sponsor, and the respondent is not required 
to respond to, an information collection that has been extended, 
revised, or implemented on or after October 1, 1995, unless it displays 
a currently valid OMB control number.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer --Cynthia Ayouch--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551 (202) 
452-3829. Telecommunications Device for the Deaf (TDD) users may 
contact (202) 263-4869, Board of Governors of the Federal Reserve 
System, Washington, DC 20551.
    OMB Desk Officer--Shagufta Ahmed --Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 10235, 725 17th Street NW.,Washington, DC 20503.

Final Approval Under OMB Delegated Authority to Revise the Following 
Report

    Report Title: Capital Assessments and Stress Testing information 
collection.
    Agency Form Number: FR Y- 14A/Q/M.
    OMB Control Number: 7100-0341.
    Effective Dates: FR Y-14Q, March 31, 2014; FR Y-14M June 30, 2014.
    Frequency: Annually, semi-annually, quarterly, and monthly.
    Reporters: Large banking organizations that meet an annual 
threshold of $50 billion or more in total consolidated assets (large 
Bank Holding Companies or large BHCs), as defined by the Capital Plan 
rule (12 CFR 225.8).\1\
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    \1\ The Capital Plan rule applies to every top-tier large BHC. 
This asset threshold is consistent with the threshold established by 
section 165 of the Dodd-Frank Act relating to enhanced supervision 
and prudential standards for certain BHCs.
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    Estimated Annual Reporting Hours: Summary, 61,680 hours; Macro 
scenario, 1,860 hours; Counterparty credit risk (CCR), 2,520 hours; 
Basel III/Dodd-Frank, 660 hours; and Regulatory capital, 600 hours. FR 
Y-14Q: Securities risk, 1,200 hours; Retail risk, 1,920 hours; Pre-
provision net revenue (PPNR), 85,320 hours; Wholesale corporate loans, 
6,720 hours; Wholesale commercial real estate (CRE) loans, 6,480 hours; 
Trading risk, 46,224 hours; Basel III/Dodd-Frank, 2,640 hours; 
Regulatory capital, 4,800 hours; Operational risk, 3,360 hours; 
Mortgage Servicing Rights (MSR) Valuation, 864 hours; Supplemental, 960 
hours; and Retail Fair Value Option/Held for Sale (Retail FVO/HFS), 
1,216 hours. FR Y-14M: Retail 1st lien mortgage, 153,000 hours; Retail 
home equity, 146,880 hours; and Retail credit card, 91,800 hours. FR Y-
14 On-Going Automation for existing respondents: 9,120 hours.
    Estimated Average Hours per Response: FR Y-14A: Summary, 1,028 
hours; Macro scenario, 31 hours; CCR, 420 hours; Basel III/Dodd-Frank, 
22 hours; and Regulatory capital, 20 hours. FR Y-14Q: Securities risk, 
10 hours; Retail risk, 16 hours; PPNR, 711 hours; Wholesale corporate 
loans, 60 hours; Wholesale CRE loans, 60 hours; Trading risk, 1,926 
hours; Basel III/Dodd-Frank, 22 hours; Regulatory capital, 40 hours; 
Operational risk, 28 hours, MSR Valuation, 24 hours; Supplemental, 8 
hours; and Retail FVO/HFS, 16 hours. FR Y-14M: Retail 1st lien 
mortgage, 510 hours; Retail home equity, 510 hours; and Retail credit 
card, 510 hours. FR Y-14, On-going revisions for existing respondents, 
480 hours.
    Number of Respondents: 30.
    General Description of Report: The FR Y-14 series of reports are 
authorized by section 165 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act of 2010 (Dodd-Frank Act), which requires the 
Federal Reserve to ensure that certain BHCs and nonbank financial 
companies supervised by the Federal Reserve are subject to enhanced 
risk based and leverage standards in order to mitigate risks to the 
financial stability of the United States (12 U.S.C. 5365). 
Additionally, section 5 of the BHC Act authorizes the Board to issue 
regulations and conduct information collections with regard to the 
supervision of BHCs (12 U.S.C. 1844).
    As these data are collected as part of the supervisory process, 
they are subject to confidential treatment under exemption 8 of the 
Freedom of Information Act (FOIA) (5 U.S.C. 552(b)(8)). In addition, 
commercial and financial information contained in these information 
collections may be exempt from disclosure under exemption 4 of FOIA (5 
U.S.C. 552(b)(4)). Such exemptions would be made on a case-by-case 
basis.
    Abstract: The data collected through the FR Y-14A/Q/M schedules 
provide the Federal Reserve with the additional information and 
perspective needed to help ensure that large BHCs have strong, 
firm[hyphen]wide risk measurement and management processes supporting 
their internal assessments of capital adequacy and that their capital 
resources are sufficient given their business focus, activities, and 
resulting risk exposures. The annual Comprehensive Capital Analysis and 
Review (CCAR) exercise is also complemented by other Federal Reserve 
supervisory efforts aimed at enhancing the continued viability of large 
BHCs, including continuous monitoring of BHCs' planning and management 
of liquidity and funding resources and regular assessments of credit, 
market and operational risks, and associated risk management practices. 
Information gathered in this data collection is also used in the 
supervision and regulation of these financial institutions. In order to 
fully evaluate the data submissions, the Federal Reserve may conduct 
follow up discussions with or request responses to follow up questions 
from respondents, as needed.
    The semi-annual FR Y-14A collects large BHCs' quantitative 
projections of balance sheet, income, losses, and capital across a 
range of macroeconomic scenarios and qualitative information on 
methodologies used to develop internal projections of capital across 
scenarios.\2\ The quarterly FR Y-14Q collects granular data on BHCs' 
various asset classes and PPNR for the reporting period. The monthly FR 
Y-14M comprises three loan- and portfolio-level collections, and one 
detailed address matching collection to supplement two of the portfolio 
and loan-level collections. The FR Y-14Q and the FR Y-14M are used to 
support supervisory stress test models and for continuous monitoring 
efforts.
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    \2\ BHCs that must re-submit their capital plan generally also 
must provide a revised FR Y-14A in connection with their 
resubmission.
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    Current Actions: On September 30, 2013, the Federal Reserve 
published a final Federal Register notice (78 FR 59934) implementing 
numerous changes to the FR Y-14A/Q/M and extending the public comment 
period by 60 days regarding credit score data currently reported on the 
FR Y-14M and FR Y-14Q. The comment period expired on November 29, 2013. 
The Federal Reserve did not receive any comments or feedback on this 
notice.

Overview of Final Revisions

    In June 2013, the Federal Reserve proposed numerous changes to the 
FR Y-14A/Q/M, mostly related to the revised capital framework. During 
the initial public comment period, several commenters noted that the 
instructions to several schedules specifically reference Fair Isaac 
Corporation (FICO) scores, which could be considered an

[[Page 16001]]

endorsement of FICO and its products. These commenters further 
suggested that respondents should be given the option to report credit 
scores other than the FICO score.
    While the Federal Reserve finalized most of the revisions in 
September 2013, the Federal Reserve extended the public comment period 
to address industry concerns regarding credit score-related data items. 
In addition, the Federal Reserve removed the FICO score reporting 
requirement from the FR Y-14Q/M, effective December 31, 2013 and 
October 31, 2013, respectively. As an interim solution, respondents 
were given an option to continue reporting credit score segments and 
data items as in prior submissions, or to submit alternative ``industry 
standard'' credit scores. Supporting documentation was required for 
alternative scores, including both the vendor and version of the score 
for all FR Y-14M schedules and, for the FR Y-14M Credit Card schedule, 
detailed methodology used to map internal scores to ``industry 
standard'' scores, if applicable.
    As mentioned above the Federal Reserve did not receive any comments 
on the latest Federal Register notice. The Federal Reserve is revising 
the FR Y-14Q/M for credit-score related data items or segments in a 
manner substantively similar to the interim solution, effective with 
the March 31, 2014, and June 30, 2014, as of dates respectively. In 
general, for credit score-related data items or segments, respondents 
will be required to submit a commercially available credit bureau 
score. The FR Y-14Q/M instructions will be updated to clearly define 
that a commercially available credit bureau score must: (1) Be 
available to all commercial lenders and (2) provide the Federal Reserve 
with sufficient information regarding the credit score vendor to (a) 
determine whether the credit score is empirically derived and 
demonstrably sound, and (b) evaluate the performance of the credit 
score and compare that performance to other commercially available 
credit bureau scores. The specific requirements regarding these 
revisions are discussed in detail below.

FR Y-14Q

International Auto Loan, U.S. Auto Loan, International Credit Card, 
International Home Equity, International First Lien Mortgage, 
International Other Consumer, U.S. Other Consumer, International Small 
Business, U.S. Small Business, and Student Loan Schedules

    For the International Auto Loan, U.S. Auto Loan, International 
Credit Card, International Home Equity, International First Lien 
Mortgage, International Other Consumer, U.S. Consumer, International 
Small Business, U.S. Small Business, and Student Loan schedules, 
respondents will be required to segment portfolios by the credit score 
of the borrower at origination, in accordance with the current 
reporting requirements, using a commercially available credit bureau 
score. Segments for FICO scores will be provided in the instructions 
and segments for other scores will be available upon request through 
the respondent's Federal Reserve Bank Statistics contact. To support 
the supervisory modeling performed using these data, respondents will 
be required to submit supporting documentation detailing the type of 
credit score used to segment the portfolio. This methodology is the 
same as used in the interim period.

FR Y-14M

Domestic First Lien Closed-end 1-4 Family Residential Loan, Domestic 
Home Equity Loan and Home Equity Line, and Domestic Credit Card 
Schedules

    For data items in the Domestic First Lien Closed-end 1-4 Family 
Residential Loan (First Lien), Domestic Home Equity Loan and Home 
Equity Line (Home Equity), and Domestic Credit Card (Credit Card) 
schedules that currently collect Origination Credit Bureau Score and 
Current/Refreshed Credit Bureau Score, respondents will be required to 
report a commercially available credit bureau score as defined.
    To support the supervisory modeling using these data, two data 
items will be added to the First Lien and Home Equity schedules for 
each Origination Credit Bureau Score and Current Credit Bureau Score 
item, consistent with the supporting documentation required in the 
interim solution instructions. Specifically, the Credit Bureau Score 
Vendor data items will be added to collect information on the credit 
bureau that produced the reported credit score from a list of credit 
bureaus and an ``Other'' category. Also, the Credit Bureau Score 
Version data items will be new free form fields that will collect the 
version \3\ of the reported credit score (or, if ``Other'' was 
selected, the credit score vendor that produced the credit score and 
the associated version reported).
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    \3\ Credit bureaus update the methodology used to generate 
credit scores. Version refers to which methodology was used to 
generate the reported credit score.
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    Also for the First Lien and Home Equity schedules, the Current 
Credit Bureau Score items, which collect refreshed credit scores, will 
be changed from optional to mandatory. This item will enhance the 
Federal Reserve's ability to compare credit scores across time, issuing 
vendors, and respondents, consistent with the questions posed to the 
industry in the final Federal Register.
    In addition, to support supervisory modeling, the Original and 
Refreshed Credit Score Name/Version items of the Credit Card schedule 
will be modified and split into two items: (1) Original and Refreshed 
Credit Bureau Score Vendor and (2) Original and Refreshed Credit Bureau 
Score Version items. These modified items are consistent with similar 
items for the First Lien and Home Equity schedules and with supporting 
documentation required in the interim solution instructions.
    Finally, because proprietary scores are used more often for credit 
cards, two items regarding internal credit scores will be added to the 
Credit Card schedule for both the origination and refreshed credit 
score items, consistent with the interim solution: (1) An Internal 
Refreshed Credit Score Flag item that indicates if an internal score 
was mapped to a commercially available score; and (2) an Internal 
Refreshed Credit Score Value item that collects the internal score 
value used to map to the commercially available score.

    Board of Governors of the Federal Reserve System, March 18, 
2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014-06258 Filed 3-21-14; 8:45 am]
BILLING CODE 6210-01-P