[Federal Register Volume 88, Number 34 (Tuesday, February 21, 2023)]
[Notices]
[Pages 10644-10649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03543]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Joint notice and request for comment.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may 
not conduct or sponsor, and the respondent is not required to respond 
to, an information collection unless it displays a currently valid 
Office of Management and Budget (OMB) control number. The Federal 
Financial Institutions Examination Council (FFIEC), of which the 
agencies are members, has approved the agencies' publication for public 
comment of a proposal to revise and extend for three years the 
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, 
FFIEC 041, and FFIEC 051), which are currently approved collections of 
information. The FFIEC has also approved the Board's publication for 
public comment, on behalf of the agencies, of a proposal to revise and 
extend for three years the Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks (FFIEC 002), and the Report of 
Assets and Liabilities of a Non-U.S. Branch that is Managed or 
Controlled by a U.S. Branch or Agency of a Foreign (Non-U.S.) Bank 
(FFIEC 002S), which are also currently approved collections of 
information. The agencies are requesting comment on: proposed revisions 
to eliminate and consolidate items in the Call Reports and the FFIEC 
002 resulting from the statutorily mandated full review of the Call 
Reports as required under Section 604 of the Financial Services 
Regulatory Relief Act of 2006; proposed Call Report process revisions; 
and reporting of certain Federal Home Loan Mortgage Corporation and 
similar securitizations on the Call Report. The changes to the Call 
Reports and FFIEC 002 are proposed to take effect as of the June 30, 
2023, report date.

DATES: Comments must be submitted on or before April 24, 2023.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments will be shared among the 
agencies.
    OCC: You may submit comments, by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Office of the Comptroller of 
the Currency, Attention: 1557-0081, 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0081'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information provided, such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.
    You may review comments and other related materials that pertain to 
this information collection beginning on the date of publication of the 
second notice for this collection by the following method:
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0081.'' Upon finding the appropriate information 
collection, click on the related ``ICR Reference Number.'' On the next 
screen, select ``View Supporting Statement and Other Documents'' and 
then click on the link to any comment listed at the bottom of the 
screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
    Board: You may submit comments, which should refer to ``Call Report 
and FFIEC 002 Revisions,'' by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include ``Call 
Report and FFIEC 002 Revisions'' in the subject line of the message.
     Fax: (202) 395-6974.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available on the Board's website at https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information.
    FDIC: You may submit comments, which should refer to ``Call Report 
and FFIEC 002 Revisions,'' by any of the following methods:
     Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/. Follow the instructions for 
submitting comments on the FDIC's website.
     Email: [email protected]. Include ``Call Report and FFIEC 
002 Revisions'' in the subject line of the message.
     Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street NW building (located on F 
Street NW) on business days between 7:00 a.m. and 5:00 p.m.
     Public Inspection: All comments received will be posted 
without change to https://www.fdic.gov/resources/regulations/federal-register-publications/, including any personal information provided. 
Paper copies of public comments may be requested from the FDIC Public 
Information Center by telephone at (877) 275-3342 or (703) 562-2200.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officer for the agencies by mail to the Office of Information 
and Regulatory

[[Page 10645]]

Affairs, U.S. Office of Management and Budget, New Executive Office 
Building, Room 10235, 725 17th Street NW, Washington, DC 20503; by fax 
to (202) 395-6974; or by email to [email protected].

FOR FURTHER INFORMATION CONTACT: For further information about the 
proposed revisions to the information collections discussed in this 
notice, please contact any of the agency staff whose names appear 
below. In addition, copies of the report forms for the Call Reports can 
be obtained at the FFIEC's website (https://www.ffiec.gov/ffiec_report_forms.htm).
    OCC: Kevin Korzeniewski, Counsel, Chief Counsel's Office, (202) 
649-5490. If you are deaf, hard of hearing, or have a speech 
disability, please dial 7-1-1 to access telecommunications relay 
services.
    Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, 
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of 
the Federal Reserve System, 20th and C Streets NW, Washington, DC 
20551. Telecommunications Device for the Deaf (TDD) users may call 
(202) 263-4869.
    FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429.

SUPPLEMENTARY INFORMATION:

I. Affected Reports

    The proposed changes discussed below affect the Call Reports and 
the FFIEC 002.

A. Call Report

    The agencies propose to extend for three years, with revision, 
their information collections associated with the FFIEC 031, FFIEC 041, 
and FFIEC 051 Call Reports.
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: FFIEC 031 (Consolidated Reports of Condition and 
Income for a Bank with Domestic and Foreign Offices), FFIEC 041 
(Consolidated Reports of Condition and Income for a Bank with Domestic 
Offices Only), and FFIEC 051 (Consolidated Reports of Condition and 
Income for a Bank with Domestic Offices Only and Total Assets Less Than 
$5 Billion).
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Type of Review: Revision and extension of currently approved 
collections.
    OCC:
    OMB Control No.: 1557-0081.
    Estimated Number of Respondents: 1,042 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 41.97 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 174,931 burden hours to file.
    Board:
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 702 state member banks.
    Estimated Average Burden per Response: 45.18 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 126,865 burden hours to file.
    FDIC:
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 3,076 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 39.93 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 491,299 burden hours to file.
    The estimated average burden hours collectively reflect the 
estimates for the FFIEC 031, the FFIEC 041, and the FFIEC 051 reports 
for each agency. When the estimates are calculated by type of report 
across the agencies, the estimated average burden hours per quarter are 
85.75 (FFIEC 031), 56.26 (FFIEC 041), and 35.15 (FFIEC 051). The 
changes to the Call Report forms and instructions proposed in this 
notice resulted in the following estimated changes in burden hours per 
quarter. For the FFIEC 031 report, the revisions resulted in an average 
decrease across all agencies of approximately 0.7 hours per quarter; 
for the FFIEC 041 report, the revisions resulted in an average increase 
across all agencies of approximately 0.73 hours per quarter; and for 
the FFIEC 051 report, the revisions resulted in an average decrease 
across all agencies of approximately 0.23 hours per quarter. Generally, 
the proposed revisions related to the statutorily mandated review would 
result in a decrease in average burden for all report types. However, 
changes in the number of institutions filing each type of report, and 
changes to the amount of data items reported in each report since 
December 31, 2021, resulted in an average increase across all agencies 
in estimated burden for the FFIEC 041. The estimated burden per 
response for the quarterly filings of the Call Report is an average 
that varies by agency because of differences in the composition of the 
institutions under each agency's supervision (e.g., size distribution 
of institutions, types of activities in which they are engaged, and 
existence of foreign offices).
    Type of Review: Extension and revision of currently approved 
collections. In addition to the proposed revisions discussed below, 
Call Reports are periodically updated to clarify instructional guidance 
and correct grammatical and typographical errors on the forms and 
instructions, which are published on the FFIEC website.\1\ These non-
substantive updates may also be commented upon.
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    \1\ www.ffiec.gov/forms031.htm; www.ffiec.gov/forms041.htm; 
www.ffiec.gov/forms051.htm.
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Legal Basis and Need for Collections
    The Call Report information collections are mandatory: 12 U.S.C. 
161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C. 
1817 (insured state nonmember commercial and savings banks), and 12 
U.S.C. 1464 (federal and state savings associations). At present, 
except for selected data items and text, these information collections 
are not given confidential treatment.
    Banks and savings associations submit Call Report data to the 
agencies each quarter for the agencies' use in monitoring the 
condition, performance, and risk profile of individual institutions and 
the industry as a whole. Call Report data serve a regulatory or public 
policy purpose by assisting the agencies in fulfilling their shared 
missions of ensuring the safety and soundness of financial institutions 
and the financial system and protecting consumer financial rights, as 
well as agency-specific missions affecting federal and state-chartered 
institutions, such as conducting monetary policy, ensuring financial 
stability, and administering federal deposit insurance. Call Reports 
are the source of the most current statistical data available for 
identifying areas of focus for on-site and off-site examinations. Among 
other purposes, the agencies use Call Report data in evaluating 
institutions' corporate applications, including interstate merger and 
acquisition applications for which the agencies are required by law to 
determine whether the resulting institution would control more than 10 
percent of the total amount of deposits of insured depository 
institutions in the United States. Call Report data also are used to 
calculate the risk-based assessments for insured depository 
institutions.

B. FFIEC 002 and 002S

    The Board proposes to extend for three years, with revision, the 
FFIEC 002 and FFIEC 002S reports.

[[Page 10646]]

    Report Titles: Report of Assets and Liabilities of U.S. Branches 
and Agencies of Foreign Banks; Report of Assets and Liabilities of a 
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or 
Agency of a Foreign (Non-U.S.) Bank.
    Form Numbers: FFIEC 002; FFIEC 002S.
    OMB Control Number: 7100-0032.
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Respondents: All state-chartered or federally-licensed U.S. 
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a 
foreign banking organization.
    Estimated Number of Respondents: FFIEC 002--209; FFIEC 002S--38.
    Estimated Average Burden per Response: FFIEC 002--24.87 hours; 
FFIEC 002S--6.0 hours.
    Estimated Total Annual Burden: FFIEC 002--20,791 hours; FFIEC 
002S--912 hours.
    Type of Review: Extension and revision of currently approved 
collections.
    The proposed revisions to the FFIEC 002 instructions in this notice 
would not have a material impact on the existing burden estimates.
Legal Basis and Need for Collection
    On a quarterly basis, all U.S. branches and agencies of foreign 
banks are required to file the FFIEC 002, which is a detailed report of 
condition with a variety of supporting schedules. This information is 
used to fulfill the supervisory and regulatory requirements of the 
International Banking Act of 1978. The data also are used to augment 
the bank credit, loan, and deposit information needed for monetary 
policy and other public policy purposes. In addition, FFIEC 002 data 
are used to calculate the risk-based assessments for FDIC-insured U.S. 
branches of foreign banks. The FFIEC 002S is a supplement to the FFIEC 
002 that collects information on assets and liabilities of any non-U.S. 
branch that is managed or controlled by a U.S. branch or agency of the 
foreign bank. A non-U.S. branch is managed or controlled by a U.S. 
branch or agency if a majority of the responsibility for business 
decisions, including but not limited to decisions with regard to 
lending or asset management or funding or liability management, or the 
responsibility for recordkeeping in respect of assets or liabilities 
for that foreign branch resides at the U.S. branch or agency. A 
separate FFIEC 002S must be completed for each managed or controlled 
non-U.S. branch. The FFIEC 002S must be filed quarterly along with the 
U.S. branch or agency's FFIEC 002.
    These information collections are mandatory (12 U.S.C. 3105(c)(2), 
1817(a)(1) and (3), and 3102(b)). Except for select sensitive items, 
the FFIEC 002 is not given confidential treatment; the FFIEC 002S is 
given confidential treatment (5 U.S.C. 552(b)(4) and (8)). The data 
from both reports are used for (1) monitoring deposit and credit 
transactions of U.S. residents; (2) monitoring the impact of policy 
changes; (3) analyzing structural issues concerning foreign bank 
activity in U.S. markets; (4) understanding flows of banking funds and 
indebtedness of developing countries in connection with data collected 
by the International Monetary Fund and the Bank for International 
Settlements that are used in economic analysis; and (5) assisting in 
the supervision of U.S. offices of foreign banks. The Federal Reserve 
System collects and processes these reports on behalf of all three 
agencies.

II. Current Actions

A. Statutorily Mandated Review of the Call Report

1. Background
    Section 604 of the Financial Services Regulatory Relief Act of 2006 
requires the agencies to perform within one year of enactment and every 
five years thereafter, the review of information collected in the Call 
Reports (statutorily mandated review) to ``reduce or eliminate any 
requirement to file information or schedules under paragraph (3) (other 
than information or schedules that are otherwise required by law)'' if 
the agencies determine that ``the continued collection of such 
information or schedules is no longer necessary or appropriate.'' \2\ 
The agencies conducted the 2022 statutorily mandated review between 
June 2021 and March 2022.\3\ Over this period, staff at the FFIEC 
member entities who are users of Call Report data, representing a wide 
variety of functional areas, participated in a series of three surveys 
and conducted an analysis of recent reporting by Call Report 
respondents. As an integral part of these surveys, users were asked to 
explain the need for the continued collection of each Call Report data 
item, how the data item is used, the frequency with which it is needed, 
and the threshold for the population of institutions by asset size from 
which it is required. Based on these survey results, the agencies are 
proposing certain revisions in this notice.
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    \2\ 12 U.S.C. 1817(a)(11).
    \3\ The 2017 statutorily mandated review was accelerated as part 
of the 2014 FFIEC initiative to identify potential opportunities to 
reduce burden associated with the Call Report requirements for 
community banks. The initiative resulted in the creation of a new 
streamlined FFIEC 051 Call Report for eligible small institutions 
that took effect as of the March 31, 2017, report date. It also 
resulted in significant reductions to the number of data items 
reported, changes in the frequency of items collected, and increases 
in reporting thresholds for certain data items on the FFIEC 041 and 
the FFIEC 031 Call Reports. In addition, the agencies issued a final 
rule in June 2019 implementing Section 205 of the Economic Growth, 
Regulatory Relief, and Consumer Protection Act, expanding the 
eligibility for institutions to complete the FFIEC 051 Call Report. 
See 84 FR 29039 (June 21, 2019).
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2. Proposed Call Report Revisions
FDIC Loss-Sharing Agreements Items
    FDIC loss-sharing agreements indemnified institutions for certain 
losses incurred on specified assets acquired from failed insured 
depository institutions or otherwise purchased from the FDIC that are 
covered by such agreements with the FDIC. Under a loss-sharing 
agreement, the FDIC agreed to absorb a portion of the losses on a 
specified pool of a failed insured depository institution's assets to 
maximize asset recoveries and minimize the FDIC's losses. The number of 
institutions reporting on the related items has decreased as loans, 
other real estate, and other assets covered by loss-sharing agreements 
with the FDIC have largely been paid-off or sold. Additionally, all 
loss-sharing agreements have expired or have been terminated. 
Therefore, the agencies no longer consider the current level of detail 
on these agreements to be appropriate and are proposing to eliminate 
the following associated items:
     For all versions of the Call Report, Schedule RC-F, Other 
Assets, item 6.d, ``FDIC loss-sharing indemnification assets,'' which 
represent the carrying amount of the right to receive payments from the 
FDIC for losses incurred under loss-sharing agreements.
     For FFIEC 031 and FFIEC 041, Schedule RC-M, Memoranda, 
item 13, ``Assets covered by loss-agreements with the FDIC,'' including 
each subitem 13.a.(1)(a)(1) through 13.d. These items include, for each 
appropriate class of asset, the balance sheet carrying amount of all 
assets acquired from failed insured depository institutions or 
otherwise purchased from the FDIC that are covered by loss-sharing 
agreements.
     For the FFIEC 031, item 13.b.(6), ``In foreign offices.''
     For FFIEC 031 and FFIEC 041, Schedule RC-N, Past Due and

[[Page 10647]]

Nonaccrual Loans, Leases, and Other Assets, item 12, ``Loans and leases 
reported in items 1 through 8 above that are covered by loss-sharing 
agreements with the FDIC,'' including each subitem 12.a.(1)(a) through 
12.f. Items 12.a.(1)(a) through 12.e include the amount of all loans 
and leases covered by FDIC loss-sharing agreements that are past due 30 
days or more or are in nonaccrual status as of the report date. Item 
12.f includes the associated maximum amount recoverable from the FDIC, 
beyond the amount reflected in the loss-sharing indemnification assets.
     For the FFIEC 051, Schedule SU, Supplemental Information, 
item 9 ``Does the institution have assets covered by FDIC loss-sharing 
agreements?'' and items 9.a through 9.e, which report, as appropriate, 
the amount of loans, leases and other real estate owned that are 
covered by FDIC loss-sharing agreements, and details of amounts that 
are past due 30 days or more or are in nonaccrual status, and the 
maximum amount recoverable from the FDIC.
Noncash Income From Negative Amortization Loans
    Negative amortization loans contractually permit a borrower to make 
minimum periodic payments that are less than the full amount of 
interest owed to the lender, with the unpaid interest added to the 
loan's principal balance. Based on the results of the 2022 statutorily 
mandated full review, the agencies are proposing to remove one item 
related to negative amortization loans. The agencies are proposing this 
removal based on the decline in volume of institutions reporting of 
noncash income on negative amortization loans secured by 1-4 family 
residential properties to a level no longer deemed necessary to 
collect. The agencies would be able to continue monitoring the level of 
activity on negative amortization loans by reviewing the data reported 
on Schedule RC-C, Memorandum items 8.a through 8.c. Therefore, for all 
versions of the Call Report, the agencies are proposing to remove 
Schedule RI, Income Statement, Memorandum item 12, ``Noncash income 
from negative amortization on closed end loans secured by 1-4 family 
residential properties.''
Reverse Mortgages Items
    A reverse mortgage is an arrangement in which a homeowner borrows 
against the equity in a principal residence and receives cash either in 
a lump sum or through periodic payments and no payment is required from 
the borrower until the home is no longer used as the borrower's 
principal residence. Based on the results of the 2022 statutorily 
mandated full review, the agencies no longer need the current level of 
detail on this activity and are proposing, for all versions of the Call 
Report, to consolidate the subitems reported in Schedule RC-C, Loans 
and Lease Financing Receivables, Part I, Loans and Leases, Memorandum 
item 15, ``Reverse mortgages,'' \4\ which is completed annually in the 
December report only.
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    \4\ For FFIEC 031 only, ``Reverse mortgages in domestic 
offices.''
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    Specifically, the proposal would consolidate Memorandum item 
15.a.(1) and Memorandum item 15.a.(2) into Memorandum item 15.a, 
``Reverse mortgages outstanding that are held for investment (included 
in Schedule RC-C, item 1.c, above).'' Similarly, Memorandum item 
15.b.(1) and Memorandum item 15.b.(2) would be consolidated into 
Memorandum item 15.b, ``Estimated number of reverse mortgage loan 
referrals to other lenders during the year from whom compensation has 
been received for services performed in connection with the origination 
of the reverse mortgages.'' Finally, Memorandum item 15.c.(1) and 
Memorandum item 15.c.(2) would be consolidated into Memorandum item 
15.c, ``Principal amount of reverse mortgage originations that have 
been sold during the year.''
Paycheck Protection Program and Federal Reserve Facilities Items
    To enhance the functioning of money markets in response to the 
outbreak of the coronavirus disease 2019 and to bolster the 
effectiveness of the Small Business Administration's Paycheck 
Protection Program (PPP),\5\ the Board, with the approval of the 
Secretary of the Treasury, established in 2020 the Money Market Mutual 
Fund Liquidity Facility (MMLF) and Paycheck Protection Program 
Liquidity Facility (PPPLF).\6\ Under the MMLF, the Federal Reserve Bank 
of Boston extended loans to eligible borrowers to purchase assets from 
money market mutual funds, which were posted as collateral to the 
facility. Under the PPPLF, Federal Reserve Banks extended loans to 
eligible borrowers that were secured by covered loans originated under 
the PPP. In March 2020 and April 2020, the agencies published interim 
final rules (subsequently finalized in October 2020), which permit 
banking organizations to exclude from regulatory capital requirements 
exposures related to the MMLF and PPPLF.\7\ On June 26, 2020, the FDIC 
adopted a final rule modifying the deposit insurance assessment 
regulations to mitigate the assessment effects of participation in the 
MMLF, PPP and the PPPLF, as reported on the Call Report.\8\ Starting 
with the June 30, 2020, report date, banking organizations report 
amounts related to the MMLF, the PPP and PPPLF on Schedule RC-M, 
Memoranda. When adding these items, the agencies noted that these items 
were expected to be time-limited and would be reviewed in connection 
with the 2022 statutorily mandated review of the Call Report.\9\
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    \5\ See https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program.
    \6\ These facilities were established pursuant to section 13(3) 
of the Federal Reserve Act (12 U.S.C. 343(3)). See https://www.federalreserve.gov/monetarypolicy/mmlf.htm and https://www.federalreserve.gov/monetarypolicy/ppplf.htm. The PPPLF was 
previously known as the Paycheck Protection Program Lending 
Facility.
    \7\ 85 FR 16232 (March 23, 2020), 85 FR 20387 (April 13, 2020) 
and 85 FR 68243 (October 28, 2020).
    \8\ 85 FR 38282 (June 26, 2020).
    \9\ 85 FR 44366 (July 22, 2020).
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    The MMLF ceased extending credit on March 31, 2021, and as of April 
30, 2021, the outstanding amount of loans under the facility was zero 
dollars.\10\ The agencies are therefore proposing to remove Schedule 
RC-M, Memoranda, item 18.a, ``Outstanding balance of assets purchased 
under the MMLF'' and 18.b, ``Quarterly average amount of assets 
purchased under the MMLF and excluded from ``Total assets for the 
leverage ratio'' reported in Schedule RC-R, Part I, item 30'' on all 
versions of the Call Reports.
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    \10\ See https://www.federalreserve.gov/monetarypolicy/mmlf.htm.
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    The PPP ended on May 31, 2021, and the PPPLF ceased offering credit 
on July 30, 2021. However, during the 2022 statutorily mandated full 
review, the number and outstanding balance of PPP loans, along with the 
related outstanding balance pledged to the PPPLF, as reported by 
institutions on Schedule RC-M, items 17.a, 17.b and 17.c, were 
identified as continuing to be critical in the review of asset quality 
and other components of the Uniform Financial Institutions Rating 
System used by the agencies during safety and soundness examinations. 
In addition, item 17.b, outstanding balance of PPP loans along with 
items 17.d.(1) and 17.d.(2) that collect information on the remaining 
maturity of the outstanding balances of borrowings from the Federal 
Reserve Banks under the PPPLF were deemed required for FDIC deposit 
insurance assessment purposes. Finally, item 17.e, ``Quarterly average 
amount of PPP loans pledged to the PPPLF and excluded from ``Total 
assets for the leverage ratio'' reported in Schedule RC-R, Part I, item 
30'' continues to be

[[Page 10648]]

needed for regulatory capital purposes. The agencies will continue to 
monitor the PPP-related data items and plan to propose to discontinue 
the collection of these items once the aggregate industry activity has 
diminished to a point where individual institution information is of 
limited practical utility and is no longer needed for the purposes 
described above.
3. Proposed Revisions to FFIEC 002
    To maintain consistency of reporting between the Call Report and 
the FFIEC 002, and for the same reasons described earlier, the Board is 
proposing to remove the following item:
     Schedule O, Other Data for Deposit Insurance Assessments, 
Memorandum item 7, ``Quarterly average amount of holdings of assets 
purchased from money market funds under the Money Market Mutual Fund 
Liquidity Facility.''
    The Board would plan to remove Schedule O, Memorandum item 6, 
``Outstanding balance of Paycheck Protection Program (PPP) loans'' 
contemporaneous with removal of the PPP loan items on the Call Report 
as described above.

B. Proposed Call Report Process Revisions

    In addition to the proposed revisions to the Call Report, the 
agencies are requesting comment on two proposed process improvements to 
streamline preparation of the Call Report.
Format of Call Report Instructions
    Each quarter, the FFIEC and FDIC make available on their websites 
the Instructions for the Preparation of the Call Report, together with 
detailed updates to the Call Report instructions implemented for that 
quarter-end report date.\11\ The instructions and updates are formatted 
in a double-sided, printable format, including fixed page numbering and 
pages intentionally left blank, to facilitate the use of a hard copy 
stored in a binder (binder format). The agencies make the instructions 
available online in a Portable Document Format (PDF) format, and many 
institutions access and use the instructions in that format. However, 
continuing to maintain the instructions in a binder format increases 
the number of blank space and blank pages in the PDF files, which makes 
the document longer by increasing the number of pages in the document 
and could make using the instructions less efficient for users 
accessing the instructions electronically. Therefore, the agencies are 
seeking comment on the benefits and burdens, if any, of maintaining the 
PDF format of the instructions and updates only instead of continuing 
to support the binder format.
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    \11\ There is a combined set of instructions for the FFIEC 031 
and FFIEC 041 and a separate set of instructions for the FFIEC 051.
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Optional Tax Worksheet
    Each quarter the FFIEC and FDIC make available on their websites 
the optional tax worksheet, which is designed to assist certain 
institutions in the calculation of applicable income taxes for the 
year-to-date reporting period on the FFIEC 041 and FFIEC 051 Call 
Reports. Institutions are not required to use the optional tax 
worksheet and may use any reasonable approach for reporting applicable 
income taxes in their Call Report in accordance with Accounting 
Standards Codification (ASC) Topic 740, Income Taxes. The optional 
worksheet provides a simplified approach for calculating year-to-date 
applicable income taxes under ASC Topic 740. It should not be used by 
institutions that prepare quarterly financial statements in accordance 
with U.S. generally accepted accounting principles (GAAP) or where it 
will likely result in significantly lower applicable income taxes than 
as calculated under U.S. GAAP. In addition, the worksheet should not be 
used by institutions that are, for federal income tax purposes, either 
``S corporations'' or ``qualifying subchapter S subsidiaries'' as of 
June 30, 2022, and that are generally not subject to federal corporate 
income taxes. The agencies have determined that a limited number of 
institutions is accessing the optional tax worksheet on the applicable 
websites. Therefore, the agencies are seeking comment on the continued 
usefulness of the optional tax worksheet to Call Report filers or other 
stakeholders and any concerns if the agencies discontinue its 
publication.

C. Federal Home Loan Mortgage Corporation and Other Securitization 
Structures

    The Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) 
may acquire and securitize guaranteed bonds that are issued by third 
party trusts and backed by multifamily loans through a variety of 
structures, such as ``K-Deals'' and ``Q-Deals''.\12\ The June 2022 Call 
Report instruction book update and Supplemental Instructions included a 
technical clarification, indicating that structured financial products 
that are guaranteed by the U.S. government agencies, such as K-Deals 
and Q-Deals issued by Freddie Mac, are to be reported in Schedule RC-B, 
Securities, item 5.b, ``Structured financial products.'' The agencies 
made this technical clarification to promote consistent reporting 
treatment after receiving several inquiries on where to report these 
products. The agencies viewed item 5.b as the most appropriate location 
to report these products consistent with the pre-existing instructions. 
However, the agencies subsequently received additional inquiries about 
reporting Freddie Mac K-Deals and Q-Deals and other structured products 
in Schedule RC-B, including whether to report the related certificates 
in Schedule RC-B, item 4, ``Mortgage-backed securities (MBS).'' 
Therefore, the agencies are seeking comment on the reporting of these 
types of structured financial products including those issued or 
guaranteed by U.S. government or government sponsored agencies.
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    \12\ See https://mf.freddiemac.com/investors/k-deals and https://mf.freddiemac.com/investors/q-deals.
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III. Timing

    The proposed revisions to the Call Reports and the FFIEC 002 would 
first take effect as of the June 30, 2023, report date. The agencies 
invite comment on any difficulties that institutions would expect to 
encounter in implementing the systems changes necessary to accommodate 
the proposed revisions to the Call Reports and FFIEC 002 consistent 
with this effective date.

IV. Request for Comment

    Public comment is requested on all aspects of this joint notice 
including the questions that were provided in the earlier sections. In 
addition to the questions included above comment is specifically 
invited on:
    (a) Whether the proposed revisions to the collections of 
information that are the subject of this notice are necessary for the 
proper performance of the agencies' functions, including whether the 
information has practical utility;
    (b) The accuracy of the agencies' estimates of the burden of the 
information collections as they are proposed to be revised, including 
the validity of the methodology and assumptions used;
    (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 or other forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation,

[[Page 10649]]

maintenance, and purchase of services to provide information.
    Comments submitted in response to this joint notice will be shared 
among the agencies.

Ted Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.

Michele Taylor Fennell,
Deputy Associate Secretary of the Board, Board of Governors of the 
Federal Reserve System.

    Dated at Washington, DC, on January 25, 2023.

James P. Sheesley,
Assistant Executive Secretary, Federal Deposit Insurance Corporation.
[FR Doc. 2023-03543 Filed 2-17-23; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P