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					Office of Thrift Supervision                                                  August 14, 2000
Department of the Treasury
                               This rescission does not change the applicability of
Transmittal                    the conveyed document. To determine the
                               applicability of the conveyed document, refer to the

TR–233                         original issuer of the document.

Federal Register, Vol. 65, No. 151, pgs. 48049-48056                         Number: TR–233

In the attached Federal Register notice published on Aug. 4, 2000, the Office of Thrift Supervi-
sion (OTS) proposes to amend the Thrift Financial Report (TFR) to collect data from OTS-
regulated thrift institutions on high loan-to-value and subprime loans, trust operations and hold-
ing companies to strengthen its supervisory capability. The agency also proposes to eliminate
collection of certain data it no longer needs. Among these categories are yields on deposits and
certain interest rate risk information. These changes would become effective with the March 31,
2001, filing of the TFR.

OTS asks for comment on the proposed changes during the 60-day period, which ends October
3rd. Any changes must then be approved by the Office of Management and Budget before be-
coming effective.

In March, OTS proposed collecting additional information on high loan-to-value loans, trust as-
sets and certain other categories, with the changes becoming effective with the third quarter
2000 TFR filing. OTS subsequently decided to postpone any changes to the TFR until March
2001, and include the subprime data request, to conform with the timing of changes to bank call
reports. Comments received on that earlier proposal will be considered as a response to the new
proposal.

The notice and request for comments was published in the August 4, 2000, edition of the Federal
Register, Vol. 65, No. 151, pp. 48049-48056. Written comments must be received on or before
October 3, 2000, and should be addressed to: Manager, Dissemination Branch, Information
Management and Services Division, Office of Thrift Supervision, 1700 G Street, N.W.,
Washington, DC 20552. Comments may be mailed, hand-delivered, faxed to 202/906-7755 or
(202) 906-6956 (if the comment is over 25 pages) or e-mailed to: public.info@ots.treas.gov. All
commenters should include their name and telephone number.

Additional information including sample forms can be obtained on OTS’s web site at
www.ots.treas.gov/tfrpage.html. A copy of this notice and the sample forms will be sent to all
TFR report preparers.




Office of Thrift Supervison                                                             Page 1 of 2
Transmittal 233
For further information contact:

Trudy Reeves 202/906-7317
Financial Reporting Division, Washington, DC




                                                    Richard M. Riccobono
                                                          Deputy Director
                                               Office of Thrift Supervision



Attachment




Page 2 of 2                                          Office of Thrift Supervision
                             Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices                                                    48049

  Approved: July 28, 2000.                              Affected Public: Not-for-profit                      other Federal agencies to comment on
Garrick R. Shear,                                    institutions, and state, local or tribal                proposed and continuing information
IRS Reports Clearance Officer.                       governments.                                            collections, as required by the
[FR Doc. 00–19850 Filed 8–3–00; 8:45 am]                Estimated Number of Respondents:                     Paperwork Reduction Act of 1995.
BILLING CODE 4830–01–P
                                                     500.                                                    Today, the Office of Thrift Supervision
                                                        Estimated Time Per Respondent: 1                     (OTS) within the Department of the
                                                     hour.                                                   Treasury solicits comments on proposed
DEPARTMENT OF THE TREASURY                              Estimated Total Annual Burden                        changes to the Thrift Financial Report
                                                     Hours: 500.                                             (TFR), effective with the March 31, 2001
Internal Revenue Service                                The following paragraph applies to all               report. The following subjects are
                                                     of the collections of information covered               discussed in more detail below:
Proposed Collection; Comment                         by this notice:                                            (1) Nontraditional lending, namely,
Request for Revenue Ruling 2000–33                      An agency may not conduct or                         high loan-to-value loans and subprime
                                                     sponsor, and a person is not required to                loans;
AGENCY: Internal Revenue Service (IRS),              respond to, a collection of information
Treasury.                                                                                                       (2) Mortgage-backed securities;
                                                     unless the collection of information                       (3) Asset-backed securities;
ACTION: Notice and request for                       displays a valid OMB control number.                       (4) Definition of mortgage loans;
comments.                                            Books or records relating to a collection                  (5) Junior liens;
                                                     of information must be retained as long                    (6) Credit cards
SUMMARY:   The Department of the
                                                     as their contents may become material                      (7) Accumulated other comprehensive
Treasury, as part of its continuing effort
                                                     in the administration of any internal                   income;
to reduce paperwork and respondent
                                                     revenue law. Generally, tax returns and                    (8) Home equity lines of credit
burden, invites the general public and
                                                     tax return information are confidential,                outstanding;
other Federal agencies to take this
                                                     as required by 26 U.S.C. 6103.                             (9) Nonmortgage loan activity;
opportunity to comment on proposed
                                                        Request for Comments: Comments                          (10) Deposit information and deposit
and/or continuing information
                                                     submitted in response to this notice will               insurance premium assessment
collections, as required by the
                                                     be summarized and/or included in the                    information;
Paperwork Reduction Act of 1995,                                                                                (11) Reciprocal balance accounts;
                                                     request for OMB approval. All
Public Law 104–13 (44 U.S.C.                                                                                    (12) Adjustments to capital;
                                                     comments will become a matter of
3506(c)(2)(A)). Currently, the IRS is                                                                           (13) Average balance sheet data;
                                                     public record. Comments are invited on:
soliciting comments concerning                                                                                  (14) Board of directors’ interest rate
                                                     (a) Whether the collection of
Revenue Ruling 2000–33, Deferred                                                                             risk limits;
                                                     information is necessary for the proper
Compensation Plans of State and Local                                                                           (15) IRS Domestic Building and Loan
                                                     performance of the functions of the
Governments and Tax-Exempt                                                                                   Association (DBLA) Test;
                                                     agency, including whether the
Organizations.                                                                                                  (16) Mutual fund and annuity sales;
                                                     information shall have practical utility;
DATES:  Written comments should be                   (b) the accuracy of the agency’s estimate                  (17) Filings under the Securities and
received on or before October 3, 2000 to             of the burden of the collection of                      Exchange Act of 1934;
be assured of consideration.                         information; (c) ways to enhance the                       (18) Savings association and
ADDRESSES: Direct all written comments               quality, utility, and clarity of the                    subsidiary web-site addresses;
to Garrick R. Shear, Internal Revenue                information to be collected; (d) ways to                   (19) Holding company financial
Service, room 5244, 1111 Constitution                minimize the burden of the collection of                information;
Avenue NW., Washington, DC 20224.                    information on respondents, including                      (20) Transactions with affiliates;
                                                     through the use of automated collection                    (21) Fiduciary and related services;
FOR FURTHER INFORMATION CONTACT:
                                                     techniques or other forms of information                   (22) Residual interests in financial
Requests for additional information or                                                                       assets sold;
copies of the revenue ruling should be               technology; and (e) estimates of capital
                                                     or start-up costs and costs of operation,                  (23) Federal Home Loan Bank (FHLB)
directed to Carol Savage, (202) 622–                                                                         structured advances and other
3945, Internal Revenue Service, room                 maintenance, and purchase of services
                                                     to provide information.                                 structured borrowings;
5242, 1111 Constitution Avenue NW.,                                                                             (24) Schedule YD, Yields on Deposits;
Washington, DC 20224.                                  Approved: July 28, 2000.                                 (25) Asset maturity data in Schedule
SUPPLEMENTARY INFORMATION:                           Garrick R. Shear,                                       SI;
  Title: Deferred Compensation Plans of              IRS Reports Clearance Officer.                             (26) Margin accounts;
State and Local Governments and Tax-                 [FR Doc. 00–19851 Filed 8–3–00; 8:45 am]                   (27) Estimated market value rate
Exempt Organizations.                                BILLING CODE 4830–01–P                                  shocks;
  OMB Number: 1545–1695.                                                                                        (28) Multifamily mortgages;
  Revenue Ruling Number: Revenue                                                                                (29) Mortgage loan activity;
Ruling 2000–33.                                      DEPARTMENT OF THE TREASURY                                 (30) Hedging activity;
  Abstract: Revenue Ruling 2000–33                                                                              (31) Eliminating confidential
specifies the conditions the plan                    Office of Thrift Supervision                            treatment for certain interest rate risk
sponsor should meet to automatically                                                                         and past due data;
defer a certain percentage of its                    Proposed Agency Information                                (32) Reporting frequency of Schedule
employees’ compensation into their                   Collection Activities                                   CSS (Subordinated Organization
accounts in an eligible deferred                     AGENCY: Office of Thrift Supervision,                   Schedule).
compensation plan.                                   Treasury.                                                  At the end of the comment period, the
  Current Actions: There are no changes              ACTION: Notice and request for                          comments and recommendations
being made to this revenue ruling at this            comments.                                               received will be analyzed to determine
time.                                                                                                        the extent to which OTS should modify
  Type of Review: Extension of a                     SUMMARY:  The Department of the                         the proposed revisions prior to giving its
currently approved collection.                       Treasury invites the general public and                 final approval. OTS will then submit the


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48050                       Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices

revisions to Office of Management and               Riegle Community Development and                        proposed TFR items on high LTV loans
Budget (OMB) for review and approval.               Regulatory Improvement Act of 1994                      should be treated as confidential for a
DATES: Submit comments on or before                 (the Riegle Act). These sections direct                 limited period of time in order to give
October 3, 2000.                                    the federal banking agencies to work                    associations time to resolve any issues
ADDRESSES: Send comments to Manager,                jointly toward more uniform reporting,                  surrounding the reporting of these
Dissemination Branch, Information                   review the information that institutions                loans?
Management and Services Division,                   currently report, and eliminate existing
                                                                                                            b. Subprime Loans
Office of Thrift Supervision, 1700 G                reporting requirements that are not
                                                    warranted for safety and soundness or                      Subprime lending is a potentially
Street, NW., Washington, DC 20552,
                                                    other public policy purposes.                           high-risk activity that can pose
Attention 1550–0023. Hand deliver
                                                       Several reporting changes being                      increased risk to the saving associations
comments to 1700 G Street, NW, from
                                                    proposed will introduce more                            involved and to the deposit insurance
9 A.M. to 5 P.M. on business days. Send
                                                    uniformity for savings associations,                    funds if appropriate safeguards are not
facsimile transmissions to FAX Number
                                                    banks, and bank holding companies to                    in place. FDIC-insured institutions have
(202) 906–7755 or (202) 906–6956 (ifthe                                                                     increasingly entered the subprime
                                                    certain aspects of regulatory reporting.
comment is over 25 pages). Send e-mails                                                                     lending market in recent years, and
                                                    In this regard, over the past several
to public.info@ots.treas.gov and include                                                                    industry analysts predict that many
                                                    years, banking organizations have
your name and telephone number.                                                                             nonbank subprime specialists will seek
                                                    sought greater consistency among the
Interested persons may inspect                                                                              to be acquired by FDIC-insured
                                                    reporting requirements imposed on
comments at the Public Reference                                                                            institutions to take advantage of the
                                                    savings associations, banks, and bank
Room,1700 G Street, NW, from 10 A.M.                                                                        relatively less expensive, more stable
                                                    holding companies.
until 4 P.M. on Tuesdays and                           Increasing the uniformity of reporting               funding source that insured deposits
Thursdays.                                          requirements, among the different types                 provide. The exact number of savings
FOR FURTHER INFORMATION CONTACT:                    of institutions supervised by the federal               associations involved in subprime
Trudy Reeves, Financial Reporting                   financial institution regulators, is a                  lending is not known with certainty;
Division, Office of Thrift Supervision,             necessary step toward achieving the                     however, the Federal Deposit Insurance
1700 G Street, NW., Washington, DC                  goal of a single set of reporting                       Corporation (FDIC) has estimated that
20552, (202) 906–7317. Interested                   requirements for the filing of core                     approximately 150 insured institutions,
persons may also obtain additional                  information that is set forth in Section                of which 24 are savings associations,
information on the internet at                      307(b) of the Riegle Act.                               currently have significant investment in
www.ots.treas.gov/tfrpage.html, or by                                                                       the subprime lending business. Despite
                                                    1. Nontraditional Lending                               a favorable economic environment, a
calling (202) 906–6078.
SUPPLEMENTARY INFORMATION:                             OTS is proposing to add a schedule to                disproportionate number of insured
   Title: Thrift Financial Report.                  the TFR comprised of memoranda data                     institutions that engage in subprime
   OMB Number: 1550–0023.                           on high loan-to-value loans and                         lending are problem institutions. The
   Form Number: OTS 1313.                           subprime lending, Schedule NL,                          estimated number of insured subprime
   Abstract: All Office of Thrift                   Nontraditional Lending. Only those                      lenders represents just over one percent
Supervision (OTS) regulated savings                 savings associations making such loans                  of all insured institutions, yet they
associations must comply with the                   would be required to file these data                    account for nearly 20 percent of all
information collections described in this           items.                                                  problem institutions. The actual extent
notice. OTS collects this information                                                                       of insured institutions’ involvement in
                                                    a. High Loan-to-Value Loans
each calendar quarter, or less frequently                                                                   subprime lending is not known because
if so stated. OTS needs this information               OTS has considerable supervisory                     there is no periodic reporting of this
to monitor and supervise the thrift                 interest in high loan-to-value (LTV)                    activity to the banking agencies. The
industry.                                           lending. Currently, OTS expects                         estimates that have been made come
   Current Actions: After reviewing its             associations to report loans with LTV                   from examination data, but the quality
current supervisory and examination                 ratios in excess of supervisory limits to               and timeliness of the subprime lending
needs, OTS proposes to revise the Thrift            their board of directors quarterly (12                  data gleaned from examination reports
Financial Report (TFR), effective with              CFR 560.101 (Appendix A, Interagency                    is constrained by inconsistent reporting
the March 31, 2001 report. These                    Guidelines for Real Estate Lending                      and by the length of the examination
revised reporting requirements are also             Policies)). However, OTS does not                       cycle. The issue of timeliness is
designed to complement the federal                  require associations to report LTV data                 particularly troublesome from a safety
banking agencies’ emphasis on risk-                 on the TFR. Due to increased                            and soundness perspective, since
focused supervision. OTS had proposed               supervisory concern regarding high LTV                  subprime lending tends to be a volume-
on March 1, 2000 to collect additional              lending, coupled with OTS’s need to                     oriented business that encourages rapid
information on high loan-to-value loans,            effectively monitor potential high risk                 portfolio growth. Consequently, there is
trust assets, residual interests in                 lending, OTS proposes to collect                        no reliable way to regularly monitor
financial assets sold, and structured               balances, originations and purchases,                   individual institutions’ subprime
liabilities beginning with the third                sales, charge-off and recovery data, and                lending programs. In several instances,
quarter of 2000.                                    delinquency data on permanent                           this has resulted in the unexpected and
   However, after considering comments              mortgage loans secured by 1–4 dwelling                  severe deterioration in the condition of
on the proposal and other factors, OTS              units with an LTV (1) between 90 and                    an institution from one examination to
decided to postpone any changes to the              100%, inclusive, and (2) greater than                   the next. Accordingly, OTS and the
TFR until March 2001. Comments                      100%. With this change, the TFR will be                 other banking agencies are proposing to
received to the March 1, 2000 Federal               more useful in promptly identifying                     collect a number of new items on
Register Notice will also be considered             regulated savings associations involved                 subprime lending. These proposed
as a response to this proposal.                     in this activity. OTS invites comment on                items would make possible the early
   This proposal also addresses certain             all aspects of the reporting of high LTV                detection and proper supervision of
aspects of Sections 307(b) and (c) of the           loans and particularly on whether the                   subprime lending programs through


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                            Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices                                                    48051

offsite monitoring procedures.                       current. Subprime loans may take the                      (e) Loan-to-value ratio. Is there a loan-
Associations involved in subprime                    form of direct extensions of credit; loans             to-value ratio above which a loan
lending would report quarter-end data                purchased from other lenders, including                secured by real estate would be
for the following eight categories of                delinquent or credit impaired loans                    considered subprime?
subprime loans in their loan portfolios:             purchased at a discount; and automobile                   (f) Credit scores or other ratings. If
(1) Revolving, open-end loans secured                or other financing paper purchased from                your association uses credit scoring to
by 1–4 family residential properties                 other lenders or dealers.                              determine whether a loan should be
extended under lines of credit, (2)                     OTS invites comment on all aspects of               categorized as subprime, are the scores
closed-end loans secured by first liens              the proposed new TFR items on                          custom or generic bureau scores?
on 1–4 family residential properties, (3)            subprime lending. In particular, OTS                      (1) If generic bureau scores were used,
closed-end loans secured by junior liens             seeks comment on the proposed                          below what score cutoff would a loan be
on 1–4 family residential properties, (4)            definition of subprime loans generally                 considered subprime?
loans secured by other properties, (5)               and on the following issues relating to                   (2) Does the score cutoff differ by loan
credit cards to individuals for                      this definition:                                       type?
household, family, and other personal                   (1) Should all individual subprime                     (g) Bankruptcy status. For example,
expenditures, (6) consumer loans                     loans be reported in the proposed new                  how far back in the customer’s credit
secured by automobiles, (7) other                    TFR items or should only those                         history would your association go to
consumer loans, and (8) other subprime               subprime loans that are held in a                      determine whether a bankruptcy should
loans. This information would be                     segregated portfolio or program be                     affect your categorization of a loan?
reported as memorandum items in the                  reported? Do you foresee any difficulties                 (h) Lack of credit history.
new Nontraditional Lending Schedule.                 in reporting individual subprime loans                    (i) Other factors. Please identify any
Associations involved in subprime                    or segregated groups of subprime loans?                other factor that should be considered
lending would also report their past due                (2) Based on the proposed definition                an indicator of a higher risk of default
and nonaccrual subprime loans, along                 of subprime loans above, approximately                 and explain why it should be
with charge-offs, recoveries, purchases,             what percentage of your savings                        considered.
originations, and sales of these loans. In           association’s loan portfolio would                        (5) Should the definition of subprime
these areas, two broader loan categories             currently be categorized as subprime?                  be identical for all types of loans, or
would be used: loans secured by real                 Using your association’s own internal                  should it differ by type of loan, e.g.,
estate and loans not secured by real                 definition of a subprime loan, what                    mortgage, automobile, and credit cards?
estate.                                              percentage of your loan portfolio does                    (6) Can your association determine
   The quality and validity of the                   your savings association currently                     from its records whether borrowers with
proposed subprime lending information                classify as subprime? Please indicate                  subprime characteristics have credit
to be collected in the TFR hinges on a               whether these percentages are based on                 support (e.g., public or private
workable definition of subprime                      an individual subprime loan approach                   guarantees, co-signers, and insurance)
lending. Subprime loans could be                     or a segregated portfolio or program                   on specific loans? If yes, do you
defined on the basis of either (a) loan              approach. To the extent possible,                      categorize loans with such credit
portfolios or programs that possess                  provide percentages for your                           support as subprime loans?
certain characteristics or (b) individual            association’s loan portfolio under both                   (7) The proposed subprime loan
loans with these characteristics.                    approaches.                                            definition relies on differences between
Whether the portfolio or program                        (3) What criteria does your association             traditional and ‘‘higher risk’’ borrowers?
approach or the individual loan                      use to determine which loans are                       How should the agencies take into
approach ultimately is adopted, OTS                  subprime? Are the criteria the same for                account shifts in that difference (e.g.,
and the other banking regulatory                     all types of loans, e.g., mortgage,                    what happens if ‘‘traditional’’ lending
agencies are proposing the following                 automobile, and credit cards? If not,                  standards drop)?
definition of subprime loans for                     how do they differ?                                       (8) Should the subprime loan
purposes of financial reporting                         (4) In defining subprime loans, which               definition distinguish between
information to the regulatory agencies:              factor(s) listed below are the best                    institutions that target higher risk
   Subprime loans are extensions of                  indicators of a higher risk of default?                borrowers as opposed to those
credit to borrowers who, at the time of                 (a) Higher loan fees.                               institutions that serve a community in
the loan’s origination, exhibit                         (b) Higher interest rates. For example,             an economically disadvantaged area
characteristics indicating a significantly           should all loans made at a contract rate               where the repayment ability of area
higher risk of default than traditional              200 basis points above the rate that is                borrowers can be or has been adversely
bank lending customers. Risk of default              offered to a traditional savings                       affected?
may be measured by traditional credit                association customer for the same type                    (9) Should there be a de minimus
risk measures, e.g., credit/repayment                of loan be included as subprime loans?                 level of subprime loans below which
history and debt-to-income levels, or by                (c) Debt-to-income ratios. For                      reporting is not required?
alternative measures such as credit                  example, should a loan to a borrower                      (10) Should smaller savings
scores. Subprime borrowers represent a               with a specific debt-to-income ratio                   associations be treated differently from
broad spectrum of debtors ranging from               above a stipulated level automatically                 larger savings associations for reporting
those who have exhibited repayment                   be a subprime loan?                                    purposes?
problems prior to origination of their                  (d) Delinquency history. For example,                  (11) What types of loans or lending
loans due to an adverse event, such as               if, at the time of the loan’s origination,             programs, if any, should be excluded
job loss or medical emergency, to those              the customer had two or more payments                  from the definition of subprime loans
who persistently mismanage their                     that were 30 days past due in the last                 or, if included in the definition,
finances and debt obligations. Subprime              12 months or had loans charged off in                  reported separately from other subprime
lending does not include loans to                    the last 12 months, would the loan be                  loans? Please explain the reasons for the
borrowers who have had minor,                        subprime? What type of delinquency                     exclusion or separate reporting.
temporary credit difficulties since the              history would constitute a subprime                       (12) Should the proposed TFR items
origination of their loans but are now               borrower in your association’s view?                   on subprime loans be treated as


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48052                       Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices

confidential for a limited period of time           this line item will provide important                   dwelling units in the balance sheet
in order to give associations time to               information concerning the holdings of                  (Schedule SC) to better monitor the
resolve issues surrounding which loans              these securities and, moreover, would                   riskier junior lien market. Currently the
should and should not be reported as                facilitate reconciliation between                       TFR does not collect data on single-
subprime?                                           Schedules SC and CMR. The other                         family residential junior liens. This
  Although this proposal would create               banking agencies have proposed                          change will make the TFR mortgage
several new line items, the burden of               collecting data on asset-backed                         loan breakdown consistent with the
reporting this information will fall only           securities on the March 2001                            commercial bank Call Report. This
upon those savings associations engaged             commercial bank Call Report.                            change will also be made to the
in subprime lending, as defined. If the                                                                     breakdown of residential mortgages in
number of associations involved in this             4. Definition of Mortgage Loans
                                                                                                            the charge-off and recovery data on
activity is consistent with the current                OTS proposes to redefine mortgages                   Schedule VA.
estimate, these proposed new reporting              for TFR reporting, consistent with the
requirements would affect                           commercial bank Call Report, to include                 6. Credit Cards
approximately two percent of the                    all loans predicated upon a security                       OTS proposes to break out credit
associations that file TFRs. OTS would              interest in real property. That is, a loan              cards separately under the heading
welcome any additional information                  secured wholly or substantially by a lien               ‘‘Consumer Loans.’’ Currently credit
commenters can provide on the number                on real property for which the lien is                  cards are combined with other similar
of associations that are subprime                   central to the extension of the credit. A               plans such as overdraft lines on
lenders in order to improve OTS’s                   lien is considered central to the                       checking accounts. These other similar
assessment of the potential reporting               extension of credit if the borrower                     plans would be reported with ‘‘Other
burden of this proposal.                            would not have been extended credit in                  Consumer Loans.’’ Because of the
                                                    the same amount or on terms as                          change in the definition of mortgage
2. Mortgage-Backed Securities                       favorable without the lien on real                      loans mentioned above and the
   OTS proposes to combine mortgage-                property. All loans satisfying this                     elimination of revolving loans secured
backed pass-through securities and                  definition would be reported as                         by 1–4 dwelling units from consumer
mortgage derivatives into one section in            mortgages, regardless of whether                        loans, the distinction between closed-
the balance sheet (Schedule SC).                    secured by first or junior liens,                       end and open-end consumer loans
Currently, mortgage derivative securities           regardless of the department within the                 would be eliminated and the line for
are reported on a line under investment             association or its subsidiary that                      ‘‘Other, Including Leases’’ would
securities, and mortgage pool securities            originated the loan, regardless of how                  contain both closed-end loans and open-
are reported in a separate section                  the loans are categorized in the savings                end loans like those currently reported
between investment securities and                   association’s records for HOLA                          with credit cards. Credit cards would be
loans. OTS proposes combining                       investment limits, and regardless of the                broken out separately on the balance
mortgage-backed securities into one                 purpose of the financing. The only real                 sheet (Schedule SC), charge-offs and
section, which would replace the                    estate secured loans that will be                       recoveries (Schedule VA), and past due
section on mortgage pool securities, and            reported as nonmortgage loans are those                 and nonaccrual (Schedule PD).
adding two lines under mortgage                     that are otherwise substantially secured,
derivative securities to provide (1) those          where the mortgage was taken as an                      7. Accumulated Other Comprehensive
issued or guaranteed by FNMA,                       abundance of caution (for example, auto                 Income
FHLMC, or GNMA, and (2) those                       loans), and where the terms as a                           OTS proposes to add a subsection in
collateralized by securities issued or              consequence have not been made more                     the equity section of the balance sheet
guaranteed by FNMA, FHLMC, or                       favorable than they would have been in                  (Schedule SC) for accumulated other
GNMA. This would provide consistent                 the absence of the lien. That is, if the                comprehensive income to conform the
information with the commercial bank                loan is substantially secured by a                      TFR to generally accepted accounting
Call Report, would be more consistent               mortgage and that is the only security                  principles (GAAP). This section would
with the presentation of mortgage-                  for the loan, the loan should be reported               include the existing line for unrealized
backed securities in financial statements           as a mortgage even if the loan was based                gains (losses) on available-for-sale
included with 34 Act filings, and would             primarily on the ‘‘creditworthiness of                  securities and an additional line for
provide information on the degree of                the borrower.’’ The current requirement                 ‘‘other’’ that would include gains
risk of the derivative investment.                  for classification as a mortgage—that a                 (losses) on cash flow hedges, foreign
Consistent with the commercial bank                 loan be fully secured by the property                   currency translation adjustments, and
Call Report, mortgage-backed bonds                  and that an appraisal or other evaluation               minimum pension liability adjustments.
would be reported with other                        be performed—will no longer apply.
investments in the balance sheet on                    This change will put virtually all                   8. Home Equity Lines of Credit
SC185.                                              mortgages together on the balance sheet                 Outstanding
                                                    and will make the TFR definition of                        OTS proposes to add a line in
3. Asset-Backed Securities
                                                    mortgages clearer and consistent with                   Schedule CC (Commitment and
   OTS proposes to add a line under                 the commercial bank Call Report. Data                   Contingencies) to provide data on the
‘‘Investment Securities’’ on the balance            item SC340, Revolving Loans Secured                     balance of outstanding home equity
sheet (Schedule SC) to collect securities           by 1–4 Dwelling Units in Consumer                       lines of credit that have not yet been
collateralized by nonmortgage loans                 Loans would be eliminated and all                       drawn down; currently these amounts
(asset-backed securities), including all            revolving loans would be reported with                  are included with Open-end Consumer
securities backed by credit cards, other            mortgage loans.                                         Lines on CC410.
consumer loans, and commercial loans.
Asset-backed securities are currently               5. Junior Liens                                         9. Nonmortgage Loan Activity
reported in the miscellaneous securities               OTS proposes to add a breakdown                         Because nonmortgage loans have
category, combined with other types of              between first liens and junior liens                    become a larger, and, in most cases,
investment securities. The addition of              under ‘‘Permanent Mortgages’’ on 1–4                    riskier part of the industry’s loan


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                            Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices                                                    48053

portfolio, OTS proposes to add a line               will produce more accurate data for use                 17. Filings Under the Securities and
capturing sales of nonmortgage loans.               in ratio analysis, will avoid skewed data               Exchange Act of 1934
Schedule CF currently reconciles the                when restructuring and acquisitions                       Currently the OTS can determine the
activity in mortgage loans, deposits, and           occur, and will enable calculation of                   number of holding companies that file
mortgage pool securities; however, only             better yield/cost data. Savings                         under the Securities and Exchange Act
one line for nonmortgage loan                       associations will have the option of                    of 1934 only through the examination
originations and purchases is available             calculating these averages using either                 process. Because the Securities and
for nonmortgage loan activity. This line            daily or weekly balances. The three                     Exchange Commission (SEC) does not
along with the proposed line would                  proposed quarterly averages are average                 maintain a listing of savings and loan
permit reconciliation of nonmortgage                total assets, average interest-earning                  holding companies that file with them,
loans and would indicate the volume of              assets, and average interest-costing                    OTS proposes to add the following
nonmortgage loans that are originated               liabilities.                                            questions in the TFR to provide the user
and sold within the same quarter.                                                                           with immediate information on whether
                                                    14. Board of Directors’ IRR Limits                      there is a filing available on this savings
10. Deposit Information and Deposit
Insurance Premium Assessment                           OTS proposes to add two lines to                     association or its holding company with
Information                                         collect the association’s interest rate risk            the OTS or the SEC.
                                                    limits as set by their Board of Directors                 Add the following two yes/no
  OTS proposes to move the deposit
                                                    for the plus/minus 200 basis point rate                 questions in Schedule SQ
data and deposit insurance premium
                                                    shock scenarios. This information will                  (Supplemental Questions):
assessment information from Schedule
SI to a new schedule, Schedule DI                   be used for off-site monitoring to                         For the current quarter, is the reporting
(Deposit Information). Schedule SI was              identify saving associations that may be                savings association required to file periodic
designed to contain supplementary data              in excess of their Board limits. These                  securities disclosure documents (for
                                                                                                            example, Form 10–Q or 10–K) with the OTS,
not collected elsewhere in the TFR.                 lines will be added to Schedule SI. All                 following the rules under the Securities
Because the number of items collected               savings associations would be required                  Exchange Act of 1934? If the reporting
for deposit insurance premium                       to complete these lines.                                association is in a holding company
assessment purposes has increased                                                                           structure, for the current quarter, is the
substantially over the past ten years, we           15. IRS Domestic Building and Loan                      holding company required to file periodic
believe it is preferable to move these              Association (DBLA) Test                                 securities disclosure documents (for
data items to a separate schedule.                                                                          example, Form 10–Q or 10–K) with the SEC,
                                                       OTS proposes to add a line for those                 pursuant to the Securities Exchange Act of
11. Reciprocal Balance Data for Deposit             savings associations that do not use the                1934?
Insurance Premium Assessments                       HOLA QTL test, but instead use the IRS
                                                    Domestic Building and Loan                              18. Savings Association and Subsidiary
   The FDIC Assessment Division has                                                                         Web Site Addresses
requested that OTS re-establish a line              Association (DBLA) Test. The addition
that was deleted in 1996 that collects              of this line would more exactly identify                   OTS proposes the addition of Internet
reciprocal balance accounts deducted                savings associations that are using the                 home page addresses to assist in
from insured deposits in calculating the            IRS DBLA test and would enable the                      monitoring the activities of savings
deposit insurance premium. This line                regions to better monitor the QTL status                associations on their web sites and the
would be collected in the new Schedule              of those associations. This line would be               addition of a question asking if the
DI and would be captioned:                          added in Schedule SI following the                      savings association provides
‘‘Adjustments to Demand Deposits for                lines for QTL. It would be required only                transactional Internet banking to its
Reciprocal Demand Balances with                     of those associations using the DBLA                    customers, as defined in 12 CFR
Commercial Banks and Other Savings                  test.                                                   555.300(b). The data item for the savings
Associations.’’ These reciprocal demand                                                                     association’s web site and question on
                                                    16. Mutual Fund and Annuity Sales                       transactional Internet banking will be
balances are currently collected along
with other items in SI247. This new line                                                                    collected in Schedule SQ
                                                       OTS proposes to eliminate the
item would be included in the new                                                                           (Supplementary Questions). We also
                                                    collection of data on quarterly sales of
Schedule DI, mentioned above.                                                                               propose adding a similar data item to
                                                    annuities, mutual funds, and
                                                                                                            collect web sites of subsidiaries in
12. Adjustments to Capital                          proprietary products, SI800 through
                                                                                                            Schedule CSS (Subordinate
                                                    SI850. In place of these items, each
   Currently SI670, Other Adjustments                                                                       Organization Schedule).
                                                    savings association would respond to a
to Equity Capital, is made up of various                                                                    19. Holding Company Financial
                                                    ‘‘yes’’ or ‘‘no’’ question asking whether
items, and for most savings associations                                                                    Information
                                                    it sells private label or third party
this miscellaneous data item is the
                                                    mutual funds and annuities. In addition,                  More complex business plans,
largest reconciling amount to capital. To
provide a better breakout of this                   savings associations would report the                   advances in technology, increased
adjustment, OTS proposes adding the                 total assets under their management in                  merger and acquisition activity, and
following three data items in the                   proprietary mutual funds and annuities.                 earnings pressures have changed the
reconciliation of equity capital in                 The data item collecting fee income                     nature of the relationship of the thrift
Schedule SI: (1) Other comprehensive                from the sale and servicing of mutual                   with its affiliates. With finite
income; (2) other capital contributions             funds and annuities would be retained.                  examination resources, OTS must fully
(where no stock is issued); and (3) prior           For savings associations with                           leverage its ability to collect information
period adjustments.                                 proprietary mutual funds and annuities,                 for the purpose of off-site monitoring
                                                    reporting the amount of assets under                    and more precisely scope for its onsite
13. Average Balance Sheet Data                      management should be significantly less                 examinations. Therefore, OTS proposes
   OTS proposes to add three new data               burdensome than reporting the quarterly                 to add a schedule to the TFR to collect
items in Schedule SI to collect average             sales volume for these proprietary                      data on thrift holding companies. In
asset and liability data. This information          products. run                                           general, the ‘‘top’ owner (ownership


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48054                        Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices

command can go no further) of the thrift             affiliates, and (c) extensions of credit to             supervisory information relating to
would be required to file. Typically, one            affiliates; (4) the percentage of the                   fiduciary activities on a timelier basis.
holding company report would be filed                thrift’s directors who are also directors               This will enable OTS to identify trends
per savings association; however, more               of affiliates; and (5) the percentage of                and changing risk profiles relating to
than one holding company report may                  the thrift’s officers who are also officers             fiduciary activities more quickly.
be required when multiple top owners                 of the affiliates.                                         Most of the 51 data items that would
exist. Holding companies owning more                                                                         be reported quarterly in the fiduciary
                                                     21. Fiduciary and Related Services
than one savings association would be                                                                        schedule are included in the current
required to file only once. Bank holding                The OTS proposes to adopt the same                   annual trust reports. Modifications have
companies would be excluded from                     schedule on trust activities that has                   been made to some of the existing items
reporting. In all of the above cases, the            been proposed by the other banking                      to improve their value and usefulness.
OTS Regional Director will specifically              agencies. OTS and the other banking                     An additional 47 data items would only
identify the holding company from                    agencies propose to change the manner                   be collected annually in the December
which data is to be collected. The data              in which associations report                            31 report, which would be required of
collected would include: Total assets;               information on their trust activities. The              all associations with trust activities. The
total liabilities; total equity; intangible          existing Annual Report of Trust Assets                  total number of separately reportable
assets and deferred policy acquisition               (FFIEC 001) and the quarterly TFR line                  data items in the proposed fiduciary
costs; debt maturing within the next 12              SI350 (Approximate Value of Trust                       schedule represents a decrease of almost
months (excluding deposits); all other               Assets Administered) would be replaced                  40 percent in the number of reportable
debt (excluding deposits); net cash flow             with a quarterly Fiduciary and Related                  items in the current Annual Report of
from operations; net income; and                     Services Schedule (TFR Schedule FS).                    Trust Assets.
interest expense. The data will be based             This new schedule would become part
                                                                                                                Although roughly half of the
on holding company consolidated                      of the TFR and would be filed within
                                                                                                             associations currently reporting trust
financial statements. The holding                    the same timeframe as the TFR. Under
                                                                                                             activities annually would have a new
company would provide the data to the                this proposal, associations that have
                                                     total fiduciary assets greater than $100                quarterly filing requirement, these
savings association, and the holding                                                                         associations should already have a
company schedule would be filed as                   million or fiduciary income greater than
                                                     10 percent of their combined net                        reporting system in place to track this
part of the TFR, within the same                                                                             information. In addition, savings
timeframes as the TFR. As of March 31,               interest and noninterest income, as well
                                                     as all nondeposit trust companies that                  associations with small trust activities
2000, there were 531 thrifts owned by                                                                        would, at most, have to provide trust
thrift holding companies; therefore,                 file TFRs, would be required to report
                                                     certain trust information in Schedule FS                data in 36 items once each year. Thus,
48% of all savings associations filing a                                                                     OTS believes this proposal should not
TFR would be required to file the                    quarterly. Less than five percent of those
                                                     associations reporting to OTS would be                  produce a significant overall increase in
proposed holding company schedule.
                                                     required to file this new trust schedule                reporting burden for savings
20. Transactions with Affiliates                     on a quarterly basis. All other                         associations with trust activities. OTS is
   OTS proposes to add memoranda                     associations involved in trust activities               proposing to add the new fiduciary
information in Schedule SI on certain                would report select information at                      schedule to the TFR instead of retaining
transactions the savings association has             calendar year end only. The information                 a separate trust report in order to
with its affiliates. The term ‘‘affiliate’’ is       proposed includes the number of                         facilitate the timely collection and
defined in 12 CFR 563.41(b)(1). For                  accounts and the market value of trust                  processing of the information. Savings
purposes of the collection of this data,             assets for eight categories of fiduciary                associations filing the current annual
‘‘affiliate’’ is defined as the holding              activities and a fiduciary and related                  trust reports generally must submit their
company(s), any holding company                      services income statement. These                        reports within 45 days after year-end.
subsidiary(s), a bank or thrift subsidiary           associations would additionally report,                 Electronically submitted annual trust
of the savings association, and any                  at calendar year-end, data on corporate                 reports, first allowed for year-end 1998
company controlled by or for the benefit             trust activities, collective investment                 reporting, have a 75-day filing deadline.
of shareholders, or which shares a                   funds and common trust funds,                           By moving the reporting of fiduciary
majority of the same directors with the              fiduciary settlements and other losses,                 information into the TFR, the
savings association or holding company.              and types of assets held in personal                    submission deadline for the TFR would
These data generally will not include                trust and agency accounts. The fiduciary                apply to this reporting requirement. The
transactions with subsidiaries of the                and related services income statement                   length of time that savings associations
savings association. Additionally, any               and the items on fiduciary settlements                  with trust activities would have for
transaction by a savings association or              and other losses would be treated as                    completing the fiduciary schedule
its subsidiaries with any person or                  confidential information on an                          would be reduced from 75 days to 30
entity is a transaction with an affiliate            individual association basis, which                     days. OTS invites comment on all
if the proceeds of the transaction are               would maintain the treatment accorded                   aspects of the proposed Fiduciary
used for the benefit of, or transferred to,          this information in the Annual Report of                Schedule. In particular, we seek
an affiliate. The items to be collected              Trust Assets. The agencies have applied                 comment on the following issues
are: (1) Fees/expenses paid by the thrift            confidential treatment to this trust                    relating to this schedule:
to affiliates during the quarter including           income and loss information because                        (1) Do the proposed criteria for
interest, management and service fees,               these data generally pertain to only a                  determining which savings associations
tax sharing payments, and other general              portion of a reporting association’s total              should report quarterly adequately
and administrative expenses; (2) the                 operations and not to the savings                       capture those savings associations that
amount of assets sold to affiliates during           association as a whole. Collecting                      should report fiduciary activities more
the quarter; (3) the outstanding balance             certain data in the new fiduciary                       frequently than annually because of the
at the end of the quarter of: (a) Assets             schedule from the savings associations                  extent of their involvement with these
purchased from affiliates, (b)                       with larger trust activities each quarter               activities? If not, what should the
commitments to purchase assets from                  will provide OTS with critical                          criteria be?


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                            Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices                                                    48055

   (2) What types of difficulties, if any,          2000, for implementation in September                      In recent years, structured borrowings
will associations encounter in                      2000. We received no comments                           (especially FHLB structured advances)
complying with the proposed reduction               responding to that proposal. OTS                        have become an increasingly popular
in the amount of time for reporting trust           subsequently decided to defer                           funding source for savings associations.
information in spite of the significant             implementation of the proposal until                    Because such borrowings often have
decrease in the amount of data that                 March 2001.                                             complex embedded options, the use of
savings associations would be required                 Residual interests in financial assets               these instruments can raise safety and
to report?                                          sold (RIFAS) are certain financial assets               soundness concerns. OTS proposes to
   (3) Are the categories of trust accounts         retained after the transfer of loans,                   change Schedule CMR (Consolidated
for which asset and income information              securities, or other financial assets,                  Maturity/Rate) to collect estimates of the
would be reported in the proposed                   where the transfer is recorded as a sale                market value of structured borrowings
Fiduciary Schedule an improvement                   under Statement of Financial                            to better evaluate the interest rate risk
over the current reporting structure of             Accounting Standards (SFAS) No. 125.                    they pose. Market value data for
the Annual Report of Trust Assets                   RIFAS represent the right to receive                    structured borrowings may be provided
(FFIEC 001) and are the proposed trust              ‘‘residual’’ cash flows from the                        at the option of the savings association,
account categories clear? Is there an               transferred assets. The ‘‘residual’’ cash               unless otherwise directed by OTS.
alternative categorization of trust                 flows are those that are available after                   A detailed description of the
accounts for asset and income reporting             payment of all other contractual                        proposed changes follows:
purposes that would increase the                    obligations to holders of other beneficial                 (1) Variable-rate, Fixed-maturity
schedule’s usefulness?                              interests in the transferred assets, and                Liabilities, Schedule CMR form, page
   (4) Is net fiduciary and related                 after all payments for servicing fees and               32: Delete all existing cells under this
services income, as it would be reported            other costs. RIFAS may be acquired by                   heading. Outstanding balances for these
in the proposed schedule, a useful                  either origination or purchase, and may                 instruments will be reported in new
performance measure? Is the proposed                be in either security or nonsecurity                    fields for deposits and borrowings as
single item for ‘‘Expenses’’ too broad or           form. Examples of RIFAS include, but                    described below. Additionally, detailed
restrictive to allow for meaningful peer            are not limited to, interest-only strips,               information will be reported on these
analysis? Should intracompany income                spread accounts, and cash collateral                    instruments on page 36 in Supplemental
credits be included, as proposed, in                accounts.                                               Reporting for Assets/Liabilities.
computing net fiduciary and related                    Credit enhancement RIFAS are those                      (a) Delete: CMR721 through CMR748
services income?                                                                                               (b) Add:
                                                    that are structured, through
   (5) Should individual association
                                                    subordination provisions or other credit                Liabilities Reported in Supplemental
fiduciary income and loss information
                                                    enhancement techniques, to absorb                       Reporting for Assets and Liabilities
continue to be accorded confidential
                                                    more than a pro-rata share of credit loss               CMR749: Outstanding Balance of
treatment with only aggregate income
                                                    in relation to the transferred assets.                       Variable-Rate, Fixed-Maturity
and loss data made available to the
public, or should the agencies make                    Depending on their form, RIFAS may                        Deposits (reported under liability
some or all of this individual                      be included in Schedule SC (Statement                        code 200)
association data publicly available?                of Condition) in four lines: Mortgage                   CMR751: Outstanding Balance of
   (6) What fiduciary-related trends and            Derivatives (SC150), Other Investment                        Variable-Rate, Fixed-Maturity
ratios should be reported in the Uniform            Securities (SC185), Interest-only Strip                      Borrowings (reported under liability
Thrift Performance Report and how                   Receivables and Certain Other                                codes 220 or 229)
should they be presented?                           Instruments (SC655), and Other Assets                   CMR753: Outstanding Balance of FHLB
   (7) The FFIEC currently issues an                (SC690). Because three of these lines                        Structured Advances (reported
annual publication, ‘‘Trust Assets of               (SC150, SC185, and SC690) may contain                        under liability codes 280, 281, 282,
Financial Institutions,’’ containing data           other instruments, OTS cannot currently                      283 or 289)
reported in the Annual Report of Trust              determine the total residual interests                  CMR754: Outstanding Balance of Other
Assets (FFIEC 001). Should the FFIEC                retained or purchased by a savings                           Structured Borrowings (reported
continue to produce such a publication              association. Therefore, OTS proposes to                      under liability code 290)
and, if so, which types of data from the            add two memoranda lines in Schedule                        (2) Delete the column for Options on
proposed schedule should the                        SI (Supplemental Information); one to                   Liabilities, which will be replaced by
publication contain and how often                   collect credit enhancement residual                     the new reporting of structured
should the FFIEC publish the data?                  interests in financial assets sold and one              borrowings. Delete: CMR941 through
   OTS recently issued Thrift Bulletin              to collect other residual interests in                  CMR950.
48–16, which addressed how OTS will                 financial assets sold. The addition of                     (3) Optional Supplemental Reporting
compute assessments under the                       these two items will provide OTS with                   for Assets/Liabilities, Schedule CMR
complexity component for trust assets               more complete information for                           form, page 36:
administered by a savings association.              monitoring and supervisory purposes.                       Rename this section as
See 12 CFR 502.25. The Thrift Bulletin                                                                      ‘‘Supplemental Reporting for Assets/
                                                    23. Federal Home Loan Bank (FHLB)
provides different assessment rates for                                                                     Liabilities.’’ The column headings in
                                                    Structured Advances and Other
trust assets administered in a fiduciary                                                                    this schedule will be instrument-
                                                    Structured Borrowings
and non-fiduciary capacity. OTS will                                                                        specific. The instrument codes that are
use the information reported on the                   OTS proposed the following in a                       currently reported in the Supplemental
proposed schedule to compute                        Federal Register Notice, dated March 1,                 Reporting for Assets/Liabilities
assessments.                                        2000, for implementation in September                   Schedule will use the existing column
                                                    2000. We received no comments                           headings. New codes will be added for
22. Residual Interests in Financial                 responding to that proposal. OTS                        reporting: (a) Internal valuations of
Assets Sold                                         subsequently decided to defer                           nonmortgage servicing rights (as
  OTS proposed the following in a                   implementation of the proposal until                    reported on SC644); (b) certain
Federal Register Notice, dated March 1,             March 2001.                                             nonsecurity financial instruments (as


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48056                       Federal Register / Vol. 65, No. 151 / Friday, August 4, 2000 / Notices

reported on SC655); (c) FHLB structured             Call Report, clarifying that these are the              32. Reporting Frequency of Schedule
advances (as reported on SC720); and                same type of loans. Schedules CCR and                   CSS (Subordinate Organization
(d) other structured borrowings (as                 CMR currently use the term                              Schedule)
reported on SC730 through SC760). For               ‘‘Multifamily Residential Mortgages.’’
these new codes, the nine column                                                                               In 1996, OTS reduced the reporting
                                                    29. Mortgage Loan Activity                              frequency of Schedule CSS from
headings will be the instrument’s code,
book value, and association-reported                  OTS proposes to delete the                            quarterly to annually in order to reduce
estimates of the instrument’s value in              breakdown of permanent mortgages                        reporting burden of the industry. While
the seven interest-rate scenarios (plus/            between newly built and previously                      annual reporting of subordinate
minus 300, plus/minus 200, plus/minus               occupied residential property in                        organizations was adequate at that time,
100, and no change). These instrument-              Schedule CF (Cash Flow). OTS no                         we now have a need for more frequent
specific fields (rather than fixed column           longer uses this breakdown.                             reporting and propose to collect
definitions) will improve the ability of                                                                    Schedule CSS on a semi-annual basis. In
savings associations to report financial            30. Hedging Activity                                    addition, as mentioned above, we
information in a more detailed manner                                                                       propose to collect the web site addresses
                                                      As a result of the application of
than is currently collected and will                                                                        of subsidiaries in Schedule CSS to assist
                                                    Statement of Financial Accounting
improve interest rate risk measures                                                                         in monitoring the activities of
                                                    Standards (SFAS) No. 133, ‘‘Accounting
produced by the OTS model. This                                                                             subsidiaries on their web sites.
                                                    for Derivative Instruments and Hedging
change to the form will also facilitate             Activities,’’ the OTS proposes to delete                   Type of Review: Revision.
the addition of future codes for new                two lines for amortization of deferred                     Affected Public: Business or For
instruments with customized cell                    gains and losses and a line for the net                 Profit.
content.                                            cost of matched interest rate swaps in                     Estimated Number of Respondents
24. Yields on Deposits—Schedule YD                  the income statement (Schedule SO).                     and Recordkeepers: 1100.
                                                    SFAS No. 133 will be effective for all
   Schedule YD contains compounded                  associations during 2001.                                  Estimated Time Per Respondent: 33
annual yields for certain new deposits.                                                                     hours average.
OTS proposes the deletion of this                   31. Eliminating Confidential Treatment                     Estimated Total Annual Burden
schedule in its entirety as it no longer            for Certain Interest Rate Risk and Past                 Hours: 145,200 hours.
provides sufficient use to OTS to justify           Due Data
                                                                                                               Because these some of the proposed
its continuance.                                       The TFR is widely used by securities                 changes will not affect all savings
25. Asset Maturity Data                             analysts, rating agencies, and large                    associations that file the TFR, the
                                                    institutional investors as sources of                   burden hours reflected above are
  OTS proposes to delete five lines that
                                                    thrift-specific data. OTS currently                     unchanged from the current burden. We
collect data on asset maturities on
                                                    accords confidential treatment to the                   invite comment on how savings
Schedule SI (Supplemental
                                                    information associations report in                      associations think the burden will
Information). Currently, only savings
                                                    Schedule CMR on the maturity and rate                   change given these form changes.
associations that meet the Schedule
                                                    information used in assessing interest                     Request for Comments: In addition to
CMR (Consolidated Maturity/Rate)
                                                    rate risk and information reported in                   the issues presented above, comments
exemption criteria (assets less than $300
                                                    Schedule PD on the amounts of loans,                    are invited on: (a) Whether the proposed
million and risk-based capital in excess
                                                    leases, and other assets past due 30                    revisions to the TFR collections of
of 12%) and that opt not to file
                                                    through 89 days and still accruing. OTS                 information are necessary for the proper
Schedule CMR must provide these data.
                                                    publishes aggregate data derived from                   performance of the agency’s functions,
OTS no longer needs to collect these
                                                    these confidential items but does not                   including whether the information has
data.
                                                    publish the individual association data.                practical utility; (b) the accuracy of the
26. Margin Accounts                                 In contrast, the information associations               agency?s estimate of the burden of the
  OTS proposes to delete CMR542,                    report on the amounts of their loans,                   collection of information; (c) ways to
Margin Accounts, as it is no longer                 leases, and other assets that are 90 days               enhance the quality, utility, and clarity
used.                                               or more past due and still accruing or                  of the information to be collected; (d)
                                                    that are in nonaccrual status has been                  ways to minimize the burden of
27. Estimated Market Value Rate                     publicly available since 1990.                          information collections on respondents,
Shocks                                              Nevertheless, OTS has not precluded                     including through the use of automated
   Thrift Bulletin 13a no longer requires           associations from publicly disclosing                   collection techniques, the Internet, or
associations to maintain interest rate              the data that OTS treats as confidential,               other forms of information technology;
risk limits for the plus and minus 400              provided individual borrower                            and (e) estimates of capital or sta rt up
basis point interest rate scenarios.                information is not released. In order to                costs and costs of operation,
Therefore, the OTS proposes deleting                give the public, including thrifts, more                maintenance, and purchase of services
these fields from Schedule CMR on page              complete information on the level of                    to provide information. OTS will
35 of the TFR form.                                 and trends in interest rate risk and asset              summarize or include comments
                                                    quality at individual associations, OTS                 submitted in response to this notice
28. Multifamily Mortgages                           proposes to eliminate the confidential                  with the request for OMB approval, and
  OTS proposes to rename ‘‘5 or More                treatment for Schedule CMR beginning                    will include these comments in the
Dwelling Units’’ to ‘‘Multifamily (5 or             with the amounts reported as of March                   public record.
more) Residential Properties’’                      31, 2001. Comment is requested from
throughout the TFR. The use of                      both voluntary and required filers of                     Dated: July 31, 2000.
‘‘multifamily residential properties’’              Schedule CMR on whether it will pose                    John E. Werner,
conforms to the wording in the OTS                  a hardship on savings associations if all               Director, Information Services.
capital regulations, other OTS                      or part of the data is made publicly                    [FR Doc. 00–19803 Filed 8–3–00; 8:45 am]
regulations, and in the commercial bank             available.                                              BILLING CODE 6720–01–P




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