71 FR 69619 (December 1, 2006)

Federal Register / Vol. 71, No. 231 / Friday, December 1, 2006 / Notices
records may be affiliated with, or
subject to the jurisdiction of, including
but not limited to disciplinary
authorities of state bars or certified
public accountancy boards, to meet
their responsibilities in connection with
the administration and maintenance of
standards of conduct and discipline.
POLICIES AND PRACTICES FOR STORING,
RETRIEVING, ACCESSING, RETAINING, AND
DISPOSING OF RECORDS IN THE SYSTEM:

BILLING CODE 4830–01–P

Office of Thrift Supervision

Paper and electronic media.
RETRIEVABILITY:

By individual’s name (including other
names used); social security number
(when available); enrollment
examination candidate number,
enrollment application control number,
enrollment number, or street address.
Non-unique names will be
distinguished by addresses.
SAFEGUARDS:

Access controls will not be less than
those provided for by IRM 25.10.1,
Information Technology (IT) Security
Policy and Standards, and IRM 1.16,
Physical Security Program.
RETENTION AND DISPOSAL:

Records are retained and disposed of
in accordance with the records control
schedules applicable to the records of
OPR, IRM 1.15.11.
SYSTEM MANAGER AND ADDRESS:

Director, Office of Professional
Responsibility, SE:OPR, 1111
Constitution Avenue, NW., Washington,
DC 22024.
NOTIFICATION PROCEDURE:

This system of records is exempt from
the notification provisions of the
Privacy Act.
RECORD ACCESS PROCEDURES:

This system of records is exempt from
the record access provisions of the
Privacy Act.
CONTESTING RECORD PROCEDURES:

26 U.S.C. 7852(e) prohibits Privacy
Act amendment of tax records. For any
other records, this system of records is
exempt from the record contesting
provisions of the Privacy Act.
RECORD SOURCE CATEGORIES:

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[FR Doc. E6–20372 Filed 11–30–06; 8:45 am]

DEPARTMENT OF THE TREASURY

STORAGE:

Individuals covered by this system of
records; witnesses; Federal or state
courts, agencies, bodies, and other
licensing authorities; professional
organizations and associations; Treasury
Department records; and public records.
EXEMPTIONS CLAIMED FOR THE SYSTEM:

Pursuant to section (k)(2) of the
Privacy Act, 5 U.S.C. 552a(k)(2), the

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records contained within this system are
exempt from the following sections of
the Act: (c)(3), (d), (e)(1), (e)(4)(G),
(e)(4)(H), (e)(4)(I), and (f). See 31 CFR
1.36.

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Submission for OMB Review;
Comment Request—Thrift Financial
Report: Schedules SC, SO, LD, CF, SI,
SQ, and HC
Office of Thrift Supervision
(OTS), Treasury.
ACTION: Notice and request for comment.
AGENCY:

SUMMARY: In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507),
OTS may not conduct or sponsor, and
the respondent is not required to
respond to, an information collection
unless it displays a currently valid OMB
control number. On July 31, 2006, OTS
requested public comment for 60 days
(71 FR 43286) on proposed revisions to
the Thrift Financial Report (TFR), which
is currently an approved collection of
information. The notice described
regulatory reporting revisions proposed
for the TFR, Schedule SC—Consolidated
Statement of Condition, Schedule SO—
Consolidated Statement of Operations,
Schedule LD—Loan Data, Schedule
CF—Consolidated Cash Flow
Information, Schedule SI—
Supplemental Information, Schedule
SQ—Consolidated Supplemental
Questions, and Schedule HC—Thrift
Holding Company. The proposed
revisions would eliminate ten line items
from the TFR, revise six existing items,
add 16 new items, and eliminate
confidential treatment of Schedule HC
data.
After considering the comments
received, OTS has adopted the proposed
revisions, with the exception of the
proposals to revise the language of the
question in line HC840 and to eliminate
the confidential treatment of data in
Schedule HC. OTS is setting the
effective date for the revisions at March
31, 2007. OTS is submitting the adopted
revisions to OMB for review and
approval.
DATES: Submit written comments on or
before January 2, 2007. The regulatory
reporting revisions described herein
take effect March 31, 2007.
ADDRESSES: Send comments, referring to
the collection by ‘‘1550–0023 (TFR
Revisions—March 2007)’’, to OMB and

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69619

OTS at these addresses: Office of
Information and Regulatory Affairs,
Attention: Desk Officer for OTS, U.S.
Office of Management and Budget,
725—17th Street, NW., Room 10235,
Washington, DC 20503, or by fax to
(202) 395–6974; and Information
Collection Comments, Chief Counsel’s
Office, Office of Thrift Supervision,
1700 G Street, NW., Washington, DC
20552, by fax to (202) 906–6518, or by
e-mail to
[email protected].
OTS will post comments and the related
index on the OTS Internet Site at http://
www.ots.treas.gov. In addition,
interested persons may inspect
comments at the Public Reading Room,
1700 G Street, NW., Washington, DC, by
appointment. To make an appointment,
call (202) 906–5922, send an e-mail to
[email protected], or send a
facsimile transmission to (202) 906–
7755.
FOR FURTHER INFORMATION CONTACT: For
further information or to obtain a copy
of the submission to OMB, please
contact Marilyn K. Burton, OTS
Clearance Officer, at
[email protected], (202)
906–6467, or facsimile number (202)
906–6518, Litigation Division, Chief
Counsel’s Office, Office of Thrift
Supervision, 1700 G Street, NW.,
Washington, DC 20552.
You can obtain a copy of the March
2007 Thrift Financial Report form from
the OTS Web site at http://
www.ots.treas.gov or you may request it
by electronic mail from
[email protected]. You can
request additional information about
this proposed information collection
from James Caton, Director, Financial
Monitoring and Analysis Division, (202)
906–5680, Office of Thrift Supervision,
1700 G Street, NW., Washington, DC
20552.
SUPPLEMENTARY INFORMATION: The effect
of the proposed revisions to the
reporting requirements of these
information collections will vary from
institution to institution, depending on
the institution’s involvement with the
types of activities or transactions to
which the proposed changes apply. OTS
estimates that implementation of these
reporting changes will result in a small
increase in the current reporting burden
imposed by the TFR. The following
burden estimates include the effect of
the proposed revisions.
Title: Thrift Financial Report.
OMB Number: 1550–0023.
Form Number: OTS 1313.
Statutory Requirement: 12 U.S.C.
1464(v) imposes reporting requirements
for savings associations. Except for

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selected items, these information
collections are not given confidential
treatment.
Type of Review: Revision of currently
approved collections.
Affected Public: Savings associations.
Estimated Number of Respondents
and Recordkeepers: 852.
Estimated Burden Hours per
Respondent: 36.6 burden hours.
Estimated Frequency of Response:
Quarterly.
Estimated Total Annual Burden:
124,733 burden hours.
Abstract:
All OTS-regulated savings
associations must comply with the
information collections described in this
notice. OTS collects this information
each calendar quarter, or less frequently
if so stated. OTS uses this information
to monitor the condition, performance,
and risk profile of individual
institutions and systemic risk among
groups of institutions and the industry
as a whole. Except for selected items,
these information collections are not
given confidential treatment.
I. Background
OTS last revised the form and content
of the TFR in a manner that significantly
affected a substantial percentage of
institutions in March 2004. Revisions
since March 2004 focused on specific
activities and were primarily made in
response to changes in generally
accepted accounting principles (GAAP).
These focused revisions meant that the
new or revised TFR items were minor or
applicable to only a small percentage of
institutions.
During the past year OTS has
evaluated its ongoing information
needs. OTS recognizes that the TFR
imposes reporting requirements, which
are a component of the regulatory
burden facing institutions. Another
contributor to this regulatory burden is
the examination process, particularly
on-site examinations during which
institution staff spend time and effort
responding to inquiries and requests for
information designed to assist
examiners in evaluating the condition
and risk profile of the institution. The
amount of attention that examiners
direct to risk areas of the institution
under examination is, in large part,
determined from TFR data. These data,
and analytical reports including the
Uniform Thrift Performance Report,
assist examiners in scoping and making
their preliminary assessments of risks
during the planning phase of the
examination.
A risk-focused review of the
information from an institution’s TFR
allows examiners to make preliminary

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risk assessments prior to onsite work.
The degree of perceived risk determines
the extent of the examination
procedures that examiners initially plan
for each risk area. If the outcome of
these procedures reveals a higher level
of risk in a particular area, the examiner
adjusts the examination scope and
procedures accordingly.
TFR data are also a vital source of
information for the monitoring and
regulatory activities of OTS. Among
their benefits, these activities aid in
determining whether the frequency of
an institution’s examination cycle
should remain at maximum allowed
time intervals, thereby lessening overall
regulatory burden. More risk-focused
TFR data enhance the ability of OTS to
assess whether an institution is
experiencing changes in its risk profile
that warrant immediate follow-up,
which may include accelerating the
timing of an on-site examination.
In developing this proposal, OTS
considered a range of potential
information needs, particularly in the
areas of credit risk, liquidity, and
liabilities, and identified those
additions to the TFR that are most
critical and relevant to OTS in fulfilling
its supervisory responsibilities. At the
same time, OTS identified certain
existing TFR line items that are no
longer sufficiently critical or useful to
warrant their continued collection. OTS
recognizes that the reporting burden
that would result from the addition to
the TFR of the new items discussed in
this proposal would not be fully offset
by the proposed elimination of, or
establishment of reporting thresholds
for, a limited number of other TFR
items, thereby resulting in a net increase
in reporting burden. Nevertheless, when
viewing these proposed revisions to the
TFR within a larger context, they help
to enhance the on- and off-site
supervision capabilities of OTS, which
assist with controlling the overall
regulatory burden on institutions. After
savings associations make any necessary
changes to their systems and records,
OTS estimated that these reporting
changes would produce an average net
increase of 0.4 hours per institution per
year in the ongoing reporting burden of
the TFR. Nevertheless, when viewing
these proposed revisions to the TFR
within a larger context, they are
intended to maintain the effectiveness
of the on- and off-site supervision
activities of the OTS, which should help
to control the overall regulatory burden
on institutions.
In addition to the revisions that
become effective pursuant to this notice,
OTS is joining the Federal Deposit
Insurance Corporation (FDIC), the Board

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of Governors of the Federal Reserve
System (Board), and the Office of the
Comptroller of the Currency (OCC),
Treasury, in publishing a proposal and
request for comments to revise certain
deposit information collected in the Call
Report and the TFR. These revisions—
on Schedule DI for TFR filers—would
be proposed to facilitate calculation of
the deposit insurance assessment
pursuant to the Federal Deposit
Insurance Reform Act of 2005 and the
Federal Deposit Insurance Reform
Conforming Amendments Act of 2005
(collectively, the Reform Act), and
pursuant to amendments to 12 CFR Part
327 proposed by the FDIC in the
Federal Register, Vol. 71, No. 96,
Thursday, May 18, 2006, page 28790.
II. Current Actions
OTS received four comment letters on
the July 2006 proposal from the
National Association of Home Builders
(NAHB), a trade group whose members
include savings associations, from the
Bureau of Economic Analysis (BEA), an
agency of the U.S. Department of
Commerce, and from two OTSsupervised savings associations. The
BEA was supportive of the proposed
changes and indicated the changes
would allow it to continue certain data
and statistical series derived in part
from TFR data.
The NAHB supported the proposed
changes and encouraged the addition of
line items to collect data on the volume
and performance of loans for the
development of land for 1–4 family
dwelling residential housing, and loans
for the development of land for
multifamily housing. The NAHB
believes this additional reporting detail
would assist in improving efficiency
and competition in the market for
residential acquisition and development
loans, and would demonstrate different
performance characteristics between
construction and land development
loans. After careful consideration of the
NAHB comments, OTS has decided to
consider these additional line items in
a future revision of the TFR.
Both comments from savings
associations focused on the proposal to
eliminate confidential treatment of data
filed by individual thrift holding
companies on Schedule HC. One
savings association commenter
suggested permitting filers of Schedule
HC data to opt to maintain the
confidentiality of the individual
company’s data, citing competitive
concerns and privacy issues.
The other savings association
commenter requested maintaining the
confidentiality of individual companies’
Schedule HC data, citing the already

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Federal Register / Vol. 71, No. 231 / Friday, December 1, 2006 / Notices
extensive reporting and disclosure
requirements of companies with
registered securities. This commenter
also asserted that much of the
consolidated financial information
required by Schedule HC is included in
the financial statements filed by public
savings and loan holding companies
with the Securities and Exchange
Commission (SEC) pursuant to the
Securities Act of 1934. The commenter
stated that quarterly parent company
only information is not normally
available to the public. He noted that
parent company only financial data of
large bank holding companies collected
by the Federal Reserve Board on Form
FR Y–9LP may be released by the Board
upon request on an individual basis, but
that any data released is limited to
financial information. He also noted that
some of the definitions in Schedule HC
are different than similar definitions
applied in the SEC reporting context.
OTS presently does not publicly
release Schedule HC data filed by
holding companies. However, many
public requests are received for these
data. In addition, some rating agencies
have indicated thrift holding company
debt ratings suffer due to the lack of
publicly available data. After careful
consideration of the comments related
to Schedule HC, OTS has decided to
maintain the confidentiality of
individual company Schedule HC data.
OTS has considered these comments
and has decided to proceed with the
proposed changes to Schedules SC, SO,
LD, CF, SI, and SQ, but will not revise
the language for question HC840. OTS
decided to maintain the existing
language of line HC840 after
determining that the current wording
more accurately captures the foreign
operations OTS is most interested in
without placing undue burden on the
holding company enterprise to identify
all foreign operations. Further, OTS will
continue to maintain the confidential
treatment of Schedule HC. These
changes will become effective on March
31, 2007, and are detailed below.
A. Burden-Reducing Revisions

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1. Eliminating SC745, Other
Mortgage-Collateralized Securities
Issued;
2. Eliminating CF340, Mortgage
Loans—Cash Repayment of Principal;

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3. Eliminating CF350, Mortgage
Loans—Debits Less Credits Other Than
Repayment of Principal;
4. Eliminating CF420, New Deposits
Received Less Deposits Withdrawn;
5. Eliminating CF435, Deposits
Acquired, Net of Dispositions in Bulk
Transactions;
6. Eliminating consolidated
supplemental question SQ100, ‘‘Did you
acquire any assets through merger with
another depository institution?’’;
7. Eliminating consolidated
supplemental question SQ110, ‘‘Did you
include in your balance sheet for the
first time assets and/or liabilities
acquired as a result of a branch or other
bulk deposit purchase?’’;
8. Eliminating consolidated
supplemental question SQ130, ‘‘Has
there been a change in control?’’;
9. Eliminating consolidated
supplemental question SQ160, ‘‘Has
there been a merger accounted for under
the purchase method?’’; and
10. Eliminating consolidated
supplemental question SQ170, ‘‘If you
restated your balance sheet for the first
time this quarter as a result of applying
push-down accounting, enter the date of
reorganization.’’
B. Revisions of Existing Items
1. Revising the instructions to SC740,
Mortgage-Collateralized Securities
Issued—CMOs (Including REMICs), to
report total mortgage collateralized
securities issued;
2. Revising the instructions to SO141,
Interest Income on Mortgage Loans, to
exclude prepayment penalties, late fees,
and assumption fees from the line total;
3. Revising the instructions to SO160,
Interest Income on Commercial Loans
and Leases, to exclude prepayment
penalties, late fees, and assumption fees
from the line total;
4. Revising the instructions to SO171,
Interest Income on Consumer Loans and
Leases, to exclude prepayment
penalties, late fees, and assumption fees
from the line total;
5. Revising the instructions to SO410,
Loan Servicing Fees, to exclude from
the reported amount (a) amortization of
loan servicing assets or liabilities and
valuation adjustments for classes of loan
servicing accounted for using the
amortization method, and (b) fair value
adjustments for classes of servicing
carried at fair value; and

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C. New Items
1. Adding a line, SO142, Prepayment
Fees, Late Fees, and Assumption Fees
for Mortgage Loans;
2. Adding a line, SO162, Prepayment
Fees, Late, Fees, and Assumption Fees
for Commercial Loans;
3. Adding a line, SO172, Prepayment
Fees, Late Fees, and Assumption Fees
for Consumer Loans;
4. Adding a line, SO411, Servicing
Amortization and Valuation
Adjustments;
5. Adding a line, LD510, 1–4 Dwelling
Units Construction-to-Permanent Loans;
6. Adding a line, LD520, OwnerOccupied Multifamily Permanent
Loans;
7. Adding a line, LD530, OwnerOccupied Nonresidential Property
(Except Land) Permanent Loans;
8. Adding a line, LD610, 1–4 Dwelling
Option ARM Loans;
9. Adding a line, LD620, 1–4 Dwelling
ARM Loans with Negative
Amortization;
10. Adding a line, LD650, Total
Capitalized Negative Amortization;
11. Adding a line, CF226, Mortgage
Loans Disbursed—Permanent Loans—
Home Equity and Junior Liens;
12. Adding a line, CF281, Loans and
Participations Purchased—Secured by
1–4 Dwelling Units—Purchased from
Entities Other Than Federally-Insured
Depository Institutions or Their
Subsidiaries;
13. Adding a line, CF282, Loans and
Participations Purchased—Secured by
1–4 Dwelling Units—Home Equity and
Junior Liens;
14. Adding a line, CF311, Loans and
Participations Sold—Secured by 1–4
Dwelling Units—Home Equity and
Junior Liens;
15. Adding a line, SI376, Assets
Recorded On Schedule SC Under a Fair
Value Option; and
16. Adding a line, SI377, Liabilities
Recorded On Schedule SC Under a Fair
Value Option.
Dated: November 27, 2006.
Deborah Dakin,
Senior Deputy Chief Counsel, Regulations and
Legislation Division.
[FR Doc. E6–20379 Filed 11–30–06; 8:45 am]
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