Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices 41981 

or more,’’ to include loans held for 

trading and measured at fair value that 

are in nonaccrual status. The agencies 

proposed to collect this information to 

improve their ability to assess the 

quality of assets held for trading 

purposes and generally enhance 

surveillance and examination planning 

efforts. One commenter on these 

proposed reporting changes questioned 

the meaningfulness of delinquency and 

nonaccrual data for trading assets 

because they are accounted for at fair 

value through earnings. After fully 

considering this commenter’s views, the 

agencies have decided not to implement 

the proposed revisions to Schedule RC– 

N, item 9, and Schedule RC–D, 

Memorandum item 3. These items will 

remain in their current form. 

C. Unpaid Premiums on Certain Credit 

Derivatives 

The agencies’ proposed Call Report 

revisions for 2009 also included the 

addition of new Memorandum items 3.a 

and 3.b to Schedule RC–R, Regulatory 

Capital, to collect the present value of 

unpaid premiums on credit derivatives 

for which the bank is the protection 

seller that are defined as covered 

positions under the agencies’ market 

risk capital guidelines. This present 

value information was to be reported by 

remaining maturity and with a 

breakdown between investment grade 

and subinvestment grade for the rating 

of the underlying reference asset. One 

commenter on this proposed credit 

derivative data requested clarification of 

the impact of the reporting requirement 

on a bank’s risk-based capital 

calculations. The agencies have 

reconsidered this proposed reporting 

change and have decided not to add 

these new Memorandum items to 

Schedule RC–R. 

IV. Request for Comment 

Public comment is requested on all 

aspects of this joint notice. Comments 

are invited specifically on: 

(a) Whether the proposed revisions to 

the Call Report collections of 

information are necessary for the proper 

performance of the agencies’ functions, 

including whether the information has 

practical utility; 

(b) The accuracy of the agencies’ 

estimates of the burden of the 

information collections as they are 

proposed to be revised, including the 

validity of the methodology and 

assumptions used; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

information collections on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

(e) Estimates of capital or start up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Comments submitted in response to 

this joint notice will be shared among 

the agencies and will be summarized or 

included in the agencies’ requests for 

OMB approval. All comments will 

become a matter of public record. 

Dated: August 12, 2009. 

Michele Meyer, 

Assistant Director, Legislative and Regulatory 

Activities Division, Office of the Comptroller 

of the Currency. 

Board of Governors of the Federal Reserve 

System, August 13, 2009. 

Jennifer J. Johnson, 

Secretary of the Board. 

Dated at Washington, DC, this 11th day of 

August 2009. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. E9–19911 Filed 8–18–09; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

Proposed Agency Information 

Collection Activities; Comment 

Request—Thrift Financial Report: 

Schedules SC, RM, CC, DI, and SB 

AGENCY: Office of Thrift Supervision 

(OTS), Treasury. 

ACTION: Notice and request for comment. 

SUMMARY: The Department of the 

Treasury, as part of its continuing effort 

to reduce paperwork and respondent 

burden, invites the general public and 

other federal agencies to comment on 

proposed and continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 44 

U.S.C. 3507. Today, the Office of Thrift 

Supervision within the Department of 

the Treasury solicits comments on 

proposed changes to the Thrift Financial 

Report (TFR), Schedule SC— 

Consolidated Statement of Condition, 

Schedule CC—Consolidated 

Commitments and Contingencies, 

Schedule DI—Consolidated Deposit 

Information, Schedule SB— 

Consolidated Small Business Loans, and 

on a proposed new schedule, Schedule 

RM—Annual Supplemental 

Consolidated Data on Reverse 

Mortgages. The changes are proposed to 

become effective in March 2010 except 

for the proposed new schedule RM 

which would become effective in 

December 2010. 

At the end of the comment period, 

OTS will analyze the comments and 

recommendations received to determine 

if it should modify the proposed 

revisions prior to giving its final 

approval. OTS will then submit the 

revisions to the Office of Management 

and Budget (OMB) for review and 

approval. 

DATES: Submit written comments on or 

before October 19, 2009. 

ADDRESSES: Send comments to 

Information Collection Comments, Chief 

Counsel’s Office, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552; send facsimile 

transmissions to FAX number (202) 

906–6518; send e-mails to 

infocollection.comments@ots.treas.gov; 

or hand deliver comments to the 

Guard’s Desk, east lobby entrance, 1700 

G Street, NW., on business days 

between 9 a.m. and 4 p.m. All 

comments should refer to ‘‘TFR 

Revisions—2010, OMB No. 1550–0023.’’ 

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., by appointment. To 

make an appointment, call (202) 906– 

5922, send an e-mail to 

publicinfo@ots.treas.gov, or send a 

facsimile transmission to (202) 906– 

7755. 

FOR FURTHER INFORMATION CONTACT: You 

can access sample copies of the 

proposed 2010 TFR forms on OTS’s 

Web site at http://www.ots.treas.gov or 

you may request them by electronic 

mail from tfr.instructions@ots.treas.gov. 

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: 

Title: Thrift Financial Report. 

OMB Number: 1550–0023. 

Form Number: OTS 1313. 

Abstract: OTS is proposing to revise 

and extend for three years the TFR, 

which is currently an approved 

collection of information. 

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 


jlentini on DSKJ8SOYB1PROD with NOTICES
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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. 

Current Action: OTS last revised the 

form and content of the TFR in a 

manner that significantly affected a 

substantial percentage of institutions in 

June 2009, and has additional revisions 

scheduled to become effective in 

December 2009. Since the beginning of 

2009 OTS has evaluated its ongoing 

information needs. OTS recognizes that 

the TFR imposes reporting 

requirements, which are a component of 

the regulatory burden facing 

institutions. Another contributor to this 

regulatory burden is the examination 

process, particularly on-site 

examinations during which institution 

staff spend time and effort responding to 

inquiries and requests for information 

designed to assist examiners in 

evaluating the condition and risk profile 

of the institution. The amount of 

attention that examiners direct to risk 

areas of the institution under 

examination is, in large part, 

determined from TFR data. These data, 

and analytical reports, including the 

Uniform Thrift Performance Report, 

assist examiners in scoping and making 

their preliminary assessments of risks 

during the planning phase of the 

examination. 

A risk-focused review of the 

information from an institution’s TFR 

allows examiners to make preliminary 

risk assessments prior to onsite work. 

The degree of perceived risk determines 

the extent of the examination 

procedures that examiners initially plan 

for each risk area. If the outcome of 

these procedures reveals a different 

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. OTS 

recognizes that increased reporting 

burden will result from the addition to 

the TFR of the new items discussed in 

this proposal. 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. 

Thus, OTS is requesting comment on 

the following proposed revisions to the 

TFR that would take effect as of March 

31, 2010, unless otherwise noted. These 

revisions would change the reporting 

frequency for small business and small 

farm data reported in Schedule SB from 

annually to quarterly, revise three lines, 

and add 24 new lines to the TFR, 

including the 16 lines proposed for a 

new Schedule RM. 

For each of the proposed revisions or 

new items, OTS is particularly 

interested in comments from 

institutions on whether the information 

that is proposed to be collected is 

readily available from existing 

institution records. OTS also invites 

comment on whether there are 

particular proposed revisions for which 

the new data would be of limited 

relevance for purposes of assessing risks 

in a specific segment of the savings 

association industry. In such cases, OTS 

requests comments on what criteria, 

e.g., an asset size threshold or some 

other measure, we should establish for 

identifying the specific segment of the 

savings association industry that we 

should require to report the proposed 

information. Finally, OTS seeks 

comment on whether, for a particular 

proposed revision, there is an 

alternative information set that could 

satisfy OTS data needs and be less 

burdensome for institutions to report 

than the new or revised items that OTS 

has proposed. OTS will consider all of 

the comments it receives as it 

formulates a final set of revisions to the 

TFR for implementation in 2010. 

A. Revisions of Existing Items 

1. Revising line CC423 from ‘‘Lines 

and Letters of Credit: Open-End 

Consumer Lines: Credit Cards’’ to 

‘‘Lines and Letters of Credit: Open-End 

Lines: Credit Cards—Consumer’’; 

2. Revising line DI100 from ‘‘Total 

Broker-Originated Deposits: Fully 

Insured’’ to ‘‘Total Broker-Originated 

Deposits: Fully Insured: With Balances 

Less than $100,000’’; 

3. Revising line DI350 from ‘‘Time 

Deposits of $100,000 or Greater 

(Excluding Brokered Time Deposits 

Participated Out by the Broker in Shares 

of Less Than $100,000 and Brokered 

Certificates of Deposit Issued in $1,000 

Amounts Under a Master Certificate of 

Deposit)’’ to ‘‘Time Deposits of $100,000 

through $250,000 (Excluding Brokered 

Time Deposits Participated Out by the 

Broker in Shares of Less Than $100,000 

and Brokered Certificates of Deposit 

Issued in $1,000 Amounts Under a 

Master Certificate of Deposit)’’; and 

4. Revising the reporting frequency for 

Schedule SB—Consolidated Small 

Business Loans from annually to 

quarterly. 

B. New Items 

1. Adding a line, SC304, Credit Card 

Loans Outstanding—Business; 

2. Adding a line, CC424, Lines and 

Letters of Credit: Open-End Lines: 

Credit Cards—Other; 

3. Adding a line, DI102, Total BrokerOriginated Deposits: Fully Insured: 

With Balances of $100,000 through 

$250,000; 

4. Adding a line, DI114, Total BrokerOriginated Deposits: Interest Expense 

for Fully Insured Brokered Deposits; 

5. Adding a line, DI116, Total BrokerOriginated Deposits: Interest Expense 

for Other Brokered Deposits; 

6. Adding a line, DI352, Time 

Deposits Greater than $250,000; 

7. Adding a line, DI544, Average Daily 

Deposit Totals: Fully Insured Brokered 

Time Deposits; 

8. Adding a line, DI545, Average Daily 

Deposit Totals: Other Brokered Time 

Deposits; 

9. Adding a line, RM110, Amount of 

Home Equity Conversion Mortgage 

Loans Outstanding; 

10. Adding a line, RM112, Amount of 

Proprietary (Non-HECM) Reverse 

Mortgage Loans Outstanding; 

11. Adding a line, RM310, Annual 

Interest Income from Home Equity 

Conversion Mortgage Loans; 

12. Adding a line, RM312, Annual 

Interest Income from Proprietary (NonHECM) Reverse Mortgage Loans; 

13. Adding a line, RM330, Annual 

Referral Fee Income from Home Equity 

Conversion Mortgage Loans; 

14. Adding a line, RM332, Annual 

Referral Fee Income from Proprietary 

(Non-HECM) Reverse Mortgage Loans; 

15. Adding a line, RM420, Annual 

Origination Fee Income from Home 

Equity Conversion Mortgage Loans; 

16. Adding a line, RM422, Annual 

Origination Fee Income from 

Proprietary (Non-HECM) Reverse 

Mortgage Loans; 

17. Adding a line, RM510, 

Commitments Outstanding to Originate 

Mortgages Secured by Home Equity 

Conversion Mortgage Loans; 

18. Adding a line, RM512, 

Commitments Outstanding to Originate 


jlentini on DSKJ8SOYB1PROD with NOTICES
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Mortgages Secured by Proprietary (NonHECM) Reverse Mortgage Loans; 

19. Adding a line, RM610, Annual 

Mortgage Loans Disbursed for 

Permanent Loans on Home Equity 

Conversion Mortgage Loans; 

20. Adding a line, RM612, Annual 

Mortgage Loans Disbursed for 

Permanent Loans on Proprietary (NonHECM) Reverse Mortgage Loans; 

21. Adding a line, RM620, Annual 

Loans and Participations Purchased 

Secured By Home Equity Conversion 

Mortgage Loans; 

22. Adding a line, RM622, Annual 

Loans and Participations Purchased 

Secured By Proprietary (Non-HECM) 

Reverse Mortgage Loans; 

23. Adding a line, RM630 Annual 

Loans and Participations Sold Secured 

By Home Equity Conversion Mortgage 

Loans; and 

24. Adding a line, RM632, Annual 

Loans and Participations Sold Secured 

By Proprietary (Non-HECM) Reverse 

Mortgage Loans. 

I. Discussion of Revisions Proposed for 

March 2010 

A. Additional Detail on Credit Card 

Loans and Commitments 

The extent to which the supply of 

credit has declined during the current 

financial crisis has been of great interest 

to the federal banking agencies and to 

Congress. Credit provided by financial 

institutions plays a central role in any 

economic recovery. The federal banking 

agencies need data to better determine 

when credit conditions have eased. One 

way to measure the supply of credit is 

to analyze the change in total lending 

commitments by financial institutions, 

considering both the amount of loans 

outstanding and the volume of unused 

credit lines. These data are also needed 

for safety and soundness purposes 

because draws on commitments during 

periods when financial institutions face 

significant funding pressures, such as 

during the fall of 2008, can place 

significant and unexpected demands on 

the liquidity and capital positions of 

these institutions. Therefore, OTS 

proposes to collect further detail on 

credit card lending in TFR Schedules 

SC and CC. These new data items would 

improve the OTS’s ability to timely and 

accurately evaluate trends in thrift 

institutions’ supply of credit available to 

households and businesses. These data 

would also be useful in determining 

thrift institutions’ impact on the 

effectiveness of the government’s 

economic stabilization programs. 

Unused commitments associated with 

open-end credit card lines are currently 

reported in line CC423. This data item 

is not sufficiently detailed for 

monitoring the supply of credit because 

it mixes consumer credit card lines with 

credit card lines for businesses and 

other entities. As a result of this 

aggregation, it is not possible to fully 

monitor credit available specifically to 

households. Furthermore, bank 

supervisors would benefit from the 

split, because the usage patterns, 

profitability, and evolution of credit 

quality through the business cycle are 

likely to differ for consumer credit cards 

and business credit cards. Therefore, the 

OTS proposes to revise line CC423 to 

collect data on unused credit card lines 

to consumers, and to add a line, CC424, 

to collect data on unused credit card 

lines to other entities. Outstanding 

balances from draws on these credit 

lines that have not been sold are already 

reported on Schedule SC. Thrifts report 

draws on credit cards issued to 

consumers on line SC328. Draws on 

credit cards issued to businesses are 

included with unsecured commercial 

loans on line SC303. OTS proposes to 

add a line, SC304, to collect data on the 

amount of business-related credit card 

loans outstanding that are included in 

line SC303. 

B. Time Deposits of $100,000 or Greater 

On October 3, 2008, the Emergency 

Economic Stabilization Act of 2008 

temporarily raised the standard 

maximum deposit insurance amount 

(SMDIA) from $100,000 to $250,000 per 

depositor. Under this legislation, the 

SMDIA was to return to $100,000 after 

December 31, 2009. However, on May 

20, 2009, the Helping Families Save 

Their Homes Act extended this 

temporary increase in the SMDIA to 

$250,000 per depositor through 

December 31, 2013, after which the 

SMDIA is scheduled to return to 

$100,000. 

At present, thrifts report time deposits 

in TFR Schedule DI, Consolidated 

Deposit Information, including total 

time deposits in line DI340, time 

deposits of $100,000 or greater in line 

DI350, and time deposits in IRA or 

Keogh accounts of $100,000 or greater. 

In response to the extension of the 

temporary increase in the limit on 

deposit insurance coverage, the federal 

banking agencies understand that time 

deposits with balances in excess of 

$100,000, but less than or equal to 

$250,000, have been growing and can be 

expected to increase further. However, 

given the existing Schedule DI reporting 

requirements, OTS is unable to monitor 

growth in thrifts’ time deposits with 

balances within the temporarily 

increased limit on deposit insurance 

coverage. 

Therefore, OTS is proposing to revise 

line DI350 from ‘‘Time Deposits of 

$100,000 or Greater (Excluding 

Brokered Time Deposits Participated 

Out by the Broker in Shares of Less 

Than $100,000 and Brokered 

Certificates of Deposit Issued in $1,000 

Amounts Under a Master Certificate of 

Deposit)’’ to ‘‘Time Deposits of $100,000 

through $250,000 (Excluding Brokered 

Time Deposits Participated Out by the 

Broker in Shares of Less Than $100,000 

and Brokered Certificates of Deposit 

Issued in $1,000 Amounts Under a 

Master Certificate of Deposit)’’, and to 

add a line DI352 for ‘‘Time Deposits 

Greater than $250,000’’. Existing line 

DI340, Total Time Deposits, and DI360, 

IRA/Keogh Accounts of $100,000 or 

Greater Included in Time Deposits, 

would not change. 

C. Revisions of Brokered Deposit Items 

As described above in Section II.B., 

the SMDIA has been increased 

temporarily from $100,000 to $250,000 

through year-end 2013. However, the 

data that thrifts currently report in the 

TFR on fully insured brokered deposits 

in TFR line DI100 is based on the 

$100,000 insurance limit (except for 

brokered retirement deposit accounts for 

which the deposit insurance limit was 

already $250,000). Therefore, in 

response to the temporary increase in 

the SMDIA, OTS is proposing to revise 

line DI100 from ‘‘Total BrokerOriginated Deposits: Fully Insured’’ to 

‘‘Total Broker-Originated Deposits: 

Fully Insured: With Balances Less than 

$100,000’’, and to add a line DI102 for 

‘‘Total Broker-Originated Deposits: 

Fully Insured: With Balances of 

$100,000 through $250,000’’. 

Furthermore, given the linkage 

between the deposit insurance limits 

and the reporting on fully insured 

brokered deposits in Schedule DI, the 

scope of these items needs to be 

changed whenever deposit insurance 

limits change. To ensure that the scope 

of these lines, including the dollar 

amounts cited in the captions for these 

items, changes automatically as a 

function of the deposit insurance limit 

in effect on the report date, the TFR 

instructions would be revised to state 

that the specific dollar amounts used as 

the basis for reporting fully insured 

brokered deposits in lines DI100 and 

DI102 reflect the deposit insurance 

limits in effect on the report date. 

In addition, consistent with the 

reporting of time deposits in other items 

of Schedule DI, brokered deposits 

would be reported based on their 

balances rather than the denominations 

in which they were issued. Line DI100 

would include time deposits issued to 


jlentini on DSKJ8SOYB1PROD with NOTICES
41984 Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices 

1The FDIC publishes a weekly schedule of 

national rates and national interest-rate caps by 

maturity, which can be accessed at http:// 

www.fdic.gov/regulations/resources/rates/. 

2http://www.financialstability.gov/ 

roadtostability/smallbusinesscommunity.html. 

3http://www.financialstability.gov/latest/tg58- 

remarks.html. 

4 Ibid. 

deposit brokers in the form of large 

($100,000 or more) certificates of 

deposit that have been participated out 

by the broker in shares with balances of 

less than $100,000. For brokered 

deposits that represent retirement 

deposit accounts eligible for $250,000 in 

deposit insurance coverage, report such 

brokered deposits in this item only if 

their balances are less than $100,000. 

Line DI102 would include brokered 

deposits (including brokered retirement 

deposit accounts) with balances of 

$100,000 through $250,000. Also report 

in this item brokered deposits that 

represent retirement deposit accounts 

eligible for $250,000 in deposit 

insurance coverage that have been 

issued in denominations of more than 

$250,000 that have been participated 

out by the broker in shares of $100,000 

through exactly $250,000. 

D. Interest Expense and Quarterly 

Averages for Brokered Deposits 

Under Section 29 of the Federal 

Deposit Insurance Act (12 U.S.C. 1831f), 

an insured depository institution that is 

less than well capitalized generally may 

not pay a rate of interest that 

significantly exceeds the prevailing rate 

in the institution’s ‘‘normal market 

area’’ and/or the prevailing rate in the 

‘‘market area’’ from which the deposit is 

accepted. In the case of an adequately 

capitalized institution with a waiver to 

accept brokered deposits, the institution 

may not pay a rate of interest on 

brokered deposits accepted from outside 

the bank’s ‘‘normal market area’’ that 

significantly exceeds the ‘‘national rate’’ 

as defined by the FDIC. On May 29, 

2009, the FDIC’s Board of Directors 

adopted a final rule making certain 

revisions to the interest rate restrictions 

under Section 337.6 of the FDIC’s 

regulations. Under the final rule, the 

‘‘national rate’’ is a simple average of 

rates paid by U.S. depository 

institutions as calculated by the FDIC.1

When evaluating compliance with the 

interest rate restrictions in Section 337.6 

by an institution that is less than well 

capitalized, the FDIC generally will 

deem the national rate to be the 

prevailing rate in all market areas. The 

final rule is effective January 1, 2010. 

At present, the federal banking 

agencies are unable to evaluate the level 

and trend of the cost of brokered time 

deposits to institutions that have 

acquired such funds, nor can the 

agencies compare the cost of such 

deposits across institutions with 

brokered time deposits. Data on the cost 

of brokered deposits would also assist 

the agencies in evaluating the overall 

cost of institutions’ time deposits, for 

which data have long been collected in 

the Call Report for banks and TFR for 

thrifts. Furthermore, many of the 

financial institutions that have failed 

since the beginning of 2008 have relied 

extensively on brokered deposits to 

support their asset growth. Therefore, to 

enhance OTS’s ability to evaluate 

funding costs and the impact of 

brokered time deposits on these costs, 

OTS is proposing to add four new line 

items to TFR Schedule DI. The other 

federal banking agencies are proposing 

to add similar line items to the Call 

Report with two Memorandum items to 

Schedule RC–K, Quarterly Averages, 

and two items Schedule RI, Income 

Statement. 

In these new line items to TFR 

Schedule DI, thrifts would report lines 

DI114 for ‘‘Total Broker-Originated 

Deposits: Interest Expense for Fully 

Insured Brokered Deposits’’, DI116 for 

‘‘Total Broker-Originated Deposits: 

Interest Expense for Other Brokered 

Deposits’’, DI544 for ‘‘Average Daily 

Deposit Totals: Fully Insured Brokered 

Time Deposits’’, and DI545 for ‘‘Average 

Daily Deposit Totals: Other Brokered 

Time Deposits’’. 

E. Change in Reporting Frequency for 

Schedule SB—Consolidated Small 

Business Loans 

Section 122 of the Federal Deposit 

Insurance Corporation Improvement Act 

requires the federal banking agencies to 

collect from insured institutions 

annually the information the agencies 

‘‘may need to assess the availability of 

credit to small businesses and small 

farms.’’ The OTS meets this requirement 

through Schedule SB which requests 

information on the number and amount 

currently outstanding of ‘‘loans to small 

businesses’’ and ‘‘loans to small farms,’’ 

as defined in the TFR instructions, 

which all thrift institutions must report 

annually as of June 30. 

With the United States now more than 

a year into a recession, the current 

administration ‘‘firmly believes that 

economic recovery will be driven in 

large part by America’s small 

businesses,’’ but ‘‘small business owners 

are finding it harder to get the credit 

necessary to stay in business.’’ 2 Because 

‘‘[c]redit is essential to economic 

recovery,’’ Treasury Secretary Geithner 

stated on March 16, 2009, that ‘‘we need 

our nation’s banks to go the extra mile 

in keeping credit lines in place on 

reasonable terms for viable 

businesses.’’ 3 Accordingly, Secretary 

Geithner asked the federal banking 

agencies ‘‘to call for quarterly, as 

opposed to annual reporting of small 

business loans, so that we can carefully 

monitor the degree that credit is flowing 

to our nation’s entrepreneurs and small 

business owners.’’ 4 In response to 

Secretary Geithner’s request and to 

improve the agencies’ own ability to 

assess the availability of credit to small 

businesses and small farms, the OTS 

proposes to change the frequency with 

which thrifts must submit TFR 

Schedule SB from annually to quarterly 

beginning March 31, 2010. OTS is not 

proposing to make any revisions to the 

information that thrifts are required to 

report on this schedule. The other 

federal banking agencies are proposing 

a similar change in reporting frequency 

with which banks must submit Call 

Report Schedule RC–C, Part II. 

II. Discussion of Revisions Proposed for 

December 2010 

A. Reverse Mortgage Data 

Reverse mortgages are complex loan 

products that leverage equity in homes 

to provide lump sum cash payments or 

lines of credit to borrowers. These 

products are typically marketed to 

senior citizens who own homes. The 

federal banking agencies are currently 

unable to effectively identify and 

monitor institutions that offer these 

products due to a lack of reverse 

mortgage data. 

The reverse mortgage market 

currently consists of two basic types of 

products: proprietary products designed 

and originated by financial institutions 

and a federally-insured product known 

as a Home Equity Conversion Mortgage 

(HECM). Some reverse mortgages 

provide for a lump sum payment to the 

borrower at closing, with no ability for 

the borrower to receive additional funds 

under the mortgage at a later date. Other 

reverse mortgages are structured like 

home equity lines of credit in that they 

provide the borrower with additional 

funds after closing, either as fixed 

monthly payments, under a line of 

credit, or both. There are also reverse 

mortgages that provide a combination of 

a lump sum payment to the borrower at 

closing and additional payments to the 

borrower after the closing of the loan. 

The volume of reverse mortgage 

activity is expected to dramatically 

increase in the coming years as the U.S. 

population ages. A number of consumer 

protection related risks and safety and 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices 41985 

soundness related risks are associated 

with these products and the agencies 

need to collect information from 

financial institutions involved in the 

reverse mortgage activities to monitor 

and mitigate those risks. For example, 

proprietary reverse mortgages structured 

as lines of credit, which are not insured 

by the federal government, expose 

borrowers to the risk that the lender will 

be unwilling or unable to meet its 

obligation to make payments due to the 

borrower. Additionally, in those 

circumstances in which housing prices 

are declining, there is the risk that the 

reverse mortgage loan balance may 

exceed the value of the underlying 

collateral value of the home. 

As stated above, access to data 

regarding loan volumes, dollar amounts 

outstanding, and the institutions 

offering reverse mortgages or 

participating in reverse mortgage 

activity is severely limited. The U.S. 

Department of Housing and Urban 

Development provides a monthly report 

for reverse mortgages endorsed for 

federal insurance, by fiscal year, for 

those loans that are part of the federally 

sponsored HECM program. While this 

monthly report provides information 

such as average expected interest rates, 

average property values, average age of 

the borrower, and the number of active 

insured accounts, there is no aggregate 

monthly data nor is there institutionspecific information that identifies the 

institutions participating in the 

program. For proprietary reverse 

mortgage loans, there is no known data 

on the volume of reverse mortgages, 

dollar amounts outstanding, or the 

institutions offering these products. 

Therefore, OTS is proposing that a 

new Schedule RM—Annual 

Supplemental Consolidated Data on 

Reverse Mortgages be added to the TFR 

to collect reverse mortgage data on an 

annual basis beginning on December 31, 

2010. The other federal banking 

agencies are similarly proposing new 

items for the Call Report to collect 

reverse mortgage data on an annual 

basis beginning on December 31, 2010. 

Collecting this information will provide 

the agencies the necessary information 

for policy development and the 

management of risk exposures posed by 

institutions’ involvement with reverse 

mortgages. 

OTS is proposing the following 16 

new line items for Schedule RM: 

1. RM110, Amount of Home Equity 

Conversion Mortgage Loans 

Outstanding; 

2. RM112, Amount of Proprietary 

(Non-HECM) Reverse Mortgage Loans 

Outstanding; 

3. RM310, Annual Interest Income 

from Home Equity Conversion Mortgage 

Loans; 

4. RM312, Annual Interest Income 

from Proprietary (Non-HECM) Reverse 

Mortgage Loans; 

5. RM330, Annual Referral Fee 

Income from Home Equity Conversion 

Mortgage Loans; 

6. RM332, Annual Referral Fee 

Income from Proprietary (Non-HECM) 

Reverse Mortgage Loans; 

7. RM420, Annual Origination Fee 

Income from Home Equity Conversion 

Mortgage Loans; 

8. RM422, Annual Origination Fee 

Income from Proprietary (Non-HECM) 

Reverse Mortgage Loans; 

9. RM510, Commitments Outstanding 

to Originate Mortgages Secured by 

Home Equity Conversion Mortgage 

Loans; 

10. RM512, Commitments 

Outstanding to Originate Mortgages 

Secured by Proprietary (Non-HECM) 

Reverse Mortgage Loans; 

11. RM610, Annual Mortgage Loans 

Disbursed for Permanent Loans on 

Home Equity Conversion Mortgage 

Loans; 

12. RM612, Annual Mortgage Loans 

Disbursed for Permanent Loans on 

Proprietary (Non-HECM) Reverse 

Mortgage Loans; 

13. RM620, Annual Loans and 

Participations Purchased Secured By 

Home Equity Conversion Mortgage 

Loans; 

14. RM622, Annual Loans and 

Participations Purchased Secured By 

Proprietary (Non-HECM) Reverse 

Mortgage Loans; 

15. RM630 Annual Loans and 

Participations Sold Secured By Home 

Equity Conversion Mortgage Loans; and 

16. RM632, Annual Loans and 

Participations Sold Secured By 

Proprietary (Non-HECM) Reverse 

Mortgage Loans. 

Request for Comments 

OTS may not conduct or sponsor an 

information collection, and respondents 

are not required to respond to an 

information collection, unless the 

information collection displays a 

currently valid OMB control number. 

In this notice, OTS is soliciting 

comments concerning the following 

information collection. 

Statutory Requirement: 12 U.S.C. 

1464(v) imposes reporting requirements 

for savings associations. 

Type of Review: Revision of currently 

approved collections. 

Affected Public: Business or for profit. 

Estimated Number of Respondents 

and Recordkeepers: 794. 

Estimated Burden Hours per 

Respondent: 57.4 hours average for 

quarterly schedules and 2.0 hours 

average for schedules required only 

annually plus recordkeeping of an 

average of one hour per quarter. 

Estimated Frequency of Response: 

Quarterly. 

Estimated Total Annual Burden: 

190,828 hours. 

OTS is proposing to revise the TFR, 

which is currently an approved 

collection of information, in March and 

December 2010. The effect on reporting 

burden of the proposed revisions to the 

TFR requirements will vary from 

institution to institution depending on 

the institution’s asset size and its 

involvement with the types of activities 

or transactions to which the proposed 

changes apply. 

The proposed TFR changes that 

would take effect as of March 31, 2010, 

would revise the captions for three 

existing items, add eight new items, and 

change the reporting frequency of data 

in Schedule SB from annual to 

quarterly. 

The proposed TFR revisions that 

would take effect December 31, 2010, 

would add a new Schedule RM— 

Annual Supplemental Consolidated 

Data on Reverse Mortgages which would 

add 16 new line items in an annual 

collection of data on reverse mortgages. 

OTS estimates that the 

implementation of these reporting 

revisions will result in an increase in 

the current reporting burden imposed 

by the TFR on all savings associations. 

As part of the approval process, we 

invite comments addressing one or more 

of the following points: 

a. Whether the proposed revisions to 

the TFR collections of information are 

necessary for the proper performance of 

the agency’s functions, including 

whether the information has practical 

utility; 

b. The accuracy of the agency’s 

estimate of the burden of the collection 

of information; 

c. Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

d. Ways to minimize the burden of 

information collections on respondents, 

including through the use of automated 

collection techniques, the Internet, or 

other forms of information technology; 

and 

e. Estimates of capital or start up costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

OTS will summarize the comments 

received and include them in the 

request for OMB approval. All 

comments will become a matter of 

public record. 


jlentini on DSKJ8SOYB1PROD with NOTICES
41986 Federal Register / Vol. 74, No. 159 / Wednesday, August 19, 2009 / Notices 

Clearance Officer: Ira L. Mills, (202) 

906–6531, Office of Thrift Supervision, 

1700 G Street, NW., Washington, DC 

20552. 

OMB Reviewer: Desk Officer for OTS, 

FAX: (202) 395–6974, U.S. Office of 

Management and Budget, 725—17th 

Street, NW., Room 10235, Washington, 

DC 20503. 

Dated: August 14, 2009. 

Deborah Dakin, 

Acting Chief Counsel, Office of Thrift 

Supervision. 

[FR Doc. E9–19908 Filed 8–18–09; 8:45 am] 

BILLING CODE 6720–01–P 


jlentini on DSKJ8SOYB1PROD with NOTICES