Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Notices 57813

6. New business.

7. Adjournment.

Status: This meeting is open to the

public.

FOR FURTHER INFORMATION CONTACT: Ms.

Sally P. Magee, Federal Emergency

Management Agency, 500 C Street SW.,

room 442, Washington, DC 20472,

telephone (202) 646–8242 or by

facsimile at (202) 646–4596.

SUPPLEMENTARY INFORMATION: Minutes of

the meeting will be prepared and will be

available upon request 30 days after

they have been approved by the next

Technical Mapping Advisory Council

meeting in October 2000.

Michael K. Buckley,

Director, Technical Services Division,

Mitigation Directorate.

[FR Doc. 00–24704 Filed 9–25–00; 8:45 am]

BILLING CODE 6718–04–P

FEDERAL HOUSING FINANCE BOARD

[2000–N–5]

Monthly Survey of Rates and Terms on

Conventional 1-Family Nonfarm

Mortgage Loans

AGENCY: Federal Housing Finance

Board.

ACTION: Notice and request for

comments.

SUMMARY: The Federal Housing Finance

Board (Finance Board) is seeking

comments on several aspects of its

Monthly Survey of Rates and Terms on

Conventional 1-Family Nonfarm

Mortgage Loans. The Finance Board

seeks comments on whether it should

continue to publish mortgage

information by lender type. The Finance

Board seeks comments on whether the

sampling and weighting design for this

survey should draw lenders without

regard to lender type. If so, the Finance

Board seeks suggestions for alternative

sampling and weighting methodologies.

The Finance Board also seeks comments

on the designation of successor

adjustable-rate mortgage indexes if it

decides to stop publishing data by

lender type or revises the regional

information it now publishes.

DATES: Changes to the sampling and

weighting methodology will become

effective in accordance with section F of

the SUPPLEMENTARY INFORMATION unless

comments dictate otherwise. The

Finance Board will accept written

comments on or before October 26,

2000.

ADDRESSES: Address comments to

Elaine L. Baker, Secretary to the Board,

(202) 408–2837, bakere@fhfb.gov,

Federal Housing Finance Board, Office

of Information Management and

Technology Support, 1777 F Street,

NW., Washington, DC 20006. Comments

will be available for inspection at this

address.

FOR FURTHER INFORMATION CONTACT:

Joseph A. McKenzie, Deputy Chief

Economist, (202) 408–2845,

mckenziej@fhfb.gov, Office of Policy,

Research, and Analysis, Federal

Housing Finance Board, 1777 F Street,

NW., Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

A. Background

The Finance Board conducts and

prepares the Monthly Survey of Rates

and Terms on Conventional 1-Family

Nonfarm Mortgage Loans. This survey,

usually called the ‘‘Monthly Interest

Rate Survey’’ (MIRS), asks a sample of

approximately 300 mortgage lenders to

report the terms and conditions on all

conventional mortgage loans for the

purchase of single-family, nonfarm

homes that they close during the last 5

working days of the month. The sample

of lenders includes savings associations,

mortgage companies, commercial banks,

and savings banks that have volunteered

to participate in the survey. MIRS

provides national and regional data on

mortgage interest rates, mortgage terms,

and house prices. The Finance Board’s

regulations describe MIRS more

thoroughly. See 12 CFR 906.3.

From 1963 to September 1989, the

former Federal Home Loan Bank Board

conducted MIRS. Identical provisions in

the Federal National Mortgage

Association Charter Act, 12 U.S.C.

1717(b)(2), and the Federal Home Loan

Mortgage Corporation Act, 12 U.S.C.

1454(a)(2), allow these two governmentsponsored enterprises annually to adjust

the maximum size of mortgage loans

they can purchase or guarantee by the

October-over-October percentage price

change in house prices as reported in

MIRS ‘‘conducted by the Federal

Housing Finance Board.’’

More recently, the 1994 Department

of Housing and Urban Development

(HUD) appropriation act tied the highcost area limits for Federal Housing

Administration (FHA)-insured

mortgages to the purchase-price

limitations of Fannie Mae and Freddie

Mac, thus linking the FHA limits

indirectly to MIRS. See Department of

Veterans Affairs and Housing and Urban

Development, and Independent

Agencies Appropriations Act, Pub. L.

103–327, 108 Stat. 2298 (Sept. 28, 1994).

In addition, the Internal Revenue

Service uses the data from MIRS to set

the safe-harbor purchase-price limits for

mortgages purchased with the proceeds

of mortgage revenue bond issues. See 26

CFR 6a.103A–2(f)(5).

Beyond its use for indexing the

conforming loan limit, MIRS provides

information for general statistical

purposes and program evaluation.

Economic policy makers use the data to

determine interest rates, down

payments, terms to maturity, terms on

adjustable-rate mortgages (ARMs),

initial fees and charges on mortgage

loans, and other trends in mortgage

markets. Information from MIRS

regularly appears in the popular and

trade press.

Around the 26th of each month, the

Finance Board publishes a MIRS press

release with mortgage rate and term

information by property type (all, newly

built, and previously occupied; Table I),

by loan type (adjustable-rate and fixedrate; Table II), and by lender type

(savings association, mortgage company,

commercial bank, savings bank; Table

III), and a table providing data on 15-

and 30-year conforming fixed-rate loans

(Table V). In addition, it publishes

quarterly tables with rate and term

information for metropolitan areas

(Table IV) and for Federal Home Loan

Bank districts (Table VI).

An ARM index derived from MIRS—

the National Average Contract Mortgage

Rate for the Purchase of Previously

Occupied Homes—was the only ARM

index that Federally chartered savings

institutions could use for a period in the

early 1980’s. A very small proportion of

existing ARMs may use another interestrate series from MIRS as an ARM index.

B. Current Sampling and Weighting of

the Data

The Finance Board samples savings

associations, mortgage companies,

commercial banks, and savings banks

for MIRS because it publishes monthly

aggregate data by lender type. In

addition, the Finance Board samples

lenders representing all regions because

it publishes quarterly data for 31

selected large metropolitan areas,

quarterly data for the 12 Federal Home

Loan Bank districts, and annual data for

all 50 states and for 60 metropolitan

statistical areas (MSAs).

As with most survey data, the

tabulated MIRS data reflect the

weighting of the individual responses.

The current weighting draws depository

institutions with equal probabilities of

selection from ‘‘lender-type geo strata’’

(for example, commercial banks in

Nebraska, savings associations from the

Cincinnati MSA, or savings banks from

the Boston CMSA). Since the sample of

loans reported in a given month may

differ from true lending experience (for

57814 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Notices

example, over- or under-representing

certain regions), the MIRS data is

weighted to comport with information

on lending patterns derived from

independent sources:

(1) The data is adjusted so that the

distribution of loans by lender type

matches the lender-type distribution in

the latest Home Mortgage Disclosure Act

(HMDA) release of the Board of

Governors of the Federal Reserve

System, and

(2) The data is adjusted so that the

distribution of loans by Federal Home

Loan Bank district matches the state

pattern of mortgage originations

annually reported in the HMDA data.

The weighting process builds up the

national data from four separate

subsamples based on lender type, where

the shares of loans by lender type come

from the HMDA data. On balance, this

weighting process significantly

increases the importance of loans

reported by commercial banks and

reduces the importance of loans

reported by savings associations because

commercial bank loans are underrepresented in the sample. Regional

adjustment of the data does not have a

significant effect on the results because

the geographic pattern of responses

approximates aggregate lending

patterns.

C. Proposed Sampling by Lender Type

The Finance Board publishes data by

lender type principally as a historical

matter and drawing four separate

subsamples corresponding to savings

associations, mortgage companies,

commercial banks and, savings banks.

However, as the financial services sector

has evolved significantly, the

distinctions between commercial banks

and thrifts continue to erode. With

institutional homogenization,

publishing data by lender type may no

longer be useful or meaningful.

MIRS presents a ‘‘clustered sampling’’

problem. The item of interest is

individual loans, but the Finance Board

must sample lenders to get the

individual loan data. The loans must

come from all regions and must

represent all lender types. Several

recent developments have improved the

geographical dispersion of MIRS loans.

First, some large national mortgage

companies participate in MIRS. This

means that 1 lender may report loans

from 20 or more states. Second, the

continuing trend toward the

consolidation of depository institutions

has resulted in large institutions that

originate loans in many states.

The reported MIRS data for both

region and lender type show

considerable variation in the average

terms across region and across lender

type. However, most of these differences

are attributable to the mix of loans

made. Interest rates on standard 30-year

conforming loans differ little across

lender type and across region. This

similarity calls into some question the

need to sample lenders by region and by

lender type and the wisdom of reporting

MIRS interest-rate data by region and

lender type. There is, of course,

considerable house price variation

across regions.

The geographic dispersion of MIRS

loans is not an issue. As stated earlier,

the existing sample includes a number

of national mortgage companies with

broadly dispersed lending patterns. It is

not necessary to sample lenders from

many geo strata to get good geographic

coverage of actual loans reported.

In light of the continuing trend

toward consolidation and

homogenization of depository

institutions, a more meaningful MIRS

weighting methodology would be a sizestratified methodology based on

mortgage originations. Lenders with

small origination volumes would be

sampled at lower frequencies and higher

weights; lenders with high origination

volumes would be sampled at higher

frequencies and lower weights. The

HMDA file could be the source for

establishing weights as it contains

mortgage origination data for all but the

smallest lenders. This proposed

sampling would not select lenders based

on lender type but could use location as

a sampling factor.

The Finance Board specifically

requests comments on the following:

• Should it continue to report MIRS

data by lender type?

• Should it continue to sample MIRS

lenders by lender type?

• Do institutional changes render the

data by lender type meaningless?

D. MIRS Reports

The monthly MIRS report contains a

table on mortgage rates and terms by

lender type (savings association,

commercial bank, mortgage company,

and savings bank). (This is Table III of

the monthly MIRS release.) Because of

institutional homogenization and no

economic differences in mortgage rates,

the Finance Board is considering the

elimination of this monthly table.

Each quarter, the Finance Board

publishes a MIRS table of mortgage

interest rates and terms for 31

metropolitan areas. (This table appears

as Table IV in the January, April, July,

and October MIRS releases.) These are

not the 31 largest metropolitan areas.

The Finance Board is considering

adjusting the list of reported areas to

reflect current population rankings.

Among the areas that may be deleted

from Table IV are Greensboro, NC,

Rochester, NY, and Louisville, KY.

E. Adjustable-Rate Mortgage Index

A very small number of ARMs may

use as an index a MIRS interest rate

series by lender type. This information

appears in Table III of the regular

monthly MIRS release. If the Finance

Board were to adopt a changed MIRS

sampling methodology that no longer

separately sampled lenders by lender

type, then probably it would cease the

publication of Table III in the monthly

MIRS release.

Section 402(e)(4) of the Financial

Institutions Reform, Recovery, and

Enforcement Act of 1989 (FIRREA), Pub.

L. 101–73, tit. IV, sec. 402(e)(4), 103

Stat. 183 (1989), codified at 12 U.S.C.

1437 note, requires the Chairperson of

the Finance Board to designate a

‘‘substantially similar’’ successor index

if the Finance Board no longer makes

available any index from MIRS. If the

Finance Board were to stop providing

Table III, then it proposes to designate

the National Average Contract Mortgage

Rate for the Purchase of All Homes by

Combined Lenders as the successor

index for any ARM index that uses a

contract rate from Table III. It also

proposes to designate the National

Average Effective Mortgage Rate for the

Purchase of All Homes by Combined

Lenders as the successor index for any

ARM index that uses an effective rate

from Table III.

The Finance Board seeks comment on

these proposed successor index rates.

The Finance Board publishes both of

the proposed successor index rates in

the top panel of Table I in the monthly

MIRS release, and the current value of

both interest rates is available on a

recording maintained by the Finance

Board. The Finance Board is proposing

these successor index rates because the

loans reported in Table III by lender

type include loans on both newly built

and previously occupied homes. The

proposed successor index rates also

include loans on both newly built and

previously occupied homes. The only

difference is that the data in Table I

combines loans from all types of

lenders, whereas Table III reports

mortgage data by type of lender.

Changes that the Finance Board is

considering concerning Table IV of the

MIRS release could affect a very small

number of ARMs. The Finance Board

knows of only one lender that uses

regional mortgage rates reported in

Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Notices 57815

1The metropolitan area in question is St. Louis,

and the Finance Board would continue to publish

data for this region.

Table IV as an ARM index rate.1 Should

any ARM be linked to a mortgage rate

for a metropolitan area that will be

deleted from the regular quarterly table,

the Finance Board proposes as the

successor index the National Average

Contract Mortgage Rate for the Purchase

of All Homes by Combined Lenders the

successor index if that ARM index is a

contract rate from Table IV. It also

proposes to designate the National

Average Effective Mortgage Rate for the

Purchase of All Homes by Combined

Lenders to be the successor index for

any ARM index that is an effective rate

from Table IV. The Finance Board

publishes both of the proposed

successor index rates in the top panel of

Table I in the monthly MIRS release,

and the current value of both interest

rates is available on a recording

maintained by the Finance Board. This

particular designation would apply only

to those metropolitan areas that the

Finance Board would delete from the

regular quarterly Table IV.

The Finance Board seeks comments

on these proposed successor index rates.

F. Effective Date and Transition

Provisions

If the Finance Board adopts the MIRS

weighting changes described above, it

would implement the changes effective

with the January 2001 data to allow the

data for a whole calendar year to be

calculated using the same sampling and

weighting methodology. Before

implementing any changes, the Finance

Board would employ the services of a

statistician to ensure the

appropriateness of the MIRS sampling

and weighting methodology.

The Finance Board also would make

available special tabulations so that

Fannie Mae and Freddie Mac would

have data calculated on the same basis

for their determination of the

conforming loan limit for 2002. This

calculation would occur in November

2001.

Dated: September 18, 2000.

By the Federal Housing Finance Board.

James L. Bothwell,

Managing Director.

[FR Doc. 00–24660 Filed 9–25–00; 8:45 am]

BILLING CODE 6725–01–P

FEDERAL RESERVE SYSTEM

Change in Bank Control Notices;

Acquisitions of Shares of Banks or

Bank Holding Companies

The notificants listed below have

applied under the Change in Bank

Control Act (12 U.S.C. 1817(j)) and

§ 225.41 of the Board’s Regulation Y (12

CFR 225.41) to acquire a bank or bank

holding company. The factors that are

considered in acting on the notices are

set forth in paragraph 7 of the Act (12

U.S.C. 1817(j)(7)).

The notices are available for

immediate inspection at the Federal

Reserve Bank indicated. The notices

also will be available for inspection at

the offices of the Board of Governors.

Interested persons may express their

views in writing to the Reserve Bank

indicated for that notice or to the offices

of the Board of Governors. Comments

must be received not later than October

10, 2000.

A. Federal Reserve Bank of Kansas

City (D. Michael Manies, Assistant Vice

President) 925 Grand Avenue, Kansas

City, Missouri 64198–0001:

1. The B & D Lee Limited Partnership,

Bryan L. and Delphia C. Lee, General

Partners, Nowata, Oklahoma; to acquire

voting shares of Nowata Bancshares,

Inc., Nowata, Oklahoma, and thereby

indirectly acquire voting shares of First

National Bank of Nowata, Nowata,

Oklahoma.

Board of Governors of the Federal Reserve

System, September 21, 2000.

Robert deV. Frierson,

Associate Secretary of the Board.

[FR Doc. 00–24688 Filed 9–25–00; 8:45 am]

BILLING CODE 6210–01–P

FEDERAL RESERVE SYSTEM

Formations of, Acquisitions by, and

Mergers of Bank Holding Companies

The companies listed in this notice

have applied to the Board for approval,

pursuant to the Bank Holding Company

Act of 1956 (12 U.S.C. 1841 et seq.)

(BHC Act), Regulation Y (12 CFR Part

225), and all other applicable statutes

and regulations to become a bank

holding company and/or to acquire the

assets or the ownership of, control of, or

the power to vote shares of a bank or

bank holding company and all of the

banks and nonbanking companies

owned by the bank holding company,

including the companies listed below.

The applications listed below, as well

as other related filings required by the

Board, are available for immediate

inspection at the Federal Reserve Bank

indicated. The application also will be

available for inspection at the offices of

the Board of Governors. Interested

persons may express their views in

writing on the standards enumerated in

the BHC Act (12 U.S.C. 1842(c)). If the

proposal also involves the acquisition of

a nonbanking company, the review also

includes whether the acquisition of the

nonbanking company complies with the

standards in section 4 of the BHC Act

(12 U.S.C. 1843). Unless otherwise

noted, nonbanking activities will be

conducted throughout the United States.

Additional information on all bank

holding companies may be obtained

from the National Information Center

website at www.ffiec.gov/nic/.

Unless otherwise noted, comments

regarding each of these applications

must be received at the Reserve Bank

indicated or the offices of the Board of

Governors not later than October 20,

2000.

A. Federal Reserve Bank of

Richmond (A. Linwood Gill, III, Vice

President) 701 East Byrd Street,

Richmond, Virginia 23261-4528:

1. Shore Bancshares, Inc., Centreville,

Maryland; to merge with Talbot

Bancshares, Inc., Easton, Maryland, and

thereby indirectly acquire The Talbot

Bank of Easton, Maryland, Easton,

Maryland.

B. Federal Reserve Bank of St. Louis

(Randall C. Sumner, Vice President) 411

Locust Street, St. Louis, Missouri

63166–2034:

1. First Banks, Inc., St. Louis,

Missouri, and its subsidiary, First Banks

America, Inc., St. Louis, Missouri; to

acquire 100 percent of the voting shares

of Millennium Bank, San Francisco,

California.

2. Eureka Springs Bancshares, Inc.,

Eureka Springs, Arkansas; to acquire

100 percent of the voting shares of Bank

of Eureka Springs, Eureka Springs,

Arkansas.

In connection with this application,

JFC, Inc., Eureka Springs, Arkansas, and

The John F. Cross Family Limited

Partnership II, Eureka Springs,

Arkansas, have applied to become bank

holding companies by acquiring voting

shares of Eureka Springs Bancshares,

Inc., Eureka Springs, Arkansas.

C. Federal Reserve Bank of Kansas

City (D. Michael Manies, Assistant Vice

President) 925 Grand Avenue, Kansas

City, Missouri 64198–0001:

1. Grace Investment Company, Inc.,

Alva, Oklahoma; to become a bank

holding company by acquiring 93.87

percent of the voting shares, for a total

of 100 percent of the voting shares of

The First National Bank in Okeene,

Okeene, Oklahoma.