[Federal Register Volume 62, Number 65 (Friday, April 4, 1997)]
[Notices]
[Page 16158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8569]


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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL


U.S. Government Guaranteed Loans and Sale Premiums; Rescission of 
Policy Statement

AGENCY: Federal Financial Institutions Examination Council (FFIEC).

ACTION: Rescission of policy statement.

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SUMMARY: FFIEC has rescinded its policy statement on the Sale of U.S. 
Government Guaranteed Loans and Sale Premiums (Policy Statement), 
issued on November 29, 1979. The Policy Statement provided guidance to 
insured depository institutions purchasing or selling loans guaranteed 
by the U.S. government. The FFIEC rescinded the Policy Statement 
because it is outdated.

DATES: This Policy Statement was rescinded effective December 5, 1996.

FOR FURTHER INFORMATION CONTACT: Federal Deposit Insurance Corporation 
(FDIC): William A. Stark, Assistant Director, (202/898-6972), Kenton 
Fox, Senior Capital Markets Specialist, (202/898-7119), Division of 
Supervision; Jamey Basham, Counsel, (202/898-7265), Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429.
    Office of Thrift Supervision (OTS): Donna Deale, Manager, (202/906-
7488), Supervision Policy, Office of Thrift Supervision, 1700 G Street, 
NW., Washington, DC 20552.
    Office of the Comptroller of the Currency (OCC): Tom Rollo, 
National Bank Examiner, (202/874-5070), Office of the Chief National 
Bank Examiner, Office of the Comptroller of the Currency, 250 E Street 
SW., Washington, DC 20219.
    Board of Governors of the Federal Reserve System (FRB): Susan 
Meyers, Senior Securities Analyst, (202/452-2781), Division of Banking 
Supervision and Regulation, Board of Governors of the Federal Reserve 
System, 20th and C Streets NW., Washington, DC 20551.

SUPPLEMENTARY INFORMATION: FFIEC consists of representatives from the 
FDIC, OTS, OCC, FRB, and National Credit Union Administration (NCUA). 
FFIEC developed the Policy Statement to provide general supervisory 
guidance to insured depository institutions that originate, purchase, 
or sell loans guaranteed by the U.S. government. The Policy Statement 
also provided guidance on the accounting treatment of servicing fees 
and premiums associated with these loans. FFIEC originally adopted the 
Policy Statement on November 29, 1979, and the Federal Home Loan Bank 
Board (the OTS' predecessor), FDIC, OCC, and FRB federal banking 
agencies) each adopted the Policy Statement shortly thereafter. FFIEC 
adopted certain amendments to the Policy Statement on March 22, 1985, 
which were subsequently adopted by the federal banking agencies.
    On December 5, 1996, FFIEC voted to rescind the Policy Statement. 
Since the Policy Statement was adopted, the market in government-
guaranteed loans has become well established, and insured depository 
institutions have gained experience in dealing in this market. The 
supervisory guidance contained in the Policy Statement, which is very 
general in nature, is no longer necessary. Additionally, the accounting 
guidance in the Policy Statement is adequately addressed in the 
Instructions for Preparing Reports of Condition and Income and the 
Consolidated Statement of Condition of the Thrift Financial Report, and 
subsequent accounting pronouncements including Financial Accounting 
Standards Board Statement 91, Accounting for Nonrefundable Fees and 
Costs Associated with Originating or Acquiring Loans and Initial Direct 
Costs of Leases.
    For the above reasons, the Policy Statement has been rescinded. 
Each of the federal banking agencies will take appropriate action in 
connection with the recision of the Policy Statement.

    Dated at Washington, DC, this 31st day of March, 1997.

Federal Financial Institutions Examination Council,
Joe M. Cleaver,
Executive Secretary.
[FR Doc. 97-8569 Filed 4-3-97; 8:45 am]
BILLING CODE 6210-01-P FRB, 6720-01-P OTS, 6714-01-P FDIC, 4810-33-P 
OCC