Notice2023-03543
Proposed Agency Information Collection Activities; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 21, 2023
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemFederal Deposit Insurance Corporation
Abstract
In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The Federal Financial Institutions Examination Council (FFIEC), of which the agencies are members, has approved the agencies' publication for public comment of a proposal to revise and extend for three years the Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031, FFIEC 041, and FFIEC 051), which are currently approved collections of information. The FFIEC has also approved the Board's publication for public comment, on behalf of the agencies, of a proposal to revise and extend for three years the Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002), and the Report of Assets and Liabilities of a Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or Agency of a Foreign (Non-U.S.) Bank (FFIEC 002S), which are also currently approved collections of information. The agencies are requesting comment on: proposed revisions to eliminate and consolidate items in the Call Reports and the FFIEC 002 resulting from the statutorily mandated full review of the Call Reports as required under Section 604 of the Financial Services Regulatory Relief Act of 2006; proposed Call Report process revisions; and reporting of certain Federal Home Loan Mortgage Corporation and similar securitizations on the Call Report. The changes to the Call Reports and FFIEC 002 are proposed to take effect as of the June 30, 2023, report date.
Full Text
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<title>Federal Register, Volume 88 Issue 34 (Tuesday, February 21, 2023)</title>
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[Federal Register Volume 88, Number 34 (Tuesday, February 21, 2023)]
[Notices]
[Pages 10644-10649]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03543]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint notice and request for comment.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the OCC, the Board, and the FDIC (the agencies) may
not conduct or sponsor, and the respondent is not required to respond
to, an information collection unless it displays a currently valid
Office of Management and Budget (OMB) control number. The Federal
Financial Institutions Examination Council (FFIEC), of which the
agencies are members, has approved the agencies' publication for public
comment of a proposal to revise and extend for three years the
Consolidated Reports of Condition and Income (Call Reports) (FFIEC 031,
FFIEC 041, and FFIEC 051), which are currently approved collections of
information. The FFIEC has also approved the Board's publication for
public comment, on behalf of the agencies, of a proposal to revise and
extend for three years the Report of Assets and Liabilities of U.S.
Branches and Agencies of Foreign Banks (FFIEC 002), and the Report of
Assets and Liabilities of a Non-U.S. Branch that is Managed or
Controlled by a U.S. Branch or Agency of a Foreign (Non-U.S.) Bank
(FFIEC 002S), which are also currently approved collections of
information. The agencies are requesting comment on: proposed revisions
to eliminate and consolidate items in the Call Reports and the FFIEC
002 resulting from the statutorily mandated full review of the Call
Reports as required under Section 604 of the Financial Services
Regulatory Relief Act of 2006; proposed Call Report process revisions;
and reporting of certain Federal Home Loan Mortgage Corporation and
similar securitizations on the Call Report. The changes to the Call
Reports and FFIEC 002 are proposed to take effect as of the June 30,
2023, report date.
DATES: Comments must be submitted on or before April 24, 2023.
ADDRESSES: Interested parties are invited to submit written comments to
any or all of the agencies. All comments will be shared among the
agencies.
OCC: You may submit comments, by any of the following methods:
<bullet> Email: <a href="/cdn-cgi/l/email-protection#6e1e1c0f070008012e010d0d401a1c0b0f1d40090118"><span class="__cf_email__" data-cfemail="2f5f5d4e464149406f404c4c015b5d4a4e5c01484059">[email protected]</span></a>.
<bullet> Mail: Chief Counsel's Office, Office of the Comptroller of
the Currency, Attention: 1557-0081, 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
<bullet> Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Instructions: You must include ``OCC'' as the agency name and
``1557-0081'' in your comment. In general, the OCC will publish
comments on <a href="http://www.reginfo.gov">www.reginfo.gov</a> without change, including any business or
personal information provided, such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this information collection beginning on the date of publication of the
second notice for this collection by the following method:
<bullet> Viewing Comments Electronically: Go to <a href="http://www.reginfo.gov">www.reginfo.gov</a>.
Click on the ``Information Collection Review'' tab. Underneath the
``Currently under Review'' section heading, from the drop-down menu
select ``Department of Treasury'' and then click ``submit.'' This
information collection can be located by searching by OMB control
number ``1557-0081.'' Upon finding the appropriate information
collection, click on the related ``ICR Reference Number.'' On the next
screen, select ``View Supporting Statement and Other Documents'' and
then click on the link to any comment listed at the bottom of the
screen.
<bullet> For assistance in navigating <a href="http://www.reginfo.gov">www.reginfo.gov</a>, please
contact the Regulatory Information Service Center at (202) 482-7340.
Board: You may submit comments, which should refer to ``Call Report
and FFIEC 002 Revisions,'' by any of the following methods:
<bullet> Agency Website: <a href="http://www.federalreserve.gov">http://www.federalreserve.gov</a>. Follow the
instructions for submitting comments at: <a href="http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#d4a6b1b3a7fab7bbb9b9b1baa0a794b2b1b0b1a6b5b8a6b1a7b1a6a2b1fab3bba2"><span class="__cf_email__" data-cfemail="691b0c0e1a470a0604040c071d1a290f0c0d0c1b08051b0c1a0c1b1f0c470e061f">[email protected]</span></a>. Include ``Call
Report and FFIEC 002 Revisions'' in the subject line of the message.
<bullet> Fax: (202) 395-6974.
<bullet> Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available on the Board's website at <a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a> as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information.
FDIC: You may submit comments, which should refer to ``Call Report
and FFIEC 002 Revisions,'' by any of the following methods:
<bullet> Agency Website: <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>. Follow the instructions for
submitting comments on the FDIC's website.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#72111d1f1f171c06013234363b315c151d04"><span class="__cf_email__" data-cfemail="34575b5959515a40477472707d771a535b42">[email protected]</span></a>. Include ``Call Report and FFIEC
002 Revisions'' in the subject line of the message.
<bullet> Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
<bullet> Hand Delivery: Comments may be hand delivered to the guard
station at the rear of the 550 17th Street NW building (located on F
Street NW) on business days between 7:00 a.m. and 5:00 p.m.
<bullet> Public Inspection: All comments received will be posted
without change to <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>, including any personal information provided.
Paper copies of public comments may be requested from the FDIC Public
Information Center by telephone at (877) 275-3342 or (703) 562-2200.
Additionally, commenters may send a copy of their comments to the
OMB desk officer for the agencies by mail to the Office of Information
and Regulatory
[[Page 10645]]
Affairs, U.S. Office of Management and Budget, New Executive Office
Building, Room 10235, 725 17th Street NW, Washington, DC 20503; by fax
to (202) 395-6974; or by email to <a href="/cdn-cgi/l/email-protection#96f9ffe4f7c9e5e3f4fbffe5e5fff9f8d6f9fbf4b8f3f9e6b8f1f9e0"><span class="__cf_email__" data-cfemail="355a5c47546a464057585c46465c5a5b755a58571b505a451b525a43">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: For further information about the
proposed revisions to the information collections discussed in this
notice, please contact any of the agency staff whose names appear
below. In addition, copies of the report forms for the Call Reports can
be obtained at the FFIEC's website (<a href="https://www.ffiec.gov/ffiec_report_forms.htm">https://www.ffiec.gov/ffiec_report_forms.htm</a>).
OCC: Kevin Korzeniewski, Counsel, Chief Counsel's Office, (202)
649-5490. If you are deaf, hard of hearing, or have a speech
disability, please dial 7-1-1 to access telecommunications relay
services.
Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer,
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of
the Federal Reserve System, 20th and C Streets NW, Washington, DC
20551. Telecommunications Device for the Deaf (TDD) users may call
(202) 263-4869.
FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division,
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington,
DC 20429.
SUPPLEMENTARY INFORMATION:
I. Affected Reports
The proposed changes discussed below affect the Call Reports and
the FFIEC 002.
A. Call Report
The agencies propose to extend for three years, with revision,
their information collections associated with the FFIEC 031, FFIEC 041,
and FFIEC 051 Call Reports.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Number: FFIEC 031 (Consolidated Reports of Condition and
Income for a Bank with Domestic and Foreign Offices), FFIEC 041
(Consolidated Reports of Condition and Income for a Bank with Domestic
Offices Only), and FFIEC 051 (Consolidated Reports of Condition and
Income for a Bank with Domestic Offices Only and Total Assets Less Than
$5 Billion).
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
Type of Review: Revision and extension of currently approved
collections.
OCC:
OMB Control No.: 1557-0081.
Estimated Number of Respondents: 1,042 national banks and federal
savings associations.
Estimated Average Burden per Response: 41.97 burden hours per
quarter to file.
Estimated Total Annual Burden: 174,931 burden hours to file.
Board:
OMB Control No.: 7100-0036.
Estimated Number of Respondents: 702 state member banks.
Estimated Average Burden per Response: 45.18 burden hours per
quarter to file.
Estimated Total Annual Burden: 126,865 burden hours to file.
FDIC:
OMB Control No.: 3064-0052.
Estimated Number of Respondents: 3,076 insured state nonmember
banks and state savings associations.
Estimated Average Burden per Response: 39.93 burden hours per
quarter to file.
Estimated Total Annual Burden: 491,299 burden hours to file.
The estimated average burden hours collectively reflect the
estimates for the FFIEC 031, the FFIEC 041, and the FFIEC 051 reports
for each agency. When the estimates are calculated by type of report
across the agencies, the estimated average burden hours per quarter are
85.75 (FFIEC 031), 56.26 (FFIEC 041), and 35.15 (FFIEC 051). The
changes to the Call Report forms and instructions proposed in this
notice resulted in the following estimated changes in burden hours per
quarter. For the FFIEC 031 report, the revisions resulted in an average
decrease across all agencies of approximately 0.7 hours per quarter;
for the FFIEC 041 report, the revisions resulted in an average increase
across all agencies of approximately 0.73 hours per quarter; and for
the FFIEC 051 report, the revisions resulted in an average decrease
across all agencies of approximately 0.23 hours per quarter. Generally,
the proposed revisions related to the statutorily mandated review would
result in a decrease in average burden for all report types. However,
changes in the number of institutions filing each type of report, and
changes to the amount of data items reported in each report since
December 31, 2021, resulted in an average increase across all agencies
in estimated burden for the FFIEC 041. The estimated burden per
response for the quarterly filings of the Call Report is an average
that varies by agency because of differences in the composition of the
institutions under each agency's supervision (e.g., size distribution
of institutions, types of activities in which they are engaged, and
existence of foreign offices).
Type of Review: Extension and revision of currently approved
collections. In addition to the proposed revisions discussed below,
Call Reports are periodically updated to clarify instructional guidance
and correct grammatical and typographical errors on the forms and
instructions, which are published on the FFIEC website.\1\ These non-
substantive updates may also be commented upon.
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\1\ <a href="http://www.ffiec.gov/forms031.htm">www.ffiec.gov/forms031.htm</a>; <a href="http://www.ffiec.gov/forms041.htm">www.ffiec.gov/forms041.htm</a>;
<a href="http://www.ffiec.gov/forms051.htm">www.ffiec.gov/forms051.htm</a>.
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Legal Basis and Need for Collections
The Call Report information collections are mandatory: 12 U.S.C.
161 (national banks), 12 U.S.C. 324 (state member banks), 12 U.S.C.
1817 (insured state nonmember commercial and savings banks), and 12
U.S.C. 1464 (federal and state savings associations). At present,
except for selected data items and text, these information collections
are not given confidential treatment.
Banks and savings associations submit Call Report data to the
agencies each quarter for the agencies' use in monitoring the
condition, performance, and risk profile of individual institutions and
the industry as a whole. Call Report data serve a regulatory or public
policy purpose by assisting the agencies in fulfilling their shared
missions of ensuring the safety and soundness of financial institutions
and the financial system and protecting consumer financial rights, as
well as agency-specific missions affecting federal and state-chartered
institutions, such as conducting monetary policy, ensuring financial
stability, and administering federal deposit insurance. Call Reports
are the source of the most current statistical data available for
identifying areas of focus for on-site and off-site examinations. Among
other purposes, the agencies use Call Report data in evaluating
institutions' corporate applications, including interstate merger and
acquisition applications for which the agencies are required by law to
determine whether the resulting institution would control more than 10
percent of the total amount of deposits of insured depository
institutions in the United States. Call Report data also are used to
calculate the risk-based assessments for insured depository
institutions.
B. FFIEC 002 and 002S
The Board proposes to extend for three years, with revision, the
FFIEC 002 and FFIEC 002S reports.
[[Page 10646]]
Report Titles: Report of Assets and Liabilities of U.S. Branches
and Agencies of Foreign Banks; Report of Assets and Liabilities of a
Non-U.S. Branch that is Managed or Controlled by a U.S. Branch or
Agency of a Foreign (Non-U.S.) Bank.
Form Numbers: FFIEC 002; FFIEC 002S.
OMB Control Number: 7100-0032.
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
Respondents: All state-chartered or federally-licensed U.S.
branches and agencies of foreign banking organizations, and all non-
U.S. branches managed or controlled by a U.S. branch or agency of a
foreign banking organization.
Estimated Number of Respondents: FFIEC 002--209; FFIEC 002S--38.
Estimated Average Burden per Response: FFIEC 002--24.87 hours;
FFIEC 002S--6.0 hours.
Estimated Total Annual Burden: FFIEC 002--20,791 hours; FFIEC
002S--912 hours.
Type of Review: Extension and revision of currently approved
collections.
The proposed revisions to the FFIEC 002 instructions in this notice
would not have a material impact on the existing burden estimates.
Legal Basis and Need for Collection
On a quarterly basis, all U.S. branches and agencies of foreign
banks are required to file the FFIEC 002, which is a detailed report of
condition with a variety of supporting schedules. This information is
used to fulfill the supervisory and regulatory requirements of the
International Banking Act of 1978. The data also are used to augment
the bank credit, loan, and deposit information needed for monetary
policy and other public policy purposes. In addition, FFIEC 002 data
are used to calculate the risk-based assessments for FDIC-insured U.S.
branches of foreign banks. The FFIEC 002S is a supplement to the FFIEC
002 that collects information on assets and liabilities of any non-U.S.
branch that is managed or controlled by a U.S. branch or agency of the
foreign bank. A non-U.S. branch is managed or controlled by a U.S.
branch or agency if a majority of the responsibility for business
decisions, including but not limited to decisions with regard to
lending or asset management or funding or liability management, or the
responsibility for recordkeeping in respect of assets or liabilities
for that foreign branch resides at the U.S. branch or agency. A
separate FFIEC 002S must be completed for each managed or controlled
non-U.S. branch. The FFIEC 002S must be filed quarterly along with the
U.S. branch or agency's FFIEC 002.
These information collections are mandatory (12 U.S.C. 3105(c)(2),
1817(a)(1) and (3), and 3102(b)). Except for select sensitive items,
the FFIEC 002 is not given confidential treatment; the FFIEC 002S is
given confidential treatment (5 U.S.C. 552(b)(4) and (8)). The data
from both reports are used for (1) monitoring deposit and credit
transactions of U.S. residents; (2) monitoring the impact of policy
changes; (3) analyzing structural issues concerning foreign bank
activity in U.S. markets; (4) understanding flows of banking funds and
indebtedness of developing countries in connection with data collected
by the International Monetary Fund and the Bank for International
Settlements that are used in economic analysis; and (5) assisting in
the supervision of U.S. offices of foreign banks. The Federal Reserve
System collects and processes these reports on behalf of all three
agencies.
II. Current Actions
A. Statutorily Mandated Review of the Call Report
1. Background
Section 604 of the Financial Services Regulatory Relief Act of 2006
requires the agencies to perform within one year of enactment and every
five years thereafter, the review of information collected in the Call
Reports (statutorily mandated review) to ``reduce or eliminate any
requirement to file information or schedules under paragraph (3) (other
than information or schedules that are otherwise required by law)'' if
the agencies determine that ``the continued collection of such
information or schedules is no longer necessary or appropriate.'' \2\
The agencies conducted the 2022 statutorily mandated review between
June 2021 and March 2022.\3\ Over this period, staff at the FFIEC
member entities who are users of Call Report data, representing a wide
variety of functional areas, participated in a series of three surveys
and conducted an analysis of recent reporting by Call Report
respondents. As an integral part of these surveys, users were asked to
explain the need for the continued collection of each Call Report data
item, how the data item is used, the frequency with which it is needed,
and the threshold for the population of institutions by asset size from
which it is required. Based on these survey results, the agencies are
proposing certain revisions in this notice.
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\2\ 12 U.S.C. 1817(a)(11).
\3\ The 2017 statutorily mandated review was accelerated as part
of the 2014 FFIEC initiative to identify potential opportunities to
reduce burden associated with the Call Report requirements for
community banks. The initiative resulted in the creation of a new
streamlined FFIEC 051 Call Report for eligible small institutions
that took effect as of the March 31, 2017, report date. It also
resulted in significant reductions to the number of data items
reported, changes in the frequency of items collected, and increases
in reporting thresholds for certain data items on the FFIEC 041 and
the FFIEC 031 Call Reports. In addition, the agencies issued a final
rule in June 2019 implementing Section 205 of the Economic Growth,
Regulatory Relief, and Consumer Protection Act, expanding the
eligibility for institutions to complete the FFIEC 051 Call Report.
See 84 FR 29039 (June 21, 2019).
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2. Proposed Call Report Revisions
FDIC Loss-Sharing Agreements Items
FDIC loss-sharing agreements indemnified institutions for certain
losses incurred on specified assets acquired from failed insured
depository institutions or otherwise purchased from the FDIC that are
covered by such agreements with the FDIC. Under a loss-sharing
agreement, the FDIC agreed to absorb a portion of the losses on a
specified pool of a failed insured depository institution's assets to
maximize asset recoveries and minimize the FDIC's losses. The number of
institutions reporting on the related items has decreased as loans,
other real estate, and other assets covered by loss-sharing agreements
with the FDIC have largely been paid-off or sold. Additionally, all
loss-sharing agreements have expired or have been terminated.
Therefore, the agencies no longer consider the current level of detail
on these agreements to be appropriate and are proposing to eliminate
the following associated items:
<bullet> For all versions of the Call Report, Schedule RC-F, Other
Assets, item 6.d, ``FDIC loss-sharing indemnification assets,'' which
represent the carrying amount of the right to receive payments from the
FDIC for losses incurred under loss-sharing agreements.
<bullet> For FFIEC 031 and FFIEC 041, Schedule RC-M, Memoranda,
item 13, ``Assets covered by loss-agreements with the FDIC,'' including
each subitem 13.a.(1)(a)(1) through 13.d. These items include, for each
appropriate class of asset, the balance sheet carrying amount of all
assets acquired from failed insured depository institutions or
otherwise purchased from the FDIC that are covered by loss-sharing
agreements.
<bullet> For the FFIEC 031, item 13.b.(6), ``In foreign offices.''
<bullet> For FFIEC 031 and FFIEC 041, Schedule RC-N, Past Due and
[[Page 10647]]
Nonaccrual Loans, Leases, and Other Assets, item 12, ``Loans and leases
reported in items 1 through 8 above that are covered by loss-sharing
agreements with the FDIC,'' including each subitem 12.a.(1)(a) through
12.f. Items 12.a.(1)(a) through 12.e include the amount of all loans
and leases covered by FDIC loss-sharing agreements that are past due 30
days or more or are in nonaccrual status as of the report date. Item
12.f includes the associated maximum amount recoverable from the FDIC,
beyond the amount reflected in the loss-sharing indemnification assets.
<bullet> For the FFIEC 051, Schedule SU, Supplemental Information,
item 9 ``Does the institution have assets covered by FDIC loss-sharing
agreements?'' and items 9.a through 9.e, which report, as appropriate,
the amount of loans, leases and other real estate owned that are
covered by FDIC loss-sharing agreements, and details of amounts that
are past due 30 days or more or are in nonaccrual status, and the
maximum amount recoverable from the FDIC.
Noncash Income From Negative Amortization Loans
Negative amortization loans contractually permit a borrower to make
minimum periodic payments that are less than the full amount of
interest owed to the lender, with the unpaid interest added to the
loan's principal balance. Based on the results of the 2022 statutorily
mandated full review, the agencies are proposing to remove one item
related to negative amortization loans. The agencies are proposing this
removal based on the decline in volume of institutions reporting of
noncash income on negative amortization loans secured by 1-4 family
residential properties to a level no longer deemed necessary to
collect. The agencies would be able to continue monitoring the level of
activity on negative amortization loans by reviewing the data reported
on Schedule RC-C, Memorandum items 8.a through 8.c. Therefore, for all
versions of the Call Report, the agencies are proposing to remove
Schedule RI, Income Statement, Memorandum item 12, ``Noncash income
from negative amortization on closed end loans secured by 1-4 family
residential properties.''
Reverse Mortgages Items
A reverse mortgage is an arrangement in which a homeowner borrows
against the equity in a principal residence and receives cash either in
a lump sum or through periodic payments and no payment is required from
the borrower until the home is no longer used as the borrower's
principal residence. Based on the results of the 2022 statutorily
mandated full review, the agencies no longer need the current level of
detail on this activity and are proposing, for all versions of the Call
Report, to consolidate the subitems reported in Schedule RC-C, Loans
and Lease Financing Receivables, Part I, Loans and Leases, Memorandum
item 15, ``Reverse mortgages,'' \4\ which is completed annually in the
December report only.
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\4\ For FFIEC 031 only, ``Reverse mortgages in domestic
offices.''
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Specifically, the proposal would consolidate Memorandum item
15.a.(1) and Memorandum item 15.a.(2) into Memorandum item 15.a,
``Reverse mortgages outstanding that are held for investment (included
in Schedule RC-C, item 1.c, above).'' Similarly, Memorandum item
15.b.(1) and Memorandum item 15.b.(2) would be consolidated into
Memorandum item 15.b, ``Estimated number of reverse mortgage loan
referrals to other lenders during the year from whom compensation has
been received for services performed in connection with the origination
of the reverse mortgages.'' Finally, Memorandum item 15.c.(1) and
Memorandum item 15.c.(2) would be consolidated into Memorandum item
15.c, ``Principal amount of reverse mortgage originations that have
been sold during the year.''
Paycheck Protection Program and Federal Reserve Facilities Items
To enhance the functioning of money markets in response to the
outbreak of the coronavirus disease 2019 and to bolster the
effectiveness of the Small Business Administration's Paycheck
Protection Program (PPP),\5\ the Board, with the approval of the
Secretary of the Treasury, established in 2020 the Money Market Mutual
Fund Liquidity Facility (MMLF) and Paycheck Protection Program
Liquidity Facility (PPPLF).\6\ Under the MMLF, the Federal Reserve Bank
of Boston extended loans to eligible borrowers to purchase assets from
money market mutual funds, which were posted as collateral to the
facility. Under the PPPLF, Federal Reserve Banks extended loans to
eligible borrowers that were secured by covered loans originated under
the PPP. In March 2020 and April 2020, the agencies published interim
final rules (subsequently finalized in October 2020), which permit
banking organizations to exclude from regulatory capital requirements
exposures related to the MMLF and PPPLF.\7\ On June 26, 2020, the FDIC
adopted a final rule modifying the deposit insurance assessment
regulations to mitigate the assessment effects of participation in the
MMLF, PPP and the PPPLF, as reported on the Call Report.\8\ Starting
with the June 30, 2020, report date, banking organizations report
amounts related to the MMLF, the PPP and PPPLF on Schedule RC-M,
Memoranda. When adding these items, the agencies noted that these items
were expected to be time-limited and would be reviewed in connection
with the 2022 statutorily mandated review of the Call Report.\9\
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\5\ See <a href="https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program">https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program</a>.
\6\ These facilities were established pursuant to section 13(3)
of the Federal Reserve Act (12 U.S.C. 343(3)). See <a href="https://www.federalreserve.gov/monetarypolicy/mmlf.htm">https://www.federalreserve.gov/monetarypolicy/mmlf.htm</a> and <a href="https://www.federalreserve.gov/monetarypolicy/ppplf.htm">https://www.federalreserve.gov/monetarypolicy/ppplf.htm</a>. The PPPLF was
previously known as the Paycheck Protection Program Lending
Facility.
\7\ 85 FR 16232 (March 23, 2020), 85 FR 20387 (April 13, 2020)
and 85 FR 68243 (October 28, 2020).
\8\ 85 FR 38282 (June 26, 2020).
\9\ 85 FR 44366 (July 22, 2020).
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The MMLF ceased extending credit on March 31, 2021, and as of April
30, 2021, the outstanding amount of loans under the facility was zero
dollars.\10\ The agencies are therefore proposing to remove Schedule
RC-M, Memoranda, item 18.a, ``Outstanding balance of assets purchased
under the MMLF'' and 18.b, ``Quarterly average amount of assets
purchased under the MMLF and excluded from ``Total assets for the
leverage ratio'' reported in Schedule RC-R, Part I, item 30'' on all
versions of the Call Reports.
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\10\ See <a href="https://www.federalreserve.gov/monetarypolicy/mmlf.htm">https://www.federalreserve.gov/monetarypolicy/mmlf.htm</a>.
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The PPP ended on May 31, 2021, and the PPPLF ceased offering credit
on July 30, 2021. However, during the 2022 statutorily mandated full
review, the number and outstanding balance of PPP loans, along with the
related outstanding balance pledged to the PPPLF, as reported by
institutions on Schedule RC-M, items 17.a, 17.b and 17.c, were
identified as continuing to be critical in the review of asset quality
and other components of the Uniform Financial Institutions Rating
System used by the agencies during safety and soundness examinations.
In addition, item 17.b, outstanding balance of PPP loans along with
items 17.d.(1) and 17.d.(2) that collect information on the remaining
maturity of the outstanding balances of borrowings from the Federal
Reserve Banks under the PPPLF were deemed required for FDIC deposit
insurance assessment purposes. Finally, item 17.e, ``Quarterly average
amount of PPP loans pledged to the PPPLF and excluded from ``Total
assets for the leverage ratio'' reported in Schedule RC-R, Part I, item
30'' continues to be
[[Page 10648]]
needed for regulatory capital purposes. The agencies will continue to
monitor the PPP-related data items and plan to propose to discontinue
the collection of these items once the aggregate industry activity has
diminished to a point where individual institution information is of
limited practical utility and is no longer needed for the purposes
described above.
3. Proposed Revisions to FFIEC 002
To maintain consistency of reporting between the Call Report and
the FFIEC 002, and for the same reasons described earlier, the Board is
proposing to remove the following item:
<bullet> Schedule O, Other Data for Deposit Insurance Assessments,
Memorandum item 7, ``Quarterly average amount of holdings of assets
purchased from money market funds under the Money Market Mutual Fund
Liquidity Facility.''
The Board would plan to remove Schedule O, Memorandum item 6,
``Outstanding balance of Paycheck Protection Program (PPP) loans''
contemporaneous with removal of the PPP loan items on the Call Report
as described above.
B. Proposed Call Report Process Revisions
In addition to the proposed revisions to the Call Report, the
agencies are requesting comment on two proposed process improvements to
streamline preparation of the Call Report.
Format of Call Report Instructions
Each quarter, the FFIEC and FDIC make available on their websites
the Instructions for the Preparation of the Call Report, together with
detailed updates to the Call Report instructions implemented for that
quarter-end report date.\11\ The instructions and updates are formatted
in a double-sided, printable format, including fixed page numbering and
pages intentionally left blank, to facilitate the use of a hard copy
stored in a binder (binder format). The agencies make the instructions
available online in a Portable Document Format (PDF) format, and many
institutions access and use the instructions in that format. However,
continuing to maintain the instructions in a binder format increases
the number of blank space and blank pages in the PDF files, which makes
the document longer by increasing the number of pages in the document
and could make using the instructions less efficient for users
accessing the instructions electronically. Therefore, the agencies are
seeking comment on the benefits and burdens, if any, of maintaining the
PDF format of the instructions and updates only instead of continuing
to support the binder format.
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\11\ There is a combined set of instructions for the FFIEC 031
and FFIEC 041 and a separate set of instructions for the FFIEC 051.
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Optional Tax Worksheet
Each quarter the FFIEC and FDIC make available on their websites
the optional tax worksheet, which is designed to assist certain
institutions in the calculation of applicable income taxes for the
year-to-date reporting period on the FFIEC 041 and FFIEC 051 Call
Reports. Institutions are not required to use the optional tax
worksheet and may use any reasonable approach for reporting applicable
income taxes in their Call Report in accordance with Accounting
Standards Codification (ASC) Topic 740, Income Taxes. The optional
worksheet provides a simplified approach for calculating year-to-date
applicable income taxes under ASC Topic 740. It should not be used by
institutions that prepare quarterly financial statements in accordance
with U.S. generally accepted accounting principles (GAAP) or where it
will likely result in significantly lower applicable income taxes than
as calculated under U.S. GAAP. In addition, the worksheet should not be
used by institutions that are, for federal income tax purposes, either
``S corporations'' or ``qualifying subchapter S subsidiaries'' as of
June 30, 2022, and that are generally not subject to federal corporate
income taxes. The agencies have determined that a limited number of
institutions is accessing the optional tax worksheet on the applicable
websites. Therefore, the agencies are seeking comment on the continued
usefulness of the optional tax worksheet to Call Report filers or other
stakeholders and any concerns if the agencies discontinue its
publication.
C. Federal Home Loan Mortgage Corporation and Other Securitization
Structures
The Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
may acquire and securitize guaranteed bonds that are issued by third
party trusts and backed by multifamily loans through a variety of
structures, such as ``K-Deals'' and ``Q-Deals''.\12\ The June 2022 Call
Report instruction book update and Supplemental Instructions included a
technical clarification, indicating that structured financial products
that are guaranteed by the U.S. government agencies, such as K-Deals
and Q-Deals issued by Freddie Mac, are to be reported in Schedule RC-B,
Securities, item 5.b, ``Structured financial products.'' The agencies
made this technical clarification to promote consistent reporting
treatment after receiving several inquiries on where to report these
products. The agencies viewed item 5.b as the most appropriate location
to report these products consistent with the pre-existing instructions.
However, the agencies subsequently received additional inquiries about
reporting Freddie Mac K-Deals and Q-Deals and other structured products
in Schedule RC-B, including whether to report the related certificates
in Schedule RC-B, item 4, ``Mortgage-backed securities (MBS).''
Therefore, the agencies are seeking comment on the reporting of these
types of structured financial products including those issued or
guaranteed by U.S. government or government sponsored agencies.
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\12\ See <a href="https://mf.freddiemac.com/investors/k-deals">https://mf.freddiemac.com/investors/k-deals</a> and <a href="https://mf.freddiemac.com/investors/q-deals">https://mf.freddiemac.com/investors/q-deals</a>.
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III. Timing
The proposed revisions to the Call Reports and the FFIEC 002 would
first take effect as of the June 30, 2023, report date. The agencies
invite comment on any difficulties that institutions would expect to
encounter in implementing the systems changes necessary to accommodate
the proposed revisions to the Call Reports and FFIEC 002 consistent
with this effective date.
IV. Request for Comment
Public comment is requested on all aspects of this joint notice
including the questions that were provided in the earlier sections. In
addition to the questions included above comment is specifically
invited on:
(a) Whether the proposed revisions to the collections of
information that are the subject of this notice 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,
[[Page 10649]]
maintenance, and purchase of services to provide information.
Comments submitted in response to this joint notice will be shared
among the agencies.
Ted Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board, Board of Governors of the
Federal Reserve System.
Dated at Washington, DC, on January 25, 2023.
James P. Sheesley,
Assistant Executive Secretary, Federal Deposit Insurance Corporation.
[FR Doc. 2023-03543 Filed 2-17-23; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
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