83 FR 31146 - Proposed Agency Information Collection Activities; Comment Request
FEDERAL RESERVE SYSTEM Federal Register Volume 83, Issue 128 (July 3, 2018)
Federal Register Volume 83, Issue 128 (July 3, 2018)
| Page Range | 31146-31148 | |
| FR Document | 2018-14303 |
[Federal Register Volume 83, Number 128 (Tuesday, July 3, 2018)] [Notices] [Pages 31146-31148] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-14303] ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM Proposed Agency Information Collection Activities; Comment Request AGENCY: Board of Governors of the Federal Reserve System. ACTION: Notice, request for comment. ----------------------------------------------------------------------- SUMMARY: The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, without revision, the Interagency Guidance on Managing Compliance and Reputation Risks for [[Page 31147]] Reverse Mortgage Products (FR 4029; OMB No. 7100-0330). DATES: Comments must be submitted on or before September 4, 2018. ADDRESSES: You may submit comments, identified by FR 4029, by any of the following methods:Agency Website: http://www.federalreserve.gov. Follow the instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx. Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Email: [email protected]. Include OMB number in the subject line of the message. Fax: (202) 452-3819 or (202) 452-3102. 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 from the Board's website at http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, unless modified for technical reasons. Accordingly, your comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper form in Room 3515, 1801 K Street (between 18th and 19th Streets NW) Washington, DC 20006 between 9:00 a.m. and 5:00 p.m. on weekdays. For security reasons, the Board requires that visitors make an appointment to inspect comments. You may do so by calling (202) 452-3684. Upon arrival, visitors will be required to present valid government-issued photo identification and to submit to security screening in order to inspect and photocopy comments. Additionally, commenters may send a copy of their comments to the OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW, Washington, DC 20503 or by fax to (202) 395-6974. FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, including the proposed reporting form and instructions, supporting statement, and other documentation will be placed into OMB's public docket files, once approved. These documents will also be made available on the Federal Reserve Board's public website at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance officer, whose name appears below. Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, Washington, DC 20551 (202) 452-3829. Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors of the Federal Reserve System, Washington, DC 20551. SUPPLEMENTARY INFORMATION: On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board authority under the Paperwork Reduction Act (PRA) to approve of and assign OMB control numbers to collection of information requests and requirements conducted or sponsored by the Board. In exercising this delegated authority, the Board is directed to take every reasonable step to solicit comment. In determining whether to approve a collection of information, the Board will consider all comments received from the public and other agencies. Request for Comment on Information Collection Proposal The Board invites public comment on the following information collection, which is being reviewed under authority delegated by the OMB under the PRA. Comments are invited on the following: a. Whether the proposed collection of information is necessary for the proper performance of the Federal Reserve's functions, including whether the information has practical utility; b. The accuracy of the Federal Reserve's estimate of the burden of the proposed information collection, 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 collection on respondents, including through the use of automated collection techniques or other forms of information technology; and e. Estimates of capital or startup costs and costs of operation, maintenance, and purchase of services to provide information. At the end of the comment period, the comments and recommendations received will be analyzed to determine the extent to which the Federal Reserve should modify the proposal prior to giving final approval. Proposal to approve under OMB delegated authority the extension for three years, without revision, of the following report: Report title: Interagency Guidance on Managing Compliance and Reputation Risks for Reverse Mortgage Products. Agency form number: FR 4029. OMB control number: 7100-0330. Frequency: Annual. Respondents: State member banks that originate proprietary reverse mortgages. Estimated number of respondents: Implementation of policies and procedures, 1 respondent; and Review and maintenance of policies and procedures, 15 respondents. Estimated average hours per response: Implementation of policies and procedures, 40 hours; and Review and maintenance of policies and procedures, 8 hours. Estimated annual burden hours: Implementation of policies and procedures, 40 hours; and Review and maintenance of policies and procedures, 120 hours. General description of report: Reverse mortgages are home-secured loans typically offered to elderly consumers. Financial institutions currently provide two types of reverse mortgage products: the lenders' own proprietary reverse mortgage products and reverse mortgages insured by the U.S. Department of Housing and Urban Development's Federal Housing Administration (FHA). Reverse mortgage loans insured by the FHA are made pursuant to the guidelines and rules established by HUD's Home Equity Conversion Mortgage (HECM) program.\1\ HECM loans and proprietary reverse mortgages are also subject to consumer financial protection laws and regulations, e.g., the regulations that implement laws such as the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). --------------------------------------------------------------------------- \1\ See 12 U.S.C. 1715z-20; 24 CFR part 206. --------------------------------------------------------------------------- In August 2010, the Federal Financial Institutions Examination Council (FFIEC), on behalf of its member agencies,\2\ published a Federal Register notice adopting supervisory guidance titled ``Reverse Mortgage Products: Guidance for Managing Compliance and Reputation Risks.'' \3\ The guidance is designed to help financial institutions with risk management and assist financial institutions' efforts to ensure that their reverse mortgage lending practices adequately address consumer compliance and reputation risks. --------------------------------------------------------------------------- \2\ The Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. \3\ 75 FR 50801. --------------------------------------------------------------------------- The reverse mortgage guidance discusses the reporting, recordkeeping, and disclosures required by federal laws [[Page 31148]] and regulations and also discusses consumer disclosures that financial institutions typically provide as a standard business practice. Certain portions of the guidance are ``information collections'' subject to the PRA's requirements. Legal authorization and confidentiality: The information collection is authorized pursuant to section 11 of the Federal Reserve Act, 12 U.S.C. 248 (state member banks); sections 25 and 25A of the Federal Reserve Act, 12 U.S.C. 625 (Edge and Agreement corporations); section 5 of the Bank Holding Company Act of 1956, 12 U.S.C. 1844 (bank holding companies and, in conjunction with section 8 of the International Banking Act, 12 U.S.C. 3106, foreign banking organizations); section 7(c) of the International Banking Act of 1978, 12 U.S.C. 3105(c) (branches and agencies of foreign banks); and section 10 of the Home Owners' Loan Act, 12 U.S.C. 1467a, (savings and loan holding companies). This guidance is voluntary. Because the documentation required by the guidance is maintained by each institution, the Freedom of Information Act (FOIA) would only be implicated if the Federal Reserve's examiners retained a copy of this information as part of an examination or as part of its supervision of a financial institution. However, records obtained as a part of an examination or supervision of a financial institution are exempt from disclosure under FOIA exemption (b)(8) (5 U.S.C. 552(b)(8)). In addition, the information may also be kept confidential under exemption 4 of the FOIA which protects commercial or financial information obtained from a person that is privileged or confidential (5 U.S.C. 552(b)(4)). Board of Governors of the Federal Reserve System, June 28, 2018. Michele Taylor Fennell, Assistant Secretary of the Board. [FR Doc. 2018-14303 Filed 7-2-18; 8:45 am] BILLING CODE 6210-01-P
![31146 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices
commenters argued that the proposed One commenter noted that the Further, a commenter asked for
changes could result in the GSIB definition of ‘‘financial institution’’ in clarification regarding the reporting of
surcharge of several firms increasing, the FR Y–15 is different from other holdings of equity investments in
which, in turn, could lead these firms to regulatory reports and recommended unconsolidated investment funds
increase clearing costs for derivative aligning the varying definitions. In sponsored or administered by the
end-users. response, the Board acknowledges that respondent. Specifically, the commenter
After considering the comments, the its regulations and reporting sometimes wanted to know whether such
Board is not adopting its proposal with use differing definitions for similar investments would be reported as equity
respect to reporting derivatives under concepts and that this may require firms securities in Schedule B, item 3(e). Per
the agency model on Schedule B in to track differences among the the general instructions for Schedule B,
order to allow additional time to definitions. Firms should review the item 3, firms must include ‘‘securities
consider how to cover such activity in definition of ‘‘financial institution’’ in issued by equity-accounted associates
the context of interconnectedness. The the instructions of the form on which (i.e., associated companies and affiliates
Board will continue to consider whether they are reporting and should not look accounted for under the equity method
agency clearing should be incorporated to similar definitions in other forms as of accounting) and special purpose
into the interconnectedness measures or dispositive for appropriate reporting on entities (SPEs) that are not part of the
elsewhere. the FR Y–15. consolidated entity for regulatory
A commenter also asked for purposes.’’ Therefore, such equity
Other Comments Received
clarification about whether securities investments would be included in item
No comments were received regarding financing transactions follow the 3(e).
the inclusion of Mexican pesos in total regulatory capital rule definition of A commenter also requested
payments activity or the addition of repo-style transactions. As described in clarification on how collateral may
securities brokers to the definition of the General Instructions of Schedule A, reduce the exposure reported in the FR
financial institution. Accordingly, the several items involve securities Y–15, Schedule B, items 5(a) and 11(a).
Board is adopting revisions to the FR Y– financing transactions (i.e., repo-style For item 5(a), in cases where a
15 reporting form and instructions to transactions), which are transactions qualifying master netting agreement is
include Mexican pesos in total such as repurchase agreements, reverse in place, a reporting bank may reduce
payments activity on Schedule C and repurchase agreements, and securities its value of derivative assets by
remove it from the Memorandum items, lending and borrowing, where the value subtracting the net collateral position
and to add securities brokers to the of the transactions depends on the from the underlying obligation. In
definition of financial institutions in the market valuations and the transactions circumstances where the net collateral
instructions for Schedule B. These are often subject to margin agreements. exceeds the payment obligation, the
changes are effective for the June 30, For purposes of reporting on the FR Y– bank should report a fair value of zero
2018, reporting date. 15, the intent is that securities financing for the netting set. Similarly, for item
Several commenters stated that the transactions are synonymous with repo- 11(a), in cases where a qualifying master
proposed changes to the reporting of style transactions under the regulatory netting agreement is in place, a
OTC derivatives in Schedule D would capital rule. In a future update of the FR reporting bank may reduce its value of
make the FR Y–15 inconsistent with the Y–15, the Board will work to replace the derivative liabilities exposure by
Basel Committee GSIB assessment term ‘‘securities financing transactions’’ subtracting the net collateral position
reporting instructions.7 In addition, with ‘‘repo-style transactions’’ to better from the underlying obligation. In
certain commenters stated that the align the FR Y–15 language with the circumstances where the net collateral
proposed revisions to Schedule B, items regulatory capital rule. exceeds the payment obligation owed to
5(a) and 11(a), and Schedule D, item 1, In addition, a commenter asked for the counterparty, the bank should report
were inconsistent with the clarification regarding potential a fair value of zero for the netting set.
Administrative Procedure Act (APA). inconsistencies between similar items
The Board is not adopting these Board of Governors of the Federal Reserve
that are reported on different reporting System, June 28, 2018.
proposed changes, making these forms. In particular, the commenter
arguments moot.8 Michele Taylor Fennell,
noted that the instructions for the FR Y–
Assistant Secretary of the Board.
15, FFIEC 101 (Regulatory Capital
7 The international GSIB assessment reporting [FR Doc. 2018–14304 Filed 7–2–18; 8:45 am]
Reporting for Institutions Subject to the
instructions for year-end 2017 are available at BILLING CODE 6210–01–P
www.bis.org/bcbs/gsib/reporting_instructions.htm. Advanced Capital Adequacy
8 Even if the argument regarding the APA were Framework), and FR Y–14Q (Capital
not moot, the Board would not have violated the Assessments and Stress Testing) do not
APA if it decided to implement the proposed FEDERAL RESERVE SYSTEM
consistently allow for a reduction in fair
revisions to Schedule B, items 5(a) and 11(a), and
Schedule D, item 1. The proposed revisions to the
value of sold credit protection. The Proposed Agency Information
FR Y–15 constitute an interpretive rule or general Board will conduct a coordinated effort Collection Activities; Comment
statement of policy, and therefore may be adopted with the other banking agencies on Request
without the publication of a general notice of changes to the FFIEC 101 and the FR Y–
proposed rulemaking in the Federal Register. Even
if such publication were necessary to adopt the
14 to ensure that the instructions AGENCY: Board of Governors of the
proposed revisions, this requirement was satisfied appropriately clarify how any Federal Reserve System.
because the proposal was published for comment in adjustments for sold credit protection
sradovich on DSK3GMQ082PROD with NOTICES
ACTION: Notice, request for comment.
the Federal Register for a 60-day comment period. should be reported.9
After receiving initial feedback on the proposal, the
comment period was extended for 30 days to solicit SUMMARY: The Board of Governors of the
additional feedback. Moreover, redlined forms, provided significant feedback based on the Federal Reserve System (Board) invites
instructions, and an OMB supporting statement proposal. comment on a proposal to extend for
were made available on the Board’s public website. 9 Any changes to these reporting forms would
The materials afforded commenters the opportunity have to be proposed in a future Federal Register
three years, without revision, the
to provide specific feedback regarding the exact notice with a 60-day comment period, as required Interagency Guidance on Managing
changes being proposed. Indeed, commenters by the Paperwork Reduction Act (PRA). Compliance and Reputation Risks for
VerDate Sep<11>2014 17:07 Jul 02, 2018 Jkt 244001 PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1](https://thefederalregister.org/doc/83_FR_31274/page/1.svg)
![31148 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices
and regulations and also discusses companies (‘‘aggregate financial sector rules) and total regulatory capital, as
consumer disclosures that financial liabilities’’). Specifically, an insured calculated under the applicable risk-
institutions typically provide as a depository institution, a bank holding based capital rules. Companies in this
standard business practice. Certain company, a savings and loan holding category include (with certain
portions of the guidance are company, a foreign banking exceptions listed below) bank holding
‘‘information collections’’ subject to the organization, any other company that companies, savings and loan holding
PRA’s requirements. controls an insured depository companies, and insured depository
Legal authorization and institution, and a nonbank financial institutions. The Federal Reserve used
confidentiality: The information company designated by the Financial information collected on the
collection is authorized pursuant to Stability Oversight Council (each, a Consolidated Financial Statements for
section 11 of the Federal Reserve Act, 12 ‘‘financial company’’) is prohibited from Holding Companies (FR Y–9C) and the
U.S.C. 248 (state member banks); merging or consolidating with, Bank Consolidated Reports of Condition
sections 25 and 25A of the Federal acquiring all or substantially all of the and Income (Call Report) to calculate
Reserve Act, 12 U.S.C. 625 (Edge and assets of, or acquiring control of, liabilities of these institutions.
Agreement corporations); section 5 of another company if the resulting Consolidated liabilities of a U.S.
the Bank Holding Company Act of 1956, company’s consolidated liabilities financial company not subject to
12 U.S.C. 1844 (bank holding companies would exceed 10 percent of the consolidated risk-based capital rules as
and, in conjunction with section 8 of the aggregate financial sector liabilities.1 of December 31 of the year being
International Banking Act, 12 U.S.C. Pursuant to Regulation XX, the measured, equal liabilities calculated in
3106, foreign banking organizations); Federal Reserve will publish the accordance with applicable accounting
section 7(c) of the International Banking aggregate financial sector liabilities by standards. Companies in this category
Act of 1978, 12 U.S.C. 3105(c) (branches July 1 of each year. Aggregate financial include nonbank financial companies
and agencies of foreign banks); and sector liabilities equals the average of supervised by the Board, bank holding
section 10 of the Home Owners’ Loan the year-end financial sector liabilities companies and savings and loan
Act, 12 U.S.C. 1467a, (savings and loan figure (as of December 31) of each of the holding companies subject to the
holding companies). This guidance is preceding two calendar years. Federal Reserve’s Small Bank Holding
voluntary. FOR FURTHER INFORMATION CONTACT: Company Policy Statement, savings and
Because the documentation required Sean Healey, Supervisory Financial loan holding companies substantially
by the guidance is maintained by each Analyst, (202) 912–4611; Matthew engaged in insurance underwriting or
institution, the Freedom of Information Suntag, Counsel, (202) 452–3694; for the commercial activities, and U.S.
Act (FOIA) would only be implicated if hearing impaired, TTY (202) 263–4869. companies that control insured
the Federal Reserve’s examiners depository institutions but are not bank
Aggregate Financial Sector Liabilities holding companies or savings and loan
retained a copy of this information as
part of an examination or as part of its Aggregate financial sector liabilities is holding companies. ‘‘Applicable
supervision of a financial institution. equal to $20,283,121,945,000.2 This accounting standards’’ is defined as
However, records obtained as a part of measure is in effect from July 1, 2018 GAAP, or such other accounting
an examination or supervision of a through June 30, 2019. standard or method of estimation that
financial institution are exempt from the Board determines is appropriate.3
Calculation Methodology
disclosure under FOIA exemption (b)(8) The Federal Reserve used information
Aggregate financial sector liabilities collected on the FR Y–9C, the Parent
(5 U.S.C. 552(b)(8)). In addition, the equals the average of the year-end
information may also be kept Company Only Financial Statements for
financial sector liabilities figure (as of Small Holding Companies (FR Y–9SP),
confidential under exemption 4 of the December 31) of each of the preceding
FOIA which protects commercial or and the Financial Company Report of
two calendar years. The year-end Consolidated Liabilities (FR XX–1) to
financial information obtained from a financial sector liabilities figure equals calculate liabilities of these institutions.
person that is privileged or confidential the sum of the total consolidated Section 622 provides that the U.S.
(5 U.S.C. 552(b)(4)). liabilities of all top-tier U.S. financial liabilities of a ‘‘foreign financial
Board of Governors of the Federal Reserve companies and the U.S. liabilities of all company’’ equal the risk-weighted
System, June 28, 2018. top-tier foreign financial companies,
Michele Taylor Fennell, calculated using the applicable 3 A financial company may request to use an
Assistant Secretary of the Board. methodology for each financial accounting standard or method of estimation other
company, as set forth in Regulation XX than GAAP if it does not calculate its total
[FR Doc. 2018–14303 Filed 7–2–18; 8:45 am] consolidated assets or liabilities under GAAP for
BILLING CODE 6210–01–P
and summarized below. any regulatory purpose (including compliance with
Consolidated liabilities of a U.S. applicable securities laws). 12 CFR 251.3(e). In
financial company that was subject to previous years, the Board received and approved
requests from eleven financial companies to use an
FEDERAL RESERVE SYSTEM consolidated risk-based capital rules as accounting standard or method of estimation other
of December 31 of the year being than GAAP to calculate liabilities. Ten of the
[Docket No. OP–1612] measured, equal the difference between companies are insurance companies that report
its risk-weighted assets (as adjusted financial information under Statutory Accounting
Announcement of Financial Sector Principles (‘‘SAP’’), and one is a foreign company
upward to reflect amounts that are
Liabilities that controls a U.S. industrial loan company that
deducted from regulatory capital reports financial information under International
Section 622 of the Dodd-Frank Wall elements pursuant to the Federal
sradovich on DSK3GMQ082PROD with NOTICES
Financial Reporting Standards (‘‘IFRS’’). For the
Street Reform and Consumer Protection banking agencies’ risk-based capital insurance companies, the Board approved a method
of estimation that was based on line items from
Act, implemented by the Board’s SAP-based reports, with adjustments to reflect
Regulation XX, prohibits a merger or 1 12
U.S.C. 1852(a)(2), (b). certain differences in accounting treatment between
2 This
number reflects the average of the financial GAAP and SAP. For the foreign company, the Board
acquisition that would result in a
sector liabilities figure for the year ending approved the use of IFRS. These companies
financial company that controls more December 31, 2016 ($20,079,196,276,000) and the continue to use the previously approved methods.
than 10 percent of the aggregate year ending December 31, 2017 The Board did not receive any new requests this
consolidated liabilities of all financial ($20,487,047,614,000). year.
VerDate Sep<11>2014 17:07 Jul 02, 2018 Jkt 244001 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1](https://thefederalregister.org/doc/83_FR_31274/page/3.svg)
Document Created: 2018-07-02 23:55:55
Document Modified: 2018-07-02 23:55:55
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice, request for comment. | |
| Dates | Comments must be submitted on or before September 4, 2018. | |
| Contact | A copy of the PRA OMB submission, including the proposed reporting form and instructions, supporting statement, and other documentation will be placed into OMB's public docket files, once approved. These documents will also be made available on the Federal Reserve Board's public website at: http:// www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance officer, whose name appears below. | |
| FR Citation | 83 FR 31146 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR