[Federal Register: January 30, 1997 (Volume 62, Number 20)]
[Notices]
[Page 4532]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
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FEDERAL DEPOSIT INSURANCE CORPORATION
Sale of U.S. Government Guaranteed Loans and Sale Premiums;
Rescission of Policy Statement
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Rescission of policy statement.
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SUMMARY: As part of the FDIC's systematic review of its regulations and
written policies under section 303(a) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (CDRI), the FDIC is
rescinding its policy statement on the Sale of U.S. Government
Guaranteed Loans and Sale Premiums (Policy Statement). The Policy
Statement provides guidance to state nonmember banks purchasing or
selling loans guaranteed by the U.S. government. The FDIC is rescinding
the Policy Statement because it is outmoded and duplicative.
DATES: This Policy Statement is rescinded January 30, 1997.
FOR FURTHER INFORMATION CONTACT: 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, FDIC, 550 17th Street, NW., Washington, DC
20429.
SUPPLEMENTARY INFORMATION: The FDIC is conducting a systematic review
of its regulations and written policies. Section 303(a) of the CDRI (12
U.S.C. 4803(a)) requires the FDIC, the Office of the Comptroller of the
Currency, the Board of Governors of the Federal Reserve System, and the
Office of Thrift Supervision (federal banking agencies) to each
streamline and modify its regulations and written policies in order to
improve efficiency, reduce unnecessary costs, and eliminate unwarranted
constraints on credit availability. Section 303(a) also requires each
of the federal banking agencies to remove inconsistencies and outmoded
and duplicative requirements from its regulations and written policies.
As part of this review, the FDIC has determined that the Policy
Statement is outmoded and duplicative, and that the FDIC's written
policies can be streamlined by its elimination.
The Federal Financial Institutions Examination Council (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
provides guidance on the accounting treatment of servicing fees and
premiums associated with these loans. Each of the federal banking
agencies adopted the Policy Statement, with the FDIC's original
adoption taking place on December 3, 1979, and the adoption of certain
amendments taking place on April 15, 1985. 1 FDIC Law, Regulations, and
Related Acts'' (FDIC) 5257 (1996).
In the time since the Policy Statement was adopted, the market in
government-guaranteed loans has become more established and well-known,
and insured depository institutions have gained experience in dealing
with it. The supervisory guidance contained in the Policy Statement,
which is very general in nature, is no longer necessary in light of
this experience. The accounting guidance in the Policy Statement is
also no longer necessary in light of subsequent clarifications in the
Instructions for Preparing Reports of Condition and Income, and
Financial Accounting Standards Board Statement 91.
Section 303(a) of the CDRI also requires the federal banking
agencies to work jointly towards uniformity of guidelines implementing
common supervisory policies. FFIEC has determined that the Policy
Statement is no longer necessary in light of the above reasons, and the
other federal banking agencies will also take action to rescind the
Policy Statement.
For the above reasons, the Policy Statement is rescinded.
By order of the Board of Directors.
Dated at Washington, DC, this 21st day of January, 1997.
Federal Deposit Insurance Corporation.
Jerry L. Langley,
Executive Secretary.
[FR Doc. 97-2321 Filed 1-29-97; 8:45 am]
BILLING CODE 6714-01-P