SUMMARY: FFIEC has rescinded its policy statement on the Sale of U.S.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 The FFIEC rescinded the Policy Statement
because it is outdated.
DATES: This Policy Statement was rescinded effective December 5, 1996.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,
[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