[Federal Register: January 30, 1997 (Volume 62, Number 20)]
[Notices]               
[Page 4532]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja97-49]
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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DATES: This Policy Statement is rescinded January 30, 1997.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

Last Updated 04/25/1997 regs@fdic.gov