[Federal Register Volume 81, Number 87 (Thursday, May 5, 2016)]
[Notices]
[Pages 27130-27132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10557]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Notice is hereby given of the final approval of a proposed
information collection by the Board of Governors of the Federal Reserve
System (Board) under OMB delegated authority, as per 5 CFR 1320.16 (OMB
Regulations on Controlling Paperwork Burdens on the Public). Board-
approved collections of information are incorporated into the official
OMB inventory of currently
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approved collections of information. Copies of the Paperwork Reduction
Act Submission, supporting statements and approved collection of
information instrument(s) are placed into OMB's public docket files.
The Federal Reserve may not conduct or sponsor, and the respondent is
not required to respond to, an information collection that has been
extended, revised, or implemented on or after October 1, 1995, unless
it displays a currently valid OMB control number.
FOR FURTHER INFORMATION CONTACT: 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.
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.
Final approval under OMB delegated authority of the extension for
three years, with revision, of the following report:
Report title: Recordkeeping and disclosure requirements associated
with the Truth in Lending Act (TILA) (Regulation Z).
Agency form number: Reg Z.
OMB control number: 7100-0199.
Frequency: Event-generated.
Reporters: State member banks, their subsidiaries, subsidiaries of
bank holding companies, U.S. branches and agencies of foreign banks
(other than federal branches, federal agencies, and insured state
branches of foreign banks), commercial lending companies owned or
controlled by foreign banks, and organizations operating under section
25 or 25A of the Federal Reserve Act (12 U.S.C. 601-604a; 611-631).
Estimated annual reporting hours: Open-end (not home-secured
credit): Applications and solicitations, 16,896 hours; Account opening
disclosures, 5,060 hours; Periodic statements, 95,232 hours; Change-in-
terms disclosures, 62,000 hours; Timely settlement of estate debts
policies (one-time), 7,936 hours; Timely settlement of estate debts
policies (ongoing), 744 hours; Ability to pay policies (one-time),
1,408 hours; Ability to pay policies (ongoing), 132 hours; and
Reporting and marketing rules for college student open-end credit and
Internet posting of credit card agreements, 5,632 hours; Open-end
credit (Home Equity Plans): Application disclosures, 12,522 hours;
Account opening disclosures, 18,228 hours; Periodic statements, 60,864
hours; Change-in-terms disclosures, 39,625 hours; and Notices to
restrict credit, 317 hours; All open-end credit: Error resolution--
credit cards, 12,760 hours and other open-end credit, 992 hours;
Closed-end credit (Non-mortgage): Closed-end credit disclosures,
265,658 hours; Closed-end credit (Mortgage): Interest rate and payment
summary and ``No guarantee-to-refinance'' statement, 304,320 hours; ARM
disclosure (one-time), 951 hours; ARM disclosures (ongoing), 107,780
hours; Initial rate adjustment notice (one-time), 1,268 hours; Initial
rate adjustment notice (ongoing), 53,890 hours; Periodic statements
(one-time), 845 hours; Periodic statements (ongoing), 224,013 hours;
and Verification of documents for Qualified Mortgage (QM) and non-QM
determination (one-time), 444 hours; Open and closed-end mortgage:
Prompt crediting & payoff statement (one-time), 528 hours; Payoff
statements (ongoing), 42,267 hours; and Mortgage transfer disclosure,
60,864 hours; Certain home mortgage types: Reverse mortgage
disclosures, 188 hours; HOEPA disclosures (one-time), 500 hours; HOEPA
disclosures (ongoing), 4,200 hours; HOEPA receipt of certification of
counseling for high-cost mortgages (one-time), 19 hours; HOEPA receipt
of certification of counseling for high-cost mortgages (ongoing), 25
hours; Appraisals for higher-priced mortgage loans: Order and review
initial appraisal, 150 hours; Order and review additional appraisal,
150 hours; and Provide copy of initial and additional appraisals, 1
hour; Private education loans: Private student loan disclosures, 1,836
hours; Advertising rules (all credit types): Advertising rules, 2,067
hours; and Record retention (one-time), 190 hours.
Estimated average hours per response: Open-end (not home-secured
credit): Applications and solicitations, 8 hours; Account opening
disclosures, 1.5 minutes; Periodic statements, 8 hours; Change-in-terms
disclosures, 1 minute; Timely settlement of estate debts policies (one-
time), 8 hours; Timely settlement of estate debts policies (ongoing),
45 minutes; Ability to pay policies (one-time), 8 hours; Ability to pay
policies (ongoing), 45 minutes; and Reporting and marketing rules for
college student open-end credit and Internet posting of credit card
agreements, 8 hours; Open-end credit (Home Equity Plans): Application
disclosures, 1.5 minutes; Account opening disclosures, 1.5 minutes;
Periodic statements, 8 hours; Change-in-terms disclosures, 1 minute;
and Notices to restrict credit, 3 minutes; All open-end credit: Error
resolution--credit cards, 30 minutes and other open-end credit, 30
minutes; Closed-end credit (Non-mortgage): Closed-end credit
disclosures, 6.5 minutes; Closed-end credit (Mortgage): Interest rate
and payment summary and ``No guarantee-to-refinance'' statement, 40
hours; ARM disclosure (one-time), 1.5 hours; ARM disclosures (ongoing),
17 minutes; Initial rate adjustment notice (one-time), 2 hours; Initial
rate adjustment notice (ongoing), 17 minutes; Periodic statements (one-
time), 1 hour, 20 minutes; Periodic statements (ongoing), 0.5 minutes;
and Verification of documents for Qualified Mortgage (QM) and non-QM
determination (one-time), 42 minutes; Open and closed-end mortgage:
Prompt crediting & payoff statement (one-time), 50 minutes; Payoff
statements (ongoing), 5 minutes; and Mortgage transfer disclosure, 8
hours; Certain home mortgage types: Reverse mortgage disclosures, 3
minutes; HOEPA disclosures (one-time), 20 hours; HOEPA disclosures
(ongoing), 14 hours; HOEPA receipt of certification of counseling for
high-cost mortgages (one-time), 45 minutes; HOEPA receipt of
certification of counseling for high-cost mortgages (ongoing), 1 hour;
Appraisals for higher-priced mortgage loans: Order and review initial
appraisal, 15 minutes; Order and review additional appraisal, 15
minutes; and Provide copy of initial and additional appraisals, 15
minutes; Private education loans: Private student loan disclosures, 17
hours; Advertising rules (all credit types): Advertising rules, 25
minutes; and Record retention (one-time), 18 minutes.
Number of respondents: Open-end (not home-secured credit):
Applications and solicitations and Account opening disclosures, 176
respondents; Periodic statements, Change-in-terms disclosures, Timely
settlement of estate debts policies (one-time), and Timely settlement
of estate debts policies (ongoing), 992 respondents; Ability to pay
policies (one-time), Ability to pay policies (ongoing), and Reporting
and marketing rules for college student open-end credit and Internet
posting of credit card agreements, 176 respondents; Open-end credit
(Home Equity Plans): Application disclosures, Account opening
disclosures, Periodic statements, Change-in-terms disclosures, and
Notices to restrict credit, 634 respondents; All open-end credit: Error
resolution--credit cards,
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176 respondents and other open-end credit, 992 respondents; Closed-end
credit (Non-mortgage): Closed-end credit disclosures, 992 respondents;
Closed-end credit (Mortgage): Interest rate and payment summary and
``No guarantee-to-refinance'' statement, ARM disclosure (one-time), ARM
disclosures (ongoing), Initial rate adjustment notice (one-time),
Initial rate adjustment notice (ongoing), Periodic statements (one-
time), Periodic statements (ongoing), and Verification of documents for
Qualified Mortgage (QM) and non-QM determination (one-time), 634
respondents; Open and closed-end mortgage: Prompt crediting & payoff
statement (one-time), Payoff statements (ongoing), and Mortgage
transfer disclosure, 634 respondents; Certain home mortgage types:
Reverse mortgage disclosures, 15 respondents; HOEPA disclosures (one-
time), HOEPA disclosures (ongoing), HOEPA receipt of certification of
counseling for high-cost mortgages (one-time), HOEPA receipt of
certification of counseling for high-cost mortgages (ongoing),
Appraisals for higher-priced mortgage loans: Order and review initial
appraisal, Order and review additional appraisal, and Provide copy of
initial and additional appraisals, 25 respondents; Private education
loans: Private student loan disclosures, 9 respondents; Advertising
rules (all credit types): Advertising rules, 992 respondents; and
Record retention (one-time), 634 respondents.
General description of report: The disclosure, record-keeping, and
other requirements of Regulation Z are authorized by the TILA, which
directs the Consumer Financial Protection Bureau (CFPB) and, for
certain lenders, the Federal Reserve to issue regulations implementing
the statute. Covered lenders are required to comply with the
recordkeeping, reporting, and disclosure provisions of Regulation Z.
Regulation Z is chiefly a disclosure regulation, so the issue of
confidentiality does not normally arise. One aspect of the rule
requires certain card issuers to submit annual reports to the CFPB, but
no reports are filed with the Federal Reserve.
Abstract: TILA and Regulation Z ensure adequate disclosure of the
costs and terms of credit to consumers. For open-end credit, such as
credit cards and home-equity lines of credit (HELOCs), creditors are
required to disclose information about the initial costs and terms and
to provide periodic statements of account activity, notices of changes
in terms, and statements of rights concerning billing error procedures.
For closed-end loans, such as mortgage and installment loans, cost
disclosures are required prior to and at consummation. Special
disclosures are required for certain products, such as reverse
mortgages and high cost mortgages with rates and fees above specified
thresholds. TILA and Regulation Z also contain rules concerning credit
advertising.\1\
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\1\ In addition, Regulation Z contains requirements that are not
considered information collections and thus are not addressed here.
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Creditors are required to comply with Regulation Z's disclosure and
other requirements unless the transaction is exempt.\2\ Regulation Z
generally does not apply to consumer credit transactions that exceed a
threshold amount, adjusted annually for inflation.\3\ The threshold
amount for credit extended during 2015 was $54,600; this threshold will
remain the same in 2016.
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\2\ Exemptions include business credit, credit over applicable
threshold amounts, public utility credit, securities or commodities
accounts, home fuel budget plans, certain student loan programs, and
employer-sponsored retirement plans. See 12 CFR 1026.3.
\3\ 12 CFR 1026.3(b).
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However, regardless of the amount of credit extended, Regulation Z
applies to: (1) Consumer credit secured by real property; (2) consumer
credit secured by personal property used or expected to be used as the
principal swelling of the consumer; and (3) private student loans.
Current Actions: On February 19, 2016 the Federal Reserve published
a notice in the Federal Register (81 FR 8492) requesting public comment
for 60 days on the extension, with revision, of Reg Z. The comment
period for this notice expired on April 19, 2016. The Federal Reserve
did not receive any comments. The revisions will be implemented as
proposed.
Board of Governors of the Federal Reserve System, May 2, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-10557 Filed 5-4-16; 8:45 am]
BILLING CODE 6210-01-P