[Federal Register Volume 83, Number 57 (Friday, March 23, 2018)]
[Rules and Regulations]
[Pages 12657-12659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05999]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1940
RIN 0575-AD11
Truth in Lending--Real Estate Settlement Procedures
AGENCY: Rural Housing Service, USDA.
ACTION: Direct final rule.
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[[Page 12658]]
SUMMARY: The Rural Housing Service (RHS or Agency) will obsolete (and
reserve) the Truth in Lending--Real Estate Settlement Procedures
regulation to ensure compliance with the Truth in Lending Act (TILA)
and Real Estate Settlement Procedures Act (RESPA) Integrated Mortgage
Disclosures rule, commonly referred to as the TRID rule. This direct
final rule will eliminate the functionally obsolete regulation in order
to ensure compliance with the TRID rule, as the standard to follow.
DATES:
Effective Date: This rule is effective June 21, 2018.
Comments: Comments on the direct final rule must be received on or
before May 22, 2018.
ADDRESSES: You may submit comments to this rule by any of the following
methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Submit written comments via the U.S. Postal Service
to the Branch Chief, Regulations and Paperwork Management Branch, U.S.
Department of Agriculture, STOP 0742, 1400 Independence Avenue, SW,
Washington, DC 20250-0742.
All written comments will be available for public inspection during
regular work hours at the 1400 Independence Avenue SW, address listed
above.
FOR FURTHER INFORMATION CONTACT: Shannon Chase, Finance and Loan
Analyst, Single Family Housing Direct Loan Origination Branch, USDA
Rural Development, 1400 Independence Ave. SW, Washington, DC 20250-
0783, Telephone: (515) 305-0399. Email: [email protected].
SUPPLEMENTARY INFORMATION:
Statutory Authority
Section 510(k) of Title V of the Housing Act of 1949 (42 U.S.C.
1480(k)), as amended, authorizes the Secretary of Agriculture to
promulgate rules and regulations as deemed necessary to carry out the
purpose of that title.
Executive Order 12866
The Office of Management and Budget (OMB) has designated this rule
as not significant under Executive Order 12866.
Executive Order 12988, Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Except where specified, all State and local laws and
regulations that are in direct conflict with this rule will be
preempted. Federal funds carry Federal requirements. No person is
required to apply for funding under this program, but if they do apply
and are selected for funding, they must comply with the requirements
applicable to the Federal program funds. This rule is not retroactive.
It will not affect agreements entered into prior to the effective date
of the rule. Before any judicial action may be brought regarding the
provisions of this rule, the administrative appeal provisions of 7 CFR
part 11 must be exhausted.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effect of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, the
Agency generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures to State, local, or tribal
governments, in the aggregate, or to the private sector, of $100
million, or more, in any one year. When such a statement is needed for
a rule, section 205 of the UMRA generally requires the Agency to
identify and consider a reasonable number of regulatory alternatives
and adopt the least costly, most cost-effective, or least burdensome
alternative that achieves the objectives of the rule.
This direct final rule contains no Federal mandates (under the
regulatory provisions of Title II of the UMRA) for State, local, and
tribal governments or the private sector. Therefore, this rule is not
subject to the requirements of sections 202 and 205 of the UMRA.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1970,
subpart A, ``Environmental Policies.'' It is the determination of the
Agency that this action does not constitute a major Federal action
significantly affecting the quality of the human environment, and, in
accordance with the National Environmental Policy Act of 1969, Public
Law 91-190, neither an Environmental Assessment nor an Environmental
Impact Statement is required.
Executive Order 13132, Federalism
The policies contained in this rule do not have any substantial
direct effect on States, on the relationship between the national
government and States, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on State and local
governments. Therefore, consultation with the States is not required.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.) the undersigned has determined and certified by signature of this
document that this rule, while affecting small entities, will not have
an adverse economic impact on small entities. This rule does not impose
any significant new requirements on program recipients nor does it
adversely impact proposed real estate transactions involving program
recipients as the buyers.
Executive Order 12372, Intergovernmental Review of Federal Programs
This program/activity is not subject to the provisions of Executive
Order 12372, which require intergovernmental consultation with State
and local officials. (See the Notice related to 7 CFR part 3015,
subpart V, at 48 FR 29112, June 24, 1983; 49 FR 22675, May 31, 1984; 50
FR 14088, April 10, 1985.)
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This executive order imposes requirements on Rural Development in
the development of regulatory policies that have tribal implications or
preempt tribal laws. Rural Development has determined that the direct
final rule does not have a substantial direct effect on one or more
Indian tribe(s) or on either the relationship or the distribution of
powers and responsibilities between the Federal Government and the
Indian tribes. Thus, this direct final rule is not subject to the
requirements of Executive Order 13175.
Programs Affected
The following programs, which are listed in the Catalog of Federal
Domestic Assistance, are affected by this direct final rule: Number
10.410, Very Low to Moderate Income Housing Loans (specifically section
502 direct loans), and Number 10.417, Very Low-Income Housing Repair
Loans and Grants (specifically section 504 loans).
Paperwork Reduction Act
This direct final rule does not contain information collection
requirements subject to the Paperwork Reduction Act of 1995.
[[Page 12659]]
E-Government Act Compliance
RHS is committed to complying with the E-Government Act, 44 U.S.C.
3601 et seq., to promote the use of the internet and other information
technologies to provide increased opportunities for citizen access to
Government information and services, and for other purposes.
Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion , sex, gender identity
(including gender expression), sexual orientation, disability, age,
marital status, family/parental status, income derived from a public
assistance program, political beliefs, or reprisal or retaliation for
prior civil rights activity, in any program or activity conducted or
funded by USDA (not all bases apply to all programs). Remedies and
complaint filing deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the responsible
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or
contact USDA through the Federal Relay Service at (800) 877-8339.
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.govcomplaint_filing_cust.html/ and at any USDA office or
write a letter addressed to USDA and provide in the letter all of the
information requested in the form. To request a copy of the complaint
form, call (866) 632-9992. Submit your completed form or letter to USDA
by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410;
(2) Fax: (202)690-7442; or
(3) Email: [email protected].
USDA is an equal opportunity provider, employer, and lender.
I. Background
7 CFR part 1940, subpart I, provides instruction for compliance
with TILA as implemented by Regulation Z of the Federal Reserve System,
and with RESPA as implemented by Regulation X of the Department of
Housing and Urban Development.
In 2010, Congress signed into law the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act
directed the Consumer Financial Protection Bureau (CFPB) to integrate
the mortgage loan disclosures under TILA and RESPA Sections 4 and 5.
The CFPB's TRID rule requires easier-to-use mortgage disclosure forms
that clearly lay out the terms of a mortgage for a homebuyer; the rule
consolidated the four disclosures required under TILA and RESPA into
two forms: A Loan Estimate and a Closing Disclosure.
With the TRID rule's effective date of October 3, 2015 (80 FR
43911), which modified 12 CFR parts 1024 and 1026, 7 CFR part 1940,
subpart I, has become functionally obsolete since it refers to outdated
processes, forms, and governing bodies. Through this direct final
action, this functionally obsolete regulation will be eliminated to
avoid confusion and possible noncompliance on the part of Agency staff;
and the RHS programs' guidance will cite the TRID rule as the standard
to follow.
The TRID rule contains comprehensive instructions on its subject
matter. By citing the CFPB's requirements regarding mortgage
disclosures in its guidance, it is the Agency's objective to ensure
that any future changes are immediately and accurately incorporated by
reference.
List of Subjects in 7 CFR Part 1940
Agriculture, Environmental protection, Flood plains, Grant
programs--agriculture, Grant programs--housing and community
development, Loan programs--agriculture, Loan programs--housing and
community development, Low and moderate-income housing, Reporting and
recordkeeping requirements, Rural areas, Truth in lending.
For the reasons stated in the preamble, chapter XVIII, title 7 of
the Code of Federal Regulations, is amended as follows:
PART 1940--GENERAL
0
1. The authority citation for part 1940 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; and 42 U.S.C. 1480.
Subpart I--[Remove and Reserved]
0
2. Remove and reserve subpart I, consisting of Sec. Sec. 1940.401
through 1940.406.
Dated: March 1, 2018.
Anne C. Hazlett,
Assistant to the Secretary, Rural Development.
Dated: March 8, 2018.
Bill Northey,
Under Secretary, Farm Production and Conservation.
[FR Doc. 2018-05999 Filed 3-22-18; 8:45 am]
BILLING CODE 3410-XV-P