Truth in Lending, 44032-44033 [E7-15194]

Download as PDF 44032 Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Rules and Regulations requirements for applicants of the Public Television Station Digital Transition Grant program. A 60-day comment period was provided and ended on March 21, 2006. One comment was received which supported the rule. At the time of publishing the Interim Final rule, the date for digital transition was December 31, 2006. On February 8, 2006, however, Congress passed the ‘‘Digital Television Transition and Public Safety Act of 2005’’ (see Title III of the Deficit Reduction Act of 2005, Pub. L. 109–171) which created a new deadline date of February 17, 2009, for the cessation of analog television broadcasts, when all television stations will broadcast entirely in digital. Based on the rationale set forth in the interim final rule, the Agency now adopts the interim final rule, as the final rule. Executive Order 12866 This final rule has been determined to be not significant for purposes of Executive Order 12866, and therefore has not been reviewed by the Office of Management and Budget (OMB). Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance (CFDA) Program number assigned to the Public Television Station Digital Transition Grant Program is 10.861. The Catalog is available on a subscription basis from the Superintendent of Documents, the United States Government Printing Office, Washington, DC 20402–9325, telephone number (202) 512–1800. rfrederick on PROD1PC67 with RULES Executive Order 12372 This program is not subject to the requirements of Executive Order 12372, ‘‘Intergovernmental Review of Federal Programs,’’ as implemented under USDA’s regulations at 7 CFR part 3015. Executive Order 12988 This final rule has been reviewed under Executive Order 12988, Civil Justice Reform. RUS has determined that this final rule meets the applicable standards provided in section 3 of the Executive Order. In addition, all state and local laws and regulations that are in conflict with this rule will be preempted, no retroactive effect will be given to this rule, and, in accordance with Section 212(e) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6912(e)), administrative appeal procedures, if any, must be exhausted before an action against the Department or its agencies may be initiated. Executive Order 13132 Federalism The policies contained in this final rule do not have any substantial direct VerDate Aug<31>2005 14:12 Aug 06, 2007 Jkt 211001 effect on states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. Nor does this final rule impose substantial direct compliance costs on state and local governments. Therefore, consultation with states is not required. Regulatory Flexibility Certification Pursuant to 5 U.S.C. 553(a)(2), this final rule related to grants is exempt from the rulemaking requirements of the Administrative Procedure Act (5 U.S.C. 551 et seq.), including the requirement to provide prior notice and an opportunity for public comment. Because this interim final rule is not subject to a requirement to provide prior notice and an opportunity for public comment pursuant to 5 U.S.C. 553, or any other law, the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are inapplicable. Unfunded Mandates This final rule contains no Federal mandates (under the regulatory provision of Title II of the Unfunded Mandates Reform Act of 1995) for State, local, and tribal governments or the private sector. Therefore, this interim final rule is not subject to the requirements of sections 202 and 205 of the Unfunded Mandates Reform Act of 1995. Environmental Impact Statement This final rule has been examined under Agency environmental regulations at 7 CFR part 1794. The Administrator has determined that this action is not a major Federal action significantly affecting the environment. Therefore, in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), an Environmental Impact Statement or Assessment is not required. Information Collection and Recordkeeping Requirements This final rule contains no new reporting or recordkeeping burdens under OMB control number 0572–0134 that would require approval under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). List of Subjects in 7 CFR Part 1740 Grant programs—Communications, Digital television; Rural areas; Television. PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 PART 1740—PUBLIC TELEVISION STATION DIGITAL TRANSITION GRANT PROGRAM Accordingly, the interim final rule adding 7 CFR part 1740, which was published at 71 FR 3205 on January 20, 2006, is adopted as a final rule without change. I Dated: July 11, 2007. James M. Andrew, Administrator, Rural Utilities Service. [FR Doc. E7–15263 Filed 8–6–07; 8:45 am] BILLING CODE 3410–15–P FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Regulation Z; Docket No. R–1291] Truth in Lending Board of Governors of the Federal Reserve System. ACTION: Final rule; staff commentary. AGENCY: SUMMARY: The Board is publishing a final rule amending the staff commentary that interprets the requirements of Regulation Z (Truth in Lending). The Board is required to adjust annually the dollar amount that triggers requirements for certain home mortgage loans bearing fees above a certain amount. The Home Ownership and Equity Protection Act of 1994 (HOEPA) sets forth rules for homesecured loans in which the total points and fees payable by the consumer at or before loan consummation exceed the greater of $400 or 8 percent of the total loan amount. In keeping with the statute, the Board has annually adjusted the $400 amount based on the annual percentage change reflected in the Consumer Price Index that is in effect on June 1. The adjusted dollar amount for 2008 is $561. DATES: Effective Date: January 1, 2008. FOR FURTHER INFORMATION CONTACT: Jane Ahrens, Senior Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452–3667. For the users of Telecommunications Device for the Deaf (‘‘TDD’’) only, contact (202) 263–4869. SUPPLEMENTARY INFORMATION: I. Background The Truth in Lending Act (TILA; 15 U.S.C. 1601–1666j) requires creditors to disclose credit terms and the cost of consumer credit as an annual percentage rate. The act requires additional disclosures for loans secured by a consumer’s home, and permits E:\FR\FM\07AUR1.SGM 07AUR1 Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Rules and Regulations rfrederick on PROD1PC67 with RULES consumers to cancel certain transactions that involve their principal dwelling. TILA is implemented by the Board’s Regulation Z (12 CFR part 226). The Board’s official staff commentary (12 CFR part 226 (Supp. I)) interprets the regulation, and provides guidance to creditors in applying the regulation to specific transactions. In 1995, the Board published amendments to Regulation Z implementing HOEPA, contained in the Riegle Community Development and Regulatory Improvement Act of 1994, Public Law 103–325, 108 Stat. 2160 (60 FR 15463). These amendments, contained in §§ 226.32 and 226.34 of the regulation, impose substantive limitations and additional disclosure requirements on certain closed-end home mortgage loans bearing rates or fees above a certain percentage or amount. As enacted, the statute requires creditors to comply with the HOEPA rules if the total points and fees payable by the consumer at or before loan consummation exceed the greater of $400 or 8 percent of the total loan amount. TILA and Regulation Z provide that the $400 figure shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index (CPI) that was reported on the preceding June 1. (15 U.S.C. 1602(aa)(3) and 12 CFR 226.32(a)(1)(ii)). The Board adjusted the $400 amount to $547 for the year 2007. The Bureau of Labor Statistics publishes consumer-based indices monthly, but does not report a CPI change on June 1; adjustments are reported in the middle of each month. The Board uses the CPI–U index, which is based on all urban consumers and represents approximately 87 percent of the U.S. population, as the index for adjusting the $400 dollar figure. The adjustment to the CPI–U index reported by the Bureau of Labor Statistics on May 15, 2007, was the CPI–U index in effect on June 1, and reflects the percentage increase from April 2006 to April 2007. The adjustment to the $400 figure below reflects a 2.56 percent increase in the CPI–U index for this period and is rounded to whole dollars for ease of compliance. II. Adjustment and Commentary Revision Effective January 1, 2008, for purposes of determining whether a home mortgage transaction is covered by 12 CFR 226.32 (based on the total points and fees payable by the consumer at or before loan consummation), a loan is covered if the points and fees exceed the greater of $561 or 8 percent of the total loan amount. Comment 32(a)(1)(ii)–2, VerDate Aug<31>2005 14:12 Aug 06, 2007 Jkt 211001 44033 which lists the adjustments for each year, is amended to reflect the dollar adjustment for 2007. Because the timing and method of the adjustment is set by statute, the Board finds that notice and public comment on the change are unnecessary. DEPARTMENT OF TRANSPORTATION III. Regulatory Flexibility Analysis Standard Instrument Approach Procedures; Miscellaneous Amendments The Board certifies that this amendment will not have a substantial effect on regulated entities because the only change is to raise the threshold for transactions requiring HOEPA disclosures. List of Subjects in 12 CFR Part 226 Advertising, Federal Reserve System, Mortgages, Reporting and recordkeeping requirements, Truth in lending. I For the reasons set forth in the preamble, the Board amends Regulation Z, 12 CFR part 226, as set forth below: PART 226—TRUTH IN LENDING (REGULATION Z) 1. The authority citation for part 226 continues to read as follows: I Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5). 2. In Supplement I to Part 226, under Section 226.32—Requirements for Certain Closed-End Home Mortgages, under Paragraph 32(a)(1)(ii), paragraph 2. xiii. is added. I Supplement I to Part 226—Official Staff Interpretations * * * * * Subpart E—Special Rules for Certain Home Mortgage Transactions * * * * * Section 226.32—Requirements for Certain Closed-End Home Mortgages 32(a) Coverage * * * * * Paragraph 32(a)(1)(ii) * * * * * 2. Annual adjustment of $400 amount. * * * * * xiii. For 2008, $561, reflecting a 2.56 percent increase in the CPI–U from June 2006 to June 2007, rounded to the nearest whole dollar. * * * * * Dated: August 1, 2007. By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Consumer and Community Affairs under delegated authority. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E7–15194 Filed 8–6–07; 8:45 am] BILLING CODE 6210–01–P PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 Federal Aviation Administration 14 CFR Part 97 [Docket No. 30563; Amdt. No. 3230] Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: SUMMARY: This amendment amends Standard Instrument Approach Procedures (SIAPs) for operations at certain airports. These regulatory actions are needed because of changes occurring in the National Airspace System, such as the commissioning of new navigational facilities, addition of new obstacles, or changes in air traffic requirements. These changes are designed to provide safe and efficient use of the navigable airspace and to promote safe flight operations under instrument flight rules at the affected airports. This rule is effective August 7, 2007. The compliance date for each SIAP is specified in the amendatory provisions. The incorporation by reference of certain publications listed in the regulations is approved by the Director of the Federal Register as of August 7, 2007. ADDRESSES: Availability of matter incorporated by reference in the amendment is as follows: For Examination— 1. FAA Rules Docket, FAA Headquarters Building, 800 Independence Ave, SW., Washington, DC 20591; 2. The FAA Regional Office of the region in which the affected airport is located; or 3. The National Flight Procedures Office, 6500 South MacArthur Blvd., Oklahoma City, OK 73169 or, 4. The National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: https://www.archives.gov/ federal_register/ code_of_federal_regulations/ ibr_locations.html. For Purchase—Individual SIAP copies may be obtained from: 1. FAA Public Inquiry Center (APA– 200), FAA Headquarters Building, 800 Independence Avenue, SW., Washington, DC 20591; or DATES: E:\FR\FM\07AUR1.SGM 07AUR1

Agencies

FEDERAL RESERVE SYSTEM

[Federal Register Volume 72, Number 151 (Tuesday, August 7, 2007)]
[Rules and Regulations]
[Pages 44032-44033]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15194]


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FEDERAL RESERVE SYSTEM

12 CFR Part 226

[Regulation Z; Docket No. R-1291]


Truth in Lending

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; staff commentary.

-----------------------------------------------------------------------

SUMMARY: The Board is publishing a final rule amending the staff 
commentary that interprets the requirements of Regulation Z (Truth in 
Lending). The Board is required to adjust annually the dollar amount 
that triggers requirements for certain home mortgage loans bearing fees 
above a certain amount. The Home Ownership and Equity Protection Act of 
1994 (HOEPA) sets forth rules for home-secured loans in which the total 
points and fees payable by the consumer at or before loan consummation 
exceed the greater of $400 or 8 percent of the total loan amount. In 
keeping with the statute, the Board has annually adjusted the $400 
amount based on the annual percentage change reflected in the Consumer 
Price Index that is in effect on June 1. The adjusted dollar amount for 
2008 is $561.

DATES: Effective Date: January 1, 2008.

FOR FURTHER INFORMATION CONTACT: Jane Ahrens, Senior Counsel, Division 
of Consumer and Community Affairs, Board of Governors of the Federal 
Reserve System, at (202) 452-3667. For the users of Telecommunications 
Device for the Deaf (``TDD'') only, contact (202) 263-4869.

SUPPLEMENTARY INFORMATION:

I. Background

    The Truth in Lending Act (TILA; 15 U.S.C. 1601-1666j) requires 
creditors to disclose credit terms and the cost of consumer credit as 
an annual percentage rate. The act requires additional disclosures for 
loans secured by a consumer's home, and permits

[[Page 44033]]

consumers to cancel certain transactions that involve their principal 
dwelling. TILA is implemented by the Board's Regulation Z (12 CFR part 
226). The Board's official staff commentary (12 CFR part 226 (Supp. I)) 
interprets the regulation, and provides guidance to creditors in 
applying the regulation to specific transactions.
    In 1995, the Board published amendments to Regulation Z 
implementing HOEPA, contained in the Riegle Community Development and 
Regulatory Improvement Act of 1994, Public Law 103-325, 108 Stat. 2160 
(60 FR 15463). These amendments, contained in Sec. Sec.  226.32 and 
226.34 of the regulation, impose substantive limitations and additional 
disclosure requirements on certain closed-end home mortgage loans 
bearing rates or fees above a certain percentage or amount. As enacted, 
the statute requires creditors to comply with the HOEPA rules if the 
total points and fees payable by the consumer at or before loan 
consummation exceed the greater of $400 or 8 percent of the total loan 
amount. TILA and Regulation Z provide that the $400 figure shall be 
adjusted annually on January 1 by the annual percentage change in the 
Consumer Price Index (CPI) that was reported on the preceding June 1. 
(15 U.S.C. 1602(aa)(3) and 12 CFR 226.32(a)(1)(ii)). The Board adjusted 
the $400 amount to $547 for the year 2007.
    The Bureau of Labor Statistics publishes consumer-based indices 
monthly, but does not report a CPI change on June 1; adjustments are 
reported in the middle of each month. The Board uses the CPI-U index, 
which is based on all urban consumers and represents approximately 87 
percent of the U.S. population, as the index for adjusting the $400 
dollar figure. The adjustment to the CPI-U index reported by the Bureau 
of Labor Statistics on May 15, 2007, was the CPI-U index in effect on 
June 1, and reflects the percentage increase from April 2006 to April 
2007. The adjustment to the $400 figure below reflects a 2.56 percent 
increase in the CPI-U index for this period and is rounded to whole 
dollars for ease of compliance.

II. Adjustment and Commentary Revision

    Effective January 1, 2008, for purposes of determining whether a 
home mortgage transaction is covered by 12 CFR 226.32 (based on the 
total points and fees payable by the consumer at or before loan 
consummation), a loan is covered if the points and fees exceed the 
greater of $561 or 8 percent of the total loan amount. Comment 
32(a)(1)(ii)-2, which lists the adjustments for each year, is amended 
to reflect the dollar adjustment for 2007. Because the timing and 
method of the adjustment is set by statute, the Board finds that notice 
and public comment on the change are unnecessary.

III. Regulatory Flexibility Analysis

    The Board certifies that this amendment will not have a substantial 
effect on regulated entities because the only change is to raise the 
threshold for transactions requiring HOEPA disclosures.

List of Subjects in 12 CFR Part 226

    Advertising, Federal Reserve System, Mortgages, Reporting and 
recordkeeping requirements, Truth in lending.

0
For the reasons set forth in the preamble, the Board amends Regulation 
Z, 12 CFR part 226, as set forth below:

PART 226--TRUTH IN LENDING (REGULATION Z)

0
1. The authority citation for part 226 continues to read as follows:

    Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5).

0
2. In Supplement I to Part 226, under Section 226.32--Requirements for 
Certain Closed-End Home Mortgages, under Paragraph 32(a)(1)(ii), 
paragraph 2. xiii. is added.

Supplement I to Part 226--Official Staff Interpretations

* * * * *

Subpart E--Special Rules for Certain Home Mortgage Transactions

* * * * *

Section 226.32--Requirements for Certain Closed-End Home Mortgages

    32(a) Coverage
* * * * *
    Paragraph 32(a)(1)(ii)
* * * * *
    2. Annual adjustment of $400 amount.
* * * * *
    xiii. For 2008, $561, reflecting a 2.56 percent increase in the 
CPI-U from June 2006 to June 2007, rounded to the nearest whole 
dollar.
* * * * *

    Dated: August 1, 2007.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of the Division of Consumer and 
Community Affairs under delegated authority.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E7-15194 Filed 8-6-07; 8:45 am]
BILLING CODE 6210-01-P

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