Truth in Lending, 46190-46191 [E8-18275]
Download as PDF
46190
Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Rules and Regulations
(c) Cash in lieu of donated foods. In
accordance with the Richard B. Russell
National School Lunch Act, and with 7
CFR part 226, the State administering
agency must determine whether child
care and adult care institutions
participating in CACFP wish to receive
donated foods or cash in lieu of donated
foods, and ensure that they receive the
preferred form of assistance. The State
administering agency must inform the
distributing agency (if a different
agency) which institutions wish to
receive donated foods and must ensure
that such foods are provided to them.
However, if the State administering
agency, in consultation with the
distributing agency, determines that
distribution of such foods would not be
cost-effective, it may, with the
concurrence of FNS, provide cash
payments to the applicable institutions
instead.
(d) Use of donated foods in a contract
with a food service management
company. A child care or adult care
institution may use donated foods in a
contract with a food service
management company to conduct its
food service. The contract must meet the
requirements in Subpart D of this part
with respect to donated foods, and must
also meet requirements in 7 CFR part
226 and 7 CFR parts 3016 or 3019, as
applicable, with respect to the
procurement of such contracts.
(e) Applicability of other requirements
in this subpart to CACFP. The
requirements in this subpart relating to
the ordering, storage and inventory
management, and use of donated foods
in NSLP, also apply to CACFP.
However, in accordance with 7 CFR part
226, a child care or adult care
institution that uses donated foods to
prepare and provide meals to other such
institutions is considered a food service
management company.
rfrederick on PRODPC74 with RULES
§ 250.62
(SFSP).
Summer Food Service Program
15:19 Aug 07, 2008
Jkt 214001
Dated: July 31, 2008.
Nancy Montanez Johner,
Under Secretary, Food, Nutrition, and
Consumer Services.
[FR Doc. E8–18230 Filed 8–7–08; 8:45 am]
BILLING CODE 3410–30–P
FEDERAL RESERVE SYSTEM
12 CFR Part 226
(a) Distribution of donated foods in
SFSP. The Department provides
donated foods in SFSP to distributing
agencies, which provide them to eligible
service institutions participating in
SFSP for use in serving nutritious meals
to needy children primarily in the
summer months, in their nonprofit food
service programs. Distributing agencies
and service institutions in SFSP must
also adhere to Federal regulations in 7
CFR part 225, as applicable.
(b) Types and quantities of donated
foods distributed. The distributing
agency receives donated foods available
under Section 6 and Section 14 of the
Richard B. Russell National School
Lunch Act (42 U.S.C. 1755 and 1762),
VerDate Aug<31>2005
and may also receive donated foods
under Section 32 (7 U.S.C. 612c),
Section 416 (7 U.S.C. 1431), or Section
709(7 U.S.C. 1446a–1), as available, for
distribution to eligible service
institutions participating in SFSP.
Section 6 donated foods are provided to
distributing agencies in accordance with
the number of meals served in the State
in the previous school year that are
eligible for donated food support, in
accordance with 7 CFR part 225.
(c) Distribution of donated foods to
service institutions in SFSP. The
distributing agency provides donated
food assistance to eligible service
institutions participating in SFSP based
on the number of meals served that are
eligible for donated food support, in
accordance with 7 CFR part 225.
(d) Use of donated foods in a contract
with a food service management
company. A service institution may use
donated foods in a contract with a food
service management company to
conduct the food service. The contract
must meet the requirements in Subpart
D of this part with respect to donated
foods, and must also meet requirements
in 7 CFR part 225 and 7 CFR parts 3016
or 3019, as applicable, with respect to
the procurement of such contracts.
(e) Applicability of other requirements
in this subpart to SFSP. The
requirements in this subpart relating to
the ordering, storage and inventory
management, and use of donated foods
in NSLP, also apply to SFSP.
[Regulation Z; Docket No. R–1320]
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 home-
PO 00000
Frm 00022
Fmt 4700
Sfmt 4700
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 2009 is $583. This adjustment does
not affect the new rules for ‘‘higherpriced mortgage loans’’ adopted by the
Board in July 2008.
EFFECTIVE DATE: January 1, 2009.
FOR FURTHER INFORMATION CONTACT:
Dana Miller, Attorney, 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
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.
HOEPA was contained in the Riegle
Community Development and
Regulatory Improvement Act of 1994
and was enacted as an amendment to
TILA. Public Law 103–325, 108 Stat.
2160 (60 FR 15463). In 1995, the Board
amended Regulation Z to implement
HOEPA. 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 HOEPA’s
requirements 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. The statute requires the Board
to adjust the $400 figure annually on
January 1 based on the annual
percentage change in the Consumer
Price Index (CPI) that was reported on
the preceding June 1. 15 U.S.C.
E:\FR\FM\08AUR1.SGM
08AUR1
Federal Register / Vol. 73, No. 154 / Friday, August 8, 2008 / Rules and Regulations
1602(aa)(3) and 12 CFR 226.32(a)(1)(ii).
The Board adjusted the $400 amount to
$561 for the year 2008.
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
14, 2008, was the CPI–U index in effect
on June 1, and reflects the percentage
increase from April 2007 to April 2008.
The adjustment to the $400 figure below
reflects a 3.94 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
List of Subjects in 12 CFR Part 226
Advertising, Federal Reserve System,
Mortgages, Reporting and recordkeeping
requirements, Truth in lending.
PART 226—TRUTH IN LENDING
(REGULATION Z)
Drawbridge Operation Regulations;
Shrewsbury River, Route 36 Bridge,
Highlands, NJ, Schedule Change
1. The authority citation for part 226
continues to read as follows:
AGENCY:
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.xiv. is added to read as follows:
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.
*
*
*
*
*
xiv. For 2009, $583, reflecting a 3.94
percent increase in the CPI–U from June
2007 to June 2008, rounded to the
nearest whole dollar.
*
*
*
*
*
*
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.
Dated: August 5, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8–18275 Filed 8–7–08; 8:45 am]
BILLING CODE 6210–01–P
rfrederick on PRODPC74 with RULES
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.
15:19 Aug 07, 2008
Jkt 214001
Coast Guard
33 CFR Part 117
III. Regulatory Flexibility Analysis
VerDate Aug<31>2005
DEPARTMENT OF HOMELAND
SECURITY
For the reasons set forth in the
preamble, the Board amends Regulation
Z, 12 CFR part 226, as set forth below:
I
*
Effective January 1, 2009, 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 $583 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 2009. 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.
This adjustment is being made
pursuant to TILA section 103(aa)(3). In
July 2008, the Board used its authority
in TILA section 129(l)(2) to amend
Regulation Z to prohibit certain acts and
practices in connection with ‘‘higherpriced mortgage loans.’’ These
additional protections and the
definition of ‘‘higher-priced mortgage
loans’’ are contained in section 226.35
of Regulation Z. The adjustment being
published today pursuant to section
103(aa) does not affect the new rules for
‘‘higher-priced mortgage loans’’ adopted
by the Board in section 226.35.
46191
PO 00000
[USCG–2008–0785]
Coast Guard, DHS.
Notice of temporary deviation
from regulations; request for comments.
ACTION:
SUMMARY: The Commander, First Coast
Guard District, has issued a temporary
deviation from the regulation governing
the operation of the Route 36 Bridge,
across the Shrewsbury River, mile 1.8,
at Highlands, New Jersey. This
deviation will test a change to the
drawbridge operation schedule to
determine whether a permanent change
to the schedule is needed. This
deviation will allow the bridge to open
on signal for all marine traffic once an
hour on the hour between 4 p.m. and 7
p.m. on weekends and holidays.
This deviation is effective from
4 p.m. on August 2, 2008, through 7
p.m. on September 1, 2008. Comments
must reach the Coast Guard on or before
November 1, 2008.
DATES:
You may submit comments
identified by Coast Guard docket
number USCG–2008–0785 to the Docket
Management Facility at the U.S.
Department of Transportation. To avoid
duplication, please use only one of the
following methods:
(1) Online: https://
www.regulations.gov.
(2) Mail: Docket Management Facility
(M–30), U.S. Department of
Transportation, West Building ground
floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590–
0001.
(3) Hand Delivery: Same as mail
address above, between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays. The telephone number
is (202) 366–9329.
(4) Fax: (202) 493–2251.
ADDRESSES:
Mr.
Gary Kassof, Project Officer, First Coast
Guard District, (212) 668–7165.
If you have questions on viewing or
submitting material to the docket, call
Renee V. Wright, Program Manager,
Docket Operations, telephone (202)
366–9826.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Frm 00023
Fmt 4700
Sfmt 4700
E:\FR\FM\08AUR1.SGM
08AUR1
Agencies
[Federal Register Volume 73, Number 154 (Friday, August 8, 2008)]
[Rules and Regulations]
[Pages 46190-46191]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-18275]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Regulation Z; Docket No. R-1320]
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
2009 is $583. This adjustment does not affect the new rules for
``higher-priced mortgage loans'' adopted by the Board in July 2008.
EFFECTIVE DATE: January 1, 2009.
FOR FURTHER INFORMATION CONTACT: Dana Miller, Attorney, 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 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.
HOEPA was contained in the Riegle Community Development and
Regulatory Improvement Act of 1994 and was enacted as an amendment to
TILA. Public Law 103-325, 108 Stat. 2160 (60 FR 15463). In 1995, the
Board amended Regulation Z to implement HOEPA. 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 HOEPA's requirements 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. The statute
requires the Board to adjust the $400 figure annually on January 1
based on the annual percentage change in the Consumer Price Index (CPI)
that was reported on the preceding June 1. 15 U.S.C.
[[Page 46191]]
1602(aa)(3) and 12 CFR 226.32(a)(1)(ii). The Board adjusted the $400
amount to $561 for the year 2008.
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 14, 2008, was the CPI-U index in effect on
June 1, and reflects the percentage increase from April 2007 to April
2008. The adjustment to the $400 figure below reflects a 3.94 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, 2009, 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 $583 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 2009. 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.
This adjustment is being made pursuant to TILA section 103(aa)(3).
In July 2008, the Board used its authority in TILA section 129(l)(2) to
amend Regulation Z to prohibit certain acts and practices in connection
with ``higher-priced mortgage loans.'' These additional protections and
the definition of ``higher-priced mortgage loans'' are contained in
section 226.35 of Regulation Z. The adjustment being published today
pursuant to section 103(aa) does not affect the new rules for ``higher-
priced mortgage loans'' adopted by the Board in section 226.35.
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.xiv. is added to read as follows:
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.
* * * * *
xiv. For 2009, $583, reflecting a 3.94 percent increase in the CPI-
U from June 2007 to June 2008, rounded to the nearest whole dollar.
* * * * *
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.
Dated: August 5, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8-18275 Filed 8-7-08; 8:45 am]
BILLING CODE 6210-01-P