Truth in Lending, 40477-40478 [E9-19254]
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Federal Register / Vol. 74, No. 154 / Wednesday, August 12, 2009 / Rules and Regulations
(iii) Documentation verifying the
member of the armed forces was killed
while on active duty.
(2) A spouse may receive only one
noncompetitive appointment under this
section to a permanent position per the
service member’s orders authorizing a
permanent change of station.
(3) Any law, Executive order, or
regulation that disqualifies an applicant
for appointment also disqualifies a
spouse for appointment under this
section.
(e) Proof of Eligibility. (1) Prior to
appointment, the spouse of a member of
the armed forces as defined in
paragraph (b)(4)(i) of this section must
submit to the employing agency:
(i) A copy of the service member’s
active duty orders which authorize a
permanent change of station. This
authorization must include:
(A) A statement authorizing the
service member’s spouse to accompany
the member to the new permanent duty
station;
(B) The specific location to which the
member of the armed forces is to be
assigned, reassigned, or transferred
pursuant to permanent change of station
orders; and
(C) The effective date of the
permanent change of station; and
(ii) Documentation verifying marriage
to the member of the armed forces (i.e.,
a marriage license or other legal
documentation verifying marriage).
(2) Prior to appointment, the spouse
of a member of the armed forces as
defined in paragraph (b)(4)(ii) of this
section must submit to the employing
agency copies of:
(i) Documentation showing the
member of the armed forces was
released or discharged from active duty
due to a service-connected disability;
(ii) Documentation showing the
member of the armed forces retired, or
was released or discharged from active
duty, with a disability rating of 100
percent; and
(iii) Documentation verifying marriage
to the member of the armed forces (i.e.,
a marriage license or other legal
documentation verifying marriage).
(3) Prior to appointment, the spouse
of a member of the armed forces as
defined in paragraph (b)(4)(iii) of this
section must submit to the employing
agency copies of:
(i) Documentation showing the
individual was released or discharged
from active duty due to his or her death
while on active duty;
(ii) Documentation verifying the
member of the armed forces was killed
while serving on active duty; and
(iii) Documentation verifying marriage
to the member of the armed forces (i.e.,
VerDate Nov<24>2008
16:35 Aug 11, 2009
Jkt 217001
a marriage license or other legal
documentation verifying marriage); and
(iv) A statement certifying that he or
she is the un-remarried widow or
widower of the service member.
(f) Acquisition of competitive status.
A person appointed under paragraph (a)
of this section acquires competitive
status automatically upon completion of
probation.
(g) Tenure on appointment. An
appointment under paragraph (a) of this
section is career-conditional unless the
appointee has already satisfied the
requirements for career tenure or is
exempt from the service requirement
pursuant to § 315.201.
PART 316—TEMPORARY AND TERM
EMPLOYMENT
3. The authority citation for part 316
continues to read as follows:
■
Authority: 5 U.S.C. 3301, 3302; E.O. 10577,
3 CFR, 1954–1958 Comp., p. 218.
4. Section 316.302(b)(3) is revised to
read as follows:
■
§ 316.302
Selection of term employees.
*
*
*
*
*
(b) * * *
(3) Career-conditional appointment
under § 315.601, 315.604, 315.605,
315.606, 315.607, 315.608, 315.609,
315.612, or 315.711 of this chapter;
*
*
*
*
*
■ 5. Section 316.402(b)(3) is revised to
read as follows:
§ 316.402 Procedures for making
temporary appointments.
*
*
*
*
*
(b) * * *
(3) Career-conditional appointment
under § 315.601, 315.604, 315.605,
315.606, 315.607, 315.608, 315.609,
315.612, 315.703, or 315.711 of this
chapter.
*
*
*
*
*
[FR Doc. E9–19340 Filed 8–11–09; 8:45 am]
BILLING CODE 6325–39–P
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Regulation Z; Docket No. R–1365]
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
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Fmt 4700
Sfmt 4700
40477
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 as reported on
June 1st. The adjusted dollar amount for
2010 is $579.
DATES: Effective Date: January 1, 2010.
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.
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
E:\FR\FM\12AUR1.SGM
12AUR1
40478
Federal Register / Vol. 74, No. 154 / Wednesday, August 12, 2009 / Rules and Regulations
jlentini on DSKJ8SOYB1PROD with RULES
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
$583 for the year 2009.
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, 2009 was the CPI–U index in effect
on June 1, and reflects the percentage
change from April 2008 to April 2009.
The adjustment to the $400 figure below
reflects a 0.74 percent decrease in the
CPI–U index for this period and is
rounded to whole dollars for ease of
compliance.
The fee trigger being adjusted in this
Federal Register notice pursuant to
TILA section 103(aa) is used in
determining whether a loan is covered
by section 226.32 of Regulation Z. Such
loans have generally been known as
‘‘HOEPA loans.’’ In July 2008, the Board
revised Regulation Z to adopt additional
protections for ‘‘higher-priced’’ loans,
using its authority under TILA section
129(l)(2). Those revisions define a class
of dwelling-secured transactions,
described in section 226.35 of
Regulation Z, using a threshold based
on average market rates that the Board
publishes on a regular basis. The
adjustment published today does not
affect the triggers issued in July 2008 for
higher-priced loans.
II. Adjustment and Commentary
Revision
Effective January 1, 2010, 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 $579 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 2010. 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.
a substantial number of small entities.
The only change is to lower the
threshold for transactions requiring
HOEPA disclosures. This change is
mandated by statute.
FEDERAL DEPOSIT INSURANCE
CORPORATION
List of Subjects in 12 CFR Part 226
Annual Independent Audits and
Reporting Requirements
Advertising, Federal Reserve System,
Mortgages, Reporting and recordkeeping
requirements, Truth in lending.
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:
■
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. xv. 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.
*
*
*
*
*
xv. For 2010, $579, reflecting a 0.74
percent decrease in the CPI–U from June
2008 to June 2009, 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, August 6, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9–19254 Filed 8–11–09; 8:45 am]
BILLING CODE 6210–01–P
III. Regulatory Flexibility Analysis
The Board certifies that this
amendment to Regulation Z will not
have a significant economic impact on
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16:35 Aug 11, 2009
Jkt 217001
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Fmt 4700
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12 CFR Parts 308 and 363
RIN 3064–AD21
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule; correction.
SUMMARY: On July 20, 2009, the FDIC
published in the Federal Register a final
rule amending part 363 of its regulations
concerning annual independent audits
and reporting requirements for certain
insured depository institutions, which
implements section 36 of the Federal
Deposit Insurance Act (FDI Act), largely
as proposed, but with certain
modifications made in response to the
comments received and making a
technical amendment to its rules and
procedures (part 308, subpart U) for the
removal, suspension, or debarment of
accountants and accounting firms. The
publication of the final rule corrected
certain errors in the original publication
of the final rule, which had been
published in the Federal Register on
July 7, 2009. It has come to the attention
of the FDIC that the July 20 republication included one additional
error. This correction will rectify that
oversight.
DATES: Effective Date: This correction is
effective August 6, 2009.
FOR FURTHER INFORMATION CONTACT:
Harrison E. Greene, Jr., Senior Policy
Analyst (Bank Accounting), Division of
Supervision and Consumer Protection,
at hgreene@fdic.gov or (202) 898–8905;
or Michelle Borzillo, Senior Counsel,
Corporate and Legal Operations Section,
Legal Division, at mborzillo@fdic.gov or
(202) 898–7400.
SUPPLEMENTARY INFORMATION: On July
20, 2009, the FDIC published in the
Federal Register a final rule amending
part 363 of its regulations concerning
annual independent audits and
reporting requirements for certain
insured depository institutions, which
implements section 36 of the Federal
Deposit Insurance Act (FDI Act), largely
as proposed, but with certain
modifications made in response to the
comments received and making a
technical amendment to its rules and
procedures (part 308, subpart U) for the
removal, suspension, or debarment of
accountants and accounting firms. The
July 20, 2009, publication of the final
rule corrected certain errors in the
original publication of the final rule,
which had been published in the
E:\FR\FM\12AUR1.SGM
12AUR1
]]>Agencies
[Federal Register Volume 74, Number 154 (Wednesday, August 12, 2009)]
[Rules and Regulations]
[Pages 40477-40478]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19254]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Regulation Z; Docket No. R-1365]
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 as reported on June 1st. The adjusted dollar amount for
2010 is $579.
DATES: Effective Date: January 1, 2010.
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.
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
[[Page 40478]]
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 $583 for the
year 2009.
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, 2009 was the CPI-U index in effect on
June 1, and reflects the percentage change from April 2008 to April
2009. The adjustment to the $400 figure below reflects a 0.74 percent
decrease in the CPI-U index for this period and is rounded to whole
dollars for ease of compliance.
The fee trigger being adjusted in this Federal Register notice
pursuant to TILA section 103(aa) is used in determining whether a loan
is covered by section 226.32 of Regulation Z. Such loans have generally
been known as ``HOEPA loans.'' In July 2008, the Board revised
Regulation Z to adopt additional protections for ``higher-priced''
loans, using its authority under TILA section 129(l)(2). Those
revisions define a class of dwelling-secured transactions, described in
section 226.35 of Regulation Z, using a threshold based on average
market rates that the Board publishes on a regular basis. The
adjustment published today does not affect the triggers issued in July
2008 for higher-priced loans.
II. Adjustment and Commentary Revision
Effective January 1, 2010, 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 $579 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 2010. 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 to Regulation Z will not
have a significant economic impact on a substantial number of small
entities. The only change is to lower the threshold for transactions
requiring HOEPA disclosures. This change is mandated by statute.
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. xv. 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.
* * * * *
xv. For 2010, $579, reflecting a 0.74 percent decrease in the
CPI-U from June 2008 to June 2009, 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, August 6, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9-19254 Filed 8-11-09; 8:45 am]
BILLING CODE 6210-01-P
