Truth in Lending (Regulation Z), 69736-69738 [2012-27993]
Download as PDF
<![CDATA[
69736
Federal Register / Vol. 77, No. 225 / Wednesday, November 21, 2012 / Rules and Regulations
consumers) and represents
approximately 28 percent of the U.S.
population. The adjustment reflects a
2.4 percent increase in the CPI–W from
April 2011 to April 2012 and is rounded
to the nearest $100 increment.
Accordingly, the Board and the Bureau
are revising the commentaries to their
respective regulations to add new
subparagraph 2(e)–9.iv stating that, from
January 1, 2013 through December 31,
2013, the threshold amount is $53,000.
These revisions are effective January 1,
2013.
III. Administrative Law Matters
Advertising, Consumer leasing,
Reporting and recordkeeping
requirements.
Board of Governors of the Federal
Reserve System
Text of Final Revisions
Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the Board
and the Bureau find that notice and
public comment are impracticable,
unnecessary, or contrary to the public
interest. 5 U.S.C. 553(b)(B). This annual
adjustment is required by statute. The
amendment in this notice is technical
and non-discretionary, and it applies
the method previously established in
the agencies’ regulations for
determining adjustments to the
exemption threshold. For these reasons,
the Board and the Bureau have
determined that publishing a notice of
proposed rulemaking and providing
opportunity for public comment are
unnecessary. Therefore, the
amendments are adopted in final form.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
general notice of proposed rulemaking
is not required. 5 U.S.C. 603 and 604.
As noted previously, the agencies have
determined that it is unnecessary to
publish a general notice of proposed
rulemaking for this joint final rule.
Accordingly, the RFA’s requirements
relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act
1. The authority citation for part 213
continues to read as follows:
RIN 7100–AD94
12 CFR Part 1026
Supplement I to Part 213—Official Staff
Commentary to Regulation M
Section 213.2
*
*
*
Definitions
*
*
2(e) Consumer Lease.
9. Threshold amount. * * *
iv. From January 1, 2013 through December
31, 2013, the threshold amount is $53,000.
*
*
*
*
*
Bureau of Consumer Financial
Protection
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation M, 12 CFR part 1013, as set
forth below:
PART 1013—CONSUMER LEASING
(REGULATION M)
1. The authority citation for part 1013
is revised to read as follows:
■
Authority: 15 U.S.C. 1604 and 1667f; Pub.
L. 111–203 § 1100E, 124 Stat. 1376.
2. In Supplement I to part 1013, under
Section 1013.2—Definitions, under 2(e)
Consumer Lease, new paragraph 9.iv is
added to read as follows:
Supplement I to Part 1013—Official
Interpretations
*
*
*
*
Jkt 229001
[Docket No. 1450]
2. In Supplement I to Part 213, under
Section 213.2—Definitions, under 2(e)
Consumer Lease, new paragraph 9.iv is
added to read as follows:
■
12 CFR Part 213
15:08 Nov 20, 2012
12 CFR Part 226
BUREAU OF CONSUMER FINANCIAL
PROTECTION
Section 1013.2
VerDate Mar<15>2010
BILLING CODE 6210–01–P; 4810–AM–P
Authority: 15 U.S.C. 1604 and 1667f; Pub.
L. 111–203 § 1100E, 124 Stat. 1376.
List of Subjects
Advertising, Consumer leasing,
Consumer protection, Federal Reserve
System, Reporting and recordkeeping
requirements.
Dated: November 6, 2012.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
FEDERAL RESERVE SYSTEM
PART 213—CONSUMER LEASING
(REGULATION M)
■
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR 1320), the agencies reviewed this
final rule. No collections of information
pursuant to the Paperwork Reduction
Act are contained in the final rule.
By order of the Board of Governors of the
Federal Reserve System, November 8, 2012.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2012–27996 Filed 11–20–12; 8:45 am]
For the reasons set forth in the
preamble, the Board amends Regulation
M, 12 CFR part 213, as set forth below:
■
Administrative Procedure Act
emcdonald on DSK67QTVN1PROD with RULES
12 CFR Part 1013
*
*
*
*
Definitions
*
*
2(e) Consumer Lease.
9. Threshold amount. * * *
iv. From January 1, 2013 through December
31, 2013, the threshold amount is $53,000.
*
PO 00000
*
*
Frm 00002
*
Fmt 4700
*
Sfmt 4700
[Docket No. CFPB–2012–0043]
Truth in Lending (Regulation Z)
Board of Governors of the
Federal Reserve System (Board); and
Bureau of Consumer Financial
Protection (Bureau).
ACTION: Final rules, official
interpretations and commentary.
AGENCIES:
The Board and the Bureau are
publishing final rules amending the
official interpretations and commentary
for the agencies’ regulations that
implement the Truth in Lending Act
(TILA). Effective July 21, 2011, the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank
Act) amended TILA by increasing the
threshold for exempt consumer credit
transactions from $25,000 to $50,000
and requiring that, on or after December
31, 2011, this threshold be adjusted
annually by any annual percentage
increase in the Consumer Price Index
for Urban Wage Earners and Clerical
Workers (CPI–W). Accordingly, the
exemption threshold was adjusted to
$51,800 effective January 1, 2012. Based
on the annual percentage increase in the
CPI–W as of June 1, 2012, the Board and
the Bureau are adjusting the exemption
threshold from $51,800 to $53,000,
effective January 1, 2013.
Because the Dodd-Frank Act also
requires similar adjustments in the
Consumer Leasing Act’s threshold for
exempt consumer leases, the Board and
the Bureau are making similar
amendments to each of their respective
regulations implementing the Consumer
Leasing Act elsewhere in the Federal
Register.
DATES: This final rule is effective
January 1, 2013.
SUMMARY:
E:\FR\FM\21NOR1.SGM
21NOR1
Federal Register / Vol. 77, No. 225 / Wednesday, November 21, 2012 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
Board: Vivian W. Wong, Counsel,
Division of Consumer and Community
Affairs, Board of Governors of the
Federal Reserve System, at (202) 452–
3667; for users of Telecommunications
Device for the Deaf (TDD) only, contact
(202) 263–4869.
Bureau: David Friend, Counsel, Office
of Regulations, Bureau of Consumer
Financial Protection, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010
(Dodd-Frank Act) increased the
threshold in the Truth in Lending Act
(TILA) for exempt consumer credit
transactions 1 from $25,000 to $50,000,
effective July 21, 2011.2 In addition, the
Dodd-Frank Act requires that this
threshold be adjusted annually for
inflation by the annual percentage
increase in the Consumer Price Index
for Urban Wage Earners and Clerical
Workers (CPI–W), as published by the
Bureau of Labor Statistics. In April
2011, the Board issued a final rule
amending Regulation Z (which
implements TILA) consistent with these
provisions of the Dodd-Frank Act.3
Title X of the Dodd-Frank Act
transferred rulemaking authority for a
number of consumer financial
protection laws from the Board to the
Bureau, effective July 21, 2011. In
connection with this transfer of
rulemaking authority, the Bureau issued
its own Regulation Z implementing
TILA in an interim final rule, 12 CFR
part 1026 (Bureau Interim Final Rule).4
The Bureau Interim Final Rule
substantially duplicated the Board’s
Regulation Z, including the revisions to
the threshold for exempt transactions
made by the Board in April 2011.
Although the Bureau has the authority
to issue rules to implement TILA for
most entities, the Board retains
authority to issue rules under TILA for
certain motor vehicle dealers covered by
section 1029(a) of the Dodd-Frank Act,
and the Board’s Regulation Z continues
to apply to those entities.5
emcdonald on DSK67QTVN1PROD with RULES
1 Although
consumer credit transactions above
the threshold are generally exempt, loans secured
by real property or by personal property used or
expected to be used as the principal dwelling of a
consumer and private education loans are covered
by TILA regardless of the loan amount. See 12 CFR
226.3(b)(1)(i) and 12 CFR 1026.3(b)(1)(i).
2 Public Law 111–203 § 1100E, 124 Stat. 1376
(2010).
3 76 FR 18354 (Apr. 4, 2011).
4 76 FR 79768 (Dec. 22, 2011).
5 Section 1029(a) of the Dodd-Frank Act states:
‘‘Except as permitted in subsection (b), the Bureau
may not exercise any rulemaking, supervisory,
enforcement, or any other authority * * * over a
VerDate Mar<15>2010
15:08 Nov 20, 2012
Jkt 229001
Section 226.3(b)(1)(ii) of the Board’s
Regulation Z and § 1026.3(b)(1)(ii) of the
Bureau’s Regulation Z, and their
accompanying commentaries, provide
that the exemption threshold will be
adjusted annually effective January 1 of
each year based on any annual
percentage increase in the CPI–W that
was in effect on the preceding June 1.
Any increase in the threshold amount
will be rounded to the nearest $100
increment. For example, if the annual
percentage increase in the CPI–W would
result in a $950 increase in the
threshold amount, the threshold amount
will be increased by $1,000. However, if
the annual percentage increase in the
CPI–W would result in a $949 increase
in the threshold amount, the threshold
amount will be increased by $900. See
comments 3(b)–1 in Supplements I of 12
CFR part 226 and 12 CFR part 1026.
II. Adjustment and Commentary
Revision
Effective January 1, 2013, the adjusted
exemption threshold amount is $53,000.
This adjustment is based on the CPI–W
index in effect on June 1, 2012, which
was reported on May 15, 2012. 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 the month. The CPI–W is a subset of
the CPI–U index (based on all urban
consumers) and represents
approximately 28 percent of the U.S.
population. The adjustment reflects a
2.4 percent increase in the CPI–W from
April 2011 to April 2012 and is rounded
to the nearest $100 increment.
Accordingly, the Board and the Bureau
are revising the commentaries to their
respective regulations to add new
subparagraph 3(b)–1.iv to state that,
from January 1, 2013 through December
31, 2013, the threshold amount is
69737
$53,000. These revisions are effective
January 1, 2013.
III. Administrative Law Matters
Administrative Procedure Act
Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the Board
and the Bureau find that notice and
public comment are impracticable,
unnecessary, or contrary to the public
interest. 5 U.S.C. 553(b)(B). This annual
adjustment is required by statute. The
amendment in this notice is technical
and non-discretionary, and it applies
the method previously established in
the agencies’ regulations for
determining adjustments to the
exemption threshold. For these reasons,
the Board and the Bureau have
determined that publishing a notice of
proposed rulemaking and providing
opportunity for public comment are
unnecessary. Therefore, the
amendments are adopted in final form.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
general notice of proposed rulemaking
is not required. 5 U.S.C. 603 and 604.
As noted previously, the agencies have
determined that it is unnecessary to
publish a general notice of proposed
rulemaking for this joint final rule.
Accordingly, the RFA’s requirements
relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR 1320), the agencies reviewed this
final rule. No collections of information
pursuant to the Paperwork Reduction
Act are contained in the final rule.
List of Subjects
12 CFR Part 226
motor vehicle dealer that is predominantly engaged
in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.’’
12 U.S.C. 5519(a). Section 1029(b) of the DoddFrank Act states: ‘‘Subsection (a) shall not apply to
any person, to the extent that such person (1)
provides consumers with any services related to
residential or commercial mortgages or selffinancing transactions involving real property; (2)
operates a line of business (A) that involves the
extension of retail credit or retail leases involving
motor vehicles; and (B) in which (i) the extension
of retail credit or retail leases are provided directly
to consumers; and (ii) the contract governing such
extension of retail credit or retail leases is not
routinely assigned to an unaffiliated third party
finance or leasing source; or (3) offers or provides
a consumer financial product or service not
involving or related to the sale, financing, leasing,
rental, repair, refurbishment, maintenance, or other
servicing of motor vehicles, motor vehicle parts, or
any related or ancillary product or service.’’ 12
U.S.C. 5519(b).
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
Advertising, Consumer protection,
Federal Reserve System, Reporting and
recordkeeping requirements, Truth in
Lending.
12 CFR Part 1026
Advertising, Consumer protection,
Credit, Credit unions, Mortgages,
National banks, Reporting and
recordkeeping requirements, Savings
associations, Truth in Lending.
Board of Governors of the Federal
Reserve System
Text of Final Revisions
For the reasons set forth in the
preamble, the Board amends Regulation
Z, 12 CFR part 226, as set forth below:
E:\FR\FM\21NOR1.SGM
21NOR1
69738
Federal Register / Vol. 77, No. 225 / Wednesday, November 21, 2012 / Rules and Regulations
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,
1637(c)(5), and 1639(l); Pub. L. 111–24 § 2,
123 Stat. 1734; Pub. L. 111–203, 124 Stat.
1376.
By order of the Board of Governors of the
Federal Reserve System, November 8, 2012.
Robert deV. Frierson,
Secretary of the Board.
Dated: November 6, 2012.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
[FR Doc. 2012–27993 Filed 11–20–12; 8:45 am]
2. In Supplement I to part 226, under
Section 226.3—Exempt Transactions,
under 3(b) Credit over applicable
threshold amount, new paragraph 1.iv is
added to read as follows:
BILLING CODE 6210–01–P; 4810–AM–P
Supplement I to Part 226—Official Staff
Interpretations
12 CFR Part 1026
■
*
*
*
*
*
*
*
Section 226.3
*
*
*
*
Bureau of Consumer Financial
Protection.
ACTION: Final rule; official
interpretation.
AGENCY:
*
Exempt Transactions
*
*
3(b) Credit over applicable threshold
amount.
1. Threshold amount. * * *
iv. From January 1, 2013 through December
31, 2013, the threshold amount is $53,000.
*
*
*
*
*
Bureau of Consumer Financial
Protection
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation Z, 12 CFR part 1026, as set
forth below:
PART 1026—TRUTH IN LENDING
(REGULATION Z)
1. The authority citation for part 1026
is revised to read as follows:
■
Authority: 12 U.S.C. 2601, 2603–2605,
2607, 2609, 2617, 5511, 5512, 5532, 5581; 15
U.S.C. 1601 et seq.
2. In Supplement I to part 1026, under
Section 1026.3—Exempt Transactions,
under 3(b) Credit over applicable
threshold amount, new paragraph 1.iv is
added to read as follows:
■
Supplement I to Part 1026—Official
Interpretations
*
*
*
*
*
Subpart A—General
emcdonald on DSK67QTVN1PROD with RULES
*
*
*
Section 1026.3
*
*
*
*
*
Exempt Transactions
*
*
3(b) Credit over applicable threshold
amount.
1. Threshold amount. * * *
iv. From January 1, 2013 through December
31, 2013, the threshold amount is $53,000.
*
*
*
VerDate Mar<15>2010
*
[Docket No. CFPB–2012–0044]
Truth in Lending (Regulation Z)
Subpart A—General
*
BUREAU OF CONSUMER FINANCIAL
PROTECTION
*
15:08 Nov 20, 2012
Jkt 229001
The Bureau of Consumer
Financial Protection (Bureau) is
publishing a final rule amending the
official interpretations for Regulation Z
(Truth in Lending). The Bureau 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 Bureau has adjusted the
$400 amount based on the annual
percentage change reflected in the
Consumer Price Index as reported on
June 1, 2012. The adjusted dollar
amount for 2013 is $625.
DATES: This final rule is effective
January 1, 2013.
FOR FURTHER INFORMATION CONTACT:
David Friend, Counsel, Office of
Regulations, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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. 15 U.S.C. 1638(a)(4).
TILA 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
Bureau’s Regulation Z (12 CFR part
1026). Supplement I to Regulation Z
contains the Bureau’s official
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
interpretations of the regulation, and
provides guidance to creditors in
applying the regulation to specific
transactions.
In 1995, the Board of Governors of the
Federal Reserve System (Board)
published amendments to Regulation Z
implementing HOEPA, which amended
TILA and was contained in the Riegle
Community Development and
Regulatory Improvement Act of 1994,
Public Law 103–325, 108 Stat. 2160.
These amendments, reflected in
§§ 1026.32 and 1026.34 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
requirements if the total points and fees
payable by the consumer at or before
loan closing 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(bb)(3); 12 CFR
1026.32(a)(1)(ii). The Board adjusted the
$400 amount to $611 for the year 2012
on June 13, 2011. The responsibility for
promulgating rules under TILA was
transferred from the Board to the Bureau
effective July 21, 2011.1 The Bureau
restated Regulation Z on December 22,
2011, and the Bureau’s Regulation Z is
located at 12 CFR part 1026. 76 FR
79768 (Dec. 22, 2011).
The Bureau of Labor Statistics (BLS)
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 Bureau uses the Consumer Price
Index for All Urban Consumers (CPI–U)
index, which is based on all urban
consumers and represents
approximately 88 percent of the U.S.
population, as the index for adjusting
the $400 figure. The adjustment to the
CPI–U index reported by BLS on May
15, 2012, was the CPI–U index in effect
on June 1, and reflects the percentage
change from April 2011 to April 2012.
The adjustment to the $400 figure below
reflects a 2.3 percent increase in the
CPI–U index for this period and is
1 See sections 1061 and 1100A of the Dodd-Frank
Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act), Public Law 11–203, 124 Stat.
1376 (2010). Section 1029 of the Dodd-Frank Act
excludes from this transfer of authority, subject to
certain exceptions, any rulemaking authority over a
motor vehicle dealer that is predominantly engaged
in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.
E:\FR\FM\21NOR1.SGM
21NOR1
]]>Agencies
[Federal Register Volume 77, Number 225 (Wednesday, November 21, 2012)]
[Rules and Regulations]
[Pages 69736-69738]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27993]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Docket No. 1450]
RIN 7100-AD94
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1026
[Docket No. CFPB-2012-0043]
Truth in Lending (Regulation Z)
AGENCIES: Board of Governors of the Federal Reserve System (Board);
and Bureau of Consumer Financial Protection (Bureau).
ACTION: Final rules, official interpretations and commentary.
-----------------------------------------------------------------------
SUMMARY: The Board and the Bureau are publishing final rules amending
the official interpretations and commentary for the agencies'
regulations that implement the Truth in Lending Act (TILA). Effective
July 21, 2011, the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) amended TILA by increasing the
threshold for exempt consumer credit transactions from $25,000 to
$50,000 and requiring that, on or after December 31, 2011, this
threshold be adjusted annually by any annual percentage increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W). Accordingly, the exemption threshold was adjusted to $51,800
effective January 1, 2012. Based on the annual percentage increase in
the CPI-W as of June 1, 2012, the Board and the Bureau are adjusting
the exemption threshold from $51,800 to $53,000, effective January 1,
2013.
Because the Dodd-Frank Act also requires similar adjustments in the
Consumer Leasing Act's threshold for exempt consumer leases, the Board
and the Bureau are making similar amendments to each of their
respective regulations implementing the Consumer Leasing Act elsewhere
in the Federal Register.
DATES: This final rule is effective January 1, 2013.
[[Page 69737]]
FOR FURTHER INFORMATION CONTACT:
Board: Vivian W. Wong, Counsel, Division of Consumer and Community
Affairs, Board of Governors of the Federal Reserve System, at (202)
452-3667; for users of Telecommunications Device for the Deaf (TDD)
only, contact (202) 263-4869.
Bureau: David Friend, Counsel, Office of Regulations, Bureau of
Consumer Financial Protection, at (202) 435-7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010 (Dodd-Frank Act) increased the threshold in the Truth in Lending
Act (TILA) for exempt consumer credit transactions \1\ from $25,000 to
$50,000, effective July 21, 2011.\2\ In addition, the Dodd-Frank Act
requires that this threshold be adjusted annually for inflation by the
annual percentage increase in the Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W), as published by the Bureau of
Labor Statistics. In April 2011, the Board issued a final rule amending
Regulation Z (which implements TILA) consistent with these provisions
of the Dodd-Frank Act.\3\
---------------------------------------------------------------------------
\1\ Although consumer credit transactions above the threshold
are generally exempt, loans secured by real property or by personal
property used or expected to be used as the principal dwelling of a
consumer and private education loans are covered by TILA regardless
of the loan amount. See 12 CFR 226.3(b)(1)(i) and 12 CFR
1026.3(b)(1)(i).
\2\ Public Law 111-203 Sec. 1100E, 124 Stat. 1376 (2010).
\3\ 76 FR 18354 (Apr. 4, 2011).
---------------------------------------------------------------------------
Title X of the Dodd-Frank Act transferred rulemaking authority for
a number of consumer financial protection laws from the Board to the
Bureau, effective July 21, 2011. In connection with this transfer of
rulemaking authority, the Bureau issued its own Regulation Z
implementing TILA in an interim final rule, 12 CFR part 1026 (Bureau
Interim Final Rule).\4\ The Bureau Interim Final Rule substantially
duplicated the Board's Regulation Z, including the revisions to the
threshold for exempt transactions made by the Board in April 2011.
Although the Bureau has the authority to issue rules to implement TILA
for most entities, the Board retains authority to issue rules under
TILA for certain motor vehicle dealers covered by section 1029(a) of
the Dodd-Frank Act, and the Board's Regulation Z continues to apply to
those entities.\5\
---------------------------------------------------------------------------
\4\ 76 FR 79768 (Dec. 22, 2011).
\5\ Section 1029(a) of the Dodd-Frank Act states: ``Except as
permitted in subsection (b), the Bureau may not exercise any
rulemaking, supervisory, enforcement, or any other authority * * *
over a motor vehicle dealer that is predominantly engaged in the
sale and servicing of motor vehicles, the leasing and servicing of
motor vehicles, or both.'' 12 U.S.C. 5519(a). Section 1029(b) of the
Dodd-Frank Act states: ``Subsection (a) shall not apply to any
person, to the extent that such person (1) provides consumers with
any services related to residential or commercial mortgages or self-
financing transactions involving real property; (2) operates a line
of business (A) that involves the extension of retail credit or
retail leases involving motor vehicles; and (B) in which (i) the
extension of retail credit or retail leases are provided directly to
consumers; and (ii) the contract governing such extension of retail
credit or retail leases is not routinely assigned to an unaffiliated
third party finance or leasing source; or (3) offers or provides a
consumer financial product or service not involving or related to
the sale, financing, leasing, rental, repair, refurbishment,
maintenance, or other servicing of motor vehicles, motor vehicle
parts, or any related or ancillary product or service.'' 12 U.S.C.
5519(b).
---------------------------------------------------------------------------
Section 226.3(b)(1)(ii) of the Board's Regulation Z and Sec.
1026.3(b)(1)(ii) of the Bureau's Regulation Z, and their accompanying
commentaries, provide that the exemption threshold will be adjusted
annually effective January 1 of each year based on any annual
percentage increase in the CPI-W that was in effect on the preceding
June 1. Any increase in the threshold amount will be rounded to the
nearest $100 increment. For example, if the annual percentage increase
in the CPI-W would result in a $950 increase in the threshold amount,
the threshold amount will be increased by $1,000. However, if the
annual percentage increase in the CPI-W would result in a $949 increase
in the threshold amount, the threshold amount will be increased by
$900. See comments 3(b)-1 in Supplements I of 12 CFR part 226 and 12
CFR part 1026.
II. Adjustment and Commentary Revision
Effective January 1, 2013, the adjusted exemption threshold amount
is $53,000. This adjustment is based on the CPI-W index in effect on
June 1, 2012, which was reported on May 15, 2012. 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 the month. The CPI-W is a subset of the CPI-U index (based on all
urban consumers) and represents approximately 28 percent of the U.S.
population. The adjustment reflects a 2.4 percent increase in the CPI-W
from April 2011 to April 2012 and is rounded to the nearest $100
increment. Accordingly, the Board and the Bureau are revising the
commentaries to their respective regulations to add new subparagraph
3(b)-1.iv to state that, from January 1, 2013 through December 31,
2013, the threshold amount is $53,000. These revisions are effective
January 1, 2013.
III. Administrative Law Matters
Administrative Procedure Act
Under the Administrative Procedure Act, notice and opportunity for
public comment are not required if the Board and the Bureau find that
notice and public comment are impracticable, unnecessary, or contrary
to the public interest. 5 U.S.C. 553(b)(B). This annual adjustment is
required by statute. The amendment in this notice is technical and non-
discretionary, and it applies the method previously established in the
agencies' regulations for determining adjustments to the exemption
threshold. For these reasons, the Board and the Bureau have determined
that publishing a notice of proposed rulemaking and providing
opportunity for public comment are unnecessary. Therefore, the
amendments are adopted in final form.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a general notice of proposed rulemaking is not required. 5 U.S.C.
603 and 604. As noted previously, the agencies have determined that it
is unnecessary to publish a general notice of proposed rulemaking for
this joint final rule. Accordingly, the RFA's requirements relating to
an initial and final regulatory flexibility analysis do not apply.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3506; 5 CFR 1320), the agencies reviewed this final rule. No
collections of information pursuant to the Paperwork Reduction Act are
contained in the final rule.
List of Subjects
12 CFR Part 226
Advertising, Consumer protection, Federal Reserve System, Reporting
and recordkeeping requirements, Truth in Lending.
12 CFR Part 1026
Advertising, Consumer protection, Credit, Credit unions, Mortgages,
National banks, Reporting and recordkeeping requirements, Savings
associations, Truth in Lending.
Board of Governors of the Federal Reserve System
Text of Final Revisions
For the reasons set forth in the preamble, the Board amends
Regulation Z, 12 CFR part 226, as set forth below:
[[Page 69738]]
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, 1637(c)(5), and
1639(l); Pub. L. 111-24 Sec. 2, 123 Stat. 1734; Pub. L. 111-203,
124 Stat. 1376.
0
2. In Supplement I to part 226, under Section 226.3--Exempt
Transactions, under 3(b) Credit over applicable threshold amount, new
paragraph 1.iv is added to read as follows:
Supplement I to Part 226--Official Staff Interpretations
* * * * *
Subpart A--General
* * * * *
Section 226.3 Exempt Transactions
* * * * *
3(b) Credit over applicable threshold amount.
1. Threshold amount. * * *
iv. From January 1, 2013 through December 31, 2013, the
threshold amount is $53,000.
* * * * *
Bureau of Consumer Financial Protection
Authority and Issuance
For the reasons set forth in the preamble, the Bureau amends
Regulation Z, 12 CFR part 1026, as set forth below:
PART 1026--TRUTH IN LENDING (REGULATION Z)
0
1. The authority citation for part 1026 is revised to read as follows:
Authority: 12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 5511,
5512, 5532, 5581; 15 U.S.C. 1601 et seq.
0
2. In Supplement I to part 1026, under Section 1026.3--Exempt
Transactions, under 3(b) Credit over applicable threshold amount, new
paragraph 1.iv is added to read as follows:
Supplement I to Part 1026--Official Interpretations
* * * * *
Subpart A--General
* * * * *
Section 1026.3 Exempt Transactions
* * * * *
3(b) Credit over applicable threshold amount.
1. Threshold amount. * * *
iv. From January 1, 2013 through December 31, 2013, the
threshold amount is $53,000.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, November 8, 2012.
Robert deV. Frierson,
Secretary of the Board.
Dated: November 6, 2012.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2012-27993 Filed 11-20-12; 8:45 am]
BILLING CODE 6210-01-P; 4810-AM-P
