Proposed Agency Information Collection Activities; Comment Request, 8492-8494 [2016-03445]
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8492
Federal Register / Vol. 81, No. 33 / Friday, February 19, 2016 / Notices
authorization for the collection of
information on the FR 3036.1
Because the Federal Reserve believes
the release of this information would
cause substantial harm to the
competitive position of the entity from
whom the information was obtained, the
information collected on the FR 3036
may be granted confidential treatment
under exemption (b)(4) of the Freedom
of Information Act, 5 U.S.C. 552(b)(4),
which protects from disclosure ‘‘trade
secrets and commercial or financial
information obtained from a person and
privileged or confidential.’’
Abstract: The FR 3036 is the U.S. part
of a global data collection that is
conducted by central banks once every
three years. More than 50 central banks
plan to conduct the survey in 2016. The
Bank for International Settlements (BIS)
compiles aggregate national data from
each central bank to produce global
market statistics. The Federal Reserve
Bank of New Your (FRBNY) uses the
survey to monitor activity in the foreign
exchange and derivatives markets.
Survey results also provide perspective
on market developments for the
Manager of the System Open Market
Account, on the Desk’s trading
relationships, and for planning Federal
Reserve and U.S. Treasury foreign
exchange operations. Respondents also
use the published data to gauge their
market share.
Current Actions: On December 1, 2015
the Federal Reserve published a notice
in the Federal Register (80 FR 75102)
requesting public comment for 60 days
on the extension, without revision, of
the Semiannual Report of Derivatives
Activity. The comment period for this
notice expired on February 1, 2016. The
Federal Reserve did not receive any
comments. The revisions will be
implemented as proposed.
Board of Governors of the Federal Reserve
System, February 16, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016–03480 Filed 2–18–16; 8:45 am]
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BILLING CODE 6210–01–P
1 Additionally, depending upon the survey
respondent, the information collection may be
authorized under a more specific statute.
Specifically, the Federal Reserve is authorized to
collect information from state member banks under
section 9 of the Federal Reserve Act (12 U.S.C. 324);
from bank holding companies (and their
subsidiaries) under section 5(c) of the Bank Holding
Company Act (12 U.S.C. 1844(c)); from Edge and
agreement corporations under section 25 and 25A
of the Federal Reserve Act (12 U.S.C. 602 and 625);
and from U.S. branches and agencies of foreign
banks under section 7(c)(2) of the International
Banking Act of 1978 (12 U.S.C. 3105(c)(2)) and
under section 7(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1817(a)).
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FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
SUMMARY: On June 15, 1984, the Office
of Management and Budget (OMB)
delegated to the Board of Governors of
the Federal Reserve System (Board) its
approval authority under the Paperwork
Reduction Act (PRA), to approve of and
assign OMB numbers to collection of
information requests and requirements
conducted or sponsored by the Board.
Board-approved collections of
information are incorporated into the
official OMB inventory of currently
approved collections of information.
Copies of the PRA Submission,
supporting statements and approved
collection of information instruments
are placed into OMB’s public docket
files. The Federal Reserve may not
conduct or sponsor, and the respondent
is not required to respond to, an
information collection that has been
extended, revised, or implemented on or
after October 1, 1995, unless it displays
a currently valid OMB number.
DATES: Comments must be submitted on
or before April 19, 2016.
ADDRESSES: You may submit comments,
identified by Reg Z, by any of the
following methods:
• Agency Web site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: regs.comments@
federalreserve.gov. Include OMB
number in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Robert deV. Frierson,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx as submitted, unless
modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper form in Room 3515, 1801 K Street
(between 18th and 19th Streets
NW.,)Washington, DC 20006 between
9:00 a.m. and 5:00 p.m. on weekdays.
AGENCY:
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Additionally, commenters may send a
copy of their comments to the OMB
Desk Officer—Shagufta Ahmed—Office
of Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235
725 17th Street NW., Washington, DC
20503 or by fax to (202) 395–6974.
FOR FURTHER INFORMATION CONTACT: A
copy of the PRA OMB submission,
including the proposed reporting form
and instructions, supporting statement,
and other documentation will be placed
into OMB’s public docket files, once
approved. These documents will also be
made available on the Federal Reserve
Board’s public Web site at: https://
www.federalreserve.gov/apps/
reportforms/review.aspx or may be
requested from the agency clearance
officer, whose name appears below.
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, Washington, DC 20551 (202)
452–3829. Telecommunications Device
for the Deaf (TDD) users may contact
(202) 263–4869, Board of Governors of
the Federal Reserve System,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
Request for Comment on Information
Collection Proposal
The following information collection,
which is being handled under this
delegated authority, has received initial
Board approval and is hereby published
for comment. At the end of the comment
period, the proposed information
collection, along with an analysis of
comments and recommendations
received, will be submitted to the Board
for final approval under OMB delegated
authority. Comments are invited on the
following:
a. Whether the proposed collection of
information is necessary for the proper
performance of the Federal Reserve’s
functions, including whether the
information has practical utility;
b. The accuracy of the Federal
Reserve’s estimate of the burden of the
proposed information collection,
including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e. Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
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Proposal To Approve Under OMB
Delegated Authority the Extension for
Three Years, With Revision, of the
Following Report
Report title: Recordkeeping and
disclosure requirements associated with
the Truth in Lending Act (TILA)
(Regulation Z).
Agency form number: Reg Z.
OMB control number: 7100–0199.
Frequency: Event-generated.
Respondent types: State member
banks, their subsidiaries, subsidiaries of
bank holding companies, U.S. branches
and agencies of foreign banks (other
than federal branches, federal agencies,
and insured state branches of foreign
banks), commercial lending companies
owned or controlled by foreign banks,
and organizations operating under
section 25 or 25A of the Federal Reserve
Act (12 U.S.C. 601–604a; 611–631).
Estimated annual burden hours:
Open-end (not home-secured credit):
Applications and solicitations, 16,896
hours; Account opening disclosures,
5,060 hours; Periodic statements, 95,232
hours; Change-in-terms disclosures,
62,000 hours; Timely settlement of
estate debts policies (one-time), 7,936
hours; Timely settlement of estate debts
policies (ongoing), 744 hours; Ability to
pay policies (one-time), 1,408 hours;
Ability to pay policies (ongoing), 132
hours; and Reporting and marketing
rules for college student open-end credit
and Internet posting of credit card
agreements, 5,632 hours; Open-end
credit (Home Equity Plans): Application
disclosures, 12,522 hours; Account
opening disclosures, 18,228 hours;
Periodic statements, 60,864 hours;
Change-in-terms disclosures, 39,625
hours; and Notices to restrict credit, 317
hours; All open-end credit: Error
resolution—credit cards, 12,760 hours
and other open-end credit, 992 hours;
Closed-end credit (Non-mortgage):
Closed-end credit disclosures, 265,658
hours; Closed-end credit (Mortgage):
Interest rate and payment summary and
‘‘No guarantee-to-refinance’’ statement,
304,320 hours; ARM disclosure (onetime), 951 hours; ARM disclosures
(ongoing), 107,780 hours; Initial rate
adjustment notice (one-time), 1,268
hours; Initial rate adjustment notice
(ongoing), 53,890 hours; Periodic
statements (one-time), 845 hours;
Periodic statements (ongoing), 224,013
hours; Credit check for loan originators
(one-time), 2,536 hours; Credit check for
loan originators (ongoing), 9,510 hours;
and Verification of documents for
Qualified Mortgage (QM) and non-QM
determination (one-time), 444 hours;
Open and closed-end mortgage: Prompt
crediting & payoff statement (one-time),
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528 hours; Payoff statements (ongoing),
42,267 hours; and Mortgage transfer
disclosure, 60,864 hours; Certain home
mortgage types: Reverse mortgage
disclosures, 188 hours; HOEPA
disclosures (one-time), 500 hours;
HOEPA disclosures (ongoing), 4,200
hours; HOEPA receipt of certification of
counseling for high-cost mortgages (onetime), 19 hours; HOEPA receipt of
certification of counseling for high-cost
mortgages (ongoing), 25 hours;
Appraisals for higher-priced mortgage
loans: Order and review initial
appraisal, 150 hours; Order and review
additional appraisal, 150 hours; and
Provide copy of initial and additional
appraisals, 1 hour; Private education
loans: Private student loan disclosures,
1,836 hours; Advertising rules (all credit
types): Advertising rules, 2,067 hours;
and Record retention (one-time), 190
hours.
Estimated average hours per response:
Open-end (not home-secured credit):
Applications and solicitations, 8 hours;
Account opening disclosures, 1.5
minutes; Periodic statements, 8 hours;
Change-in-terms disclosures, 1 minute;
Timely settlement of estate debts
policies (one-time), 8 hours; Timely
settlement of estate debts policies
(ongoing), 45 minutes; Ability to pay
policies (one-time), 8 hours; Ability to
pay policies (ongoing), 45 minutes; and
Reporting and marketing rules for
college student open-end credit and
Internet posting of credit card
agreements, 8 hours; Open-end credit
(Home Equity Plans): Application
disclosures, 1.5 minutes; Account
opening disclosures, 1.5 minutes;
Periodic statements, 8 hours; Change-interms disclosures, 1 minute; and Notices
to restrict credit, 3 minutes; All openend credit: Error resolution—credit
cards, 30 minutes and other open-end
credit, 30 minutes; Closed-end credit
(Non-mortgage): Closed-end credit
disclosures, 6.5 minutes; Closed-end
credit (Mortgage): Interest rate and
payment summary and ‘‘No guaranteeto-refinance’’ statement, 40 hours; ARM
disclosure (one-time), 1.5 hours; ARM
disclosures (ongoing), 17 minutes;
Initial rate adjustment notice (one-time),
2 hours; Initial rate adjustment notice
(ongoing), 17 minutes; Periodic
statements (one-time), 1 hour, 20
minutes; Periodic statements (ongoing),
0.5 minutes; Credit check for loan
originators (one-time), 4 hours; Credit
check for loan originators (ongoing), 15
hours; and Verification of documents for
Qualified Mortgage (QM) and non-QM
determination (one-time), 42 minutes;
Open and closed-end mortgage: Prompt
crediting & payoff statement (one-time),
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8493
50 minutes; Payoff statements (ongoing),
5 minutes; and Mortgage transfer
disclosure, 8 hours; Certain home
mortgage types: Reverse mortgage
disclosures, 3 minutes; HOEPA
disclosures (one-time), 20 hours;
HOEPA disclosures (ongoing), 14 hours;
HOEPA receipt of certification of
counseling for high-cost mortgages (onetime), 45 minutes; HOEPA receipt of
certification of counseling for high-cost
mortgages (ongoing), 1 hour; Appraisals
for higher-priced mortgage loans: Order
and review initial appraisal, 15 minutes;
Order and review additional appraisal,
15 minutes; and Provide copy of initial
and additional appraisals, 15 minutes;
Private education loans: Private student
loan disclosures, 17 hours; Advertising
rules (all credit types): Advertising
rules, 25 minutes; and Record retention
(one-time), 18 minutes.
Number of respondents: Open-end
(not home-secured credit): Applications
and solicitations and Account opening
disclosures, 176 respondents; Periodic
statements, Change-in-terms
disclosures, Timely settlement of estate
debts policies (one-time), and Timely
settlement of estate debts policies
(ongoing), 992 respondents; Ability to
pay policies (one-time), Ability to pay
policies (ongoing), and Reporting and
marketing rules for college student
open-end credit and Internet posting of
credit card agreements, 176
respondents; Open-end credit (Home
Equity Plans): Application disclosures,
Account opening disclosures, Periodic
statements, Change-in-terms
disclosures, and Notices to restrict
credit, 634 respondents; All open-end
credit: Error resolution—credit cards,
176 respondents and other open-end
credit, 992 respondents; Closed-end
credit (Non-mortgage): Closed-end
credit disclosures, 992 respondents;
Closed-end credit (Mortgage): Interest
rate and payment summary and ‘‘No
guarantee-to-refinance’’ statement, ARM
disclosure (one-time), ARM disclosures
(ongoing), Initial rate adjustment notice
(one-time), Initial rate adjustment notice
(ongoing), Periodic statements (onetime), Periodic statements (ongoing),
Credit check for loan originators (onetime), Credit check for loan originators
(ongoing), and Verification of
documents for Qualified Mortgage (QM)
and non-QM determination (one-time),
634 respondents; Open and closed-end
mortgage: Prompt crediting & payoff
statement (one-time), Payoff statements
(ongoing), and Mortgage transfer
disclosure, 634 respondents; Certain
home mortgage types: Reverse mortgage
disclosures, 15 respondents; HOEPA
disclosures (one-time), HOEPA
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disclosures (ongoing), HOEPA receipt of
certification of counseling for high-cost
mortgages (one-time), HOEPA receipt of
certification of counseling for high-cost
mortgages (ongoing), Appraisals for
higher-priced mortgage loans: Order and
review initial appraisal, Order and
review additional appraisal, and
Provide copy of initial and additional
appraisals, 25 respondents; Private
education loans: Private student loan
disclosures, 9 respondents; Advertising
rules (all credit types): Advertising
rules, 992 respondents; and Record
retention (one-time), 634 respondents.
Legal authorization and
confidentiality: The disclosure, recordkeeping, and other requirements of
Regulation Z are authorized by the
TILA, which directs the Consumer
Financial Protection Bureau (CFPB) and,
for certain lenders, the Federal Reserve
to issue regulations implementing the
statute. Covered lenders are required to
comply with the recordkeeping,
reporting, and disclosure provisions of
Regulation Z. Regulation Z is chiefly a
disclosure regulation, so the issue of
confidentiality does not normally arise.
One aspect of the rule requires certain
card issuers to submit annual reports to
the CFPB, but no reports are filed with
the Federal Reserve.
Abstract: TILA and Regulation Z
ensure adequate disclosure of the costs
and terms of credit to consumers. For
open-end credit, such as credit cards
and home-equity lines of credit
(HELOCs), creditors are required to
disclose information about the initial
costs and terms and to provide periodic
statements of account activity, notices of
changes in terms, and statements of
rights concerning billing error
procedures. For closed-end loans, such
as mortgage and installment loans, cost
disclosures are required prior to and at
consummation. Special disclosures are
required for certain products, such as
reverse mortgages and high cost
mortgages with rates and fees above
specified thresholds. TILA and
Regulation Z also contain rules
concerning credit advertising.1
Creditors are required to comply with
Regulation Z’s disclosure and other
requirements unless the transaction is
exempt.2 Regulation Z generally does
not apply to consumer credit
transactions that exceed a threshold
1 In addition, Regulation Z contains requirements
that are not considered information collections and
thus are not addressed here.
2 Exemptions include business credit, credit over
applicable threshold amounts, public utility credit,
securities or commodities accounts, home fuel
budget plans, certain student loan programs, and
employer-sponsored retirement plans. See 12 CFR
1026.3.
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17:59 Feb 18, 2016
Jkt 238001
amount, adjusted annually for
inflation.3 The threshold amount for
credit extended during 2015 was
$54,600; this threshold will remain the
same in 2016. However, regardless of
the amount of credit extended,
Regulation Z applies to: (1) Consumer
credit secured by real property; (2)
consumer credit secured by personal
property used or expected to be used as
the principal swelling of the consumer;
and (3) private student loans.
Current Actions: The Federal Reserve
proposes to modify and update Reg Z to
account for preexisting regulatory
requirements that were not included
separately in prior notices and to
account for the requirements of new
rules issued during the past three years.
A summary of the changes is as follows:
First, the Federal Reserve proposes to
modify Reg Z to account for new
required rules issued by the CFPB to
implement the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(Dodd-Frank Act).4 These include:
• Combined closed-end mortgage
disclosures under TILA and the Real
Estate Settlement Procedures Act
(RESPA); 5
• A requirement that creditors must
run a credit check on loan originators;
• Requirements that creditors verify
documents used to determine ‘‘qualified
mortgage’’ status;
• Mortgage payoff statement
requirements;
• Revised and additional adjustable
rate mortgage (ARM) disclosures;
• Periodic statements for closed-end
residential mortgages;
• Revised and additional disclosures
for high-cost mortgages under the Home
Ownership Equity Protection Act 6
(HOEPA).
Second, the Federal Reserve proposes
to clarify and add several information
collection elements for regulatory
requirements that previously were
accounted for as part of a more general
category of information collections or
were not previously included because
institutions for whose burden the
Federal Reserve accounts did not engage
in the relevant line of business to a
material degree.
These include:
• A requirement that creditors of
open-end (not home-secured) credit
have policies to comply with
requirements for the timely settlement
of estate debts;
• A requirement that creditors of
open-end (not home-secured) credit
3 12
CFR 1026.3(b).
Law 111–203, 124 Stat. 1376.
5 12 U.S.C. 2601 et seq.
6 15 U.S.C. 1639, 1640.
4 Public
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Fmt 4703
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have policies to comply with
requirements to account for a
consumer’s ability to repay a the debt;
• Separate disclosures for open-end
(not home-secured) and open-end
(home-secured) credit;
• Reverse mortgage disclosures.
Other proposed changes to Reg Z are
non-substantive and intended for
clarity.
Board of Governors of the Federal Reserve
System, February 12, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016–03445 Filed 2–18–16; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
SUMMARY: On June 15, 1984, the Office
of Management and Budget (OMB)
delegated to the Board of Governors of
the Federal Reserve System (Board) its
approval authority under the Paperwork
Reduction Act (PRA), to approve of and
assign OMB numbers to collection of
information requests and requirements
conducted or sponsored by the Board.
Board-approved collections of
information are incorporated into the
official OMB inventory of currently
approved collections of information.
Copies of the PRA Submission,
supporting statements and approved
collection of information instruments
are placed into OMB’s public docket
files. The Federal Reserve may not
conduct or sponsor, and the respondent
is not required to respond to, an
information collection that has been
extended, revised, or implemented on or
after October 1, 1995, unless it displays
a currently valid OMB number.
DATES: Comments must be submitted on
or before April 19, 2016.
ADDRESSES: You may submit comments,
identified by Reg Y–1, Form MSD–4, or
Form MSD–5 by any of the following
methods:
• Agency Web site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: regs.comments@
federalreserve.gov. Include OMB
number in the subject line of the
message.
AGENCY:
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Agencies
[Federal Register Volume 81, Number 33 (Friday, February 19, 2016)]
[Notices]
[Pages 8492-8494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03445]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: On June 15, 1984, the Office of Management and Budget (OMB)
delegated to the Board of Governors of the Federal Reserve System
(Board) its approval authority under the Paperwork Reduction Act (PRA),
to approve of and assign OMB numbers to collection of information
requests and requirements conducted or sponsored by the Board. Board-
approved collections of information are incorporated into the official
OMB inventory of currently approved collections of information. Copies
of the PRA Submission, supporting statements and approved collection of
information instruments are placed into OMB's public docket files. The
Federal Reserve may not conduct or sponsor, and the respondent is not
required to respond to, an information collection that has been
extended, revised, or implemented on or after October 1, 1995, unless
it displays a currently valid OMB number.
DATES: Comments must be submitted on or before April 19, 2016.
ADDRESSES: You may submit comments, identified by Reg Z, by any of the
following methods:
Agency Web site: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: regs.comments@federalreserve.gov. Include OMB
number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Robert deV. Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments are available from the Board's Web site at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper form in Room
3515, 1801 K Street (between 18th and 19th Streets NW.,)Washington, DC
20006 between 9:00 a.m. and 5:00 p.m. on weekdays. Additionally,
commenters may send a copy of their comments to the OMB Desk Officer--
Shagufta Ahmed--Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Room 10235 725
17th Street NW., Washington, DC 20503 or by fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission,
including the proposed reporting form and instructions, supporting
statement, and other documentation will be placed into OMB's public
docket files, once approved. These documents will also be made
available on the Federal Reserve Board's public Web site at: https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551 (202) 452-3829. Telecommunications Device
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors
of the Federal Reserve System, Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
Request for Comment on Information Collection Proposal
The following information collection, which is being handled under
this delegated authority, has received initial Board approval and is
hereby published for comment. At the end of the comment period, the
proposed information collection, along with an analysis of comments and
recommendations received, will be submitted to the Board for final
approval under OMB delegated authority. Comments are invited on the
following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Federal Reserve's functions, including
whether the information has practical utility;
b. The accuracy of the Federal Reserve's estimate of the burden of
the proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
[[Page 8493]]
Proposal To Approve Under OMB Delegated Authority the Extension for
Three Years, With Revision, of the Following Report
Report title: Recordkeeping and disclosure requirements associated
with the Truth in Lending Act (TILA) (Regulation Z).
Agency form number: Reg Z.
OMB control number: 7100-0199.
Frequency: Event-generated.
Respondent types: State member banks, their subsidiaries,
subsidiaries of bank holding companies, U.S. branches and agencies of
foreign banks (other than federal branches, federal agencies, and
insured state branches of foreign banks), commercial lending companies
owned or controlled by foreign banks, and organizations operating under
section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601-604a; 611-
631).
Estimated annual burden hours: Open-end (not home-secured credit):
Applications and solicitations, 16,896 hours; Account opening
disclosures, 5,060 hours; Periodic statements, 95,232 hours; Change-in-
terms disclosures, 62,000 hours; Timely settlement of estate debts
policies (one-time), 7,936 hours; Timely settlement of estate debts
policies (ongoing), 744 hours; Ability to pay policies (one-time),
1,408 hours; Ability to pay policies (ongoing), 132 hours; and
Reporting and marketing rules for college student open-end credit and
Internet posting of credit card agreements, 5,632 hours; Open-end
credit (Home Equity Plans): Application disclosures, 12,522 hours;
Account opening disclosures, 18,228 hours; Periodic statements, 60,864
hours; Change-in-terms disclosures, 39,625 hours; and Notices to
restrict credit, 317 hours; All open-end credit: Error resolution--
credit cards, 12,760 hours and other open-end credit, 992 hours;
Closed-end credit (Non-mortgage): Closed-end credit disclosures,
265,658 hours; Closed-end credit (Mortgage): Interest rate and payment
summary and ``No guarantee-to-refinance'' statement, 304,320 hours; ARM
disclosure (one-time), 951 hours; ARM disclosures (ongoing), 107,780
hours; Initial rate adjustment notice (one-time), 1,268 hours; Initial
rate adjustment notice (ongoing), 53,890 hours; Periodic statements
(one-time), 845 hours; Periodic statements (ongoing), 224,013 hours;
Credit check for loan originators (one-time), 2,536 hours; Credit check
for loan originators (ongoing), 9,510 hours; and Verification of
documents for Qualified Mortgage (QM) and non-QM determination (one-
time), 444 hours; Open and closed-end mortgage: Prompt crediting &
payoff statement (one-time), 528 hours; Payoff statements (ongoing),
42,267 hours; and Mortgage transfer disclosure, 60,864 hours; Certain
home mortgage types: Reverse mortgage disclosures, 188 hours; HOEPA
disclosures (one-time), 500 hours; HOEPA disclosures (ongoing), 4,200
hours; HOEPA receipt of certification of counseling for high-cost
mortgages (one-time), 19 hours; HOEPA receipt of certification of
counseling for high-cost mortgages (ongoing), 25 hours; Appraisals for
higher-priced mortgage loans: Order and review initial appraisal, 150
hours; Order and review additional appraisal, 150 hours; and Provide
copy of initial and additional appraisals, 1 hour; Private education
loans: Private student loan disclosures, 1,836 hours; Advertising rules
(all credit types): Advertising rules, 2,067 hours; and Record
retention (one-time), 190 hours.
Estimated average hours per response: Open-end (not home-secured
credit): Applications and solicitations, 8 hours; Account opening
disclosures, 1.5 minutes; Periodic statements, 8 hours; Change-in-terms
disclosures, 1 minute; Timely settlement of estate debts policies (one-
time), 8 hours; Timely settlement of estate debts policies (ongoing),
45 minutes; Ability to pay policies (one-time), 8 hours; Ability to pay
policies (ongoing), 45 minutes; and Reporting and marketing rules for
college student open-end credit and Internet posting of credit card
agreements, 8 hours; Open-end credit (Home Equity Plans): Application
disclosures, 1.5 minutes; Account opening disclosures, 1.5 minutes;
Periodic statements, 8 hours; Change-in-terms disclosures, 1 minute;
and Notices to restrict credit, 3 minutes; All open-end credit: Error
resolution--credit cards, 30 minutes and other open-end credit, 30
minutes; Closed-end credit (Non-mortgage): Closed-end credit
disclosures, 6.5 minutes; Closed-end credit (Mortgage): Interest rate
and payment summary and ``No guarantee-to-refinance'' statement, 40
hours; ARM disclosure (one-time), 1.5 hours; ARM disclosures (ongoing),
17 minutes; Initial rate adjustment notice (one-time), 2 hours; Initial
rate adjustment notice (ongoing), 17 minutes; Periodic statements (one-
time), 1 hour, 20 minutes; Periodic statements (ongoing), 0.5 minutes;
Credit check for loan originators (one-time), 4 hours; Credit check for
loan originators (ongoing), 15 hours; and Verification of documents for
Qualified Mortgage (QM) and non-QM determination (one-time), 42
minutes; Open and closed-end mortgage: Prompt crediting & payoff
statement (one-time), 50 minutes; Payoff statements (ongoing), 5
minutes; and Mortgage transfer disclosure, 8 hours; Certain home
mortgage types: Reverse mortgage disclosures, 3 minutes; HOEPA
disclosures (one-time), 20 hours; HOEPA disclosures (ongoing), 14
hours; HOEPA receipt of certification of counseling for high-cost
mortgages (one-time), 45 minutes; HOEPA receipt of certification of
counseling for high-cost mortgages (ongoing), 1 hour; Appraisals for
higher-priced mortgage loans: Order and review initial appraisal, 15
minutes; Order and review additional appraisal, 15 minutes; and Provide
copy of initial and additional appraisals, 15 minutes; Private
education loans: Private student loan disclosures, 17 hours;
Advertising rules (all credit types): Advertising rules, 25 minutes;
and Record retention (one-time), 18 minutes.
Number of respondents: Open-end (not home-secured credit):
Applications and solicitations and Account opening disclosures, 176
respondents; Periodic statements, Change-in-terms disclosures, Timely
settlement of estate debts policies (one-time), and Timely settlement
of estate debts policies (ongoing), 992 respondents; Ability to pay
policies (one-time), Ability to pay policies (ongoing), and Reporting
and marketing rules for college student open-end credit and Internet
posting of credit card agreements, 176 respondents; Open-end credit
(Home Equity Plans): Application disclosures, Account opening
disclosures, Periodic statements, Change-in-terms disclosures, and
Notices to restrict credit, 634 respondents; All open-end credit: Error
resolution--credit cards, 176 respondents and other open-end credit,
992 respondents; Closed-end credit (Non-mortgage): Closed-end credit
disclosures, 992 respondents; Closed-end credit (Mortgage): Interest
rate and payment summary and ``No guarantee-to-refinance'' statement,
ARM disclosure (one-time), ARM disclosures (ongoing), Initial rate
adjustment notice (one-time), Initial rate adjustment notice (ongoing),
Periodic statements (one-time), Periodic statements (ongoing), Credit
check for loan originators (one-time), Credit check for loan
originators (ongoing), and Verification of documents for Qualified
Mortgage (QM) and non-QM determination (one-time), 634 respondents;
Open and closed-end mortgage: Prompt crediting & payoff statement (one-
time), Payoff statements (ongoing), and Mortgage transfer disclosure,
634 respondents; Certain home mortgage types: Reverse mortgage
disclosures, 15 respondents; HOEPA disclosures (one-time), HOEPA
[[Page 8494]]
disclosures (ongoing), HOEPA receipt of certification of counseling for
high-cost mortgages (one-time), HOEPA receipt of certification of
counseling for high-cost mortgages (ongoing), Appraisals for higher-
priced mortgage loans: Order and review initial appraisal, Order and
review additional appraisal, and Provide copy of initial and additional
appraisals, 25 respondents; Private education loans: Private student
loan disclosures, 9 respondents; Advertising rules (all credit types):
Advertising rules, 992 respondents; and Record retention (one-time),
634 respondents.
Legal authorization and confidentiality: The disclosure, record-
keeping, and other requirements of Regulation Z are authorized by the
TILA, which directs the Consumer Financial Protection Bureau (CFPB)
and, for certain lenders, the Federal Reserve to issue regulations
implementing the statute. Covered lenders are required to comply with
the recordkeeping, reporting, and disclosure provisions of Regulation
Z. Regulation Z is chiefly a disclosure regulation, so the issue of
confidentiality does not normally arise. One aspect of the rule
requires certain card issuers to submit annual reports to the CFPB, but
no reports are filed with the Federal Reserve.
Abstract: TILA and Regulation Z ensure adequate disclosure of the
costs and terms of credit to consumers. For open-end credit, such as
credit cards and home-equity lines of credit (HELOCs), creditors are
required to disclose information about the initial costs and terms and
to provide periodic statements of account activity, notices of changes
in terms, and statements of rights concerning billing error procedures.
For closed-end loans, such as mortgage and installment loans, cost
disclosures are required prior to and at consummation. Special
disclosures are required for certain products, such as reverse
mortgages and high cost mortgages with rates and fees above specified
thresholds. TILA and Regulation Z also contain rules concerning credit
advertising.\1\
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\1\ In addition, Regulation Z contains requirements that are not
considered information collections and thus are not addressed here.
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Creditors are required to comply with Regulation Z's disclosure and
other requirements unless the transaction is exempt.\2\ Regulation Z
generally does not apply to consumer credit transactions that exceed a
threshold amount, adjusted annually for inflation.\3\ The threshold
amount for credit extended during 2015 was $54,600; this threshold will
remain the same in 2016. However, regardless of the amount of credit
extended, Regulation Z applies to: (1) Consumer credit secured by real
property; (2) consumer credit secured by personal property used or
expected to be used as the principal swelling of the consumer; and (3)
private student loans.
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\2\ Exemptions include business credit, credit over applicable
threshold amounts, public utility credit, securities or commodities
accounts, home fuel budget plans, certain student loan programs, and
employer-sponsored retirement plans. See 12 CFR 1026.3.
\3\ 12 CFR 1026.3(b).
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Current Actions: The Federal Reserve proposes to modify and update
Reg Z to account for preexisting regulatory requirements that were not
included separately in prior notices and to account for the
requirements of new rules issued during the past three years. A summary
of the changes is as follows:
First, the Federal Reserve proposes to modify Reg Z to account for
new required rules issued by the CFPB to implement the Dodd-Frank Wall
Street Reform and Consumer Protection Act (Dodd-Frank Act).\4\ These
include:
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\4\ Public Law 111-203, 124 Stat. 1376.
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Combined closed-end mortgage disclosures under TILA and
the Real Estate Settlement Procedures Act (RESPA); \5\
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\5\ 12 U.S.C. 2601 et seq.
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A requirement that creditors must run a credit check on
loan originators;
Requirements that creditors verify documents used to
determine ``qualified mortgage'' status;
Mortgage payoff statement requirements;
Revised and additional adjustable rate mortgage (ARM)
disclosures;
Periodic statements for closed-end residential mortgages;
Revised and additional disclosures for high-cost mortgages
under the Home Ownership Equity Protection Act \6\ (HOEPA).
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\6\ 15 U.S.C. 1639, 1640.
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Second, the Federal Reserve proposes to clarify and add several
information collection elements for regulatory requirements that
previously were accounted for as part of a more general category of
information collections or were not previously included because
institutions for whose burden the Federal Reserve accounts did not
engage in the relevant line of business to a material degree.
These include:
A requirement that creditors of open-end (not home-
secured) credit have policies to comply with requirements for the
timely settlement of estate debts;
A requirement that creditors of open-end (not home-
secured) credit have policies to comply with requirements to account
for a consumer's ability to repay a the debt;
Separate disclosures for open-end (not home-secured) and
open-end (home-secured) credit;
Reverse mortgage disclosures.
Other proposed changes to Reg Z are non-substantive and intended
for clarity.
Board of Governors of the Federal Reserve System, February 12,
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-03445 Filed 2-18-16; 8:45 am]
BILLING CODE 6210-01-P