Agency Information Collection Activities; Proposed Collection; Comment Request; Extension, 51982-51984 [2022-18281]
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51982
Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 / Notices
standards enumerated in paragraph 7 of
the Act.
Comments regarding each of these
applications must be received at the
Reserve Bank indicated or the offices of
the Board of Governors, Ann E.
Misback, Secretary of the Board, 20th
Street and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than September 8, 2022.
A. Federal Reserve Bank of New York
(Ivan Hurwitz, Head of Bank
Applications) 33 Liberty Street, New
York, New York 10045–0001. Comments
can also be sent electronically to
Comments.applications@ny.frb.org:
1. Trust u/a 2nd(3) u/w of Hubert B.
Phipps for Hubert G. Phipps,
Woodbridge, New Jersey; Trust u/a
2nd(4)(a) u/w Hubert B. Phipps for
Hubert G. Phipps, Woodbridge, New
Jersey; Trust u/a 2nd(3) u/w Hubert B.
Phipps for Melissa Phipps, Woodbridge,
New Jersey; Trust u/a 2nd(4)(a) u/w
Hubert B. Phipps for Melissa Phipps,
Woodbridge, New Jersey; Frederick E.
Guest II Trust dated 12/10/2014,
Wilmington, Delaware; Trust f/b/o
Alexander M.D. Guest u/Art. 7(B)(5) u/
w Winston F.C. Guest, Deceased, New
York, New York; Trust f/b/o Cornelia C.
Guest u/Art. 7(B)(5) u/w Winston F.C.
Guest, Deceased, New York, New York;
Trust f/b/o Winston Guest, Jr. u/Art.
7(B)(5) u/w Winston F.C. Guest,
Deceased, New York, New York; and
Elizabeth Guest Stevens Revocable Trust
dated June 21, 2011, Woodbridge, New
Jersey (collectively, the ‘‘EGS Trusts’’);
Elizabeth Guest Stevens, Washington,
District of Columbia, as trustee of the
EGS Trusts; the Achille Murat Guest
Revocable Trust (‘‘AMG Trust’’),
Richmond, Virginia; Achille Murat
Guest, as trustee of the AMG Trust;
Virginia Guest Valentine, Palm Beach,
Florida; and Laetitia A. Guest
Oppenheim, Palm Beach, Florida;
together as a group acting in concert, to
acquire voting shares of The Bessemer
Group, Incorporated, Woodbridge, New
Jersey, and thereby indirectly acquire
voting shares of Bessemer Trust
Company, N.A., New York, New York,
and Bessemer Trust Company,
Woodbridge, New Jersey.
B. Federal Reserve Bank of Dallas
(Karen Smith, Director, Applications)
2200 North Pearl Street, Dallas, Texas
75201–2272:
1. Preston L. Massey, as co-trustee of
the Elizabeth Shatto Massey Separate
Property Trust (‘‘ESM Trust’’); as trustee
of the John H. Massey, II 2011 Trust;
and as trustee of a 2012 trust for the
benefit of John H. Massey, II and 2
minors; all of Dallas, Texas; and John H.
Massey, II, as co-trustee of the ESM
Trust; as trustee of the Preston L.
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Massey 2011 Trust; and as trustee of a
2012 trust for the benefit of Preston L.
Massey and 2 minors; all of Houston,
Texas; together as a group acting in
concert, to retain voting shares of
Central Texas Bankshare Holdings, Inc.,
Columbus, Texas, and thereby indirectly
retain voting shares of Colorado County
Investment Holdings, Inc., Wilmington,
Delaware; Hill Bancshare Holdings, Inc.,
Weimar, Texas; Hill Bancshares of
Delaware, Inc., Wilmington, Delaware;
Hill Bank & Trust Co., Weimar, Texas;
and Columbus State Bank, Columbus,
Texas.
Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2022–18285 Filed 8–23–22; 8:45 am]
BILLING CODE P
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Extension
Federal Trade Commission.
Notice.
AGENCY:
ACTION:
In accordance with the
Paperwork Reduction Act of 1995
(PRA), the Federal Trade Commission
(FTC or Commission) is seeking public
comment on its proposal to extend for
an additional three years the FTC’s
portion of the information collection
requirements contained in the
Consumer Financial Protection Bureau’s
Regulation N (the Mortgage Acts and
Practices—Advertising Rule). The FTC
generally shares enforcement of
Regulation N with the Consumer
Financial Protection Bureau (CFPB).
The current clearance expires on
January 31, 2023.
DATES: Comments must be received on
or before October 24, 2022.
ADDRESSES: Interested parties may file a
comment online or on paper by
following the instructions in the
Request for Comments part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Paperwork Reduction Act
Comment: FTC File No. P072108’’ on
your comment, and file your comment
online at https://www.regulations.gov by
following the instructions on the webbased form. If you prefer to file your
comment on paper, mail your comment
to the following address: Federal Trade
Commission, Office of the Secretary,
600 Pennsylvania Avenue NW, Suite
CC–5610 (Annex J), Washington, DC
20580, or deliver your comment to the
following address: Federal Trade
SUMMARY:
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Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex J),
Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Carole L. Reynolds, Attorney, Division
of Financial Practices, Bureau of
Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue
NW, Washington, DC 20580, (202) 326–
3230.
SUPPLEMENTARY INFORMATION:
Title: Mortgage Acts and Practices—
Advertising (Regulation N), 12 CFR part
1014.
OMB Control Number: 3084–0156.
Type of Review: Extension of a
currently approved collection.
Abstract: The FTC and the CFPB
generally share enforcement authority
for Regulation N and thus the two
agencies share burden estimates for
Regulation N.1 Regulation N’s
recordkeeping requirements constitute a
‘‘collection of information’’ 2 for
purposes of the PRA.3 The Rule does
not impose a disclosure requirement.
Regulation N requires covered
persons to retain: (1) Copies of
materially different commercial
communications and related materials,
regarding any term of any mortgage
credit product, that the person made or
disseminated during the relevant time
period; (2) documents describing or
evidencing all mortgage credit products
available to consumers during the
relevant time period; and (3) documents
describing or evidencing all additional
products or services (such as credit
insurance or credit disability insurance)
that are or may be offered or provided
with the mortgage credit products
available to consumers during the
relevant time period.4 A failure to keep
such records would be an independent
violation of the Rule.
Commission staff believes the
recordkeeping requirements pertain to
1 As background, the FTC’s Mortgage Acts and
Practices—Advertising Rule, 16 CFR part 321, was
issued by the FTC in July 2011, 76 FR 43826 (July
22, 2011), and became effective on August 19, 2011.
The Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 (Dodd-Frank Act) transferred
to the CFPB the Commission’s rulemaking authority
under section 626 of the 2009 Omnibus
Appropriations Act on July 21, 2011. As a result,
the CFPB republished the Mortgage Acts and
Practices—Advertising Rule, at 12 CFR part 1014,
which became effective December 30, 2011. 76 FR
78130. Thereafter, the Commission rescinded its
Rule, which was effective on April 13, 2012. 77 FR
22200. Under the Dodd-Frank Act, the FTC retains
its authority to bring law enforcement actions to
enforce Regulation N.
2 Section 1014.5 of the Rule sets forth the
recordkeeping requirements.
3 See 44 U.S.C. 3502(3)(A).
4 Section 1014.5 of the Rule sets forth the
recordkeeping requirements.
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records that are usual and customary
and kept in the ordinary course of
business for many covered persons,
such as mortgage brokers, lenders, and
servicers; real estate brokers and agents;
home builders, and advertising
agencies.5 As to these persons, the
retention of these documents does not
constitute a ‘‘collection of information,’’
as defined by OMB’s regulations that
implement the PRA.6 Certain other
covered persons such as lead generators
and rate aggregators may not currently
maintain these records in the ordinary
course of business.7 Thus, the
recordkeeping requirements for those
persons would constitute a ‘‘collection
of information.’’
The information retained under the
Rule’s recordkeeping requirements is
used by the Commission to substantiate
compliance with the Rule and may also
provide a basis for the Commission to
bring an enforcement action. Without
the required records, it would be
difficult either to ensure that entities are
complying with the Rule’s requirements
or to bring enforcement actions based on
violations of the Rule.
Likely Respondents: Lead generators
and rate aggregators.
Estimated Annual Hours Burden:
1,500 hours.
• Derived from 1,000 likely
respondents × approximately 3 hours for
each respondent per year to do these
tasks = 3,000 hours.
5 Some covered persons, particularly mortgage
brokers and lenders, are subject to state
recordkeeping requirements for mortgage
advertisements. See, e.g., Fla. Stat. 494.00165
(2021); Ind. Code Ann. 23–2.5–8.5 (2021; Kan. Stat.
Ann. 9–2208 (2022); Minn. Stat. 58.14 (2021);
Wash. Rev. Code 19.146.060 (2021), and WAC 208–
660–450 (2022). Many mortgage brokers, lenders
(including finance companies), and servicers are
subject to state recordkeeping requirements for
mortgage transactions and related documents, and
these may include descriptions of mortgage credit
products. See, e.g., Mich. Comp. Laws Serv.
445.1671 (2022); N.Y. Banking Law 597 (Consol.
2021); Tenn. Code Ann. 45–13–206 (2021). Lenders
and mortgagees approved by the Federal Housing
Administration must retain copies of all print and
electronic advertisements and promotional
materials for a period of two years from the date the
materials are circulated or used to advertise. See 24
CFR part 202. Various other entities, such as real
estate brokers and agents, home builders, and
advertising agencies can be indirectly covered by
state recordkeeping requirements for mortgage
advertisements and/or retain ads to demonstrate
compliance with state law. See, e.g., 76 Del. Laws,
c. 421, § 1.
6 See 44 U.S.C. 3502(3)(A); 5 CFR 1320.3(b)(2).
7 See, e.g., United States v. Intermundo Media,
LLC, dba Delta Prime Refinance, No. 1:14–cv–2529
(D. Colo. filed Sept. 12, 2014) (D. Colo. Oct. 7, 2014)
(stipulated order for permanent injunction and civil
penalty judgment), available at https://www.ftc.gov/
system/files/documents/cases/
140912deltaprimestiporder.pdf. The complaint
charged this lead generator with numerous
violations of Regulation N, including
recordkeeping, and of other federal mortgage
advertising mandates.
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• Since the FTC shares enforcement
authority with the CFPB for Regulation
N, the FTC’s allotted PRA burden is
1,500 annual hours.
Estimated Annual Labor Cost Burden:
$26,550, which is derived from 1,500
hours × $17.70 per hour.8
As required by section 3506(c)(2)(A)
of the PRA, 44 U.S.C. 3506(c)(2)(A), the
FTC is providing this opportunity for
public comment before requesting that
OMB extend the existing clearance for
the information collection requirements
contained in Regulation N.
Burden Statement
Estimated total annual hours burden:
1,500 hours (for the FTC).
Commission staff estimates that the
Rule’s recordkeeping requirements will
affect approximately 1,000 persons 9
who would not otherwise retain such
records in the ordinary course of
business. As noted, this estimate
includes lead generators and rate
aggregators that may provide
commercial communications regarding
mortgage credit product terms.10
Although the Commission cannot
estimate with precision the time
required to gather and file the required
records, it is reasonable to assume that
covered persons will each spend
approximately 3 hours per year to do
these tasks, for a total of 3,000 hours
(1,000 persons × 3 hours). Since the FTC
generally shares enforcement authority
with the CFPB for Regulation N, the
FTC’s allotted PRA burden is 1,500
annual hours.11
8 This estimate is based on mean hourly wages for
office support file clerks provided by the Bureau of
Labor Statistics. See U.S. Bureau of Labor Statistics,
Occupational Employment and Wages—May 2021
table 1 (‘‘National employment and wage data from
the Occupational Employment Statistics survey by
occupation’’), released March 31, 2022, available at
https://www.bls.gov/news.release/pdf/ocwage.pdf.
9 No general source provides precise numbers of
the various categories of covered persons.
Commission staff, therefore, has used the following
sources and inputs to arrive at this estimated total:
1,000 lead generators and rate aggregators, based on
staff’s administrative experience.
10 The Commission does not know what
percentage of these persons are, in fact, engaged in
covered conduct under the Rule, i.e., providing
commercial communications about mortgage credit
product terms. For purposes of these estimates, the
Commission has assumed all of them are covered
by the recordkeeping provisions and are not
retaining these records in the ordinary course of
business.
11 This estimate reflects the same burden
compared to prior FTC estimates, because many
entities can be indirectly covered by state
recordkeeping requirements for mortgage
advertisements and/or retain ads to demonstrate
compliance with state law, as discussed above. See
supra note 4. The FTC notes that the CFPB’s recent
information collection filing with OMB for
Regulation N also reflects the view that, in large
part, most entities either retain records in the
ordinary course of business or to demonstrate
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51983
Estimated labor costs: $26,550.
Commission staff derived labor costs
by applying appropriate hourly cost
figures to the burden hours described
above. Staff further assumes that office
support file clerks will handle the
Rule’s record retention requirements at
an hourly rate of $17.70.12 Based upon
the above estimates and assumptions,
the total annual labor cost to retain and
file documents, for the FTC’s allotted
burden, is $26,550 (1,500 hours × $17.70
per hour).
Absent information to the contrary,
staff anticipates that existing storage
media and equipment that covered
persons use in the ordinary course of
business will satisfactorily
accommodate incremental
recordkeeping under the Rule.
Accordingly, staff does not anticipate
that the Rule will require any new
capital or other non-labor expenditures.
Request for Comments
Pursuant to Section 3506(c)(2)(A) of
the PRA, the FTC invites comments on:
(1) whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(2) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information, including the validity of
the methodology and assumptions used;
(3) ways to enhance the quality, utility,
and clarity of the information to be
collected; and (4) ways to minimize the
burden of maintaining records and
providing disclosures to consumers. All
comments must be received on or before
October 24, 2022.
You can file a comment online or on
paper. For the FTC to consider your
comment, we must receive it on or
before October 24, 2022. Write
‘‘Paperwork Reduction Act Comment:
FTC File No. P072108’’ on your
comment. Your comment—including
your name and your state—will be
placed on the public record of this
proceeding, including the https://
www.regulations.gov website.
Due to the public health emergency in
response to the COVID–19 outbreak and
compliance with other laws. See generally Bureau
of Consumer Financial Protection, Agency
Information Collection Activities: Submission for
OMB Review; Comment Review, 87 FR 40513 (July
7, 2022), available at 2022–14474.pdf (govinfo.gov).
12 This estimate is based on mean hourly wages
for office support file clerks provided by the Bureau
of Labor Statistics. See U.S. Bureau of Labor
Statistics, Occupational Employment and Wages—
May 2021, table 1 (‘‘National employment and wage
data from the Occupational Employment Statistics
survey by occupation’’), released March 31, 2022,
available at https://www.bls.gov/news.release/pdf/
ocwage.pdf.
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the agency’s heightened security
screening, postal mail addressed to the
Commission will be subject to delay. We
encourage you to submit your comments
online through the https://
www.regulations.gov website.
If you prefer to file your comment on
paper, write ‘‘Paperwork Reduction Act
Comment: FTC File No. P072108’’ on
your comment and on the envelope, and
mail your comment to the following
address: Federal Trade Commission,
Office of the Secretary, 600
Pennsylvania Avenue NW, Suite CC–
5610 (Annex J), Washington, DC 20580;
or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex J),
Washington, DC 20024. If possible,
submit your paper comment to the
Commission by courier or overnight
service.
Because your comment will become
publicly available at https://
www.regulations.gov, you are solely
responsible for making sure that your
comment does not include any sensitive
or confidential information. In
particular, your comment should not
include any sensitive personal
information, such as your or anyone
else’s Social Security number; date of
birth; driver’s license number or other
state identification number, or foreign
country equivalent; passport number;
financial account number; or credit or
debit card number. You are also solely
responsible for making sure that your
comment does not include any sensitive
health information, such as medical
records or other individually
identifiable health information. In
addition, your comment should not
include any ‘‘trade secret or any
commercial or financial information
which . . . . is privileged or
confidential’’—as provided by Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—
including in particular competitively
sensitive information such as costs,
sales statistics, inventories, formulas,
patterns, devices, manufacturing
processes, or customer names.
Comments containing material for
which confidential treatment is
requested must be filed in paper form,
must be clearly labeled ‘‘Confidential,’’
and must comply with FTC Rule 4.9(c).
In particular, the written request for
confidential treatment that accompanies
the comment must include the factual
and legal basis for the request, and must
identify the specific portions of the
comment to be withheld from the public
record. See FTC Rule 4.9(c). Your
comment will be kept confidential only
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if the General Counsel grants your
request in accordance with the law and
the public interest. Once your comment
has been posted publicly at
www.regulations.gov, we cannot redact
or remove your comment unless you
submit a confidentiality request that
meets the requirements for such
treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
The FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding, as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before October 24, 2022. For
information on the Commission’s
privacy policy, including routine uses
permitted by the Privacy Act, see
https://www.ftc.gov/site-information/
privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2022–18281 Filed 8–23–22; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
[Document Identifiers: CMS–10065/10066 &
CMS–10611]
Agency Information Collection
Activities: Submission for OMB
Review; Comment Request
Centers for Medicare &
Medicaid Services, Health and Human
Services (HHS).
ACTION: Notice.
AGENCY:
The Centers for Medicare &
Medicaid Services (CMS) is announcing
an opportunity for the public to
comment on CMS’ intention to collect
information from the public. Under the
Paperwork Reduction Act of 1995
(PRA), federal agencies are required to
publish notice in the Federal Register
concerning each proposed collection of
information, including each proposed
extension or reinstatement of an existing
collection of information, and to allow
a second opportunity for public
comment on the notice. Interested
persons are invited to send comments
regarding the burden estimate or any
other aspect of this collection of
information, including the necessity and
utility of the proposed information
collection for the proper performance of
the agency’s functions, the accuracy of
the estimated burden, ways to enhance
SUMMARY:
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the quality, utility, and clarity of the
information to be collected, and the use
of automated collection techniques or
other forms of information technology to
minimize the information collection
burden.
Comments on the collection(s) of
information must be received by the
OMB desk officer by September 23,
2022.
DATES:
Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
To obtain copies of a supporting
statement and any related forms for the
proposed collection(s) summarized in
this notice, you may make your request
using one of following:
1. Access CMS’ website address at
website address at: https://
www.cms.gov/Regulations-andGuidance/Legislation/Paperwork
ReductionActof1995/PRA-Listing.
FOR FURTHER INFORMATION CONTACT:
William Parham at (410) 786–4669.
SUPPLEMENTARY INFORMATION: Under the
Paperwork Reduction Act of 1995 (PRA)
(44 U.S.C. 3501–3520), federal agencies
must obtain approval from the Office of
Management and Budget (OMB) for each
collection of information they conduct
or sponsor. The term ‘‘collection of
information’’ is defined in 44 U.S.C.
3502(3) and 5 CFR 1320.3(c) and
includes agency requests or
requirements that members of the public
submit reports, keep records, or provide
information to a third party. Section
3506(c)(2)(A) of the PRA (44 U.S.C.
3506(c)(2)(A)) requires federal agencies
to publish a 30-day notice in the
Federal Register concerning each
proposed collection of information,
including each proposed extension or
reinstatement of an existing collection
of information, before submitting the
collection to OMB for approval. To
comply with this requirement, CMS is
publishing this notice that summarizes
the following proposed collection(s) of
information for public comment:
1. Type of Information Collection
Request: Extension of a currently
approved collection; Title of
Information Collection: Hospital
Notices: IM/DND; Use: The purpose of
the IM is to inform beneficiaries and
enrollees of their rights as hospital
inpatients and how to request a
discharge appeal by a Quality
ADDRESSES:
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Agencies
[Federal Register Volume 87, Number 163 (Wednesday, August 24, 2022)]
[Notices]
[Pages 51982-51984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18281]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (PRA),
the Federal Trade Commission (FTC or Commission) is seeking public
comment on its proposal to extend for an additional three years the
FTC's portion of the information collection requirements contained in
the Consumer Financial Protection Bureau's Regulation N (the Mortgage
Acts and Practices--Advertising Rule). The FTC generally shares
enforcement of Regulation N with the Consumer Financial Protection
Bureau (CFPB). The current clearance expires on January 31, 2023.
DATES: Comments must be received on or before October 24, 2022.
ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Request for Comments part of the
SUPPLEMENTARY INFORMATION section below. Write ``Paperwork Reduction
Act Comment: FTC File No. P072108'' on your comment, and file your
comment online at https://www.regulations.gov by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
J), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Carole L. Reynolds, Attorney, Division
of Financial Practices, Bureau of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202)
326-3230.
SUPPLEMENTARY INFORMATION:
Title: Mortgage Acts and Practices--Advertising (Regulation N), 12
CFR part 1014.
OMB Control Number: 3084-0156.
Type of Review: Extension of a currently approved collection.
Abstract: The FTC and the CFPB generally share enforcement
authority for Regulation N and thus the two agencies share burden
estimates for Regulation N.\1\ Regulation N's recordkeeping
requirements constitute a ``collection of information'' \2\ for
purposes of the PRA.\3\ The Rule does not impose a disclosure
requirement.
---------------------------------------------------------------------------
\1\ As background, the FTC's Mortgage Acts and Practices--
Advertising Rule, 16 CFR part 321, was issued by the FTC in July
2011, 76 FR 43826 (July 22, 2011), and became effective on August
19, 2011. The Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 (Dodd-Frank Act) transferred to the CFPB the
Commission's rulemaking authority under section 626 of the 2009
Omnibus Appropriations Act on July 21, 2011. As a result, the CFPB
republished the Mortgage Acts and Practices--Advertising Rule, at 12
CFR part 1014, which became effective December 30, 2011. 76 FR
78130. Thereafter, the Commission rescinded its Rule, which was
effective on April 13, 2012. 77 FR 22200. Under the Dodd-Frank Act,
the FTC retains its authority to bring law enforcement actions to
enforce Regulation N.
\2\ Section 1014.5 of the Rule sets forth the recordkeeping
requirements.
\3\ See 44 U.S.C. 3502(3)(A).
---------------------------------------------------------------------------
Regulation N requires covered persons to retain: (1) Copies of
materially different commercial communications and related materials,
regarding any term of any mortgage credit product, that the person made
or disseminated during the relevant time period; (2) documents
describing or evidencing all mortgage credit products available to
consumers during the relevant time period; and (3) documents describing
or evidencing all additional products or services (such as credit
insurance or credit disability insurance) that are or may be offered or
provided with the mortgage credit products available to consumers
during the relevant time period.\4\ A failure to keep such records
would be an independent violation of the Rule.
---------------------------------------------------------------------------
\4\ Section 1014.5 of the Rule sets forth the recordkeeping
requirements.
---------------------------------------------------------------------------
Commission staff believes the recordkeeping requirements pertain to
[[Page 51983]]
records that are usual and customary and kept in the ordinary course of
business for many covered persons, such as mortgage brokers, lenders,
and servicers; real estate brokers and agents; home builders, and
advertising agencies.\5\ As to these persons, the retention of these
documents does not constitute a ``collection of information,'' as
defined by OMB's regulations that implement the PRA.\6\ Certain other
covered persons such as lead generators and rate aggregators may not
currently maintain these records in the ordinary course of business.\7\
Thus, the recordkeeping requirements for those persons would constitute
a ``collection of information.''
---------------------------------------------------------------------------
\5\ Some covered persons, particularly mortgage brokers and
lenders, are subject to state recordkeeping requirements for
mortgage advertisements. See, e.g., Fla. Stat. 494.00165 (2021);
Ind. Code Ann. 23-2.5-8.5 (2021; Kan. Stat. Ann. 9-2208 (2022);
Minn. Stat. 58.14 (2021); Wash. Rev. Code 19.146.060 (2021), and WAC
208-660-450 (2022). Many mortgage brokers, lenders (including
finance companies), and servicers are subject to state recordkeeping
requirements for mortgage transactions and related documents, and
these may include descriptions of mortgage credit products. See,
e.g., Mich. Comp. Laws Serv. 445.1671 (2022); N.Y. Banking Law 597
(Consol. 2021); Tenn. Code Ann. 45-13-206 (2021). Lenders and
mortgagees approved by the Federal Housing Administration must
retain copies of all print and electronic advertisements and
promotional materials for a period of two years from the date the
materials are circulated or used to advertise. See 24 CFR part 202.
Various other entities, such as real estate brokers and agents, home
builders, and advertising agencies can be indirectly covered by
state recordkeeping requirements for mortgage advertisements and/or
retain ads to demonstrate compliance with state law. See, e.g., 76
Del. Laws, c. 421, Sec. 1.
\6\ See 44 U.S.C. 3502(3)(A); 5 CFR 1320.3(b)(2).
\7\ See, e.g., United States v. Intermundo Media, LLC, dba Delta
Prime Refinance, No. 1:14-cv-2529 (D. Colo. filed Sept. 12, 2014)
(D. Colo. Oct. 7, 2014) (stipulated order for permanent injunction
and civil penalty judgment), available at https://www.ftc.gov/system/files/documents/cases/140912deltaprimestiporder.pdf. The
complaint charged this lead generator with numerous violations of
Regulation N, including recordkeeping, and of other federal mortgage
advertising mandates.
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The information retained under the Rule's recordkeeping
requirements is used by the Commission to substantiate compliance with
the Rule and may also provide a basis for the Commission to bring an
enforcement action. Without the required records, it would be difficult
either to ensure that entities are complying with the Rule's
requirements or to bring enforcement actions based on violations of the
Rule.
Likely Respondents: Lead generators and rate aggregators.
Estimated Annual Hours Burden: 1,500 hours.
Derived from 1,000 likely respondents x approximately 3
hours for each respondent per year to do these tasks = 3,000 hours.
Since the FTC shares enforcement authority with the CFPB
for Regulation N, the FTC's allotted PRA burden is 1,500 annual hours.
Estimated Annual Labor Cost Burden: $26,550, which is derived from
1,500 hours x $17.70 per hour.\8\
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\8\ This estimate is based on mean hourly wages for office
support file clerks provided by the Bureau of Labor Statistics. See
U.S. Bureau of Labor Statistics, Occupational Employment and Wages--
May 2021 table 1 (``National employment and wage data from the
Occupational Employment Statistics survey by occupation''), released
March 31, 2022, available at https://www.bls.gov/news.release/pdf/ocwage.pdf.
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As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing clearance for the
information collection requirements contained in Regulation N.
Burden Statement
Estimated total annual hours burden: 1,500 hours (for the FTC).
Commission staff estimates that the Rule's recordkeeping
requirements will affect approximately 1,000 persons \9\ who would not
otherwise retain such records in the ordinary course of business. As
noted, this estimate includes lead generators and rate aggregators that
may provide commercial communications regarding mortgage credit product
terms.\10\ Although the Commission cannot estimate with precision the
time required to gather and file the required records, it is reasonable
to assume that covered persons will each spend approximately 3 hours
per year to do these tasks, for a total of 3,000 hours (1,000 persons x
3 hours). Since the FTC generally shares enforcement authority with the
CFPB for Regulation N, the FTC's allotted PRA burden is 1,500 annual
hours.\11\
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\9\ No general source provides precise numbers of the various
categories of covered persons. Commission staff, therefore, has used
the following sources and inputs to arrive at this estimated total:
1,000 lead generators and rate aggregators, based on staff's
administrative experience.
\10\ The Commission does not know what percentage of these
persons are, in fact, engaged in covered conduct under the Rule,
i.e., providing commercial communications about mortgage credit
product terms. For purposes of these estimates, the Commission has
assumed all of them are covered by the recordkeeping provisions and
are not retaining these records in the ordinary course of business.
\11\ This estimate reflects the same burden compared to prior
FTC estimates, because many entities can be indirectly covered by
state recordkeeping requirements for mortgage advertisements and/or
retain ads to demonstrate compliance with state law, as discussed
above. See supra note 4. The FTC notes that the CFPB's recent
information collection filing with OMB for Regulation N also
reflects the view that, in large part, most entities either retain
records in the ordinary course of business or to demonstrate
compliance with other laws. See generally Bureau of Consumer
Financial Protection, Agency Information Collection Activities:
Submission for OMB Review; Comment Review, 87 FR 40513 (July 7,
2022), available at 2022-14474.pdf (govinfo.gov).
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Estimated labor costs: $26,550.
Commission staff derived labor costs by applying appropriate hourly
cost figures to the burden hours described above. Staff further assumes
that office support file clerks will handle the Rule's record retention
requirements at an hourly rate of $17.70.\12\ Based upon the above
estimates and assumptions, the total annual labor cost to retain and
file documents, for the FTC's allotted burden, is $26,550 (1,500 hours
x $17.70 per hour).
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\12\ This estimate is based on mean hourly wages for office
support file clerks provided by the Bureau of Labor Statistics. See
U.S. Bureau of Labor Statistics, Occupational Employment and Wages--
May 2021, table 1 (``National employment and wage data from the
Occupational Employment Statistics survey by occupation''), released
March 31, 2022, available at https://www.bls.gov/news.release/pdf/ocwage.pdf.
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Absent information to the contrary, staff anticipates that existing
storage media and equipment that covered persons use in the ordinary
course of business will satisfactorily accommodate incremental
recordkeeping under the Rule. Accordingly, staff does not anticipate
that the Rule will require any new capital or other non-labor
expenditures.
Request for Comments
Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (2) the
accuracy of the agency's estimate of the burden of the proposed
collection of information, including the validity of the methodology
and assumptions used; (3) ways to enhance the quality, utility, and
clarity of the information to be collected; and (4) ways to minimize
the burden of maintaining records and providing disclosures to
consumers. All comments must be received on or before October 24, 2022.
You can file a comment online or on paper. For the FTC to consider
your comment, we must receive it on or before October 24, 2022. Write
``Paperwork Reduction Act Comment: FTC File No. P072108'' on your
comment. Your comment--including your name and your state--will be
placed on the public record of this proceeding, including the https://www.regulations.gov website.
Due to the public health emergency in response to the COVID-19
outbreak and
[[Page 51984]]
the agency's heightened security screening, postal mail addressed to
the Commission will be subject to delay. We encourage you to submit
your comments online through the https://www.regulations.gov website.
If you prefer to file your comment on paper, write ``Paperwork
Reduction Act Comment: FTC File No. P072108'' on your comment and on
the envelope, and mail your comment to the following address: Federal
Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW,
Suite CC-5610 (Annex J), Washington, DC 20580; or deliver your comment
to the following address: Federal Trade Commission, Office of the
Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite
5610 (Annex J), Washington, DC 20024. If possible, submit your paper
comment to the Commission by courier or overnight service.
Because your comment will become publicly available at https://www.regulations.gov, you are solely responsible for making sure that
your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . . is privileged or confidential''--as provided
by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule
4.10(a)(2), 16 CFR 4.10(a)(2)--including in particular competitively
sensitive information such as costs, sales statistics, inventories,
formulas, patterns, devices, manufacturing processes, or customer
names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at www.regulations.gov, we cannot redact or remove
your comment unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), and the General
Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding, as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before October 24,
2022. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2022-18281 Filed 8-23-22; 8:45 am]
BILLING CODE 6750-01-P