Agency Information Collection Activities; Proposed Collection; Comment Request; Extension, 62736-62745 [2024-16970]

Download as PDF ddrumheller on DSK120RN23PROD with NOTICES1 62736 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices concerns with fewer than 25 employees.’’ OMB Control Number: 3060–1003. Title: Communications Disaster Information Reporting System (DIRS). Form Number: N/A. Type of Review: Revision of a currently approved collection. Respondents: Business or other forprofit; Not-for-profit institutions; State, Local or Tribal Government. Number of Respondents and Responses: 18,306 respondents; 292,896 responses. Estimated Time per Response: 10 minutes. Frequency of Response: On occasion and annual reporting requirements; recordkeeping requirements. Obligation to Respond: Mandatory. Statutory authority for this collection is contained in 1, 4(i), 4(j), 4(n), 201, 214, 218, 251(e)(3), 301, 303(b), 303(g), 303(j), 303(r), 307, 309 316, 332, and 403 of the Communications Act of 1934, as amended, and 47 U.S.C. 151, 154(i)– (j) & (n), 201, 214, 218, 251(e)(3), 301, 303(b), 303(g), 303(r), 307, 309(a), 309(j), 316, 332, 403; sections 2, 3(b), and 6– 7 of the Wireless Communications and Public Safety Act of 1999, 47 U.S.C. 615 note, 615, 615a–1, 615b, section 106 of the Twenty First Century Communications and Video Accessibility Act of 2010, 47 U.S.C. 615c, section 506(a) of the Repack Airways Yielding Better Access for Users of Modern Services Act of 2018 (RAY BAUM’S Act), and section 6206 of the Middle Class Tax Relief and Job Creation Act of 2012, 47 U.S.C. 1426. Total Annual Burden: 48,816 hours. Total Annual Cost: No Cost. Needs and Uses: The Commission launched the Disaster Information Reporting System (DIRS) in 2007 pursuant to its mandate to promote the safety of life and property through the use of wire and radio communication as required by the Communications Act of 1934, as amended. DIRS is an efficient, and web-based system that communications companies use to report their infrastructure status during times of crisis (e.g., related to a disaster). DIRS uses a number of template forms tailored to different communications sectors (i.e., wireless, wireline, broadcast, and cable) to facilitate the entry of this information. To use DIRS, a company first inputs its emergency contact information. After this, they submit information using the template form appropriate for their communications sector. Certain federal, state, territorial, and Tribal Nation agencies may request access to certain geographically relevant reports filed in DIRS. VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 In a Second Report and Order adopted on January 25, 2024, as FCC 24–5, the Commission adopted rules requiring cable communications, wireless, wireline and interconnected VoIP providers (Subject Providers) to report on their infrastructure status in during emergencies and crises when DIRS is activated and to submit a final report to the Commission within 24 hours of DIRS deactivation. This new cadence for DIRS reporting will improve management and mitigation of the shortterm and long-term impacts of disasters on communications networks which will enhance situational awareness in emergency and disaster situations for the Commission, emergency responders, and the public at large. Federal Communications Commission. Marlene Dortch, Secretary. Office of the Secretary. [FR Doc. 2024–16962 Filed 7–31–24; 8:45 am] BILLING CODE 6712–01–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 Office of Management and Budget (OMB) clearances for information collection requirements in Regulations B, E, M, and Z, which are enforced by the Commission. These clearances expire on November 30, 2024. DATES: Comments must be filed by September 30, 2024. ADDRESSES: Interested parties may file a comment online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘Regs BEMZ, PRA Comment, P085405,’’ 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. FOR FURTHER INFORMATION CONTACT: Carole Reynolds or Stephanie SUMMARY: PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 Rosenthal, Attorneys, Division of Financial Practices, Bureau of Consumer Protection, Federal Trade Commission, (202) 326–3224, creynolds@ftc.gov or srosenthal@ftc.gov. SUPPLEMENTARY INFORMATION: 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 the four rules covered by this notice. The four regulations are: (1) Regulations promulgated under the Equal Credit Opportunity Act, 15 U.S.C. 1691 et seq. (ECOA) (Regulation B) (OMB Control Number: 3084–0087); (2) Regulations promulgated under the Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq. (EFTA) (Regulation E) (OMB Control Number: 3084–0085); (3) Regulations promulgated under the Consumer Leasing Act, 15 U.S.C. 1667 et seq. (CLA) (Regulation M) (OMB Control Number: 3084–0086); and (4) Regulations promulgated under the Truth-In-Lending Act, 15 U.S.C. 1601 et seq. (TILA) (Regulation Z) (OMB Control Number: 3084–0088). Type of Review: Extension without change of currently approved collections, except for new Regulation B requirements, which derive from statutory amendments. Affected Public: Private Sector: Businesses and other for-profit entities. Discussion: Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Public Law 111–203, 124 Stat. 1376 (2010), almost all rulemaking authority for the ECOA, EFTA, CLA, and TILA transferred from the Board of Governors of the Federal Reserve System (Board) to the Consumer Financial Protection Bureau (CFPB) on July 21, 2011 (transfer date). To implement this transferred authority, the CFPB published new regulations in 12 CFR part 1002 (Regulation B), 12 CFR part 1005 (Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR part 1026 (Regulation Z) for those entities under its rulemaking jurisdiction.1 Although the Dodd-Frank Act transferred most rulemaking authority under ECOA, EFTA, CLA, and TILA to the CFPB, the Board retained rulemaking authority for certain motor vehicle dealers 2 under all of these 1 12 CFR 1002 (Reg. B) (81 FR 25323, Apr. 28, 2016); 12 CFR 1005 (Reg. E) (81 FR 25323, Apr. 28, 2016); 12 CFR 1013 (Reg. M) (81 FR 25323, Apr. 28, 2016); and 12 CFR 1026 (Reg. Z) (81 FR 25323, Apr. 28, 2016). 2 Generally, these are dealers ‘‘predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or E:\FR\FM\01AUN1.SGM 01AUN1 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices ddrumheller on DSK120RN23PROD with NOTICES1 statutes and also for certain interchangerelated requirements under EFTA.3 As a result of the Dodd-Frank Act, the FTC and the CFPB generally share the authority to enforce Regulations B, E, M, and Z for entities for which the FTC had enforcement authority before the Act, except for certain motor vehicle dealers.4 Because of this shared enforcement jurisdiction, the two agencies have relied on the previouslycleared PRA burden estimates between them,5 except that the FTC generally has assumed all of the burden estimates associated with motor vehicle dealers 6 both.’’ See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), (c). 3 See Dodd-Frank Act, sec. 1075, 15 U.S.C. 1693 (these requirements are implemented through Board Regulation II, 12 CFR pt. 235, rather than EFTA’s implementing Regulation E). 4 The FTC’s enforcement authority includes statechartered credit unions; other federal agencies also have various enforcement authority over credit unions. For example, for large credit unions (exceeding $10 billion in assets), the CFPB has certain authority. The National Credit Union Administration also has certain authority for statechartered federally insured credit unions, and it additionally provides insurance for certain statechartered credit unions through the National Credit Union Share Insurance Fund and examines credit unions for various purposes. There are approximately thirteen state-chartered credit unions exceeding $10 billion in assets, and the CFPB assumes PRA burden for those entities. As of the fourth quarter of 2023, there were approximately 1,936 state-chartered credit unions with federal insurance; there also have been an estimated 112 or more which were privately insured, and an estimated 100 or more in Puerto Rico which were insured by a quasi-governmental entity. Because of the difficulty in parsing out PRA burden for such entities in view of the overlapping authority, the FTC’s figures include PRA burden for all statechartered credit unions, unless otherwise noted. However, in view of fluctuations that began due to COVID–19 and have continued and to avoid undercounting, we have retained the prior estimate of 2,300 state-chartered credit unions, unless otherwise stated. As noted above, the CFPB’s figures as to state-chartered credit unions include burden for those entities exceeding $10 billion in assets. See generally Dodd-Frank Act, secs. 1061, 1025, 1026. This attribution does not change actual enforcement authority. We also have retained the prior burden hours generally in the estimates below, in view of these considerations, adding only those applicable for new requirements issued by the CFPB for Regulation B, issued in implementation of the Dodd-Frank Act, sec. 1071, amending the Equal Credit Opportunity Act, codified at 15 U.S.C. 1691c–2, discussed below. 5 The CFPB also factors into its burden estimates respondents over which it has jurisdiction but the FTC does not. 6 See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), as limited by subsection (b) as to motor vehicle dealers. Subsection (b) does not preclude CFPB regulatory oversight regarding, among others, businesses that extend retail credit or retail leases for motor vehicles in which the credit or lease offered is provided directly from those businesses, rather than unaffiliated third parties, to consumers. It is not practicable, however, for PRA purposes, to estimate the portion of dealers that engage in one form of financing versus another (and that would or would not be subject to CFPB oversight). Thus, FTC staff’s PRA burden analysis reflects a general estimated volume of motor vehicle dealers. This VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 and state-chartered credit unions, and has added estimates for the CFPB’s new requirements under Regulation B. The PRA burden hours not attributable to motor vehicle dealers and, as applicable, to state-chartered credit unions is reflected in the CFPB’s PRA clearance requests to OMB, as well as in the FTC’s burden estimates below. Pursuant to the Dodd-Frank Act, the FTC generally has sole authority to enforce Regulations B, E, M, and Z regarding certain motor vehicle dealers predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, that, among other things, assign their contracts to unaffiliated third parties.7 Because the FTC has exclusive jurisdiction to enforce these rules for such motor vehicle dealers and retains its concurrent authority with the CFPB for other types of motor vehicle dealers, and in view of the different types of motor vehicle dealers, the FTC retains the entire PRA burden for motor vehicle dealers in the burden estimates below. The regulations impose certain recordkeeping and disclosure requirements associated with providing credit or with other financial transactions. Under the PRA, 44 U.S.C. 3501–3521, Federal agencies must get OMB approval for each collection of information they conduct or sponsor. ‘‘Collection of information’’ includes agency requests or requirements to submit reports, keep records, or provide information to a third party. See 44 U.S.C. 3502(3); 5 CFR 1320.3(c). All four of these regulations require covered entities to keep certain records, but FTC staff believes these records are kept in the normal course of business even absent the particular recordkeeping requirements.8 Covered entities, however, may incur some burden associated with ensuring that they do not prematurely dispose of relevant records (i.e., during the time span they must retain records under the applicable regulation). The regulations also require covered entities to make disclosures to third parties. Related compliance involves set-up/monitoring and transactionspecific costs. ‘‘Set-up’’ burden, incurred only by covered new entrants, includes identifying the applicable required disclosures, determining how best to comply, and designing and attribution does not change actual enforcement authority. 7 See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), (c). 8 PRA ‘‘burden’’ does not include ‘‘time, effort, and financial resources’’ expended in the normal course of business, regardless of any regulatory requirement. See 5 CFR 1320.3(b)(2). PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 62737 developing compliance systems and procedures. ‘‘Monitoring’’ burden, incurred by all covered entities, includes their time and costs to review changes to regulatory requirements, make necessary revisions to compliance systems and procedures, and to monitor the ongoing operation of systems and procedures to ensure continued compliance. ‘‘Transaction-related’’ burden refers to the time and cost associated with providing the various required disclosures in individual transactions, thus, generally, of much lesser magnitude than ‘‘setup’’ and ‘‘monitoring’’ burden. The FTC’s estimates of transaction time and volume are intended as averages. The population of affected motor vehicle dealers is one component of a much larger universe of such entities. The required disclosures do not impose PRA burden on some covered entities because they make those disclosures in the normal course of business. For other covered entities that do not, their compliance burden will vary depending on the extent to which they have developed effective computerbased or electronic systems and procedures to communicate and document required disclosures.9 The respondents included in the following burden calculations consist of, among others, credit and lease advertisers, creditors, owners (such as purchasers and assignees) of credit obligations, financial institutions, service providers, certain government agencies and others involved in delivering electronic fund transfers (EFTs) of government benefits, and lessors.10 The burden estimates represent FTC staff’s best assessment, based on its knowledge and expertise relating to the financial services industry, of the average time to complete the aforementioned tasks associated with recordkeeping and disclosure. Staff considered the wide variations in covered entities’ (1) size and location; (2) credit or lease products offered, extended, or advertised, and their particular terms; (3) EFT types 9 For example, large companies may use computer-based and/or electronic means to provide required disclosures, including issuing some disclosures en masse, e.g., notice of changes in terms. Smaller companies may have less automated compliance systems but may nonetheless rely on electronic mechanisms for disclosures and recordkeeping. Regardless of size, some entities may utilize compliance systems that are fully integrated into their general business operational system; if so, they may have minimal additional burden. Other entities may have incorporated fewer of these approaches into their systems and thus may have a higher burden. 10 The Commission generally does not have jurisdiction over banks, thrifts, and federal credit unions under the applicable regulations. E:\FR\FM\01AUN1.SGM 01AUN1 62738 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices used; (4) types and frequency of adverse actions taken; (5) types of appraisal reports utilized; and (6) computer systems and electronic features of compliance operations. The cost estimates that follow relate solely to labor costs, and they include the time necessary to train employees how to comply with the regulations. Staff calculated labor costs by multiplying appropriate hourly wages by the burden hours described above. The hourly wages used were $66 for managerial oversight, $47 for skilled technical services, and $22 for clerical work. These figures are averages drawn from Bureau of Labor Statistics data.11 Further, these cost estimates assume the following labor category apportionments, except where otherwise indicated below: recordkeeping—10% skilled technical, 90% clerical; disclosure—10% managerial, 90% skilled technical. The applicable PRA requirements impose minimal capital or other nonlabor costs.12 Affected entities generally already have or obtain the necessary equipment (including technology) for other business purposes. Similarly, FTC staff estimates that compliance with these rules entails minimal printing and copying costs beyond that associated with documenting financial transactions in the normal course of business. The following discussion and tables present estimates under the PRA of recordkeeping and disclosure average time and labor costs, excluding that which FTC staff believes entities incur customarily in the normal course of business and information compiled and produced in response to FTC law enforcement investigations or prosecutions.13 1. Regulation B ddrumheller on DSK120RN23PROD with NOTICES1 The ECOA (Equal Credit Opportunity Act) prohibits discrimination in the extension of credit. Regulation B implements the ECOA, establishing 11 These inputs are based broadly on mean hourly data found within the ‘‘Bureau of Labor Statistics, Economic News Release,’’ April 3, 2024, Table 1, ‘‘National employment and wage data from the Occupational Employment and Wage Statistics survey by occupation, May 2023.’’ https:// www.bls.gov/news.release/ocwage.t01.htm. 12 To the extent that entities subject to the regulations update or implement their data systems with additional features, these serve multiple business purposes associated with financial transactions and related activities, including, for example, compliance with diverse state requirements. 13 See 5 CFR 1320.4(a) (excluding information collected in response to, among other things, a federal civil action or ‘‘during the conduct of an administrative action, investigation, or audit involving an agency against specific individuals or entities’’). VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 disclosure requirements to assist customers in understanding their rights under the ECOA, recordkeeping requirements to assist agencies in enforcement, and monitoring and reporting requirements. Regulation B applies to retailers, mortgage lenders, mortgage brokers, finance companies, and diverse others. In 2023, the CFPB amended Regulation B, to create subparts A and B, in implementing amendments mandated by the Section 1071 of the Dodd Frank Act, 12 U.S.C. 1691c–2, pertaining to small business lending, including for small businesses owned by women or minorities.14 As a result, Regulation B, Subpart A, now contains the prior Regulation B requirements; Regulation B, Subpart B, contains the new small business lending requirements.15 FTC staff estimates that Regulation B, subpart A general recordkeeping requirements affect 530,762 credit firms subject to the Commission’s 14 See CFPB, Final Rule, Small Business Lending Under the Equal Credit Opportunity Act (Regulation B) (CFPB Rule), 88 FR 35150 (May 31, 2023), available at https://www.govinfo.gov/ content/pkg/FR-2023-05-31/pdf/2023-07230.pdf. The CFPB generally refers to these requirements as those pertaining to ‘‘small business lending.’’ See CFPB Rule, 88 FR at 35150. That term is also used herein. The Federal Reserve Board has not issued its related rule for these requirements covering certain motor vehicle dealers pursuant to the Dodd Frank Act, Section 1029, 12 U.S.C. 5519. In May 2024, following the U.S. Supreme Court ruling in Consumer Fin. Protection Bureau v. Community Fin. Servs. Ass’n of Am., Ltd. (CFPB v. CFSA), No. 22–448, 2024 WL 2193873 (U.S.S.C. May 16, 2024), available at https://www.supremecourt.gov/ opinions/23pdf/22-448_o7jp.pdf, the CFPB issued informal guidance extending the compliance dates for the small business lending rule and indicated it would issue an interim final rule; on June 25, 2024, the CFPB issued an interim final rule, extending the compliance dates accordingly. See CFPB, Small Business Lending Rulemaking, available at https://www.consumerfinance.gov/ 1071-rule/. The FTC has hereunder included estimates of burden for these requirements, based on currently available information, including the supplementary information with the CFPB Rule, 88 FR 35150, and its related CFPB Supporting Statement. 15 In implementing Regulation B, Subpart B, the CFPB noted that merchant cash advances are covered under that part, and are ‘‘credit’’ subject to Regulation B (and ECOA). See, e.g., 88 FR 35223. When applicable, these entities (to the extent they are ‘‘creditors’’ under Subpart A) also apparently would be subject to, for example, the requirement to provide notices whenever they take adverse action, such as denial of a credit application. The CFPB estimates about 100 merchant cash advance providers as active in the small business lending market. See CFPB Rule, 88 FR 35164. The FTC estimates below cover those providers as ‘‘creditors’’ for Subpart A and re applicable transactions. As noted above, in view of fluctuations that occurred with COVID–19 and have continued (and with respect to which the Commission did not reduce its prior burden estimates to avoid undercounting, despite varied market contractions and shifts), these entities are included within the burden estimates below. PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 jurisdiction, at an average annual burden of 1.25 hours per firm for a total of 663,453 hours. Staff also estimates that the requirement that mortgage creditors monitor information about race/national origin, sex, age, and marital status imposes a maximum burden of one minute each (of skilled technical time) for approximately 2.6 million credit applications (based on industry data regarding the approximate number of mortgage purchase and refinance originations), for a total of 43,333 hours.16 Staff also estimates that recordkeeping of self-testing subject to the regulation would affect 1,500 firms, with an average annual burden of one hour (of skilled technical time) per firm, for a total of 1,500 hours, and that recordkeeping of any corrective action as a result of self-testing would affect 10% of them, i.e., 150 firms, with an average annual burden of four hours (of skilled technical time) per firm, for a total of 600 hours.17 This is a total of 708,886 hours for Subpart A. Regulation B, Subpart B, also requires recordkeeping for its data requirements. Staff estimates that these requirements affect 681 covered financial institutions subject to the Commission’s jurisdiction, at an average annual burden of 32 hours per firm for 24 Type A entities (state-chartered credit unions), 68 hours per firm for 553 Type B entities (520 non-depositories plus 33 state-chartered credit unions) and 5,280 hours per firm for 104 entities (100 nondepositories plus 4 state-chartered credit unions), for a total of 587,492 recordkeeping hours for Subpart B.18 This yields a total annual recordkeeping burden of 1,296,378 hours for Regulation B, Subparts A and B. Regulation B, Subpart A, requires that creditors (i.e., entities that regularly 16 Regulation B contains model forms that creditors may use to gather and retain the required information. 17 In contrast to banks, for example, entities under FTC jurisdiction are not subject to audits by the FTC for compliance with Regulation B; rather they may be subject to FTC investigations and enforcement actions. This may impact the level of self-testing (as specifically defined by Regulation B) in a given year, and staff has sought to address such factors in its burden estimates. 18 A financial institution is covered by Regulation B, Subpart B, if it originates at least 100 covered credit transactions for small businesses in each of the two preceding calendar years (once the compliance date takes effect). A ‘‘covered credit transaction’’ is one that meets the definition of business credit under Regulation B (as it existed before the small business lending amendments), with some exceptions, and includes, for example, loans, lines of credit, merchant cash advances and others. See generally 12 CFR 1002.104 and 1002.105; CFPB Rule, 88 FR 35150. Burden hours for entities vary depending on the level of complexity of their transactions and procedures. E:\FR\FM\01AUN1.SGM 01AUN1 62739 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices participate in the decision whether to extend credit under Regulation B) provide notices whenever they take adverse action, such as denial of a credit application. It requires entities that extend mortgage credit with first liens to provide a copy of the appraisal report or other written valuation to applicants.19 Regulation B, Subpart A, also requires that for accounts that spouses may use or for which they are contractually liable, creditors who report credit history must do so in a manner reflecting both spouses’ participation. Further, it requires creditors that collect applicant characteristics for purposes of conducting a self-test to disclose to those applicants that: (1) providing the information is optional; (2) the creditor will not take the information into account in any aspect of the credit transactions; and (3) if applicable, the information will be noted by visual observation or surname if the applicant chooses not to provide it.20 Regulation B, Subpart B requires covered financial institutions to collect and report annually to the CFPB various data on covered applications for covered credit transactions from small businesses, including those owned by women or minorities—which, among other things, generally involves entities with a gross annual revenue for the preceding fiscal year of $5 million or less. It covers credit such as loans, lines of credit, credit cards, merchant cash advances, and various other credit products. Collection and reporting to the CFPB follows procedures established under the regulation and certain data points.21 The burden hours below are based on those for DIs (state chartered credit unions, which are considered depository institutions, under the rule) and non-DIs (all other entities), and whether the applicable respondents are Type A, B, or C entities under the rule.22 Staff estimates that the reporting requirements (which under the rule include that for collection of data) for Regulation B, subpart B, involve both one-time and ongoing burden. Burden estimates relating to the disclosures required under Regulation B, Subpart A, and reporting required under Regulation B, subpart B, and labor cost estimates for Subparts A and B are provided in the tables below. Burden Totals Recordkeeping: 1,296,378 annual hours; $32,783,491, associated annual labor costs. Disclosures and Reporting: 2,581,114 annual hours; $126,216,566, associated annual labor costs. REGULATION B, SUBPART A: DISCLOSURES—BURDEN HOURS Setup/monitoring 1 Disclosures Respondents Total setup/ monitoring burden (hours) Average burden per transaction (minutes) Number of transactions Total transaction burden (hours) Total burden (hours) Credit history reporting .................................. Adverse action notices .................................. Appraisal reports/written valuations .............. Self-test disclosures ...................................... 133,553 530,762 4,650 1,500 .25 .75 1 .5 33,388 398,072 4,650 750 60,098,850 92,883,350 1,725,150 60,000 .25 .25 .50 .25 250,412 387,014 14,376 250 283,800 785,086 19,026 1,000 Total ....................................................... ........................ ........................ ........................ ........................ ........................ ........................ 1,088,912 1 The ddrumheller on DSK120RN23PROD with NOTICES1 Average burden per respondent (hours) Transaction-related estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations. 19 While the rule also requires the creditor to provide a short written disclosure regarding the appraisal process, the disclosure is provided by the CFPB, and is thus not a ‘‘collection of information’’ for PRA purposes. Accordingly, it is not included in burden estimates below. 20 The disclosure may be provided orally or in writing. The model form provided by Regulation B assists creditors in providing the written disclosure. 21 In addition to certain information related to the financial institution, such as a unique identifier and its name and address, these data points include, for example, the application date, application method, application recipient, credit type and credit purpose, amount applied for and amount approved or originated, action taken and date, denial reasons, pricing information, census tract, and other items, as well as certain demographics of applicants’ ownership (including whether the applicant is a minority-owned business or women-owned business, whether the applicant is an LBGTQ+owned business, and the ethnicity, race, and sex of the applicant’s principal owners). See generally 12 CFR 1002.107 and 1002.109; CFPB Rule, 88 FR 35150. The CFPB has provided a sample data collection form, which is voluntary, that financial institutions may use for data collection and VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 reporting; in the alternative, they could use their own form that complies with the requirements. See 12 CFR part 1002, Appendix E. Although financial institutions must request the various information specified in the rule, small business entities need not provide it. In a few instances, Subpart B includes certain notices for financial institutions to provide to consumers in conjunction with the data collection and reporting. These notices are provided by the CFPB for the financial institution and are included within the reporting estimates (and are not separate collections of information). The first two notices pertain to information being requested by the financial institution. See 12 CFR 1002.107(a)(18) & (19) (that the financial institution cannot discriminate on the basis of minority-owned, women-owned, or LGBTQI+-owned business status, on the basis of a principal owner’s ethnicity, race, or sex, or on whether the applicant provides any of this information, when the financial institution requests that information); and 1002.108(c) & (d) (a financial institution could establish a ‘‘firewall’’ so that employees and certain other persons cannot access certain protected financial information of the applicants but if it doesn’t, the financial institution would instead notify small business entities when PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 collecting information that certain employees or persons can access the demographic information provided). The above notices are included on the CFPB’s data collection form. Additionally, these notices can be combined together (if the financial institution chooses to use its own form), and/or can be oral depending on the circumstances (including for in-person, oral, or telephone applications). The CFPB also has provided the third notice referenced above. See 12 CFR 1002.110(c) & (d), and 1002.110(c)–1, Supp. 1, Regulation B Official Staff Commentary (a notice for the financial institution’s website or otherwise upon request, that the financial institution’s data is available from the CFPB). These notices are encompassed within the reporting requirements of the rule. 22 Under the CFPB rule: Type A entities have the lowest level of complexity, and are estimated to originate less than 150 covered applications annually; Type B entities have a mid-level of complexity, and are estimated to originate 150–999 covered applications annually; and Type C entities have the highest level of complexity, and are estimated to originate 1000 or more covered applications annually. See CFPB Rule, 88 FR 35496–97. E:\FR\FM\01AUN1.SGM 01AUN1 62740 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices REGULATION B, SUBPART B: REPORTING (SETUP/ONE-TIME)—BURDEN HOURS Setup/one-time for reporting 1 Average burden per respondent (hours) Reporting Respondents Type A DIs Type B DIs Type C DIs All Non DIs Total setup for reporting burden (hours) ................................................................................................................................... ................................................................................................................................... ................................................................................................................................... ................................................................................................................................... 24 33 4 620 273 176 503 253 6,552 5,808 2,012 156,860 Total ...................................................................................................................................... ........................ ........................ 171,232 1 The estimates assume that all applicable entities would be affected. REGULATION B, SUBPART B: REPORTING (ONGOING)—BURDEN HOURS Ongoing for reporting 1 Average burden per respondent (hours) Reporting Respondents Type Type Type Type Type Total reporting burden (hours) A DIs ................................................................................................................................... B DIs ................................................................................................................................... C DIs ................................................................................................................................... B Non DIs ........................................................................................................................... C Non-DIs ........................................................................................................................... 24 33 4 520 100 112 658 9,177 658 .9,177 2,688 21,714 36,708 342,160 917,700 Total ...................................................................................................................................... ........................ ........................ 1,320,970 1 The estimates assume that all applicable entities would be affected. REGULATION B, SUBPART A: RECORDKEEPING AND DISCLOSURES—COST Managerial Required task Time (hours) Skilled technical Cost ($66/hr.) Time (hours) Clerical Cost ($47/hr.) Time (hours) Total cost ($) Cost ($22/hr.) General recordkeeping .................................. Other recordkeeping ..................................... Recordkeeping of self-test ............................ Recordkeeping of corrective action .............. 0 0 0 0 $0 0 0 0 66,345 43,333 1,500 600 $3,118,215 2,036,651 70,500 28,200 597,108 0 0 0 $13,136,376 0 0 0 $16,254,591 2,036,651 70,500 28.200 Total Recordkeeping .............................. ........................ ........................ ........................ ........................ ........................ ........................ 18,389,942 Disclosures: Credit history reporting .......................... Adverse action notices ........................... Appraisal reports .................................... Self-test disclosure ................................. 28,380 78,509 1,903 100 1,873,080 5,181,594 125,598 6,600 255,420 706,577 17,123 900 12,004,740 33,209,199 804,781 42,300 0 0 0 0 0 0 0 0 13,877,820 38,390,793 930,379 48,900 ........................ ........................ ........................ ........................ ........................ ........................ 53,247,892 ........................ ........................ ........................ ........................ ........................ ........................ 71,637,834 Total Disclosures ............................ Total Recordkeeping and Disclosures ................................ REGULATION B, SUBPART B: RECORDKEEPING AND REPORTING—COST Managerial ddrumheller on DSK120RN23PROD with NOTICES1 Required task Time (hours) Skilled technical Cost ($66/hr.) Time (hours) Clerical Cost ($47/hr.) Time (hours) Total cost ($) Cost ($22/hr.) Recordkeeping .............................................. 0 $0 58,749 $2,761,203 528,743 $11,632,346 $14,393,549 Total Recordkeeping .............................. ........................ ........................ ........................ ........................ ........................ ........................ 14,393,549 Reporting: One-time ................................................ Ongoing .................................................. 17,123 132,097 1,130,118 8,718,402 154,109 1,188,873 7,243,123 55,877,031 0 0 0 0 8,373,241 64,595,433 ........................ ........................ ........................ ........................ ........................ ........................ 72,968,674 ........................ ........................ ........................ ........................ ........................ ........................ 87,362,223 Total Reporting ............................... Total Recordkeeping and Reporting .................................. VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 E:\FR\FM\01AUN1.SGM 01AUN1 62741 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices REGULATION B, SUBPARTS A AND B: RECORDKEEPING, DISCLOSURES AND REPORTING—COST Managerial Required task Total Recordkeeping, Disclosures and Reporting ........................................................ Skilled technical Clerical Total cost ($) Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) Cost ($22/hr.) ........................ ........................ ........................ ........................ ........................ ........................ 2. Regulation E The EFTA (Electronic Fund Transfer Act) requires that covered entities provide consumers with accurate disclosure of the costs, terms, and rights relating to EFT and certain other services. Regulation E implements the EFTA, establishing disclosure and other requirements to aid consumers and recordkeeping requirements to assist agencies with enforcement. It applies to financial institutions, retailers, gift card issuers and others that provide gift cards, service providers, various federal and state agencies offering EFTs, prepaid account entities, etc. Staff estimates that Regulation E’s recordkeeping requirements affect 251,053 firms offering EFT and certain other services to consumers and that are subject to the Commission’s jurisdiction, at an average annual burden of one hour per firm, for a total of 251,053 hours. Burden estimates 159,000,057 relating to the disclosures required under Regulation E and labor cost estimates are provided in the tables below. Burden Totals Recordkeeping: 251,053 annual hours; $6,150,791, associated annual labor costs. Disclosures: 7,184,903 annual hours; $357,041,764, associated annual labor costs. REGULATION E—DISCLOSURES—BURDEN HOURS Setup/monitoring Disclosures Respondents Initial terms .................................................... Change in terms ............................................ Periodic statements ....................................... Error resolution .............................................. Transaction receipts ...................................... Preauthorized transfers ................................. Service provider notices ................................ ATM notices .................................................. Electronic check conversion ......................... Overdraft services ......................................... Gift cards ....................................................... Remittance transfers: Disclosures ............................................. Error resolution ...................................... Agent compliance .................................. Prepaid accounts and gov’t benefits: Disclosures ............................................. Disclosures—updates ............................ Access to account information ............... Error resolution ...................................... Error resolution—followup 4 ................... Submission of agreements .................... Updates to agreements 5 ....................... 550 138 550 300 ........................ 138 ........................ Total ................................................ ........................ Average burden per respondent (hours) Transaction-related Total setup/ monitoring burden (hours) Average burden per transaction (minutes) Number of transactions Total transaction burden (hours) Total burden (hours) 27,300 8,550 27,300 27,300 27,300 258,553 20,000 125 48,553 15,000 15,000 .5 .5 .5 .5 .5 .5 .25 .25 .5 .5 .5 13,650 4,275 13,650 13,650 13,650 129,277 5,000 31 24,277 7,500 7,500 273,000 11,286,000 327,600,000 273,000 1,375,000,000 6,463,825 200,000 25,000,000 728,295 1,500,000 750,000,000 .02 .02 .02 5 .02 .25 .25 .25 .02 .02 .02 91 3,762 109,200 22,750 458,333 26,933 833 104,167 243 500 250,000 13,741 8,037 122,850 36,400 471,983 156,210 5,833 104,198 24,520 8,000 257,500 4,800 4,800 4,800 1.25 1.25 1.25 6,000 6,000 6,000 96,000,000 120,960,000 96,000,000 .9 .9 .9 1,440,000 1,814,400 1,440,000 1,446,000 1,820,400 1,446,000 1 40 × 10 1 × 10 3 20 × 10 4×4 N/A 2×1 N/A 220,000 2 1,380 110,000 4,800 ........................ 276 ........................ 2,750,000,000 N/A 1,100,000 275,000 1,380 690 690 .02 ........................ .01 2 30 1 5 916,667 ........................ 183 9,167 690 11 57 1,136,667 1,380 110,183 13,967 690 287 57 ........................ ........................ ........................ ........................ ........................ 7,184,903 1 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 2 Individual burden hours are listed first, followed by the number of programs. 3 Burden hours are on a per program basis; individual burden hours are listed first, followed by the number of programs. 4 This pertains to prepaid accounts. 5 This pertains to prepaid accounts’ agreements. REGULATION E—RECORDKEEPING AND DISCLOSURES—COST Managerial ddrumheller on DSK120RN23PROD with NOTICES1 Required task Time (hours) Recordkeeping .............................................. Disclosures: Initial terms ............................................. Change in terms .................................... Periodic statements ............................... Error resolution ...................................... Transaction receipts ............................... Preauthorized transfers .......................... Service provider notices ........................ ATM notices ........................................... Electronic check conversion .................. VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 Skilled technical Cost ($66/hr.) Time (hours) Cost ($47/hr.) Clerical Time (hours) Total cost ($) Cost ($22/hr.) 0 $0 25,105 $1,179,935 225,948 $4,970,856 $6,150,791 1,374 804 12,285 3,640 47,198 15,621 583 10,420 2,452 90,684 53,064 810,810 240,240 3,115,068 1,030,986 38,478 687,720 161,832 12,367 7,233 110,565 32,760 424,785 140,589 5,250 93,778 22,068 581,249 339,951 5,196,555 1,539,720 19,964,895 6,607,683 246,750 4,407,566 1,037,096 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 671,933 393,015 6,007,365 1,779,960 23,079,963 7,638,669 285,228 5,095,286 1,198,928 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 E:\FR\FM\01AUN1.SGM 01AUN1 62742 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices REGULATION E—RECORDKEEPING AND DISCLOSURES—COST—Continued Managerial Required task Time (hours) Overdraft services .................................. Gift cards ................................................ Remittance transfers: Disclosures ............................................. Error resolution ...................................... Agent compliance .................................. Prepaid accounts and gov’t. benefits: Disclosures ............................................. Disclosures—updates ............................ Access to account information ............... Error resolution ...................................... Error resolution—follow-up .................... Submission of agreements .................... Updates to agreements ......................... Total Disclosures ............................ Total Recordkeeping and Disclosures ................................ Skilled technical Cost ($66/hr.) Time (hours) Clerical Cost ($47/hr.) Time (hours) Total cost ($) Cost ($22/hr.) 800 25,750 52,800 1,699,500 7,200 231,750 338,400 10,892,250 0 0 0 0 391,200 12,591,750 144,600 182,040 144,600 9,543,600 12,014,640 9,543,600 1,301,400 1,638,360 1,301,400 61,165,800 77,002,920 61,165,800 0 0 0 0 0 0 70,709,400 89,017,560 70,709,400 113,667 138 11,018 1,397 69 29 6 7,502,022 9,108 727,188 92,202 4,554 1,9,14 396 1,023,000 1,242 99,165 12,570 621 259 52 48,081,000 58,374 4,660,755 590,790 29,187 12,173 2,444 0 0 0 0 0 0 0 0 0 0 0 0 0 0 55,583,022 67,482 5,387,943 6,382,992 33,741 14,087 2,840 ........................ ........................ ........................ ........................ ........................ ........................ 357,041,764 ........................ ........................ ........................ ........................ ........................ ........................ 363,192,555 3. Regulation M The CLA (Consumer Leasing Act) requires that covered entities provide consumers with accurate disclosure of the costs and terms of leases. Regulation M implements the CLA, establishing disclosure requirements to help consumers comparison shop and understand the terms of leases and recordkeeping requirements. It applies to vehicle lessors (such as auto dealers, independent leasing companies, and manufacturers’ captive finance companies), computer lessors (such as computer dealers and other retailers), furniture lessors, various electronic commerce lessors, diverse types of lease advertisers, and others. Staff estimates that Regulation M’s recordkeeping requirements affect approximately 30,203 firms within the FTC’s jurisdiction leasing products to consumers at an average annual burden of one hour per firm, for a total of 30,203 hours. Burden estimates relating to the disclosures required under Regulation M and labor cost estimates are provided in the tables below. Burden Totals 23 Recordkeeping: 30,203 annual hours; $1,936,018, associated annual labor costs. Disclosures: 71,750 annual hours; $4,599,175, associated annual labor costs. REGULATION M—DISCLOSURES—BURDEN HOURS Setup/monitoring Disclosures Respondents Average burden per respondents (hours) Transaction-related Total setup/ monitoring burden (hours) Average burden per transaction (minutes) Number of transactions Total burden (hours) Total transaction burden (hours) Motor Vehicle Leases 1 ................................. Other Leases 2 .............................................. Advertising ..................................................... 26,690 3,513 14,615 1 .50 .50 26,690 1,757 7,308 4,000,000 60,000 578,960 .50 .25 .25 33,333 250 2,412 60,023 2,007 9,720 Total ....................................................... ........................ ........................ ........................ ........................ ........................ ........................ 71,750 1 This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR 1013.2(e)(1). CLA and Regulation M now cover leases up to $69,500 plus an annual adjustment. 2 This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR 1013.2(e)(1). CLA and Regulation M now cover leases up to $69,500 plus an annual adjustment. REGULATION M—RECORDKEEPING AND DISCLOSURES—COST Managerial ddrumheller on DSK120RN23PROD with NOTICES1 Required Task Time (hours) Skilled Technical Cost ($66/hr.) Time (hours) Clerical Cost ($47/hr.) Time (hours) Total cost ($) Cost ($122/hr.) Recordkeeping .............................................. Disclosures: Motor Vehicle Leases ............................ Other Leases ......................................... Advertising ............................................. 27,183 $1,794,078 3,020 $141,940 0 0 $1,936,018 54,021 1,806 8,748 3,565,386 119,196 577,368 6,002 201 972 282,094 9,447 45,684 0 0 0 0 0 0 3,847,480 128,643 623,052 Total Disclosures ............................ ........................ ........................ ........................ ........................ ........................ ........................ 4,599,175 23 Recordkeeping and disclosure burden estimates for Regulation M are more substantial for motor vehicle leases than for other leases, including burden estimates based on market changes and regulatory definitions of coverage. Based on VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 industry information, the estimates for recordkeeping and disclosure costs assume the following: 90% managerial, and 10% skilled technical. As noted above, for purposes of PRA burden calculations for Regulations B, E, M, and Z, PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 and given the different types of motor vehicle dealers, the FTC is including in its estimates burden for all of them. E:\FR\FM\01AUN1.SGM 01AUN1 62743 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices REGULATION M—RECORDKEEPING AND DISCLOSURES—COST—Continued Managerial Required Task Total Recordkeeping and Disclosures ................................ Skilled Technical Clerical Total cost ($) Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) Cost ($122/hr.) ........................ ........................ ........................ ........................ ........................ ........................ 4. Regulation Z The TILA (Truth In Lending Act) was enacted to foster comparison credit shopping and informed credit decisionmaking by requiring creditors and others to provide accurate disclosures regarding the costs and terms of credit to consumers. Regulation Z implements the TILA, establishing disclosure requirements to assist consumers and recordkeeping requirements to assist agencies with enforcement. These requirements pertain to open-end and closed-end credit and apply to various types of entities, including mortgage companies; finance companies; auto dealerships; private education loan companies; merchants who extend credit for goods or services; credit advertisers; acquirers of mortgages; and others. Additional requirements also exist in the mortgage area, including for high cost mortgages, higher-priced mortgage loans,24 ability to pay of mortgage consumers, mortgage servicing, loan originators, and certain integrated mortgage disclosures. FTC staff estimates that Regulation Z’s recordkeeping requirements affect approximately 430,762 entities subject to the Commission’s jurisdiction, at an average annual burden of 1.25 hours per entity with 0.25 additional hours per 6,535,193 entity for 3,650 entities (ability to pay), and 5 additional hours per entity for 4,500 entities (loan originators). This yields a total annual recordkeeping burden of 561,866 hours. Burden estimates relating to the disclosures required under Regulation Z and labor cost estimates are provided in the tables below. Burden Totals Recordkeeping: 561,866 annual hours; $13,765,727, associated annual labor costs. Disclosures: 7,854,575 annual hours; $384,097,822, associated annual labor costs. REGULATION Z—DISCLOSURES—BURDEN HOURS Setup/monitoring Disclosures 1 ddrumheller on DSK120RN23PROD with NOTICES1 Respondents Open-end credit: Initial terms ............................................. Initial terms—prepaid accounts ............. Rescission notices ................................. Subsequent disclosures ......................... Subsequent disclosures—prepaid accounts ................................................. Periodic statements ............................... Periodic statements—prepaid accounts Error resolution ...................................... Error resolution—prepaid accounts follow-up ................................................. Credit and charge card accounts .......... Credit and charge card accounts—prepaid accounts ..................................... Settlement of estate debts ..................... Special credit card requirements ........... Home equity lines of credit .................... Home equity lines of credit high-cost mortgages ........................................... College student credit card marketing— ed. institutions .................................... College student credit card marketing— card issuer reports ............................. Posting and reporting of credit card agreements ......................................... Posting and reporting of prepaid account agreements ............................... Advertising ............................................. Advertising—prepaid accounts .............. Advertising—prepaid accounts Updates Sale, transfer, or assignment of mortgages .................................................. Appraiser misconduct reporting ............. Mortgage servicing ................................. Loan originators ..................................... Closed-end credit: Credit disclosures .................................. Rescission notices ................................. 23,650 3 750 4,650 17:17 Jul 31, 2024 Jkt 262001 Transaction-related Total setup/ monitoring burden (hours) 17,738 12 375 3,488 ×1 .75 6 40 × 1 .75 12 17,738 120 17,738 44 Average burden per transaction (minutes) Number of transactions .75 ×1 .5 .75 24 3 23,650 3 23,650 24 While Regulation Z also requires the creditor to provide a short written disclosure regarding the appraisal process for higher-priced mortgage loans, VerDate Sep<11>2014 Average burden per respondent (hours) Total transaction burden (hours) Total burden (hours) 10,500,600 × 78,667 3,750 23,250,000 .375 .125 .25 .188 65,629 492 16 72,850 83,367 504 391 76,338 5 3 × 78,667 788,325,450 7 3 × 944,000 2,104,850 .0625 .0938 .03125 6 246 1,232,415 1,475 210,485 258 1,250,153 1,595 228,223 × 1,180 5,125,000 15 .375 885 32,031 897 39,719 33 3 10,250 84 ×1 .75 12 7,688 3 23,650 10,250 750 10 4 ×1 .75 .75 .5 12 17,738 7,688 375 × 12 496,650 5,125,000 5,250 240 .375 .375 .25 144 3,104 32,031 22 156 20,842 39,719 397 250 2 500 1,500 2 50 550 1,350 .5 675 81,000 .25 338 1,013 150 .75 113 4,500 .75 56 169 10,250 .75 7,688 5,125,000 .375 32,031 39,719 3 38,650 3 3 ×1 .75 ×1 15 0.2 × 5 2 28,988 60 3 ×5 115,950 N/A N/A 2.5 .75 ........................ ........................ 1 1,449 ........................ ........................ 3 30,437 60 3 500 301,150 1,500 2,250 .5 .75 .75 2 250 225,863 1,125 4,500 500,000 6,023,000 150,000 22,500 .25 .375 .5 5 2,083 37,644 1,250 1,875 2,333 263,507 2,375 6,375 280,762 3,650 .75 .5 210,572 1,825 112,304,800 5,475,000 2.25 1 4,211,430 91,250 4,422,002 93,075 12.75 14 20 93 11 3 13 3 the disclosure is provided by the CFPB. As a result, it is not a ‘‘collection of information’’ for PRA PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 purposes (see 5 CFR 1320.3(c)(2)). It is thus excluded from the burden estimates below. E:\FR\FM\01AUN1.SGM 01AUN1 62744 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices REGULATION Z—DISCLOSURES—BURDEN HOURS—Continued Setup/monitoring Disclosures 1 Respondents Average burden per respondent (hours) Transaction-related Total setup/ monitoring burden (hours) Average burden per transaction (minutes) Number of transactions Total transaction burden (hours) Total burden (hours) Redisclosures ......................................... Integrated mortgage disclosures ........... Variable rate mortgages ........................ High cost mortgages .............................. Higher priced mortgages ....................... Reverse mortgages ................................ Advertising ............................................. Private education loans ......................... Sale, transfer, or assignment of mortgages .................................................. Ability to pay/qualified mortgage ............ Appraiser misconduct reporting ............. Mortgage servicing ................................. Loan originators ..................................... 101,150 3,650 3,650 1,750 1,750 3,025 205,762 75 .5 10 1 1 1 .5 .5 .5 50,575 36,500 3,650 1,750 1,750 1,513 102,881 38 505,750 10,950,000 365,000 43,750 14,000 15,125 2,057,620 30,000 2.25 3.5 1.75 2 2 1 1 1.5 18,966 638,750 10,646 1,458 467 252 34,294 750 69,541 675,250 14,296 3,208 2,217 1,765 137,175 788 48,850 3,650 301,150 3,650 2,250 .5 .75 .75 1.5 2 24,425 2,738 225,863 5,475 4,500 2,442,500 0 6,023,000 730,000 22,500 .25 0 .375 2.75 5 10,177 0 37,644 33,458 1,875 34,602 2,738 263,507 38,933 6,375 Total open-end credit ...................... Total closed-end credit ................... Total credit ............................... ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ 2,089,103 5,765,472 7,854,575 1 Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $69,500 plus an annual adjustment (except that real estate credit and private education loans are covered regardless of amount). 2 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 3 This figure lists the number of entities followed by the number of responses or programs each. 4 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 5 This figure lists the number of entities followed by the number of responses or programs each. 6 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 7 This figure lists the number of entities followed by the number of responses or programs each. 8 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 9 This figure lists the number of entities followed by the number of responses or programs each. 10 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 11 This figure lists the number of entities followed by the number of responses or programs each. 12 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 13 This figure lists the number of entities followed by the number of responses or programs each. 14 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. 15 Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. REGULATION Z—RECORDKEEPING AND DISCLOSURES—COST Managerial ddrumheller on DSK120RN23PROD with NOTICES1 Required task Time (hours) Recordkeeping .............................................. Open-end credit Disclosures: Initial terms ............................................. Initial terms—prepaid accounts ............. Rescission notices ................................. Subsequent disclosures ......................... Subsequent disclosures—prepaid accounts ................................................. Periodic statements ............................... Periodic statements—prepaid accounts Error resolution ...................................... Error resolution—prepaid accounts follow-up ................................................. Credit and charge card accounts .......... Credit and charge card accounts—prepaid accounts ..................................... Settlement of estate debts ..................... Special credit card requirements ........... Home equity lines of credit .................... Home equity lines of credit—high cost mortgages ........................................... College student credit card marketing— ed institutions ..................................... College student credit card marketing— card issuer reports ............................. Posting and reporting of credit card agreements ......................................... Posting and reporting of prepaid accounts ................................................. Advertising ............................................. Advertising—prepaid accounts .............. Advertising—prepaid accounts Updates Sale, transfer, or assignment of mortgages .................................................. Appraiser misconduct reporting ............. Mortgage servicing ................................. VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 Skilled technical Cost ($66/hr.) Time (hours) Clerical Cost ($47/hr.) Time (hours) Total cost ($) Cost ($22/hr.) 0 $0 56,187 $2,640,789 505,679 $11,124,938 $13,765,727 8,337 50 39 7,634 559,242 3,300 2,574 503,844 75,030 454 352 68,704 3,526,410 21,338 16,544 3,229,088 0 0 0 0 0 0 0 0 4,085,652 24,638 19,118 3,732,932 26 125,015 159 22,822 1,716 8,250,990 10,494 1,506,252 232 1,125,138 1,436 205,401 10,904 52,881,486 67,492 9,653,847 0 0 0 0 0 0 0 0 12,620 61,132,476 77,986 11,160,099 90 3,972 5,940 262,152 807 35,747 37,929 1,680,109 0 0 0 0 43,869 1,942,261 16 2,084 3,972 40 1,056 137,544 262,152 2,640 140 18,758 35,747 357 6,580 881,626 1,680,109 16,779 0 0 0 0 0 0 0 0 7,636 1,019,170 1,942,261 19,419 55 3,630 495 23,265 0 0 26,895 101 6,666 912 42,864 0 0 49,530 17 1,122 152 7,144 0 0 8,266 3,972 262,152 35,747 1,680,109 0 0 1,942,261 1 3,044 6 1 66 200,904 396 66 2 27,393 54 2 94 1,287,471 2,538 94 0 0 0 0 0 0 0 0 160 1,488,375 2,934 160 233 26,351 238 15,378 1,739,166 15,708 2,100 237,156 2,137 98,700 11,146.332 100,439 0 0 0 0 0 0 114,078 12,885,498 116,147 PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 E:\FR\FM\01AUN1.SGM 01AUN1 62745 Federal Register / Vol. 89, No. 148 / Thursday, August 1, 2024 / Notices REGULATION Z—RECORDKEEPING AND DISCLOSURES—COST—Continued Managerial Required task Time (hours) Time (hours) Clerical Cost ($47/hr.) Time (hours) Total cost ($) Cost ($22/hr.) Loan originators ..................................... 638 42,108 5,737 269,639 0 0 311,747 Total open-end credit ...................... Closed-end credit Disclosures: Credit disclosures .................................. Rescission notices ................................. Redisclosures ......................................... Integrated mortgage disclosures ........... Variable rate mortgages ........................ High cost mortgages .............................. Higher priced mortgages ....................... Reverse mortgages ................................ Advertising ............................................. Private education loans ......................... Sale, transfer, or assignment of mortgages .................................................. Ability to pay/qualified mortgage ............ Appraiser misconduct reporting ............. Mortgage servicing ................................. Loan originators ..................................... ........................ ........................ ........................ ........................ ........................ ........................ 102,166,188 442,200 9,308 6,954 67,525 1,430 321 222 177 13,718 79 29,185,200 614,328 458,964 4,456,650 94,380 21.186 14,652 11,682 905,388 5,214 3,979,802 83,767 62,587 607,725 12,866 2,887 1,995 1,588 123,457 709 187,050,694 3,937,049 2,941,589 28,563,075 604,702 135,689 93,765 74,636 5,802,479 33,323 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 216,235,894 4,551,377 3,400,553 33,019,725 699,082 156,875 108,417 86,318 6,707,867 38,537 3,460 274 26,351 3,893 638 228,360 18,084 1,739,166 256,938 42,108 31,142 2,464 237,156 35,040 5,737 1,463,674 115,808 11,146,332 1,646,880 269,639 0 0 0 0 0 0 0 0 0 0 1,692,034 133,892 12,885,498 1,903,818 311,747 Total closed-end credit ................... Total Disclosures ..................... Total Recordkeeping and Disclosures ................... ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ ........................ 281,931,634 384,097,822 ........................ ........................ ........................ ........................ ........................ ........................ 397,863,549 Request for Comment ddrumheller on DSK120RN23PROD with NOTICES1 Skilled technical Cost ($66/hr.) Pursuant to section 3506(c)(2)(A) of the PRA, the FTC invites comments on: (1) whether the disclosure and recordkeeping requirements are necessary, including whether the information will be practically useful; (2) the accuracy of our burden estimates, including whether the methodology and assumptions used are valid; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information. For the FTC to consider a comment, we must receive it on or before September 30, 2024. 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. You can file a comment online or on paper. Due to 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 file your comment on paper, write ‘‘Regs BEMZ Rule, PRA Comment, P085405,’’ on your comment and on the envelope, and mail it to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC– 5610 (Annex J), Washington, DC 20580. If possible, submit your paper comment to the Commission by overnight service. Because your comment will become publicly available at https:// VerDate Sep<11>2014 17:17 Jul 31, 2024 Jkt 262001 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 (1) be filed in paper form, (2) be clearly labeled ‘‘Confidential,’’ and (3) 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 PO 00000 Frm 00036 Fmt 4703 Sfmt 9990 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 September 30, 2024. 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. 2024–16970 Filed 7–31–24; 8:45 am] BILLING CODE 6750–01–P E:\FR\FM\01AUN1.SGM 01AUN1

Agencies

FEDERAL TRADE COMMISSION

[Federal Register Volume 89, Number 148 (Thursday, August 1, 2024)]
[Notices]
[Pages 62736-62745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16970]


=======================================================================
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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension

AGENCY: Federal Trade Commission.

ACTION: Notice.

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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 
Office of Management and Budget (OMB) clearances for information 
collection requirements in Regulations B, E, M, and Z, which are 
enforced by the Commission. These clearances expire on November 30, 
2024.

DATES: Comments must be filed by September 30, 2024.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Regs BEMZ, PRA 
Comment, P085405,'' 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.

FOR FURTHER INFORMATION CONTACT: Carole Reynolds or Stephanie 
Rosenthal, Attorneys, Division of Financial Practices, Bureau of 
Consumer Protection, Federal Trade Commission, (202) 326-3224, 
[email protected] or [email protected].

SUPPLEMENTARY INFORMATION: 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 the four rules 
covered by this notice. The four regulations are:
    (1) Regulations promulgated under the Equal Credit Opportunity Act, 
15 U.S.C. 1691 et seq. (ECOA) (Regulation B) (OMB Control Number: 3084-
0087);
    (2) Regulations promulgated under the Electronic Fund Transfer Act, 
15 U.S.C. 1693 et seq. (EFTA) (Regulation E) (OMB Control Number: 3084-
0085);
    (3) Regulations promulgated under the Consumer Leasing Act, 15 
U.S.C. 1667 et seq. (CLA) (Regulation M) (OMB Control Number: 3084-
0086); and
    (4) Regulations promulgated under the Truth-In-Lending Act, 15 
U.S.C. 1601 et seq. (TILA) (Regulation Z) (OMB Control Number: 3084-
0088).
    Type of Review: Extension without change of currently approved 
collections, except for new Regulation B requirements, which derive 
from statutory amendments.
    Affected Public: Private Sector: Businesses and other for-profit 
entities.
    Discussion:
    Under the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Dodd-Frank Act), Public Law 111-203, 124 Stat. 1376 (2010), almost all 
rulemaking authority for the ECOA, EFTA, CLA, and TILA transferred from 
the Board of Governors of the Federal Reserve System (Board) to the 
Consumer Financial Protection Bureau (CFPB) on July 21, 2011 (transfer 
date). To implement this transferred authority, the CFPB published new 
regulations in 12 CFR part 1002 (Regulation B), 12 CFR part 1005 
(Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR part 1026 
(Regulation Z) for those entities under its rulemaking jurisdiction.\1\ 
Although the Dodd-Frank Act transferred most rulemaking authority under 
ECOA, EFTA, CLA, and TILA to the CFPB, the Board retained rulemaking 
authority for certain motor vehicle dealers \2\ under all of these

[[Page 62737]]

statutes and also for certain interchange-related requirements under 
EFTA.\3\
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    \1\ 12 CFR 1002 (Reg. B) (81 FR 25323, Apr. 28, 2016); 12 CFR 
1005 (Reg. E) (81 FR 25323, Apr. 28, 2016); 12 CFR 1013 (Reg. M) (81 
FR 25323, Apr. 28, 2016); and 12 CFR 1026 (Reg. Z) (81 FR 25323, 
Apr. 28, 2016).
    \2\ Generally, these are dealers ``predominantly engaged in the 
sale and servicing of motor vehicles, the leasing and servicing of 
motor vehicles, or both.'' See Dodd-Frank Act, sec. 1029, 12 U.S.C. 
5519(a), (c).
    \3\ See Dodd-Frank Act, sec. 1075, 15 U.S.C. 1693 (these 
requirements are implemented through Board Regulation II, 12 CFR pt. 
235, rather than EFTA's implementing Regulation E).
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    As a result of the Dodd-Frank Act, the FTC and the CFPB generally 
share the authority to enforce Regulations B, E, M, and Z for entities 
for which the FTC had enforcement authority before the Act, except for 
certain motor vehicle dealers.\4\ Because of this shared enforcement 
jurisdiction, the two agencies have relied on the previously-cleared 
PRA burden estimates between them,\5\ except that the FTC generally has 
assumed all of the burden estimates associated with motor vehicle 
dealers \6\ and state-chartered credit unions, and has added estimates 
for the CFPB's new requirements under Regulation B. The PRA burden 
hours not attributable to motor vehicle dealers and, as applicable, to 
state-chartered credit unions is reflected in the CFPB's PRA clearance 
requests to OMB, as well as in the FTC's burden estimates below.
---------------------------------------------------------------------------

    \4\ The FTC's enforcement authority includes state-chartered 
credit unions; other federal agencies also have various enforcement 
authority over credit unions. For example, for large credit unions 
(exceeding $10 billion in assets), the CFPB has certain authority. 
The National Credit Union Administration also has certain authority 
for state-chartered federally insured credit unions, and it 
additionally provides insurance for certain state-chartered credit 
unions through the National Credit Union Share Insurance Fund and 
examines credit unions for various purposes. There are approximately 
thirteen state-chartered credit unions exceeding $10 billion in 
assets, and the CFPB assumes PRA burden for those entities. As of 
the fourth quarter of 2023, there were approximately 1,936 state-
chartered credit unions with federal insurance; there also have been 
an estimated 112 or more which were privately insured, and an 
estimated 100 or more in Puerto Rico which were insured by a quasi-
governmental entity. Because of the difficulty in parsing out PRA 
burden for such entities in view of the overlapping authority, the 
FTC's figures include PRA burden for all state-chartered credit 
unions, unless otherwise noted. However, in view of fluctuations 
that began due to COVID-19 and have continued and to avoid 
undercounting, we have retained the prior estimate of 2,300 state-
chartered credit unions, unless otherwise stated. As noted above, 
the CFPB's figures as to state-chartered credit unions include 
burden for those entities exceeding $10 billion in assets. See 
generally Dodd-Frank Act, secs. 1061, 1025, 1026. This attribution 
does not change actual enforcement authority. We also have retained 
the prior burden hours generally in the estimates below, in view of 
these considerations, adding only those applicable for new 
requirements issued by the CFPB for Regulation B, issued in 
implementation of the Dodd-Frank Act, sec. 1071, amending the Equal 
Credit Opportunity Act, codified at 15 U.S.C. 1691c-2, discussed 
below.
    \5\ The CFPB also factors into its burden estimates respondents 
over which it has jurisdiction but the FTC does not.
    \6\ See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), as limited 
by subsection (b) as to motor vehicle dealers. Subsection (b) does 
not preclude CFPB regulatory oversight regarding, among others, 
businesses that extend retail credit or retail leases for motor 
vehicles in which the credit or lease offered is provided directly 
from those businesses, rather than unaffiliated third parties, to 
consumers. It is not practicable, however, for PRA purposes, to 
estimate the portion of dealers that engage in one form of financing 
versus another (and that would or would not be subject to CFPB 
oversight). Thus, FTC staff's PRA burden analysis reflects a general 
estimated volume of motor vehicle dealers. This attribution does not 
change actual enforcement authority.
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    Pursuant to the Dodd-Frank Act, the FTC generally has sole 
authority to enforce Regulations B, E, M, and Z regarding certain motor 
vehicle dealers predominantly engaged in the sale and servicing of 
motor vehicles, the leasing and servicing of motor vehicles, or both, 
that, among other things, assign their contracts to unaffiliated third 
parties.\7\ Because the FTC has exclusive jurisdiction to enforce these 
rules for such motor vehicle dealers and retains its concurrent 
authority with the CFPB for other types of motor vehicle dealers, and 
in view of the different types of motor vehicle dealers, the FTC 
retains the entire PRA burden for motor vehicle dealers in the burden 
estimates below.
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    \7\ See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), (c).
---------------------------------------------------------------------------

    The regulations impose certain recordkeeping and disclosure 
requirements associated with providing credit or with other financial 
transactions. Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must 
get OMB approval for each collection of information they conduct or 
sponsor. ``Collection of information'' includes agency requests or 
requirements to submit reports, keep records, or provide information to 
a third party. See 44 U.S.C. 3502(3); 5 CFR 1320.3(c).
    All four of these regulations require covered entities to keep 
certain records, but FTC staff believes these records are kept in the 
normal course of business even absent the particular recordkeeping 
requirements.\8\ Covered entities, however, may incur some burden 
associated with ensuring that they do not prematurely dispose of 
relevant records (i.e., during the time span they must retain records 
under the applicable regulation).
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    \8\ PRA ``burden'' does not include ``time, effort, and 
financial resources'' expended in the normal course of business, 
regardless of any regulatory requirement. See 5 CFR 1320.3(b)(2).
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    The regulations also require covered entities to make disclosures 
to third parties. Related compliance involves set-up/monitoring and 
transaction-specific costs. ``Set-up'' burden, incurred only by covered 
new entrants, includes identifying the applicable required disclosures, 
determining how best to comply, and designing and developing compliance 
systems and procedures. ``Monitoring'' burden, incurred by all covered 
entities, includes their time and costs to review changes to regulatory 
requirements, make necessary revisions to compliance systems and 
procedures, and to monitor the ongoing operation of systems and 
procedures to ensure continued compliance. ``Transaction-related'' 
burden refers to the time and cost associated with providing the 
various required disclosures in individual transactions, thus, 
generally, of much lesser magnitude than ``setup'' and ``monitoring'' 
burden. The FTC's estimates of transaction time and volume are intended 
as averages. The population of affected motor vehicle dealers is one 
component of a much larger universe of such entities.
    The required disclosures do not impose PRA burden on some covered 
entities because they make those disclosures in the normal course of 
business. For other covered entities that do not, their compliance 
burden will vary depending on the extent to which they have developed 
effective computer-based or electronic systems and procedures to 
communicate and document required disclosures.\9\
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    \9\ For example, large companies may use computer-based and/or 
electronic means to provide required disclosures, including issuing 
some disclosures en masse, e.g., notice of changes in terms. Smaller 
companies may have less automated compliance systems but may 
nonetheless rely on electronic mechanisms for disclosures and 
recordkeeping. Regardless of size, some entities may utilize 
compliance systems that are fully integrated into their general 
business operational system; if so, they may have minimal additional 
burden. Other entities may have incorporated fewer of these 
approaches into their systems and thus may have a higher burden.
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    The respondents included in the following burden calculations 
consist of, among others, credit and lease advertisers, creditors, 
owners (such as purchasers and assignees) of credit obligations, 
financial institutions, service providers, certain government agencies 
and others involved in delivering electronic fund transfers (EFTs) of 
government benefits, and lessors.\10\ The burden estimates represent 
FTC staff's best assessment, based on its knowledge and expertise 
relating to the financial services industry, of the average time to 
complete the aforementioned tasks associated with recordkeeping and 
disclosure. Staff considered the wide variations in covered entities' 
(1) size and location; (2) credit or lease products offered, extended, 
or advertised, and their particular terms; (3) EFT types

[[Page 62738]]

used; (4) types and frequency of adverse actions taken; (5) types of 
appraisal reports utilized; and (6) computer systems and electronic 
features of compliance operations.
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    \10\ The Commission generally does not have jurisdiction over 
banks, thrifts, and federal credit unions under the applicable 
regulations.
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    The cost estimates that follow relate solely to labor costs, and 
they include the time necessary to train employees how to comply with 
the regulations. Staff calculated labor costs by multiplying 
appropriate hourly wages by the burden hours described above. The 
hourly wages used were $66 for managerial oversight, $47 for skilled 
technical services, and $22 for clerical work. These figures are 
averages drawn from Bureau of Labor Statistics data.\11\ Further, these 
cost estimates assume the following labor category apportionments, 
except where otherwise indicated below: recordkeeping--10% skilled 
technical, 90% clerical; disclosure--10% managerial, 90% skilled 
technical.
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    \11\ These inputs are based broadly on mean hourly data found 
within the ``Bureau of Labor Statistics, Economic News Release,'' 
April 3, 2024, Table 1, ``National employment and wage data from the 
Occupational Employment and Wage Statistics survey by occupation, 
May 2023.'' https://www.bls.gov/news.release/ocwage.t01.htm.
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    The applicable PRA requirements impose minimal capital or other 
non-labor costs.\12\ Affected entities generally already have or obtain 
the necessary equipment (including technology) for other business 
purposes. Similarly, FTC staff estimates that compliance with these 
rules entails minimal printing and copying costs beyond that associated 
with documenting financial transactions in the normal course of 
business.
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    \12\ To the extent that entities subject to the regulations 
update or implement their data systems with additional features, 
these serve multiple business purposes associated with financial 
transactions and related activities, including, for example, 
compliance with diverse state requirements.
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    The following discussion and tables present estimates under the PRA 
of recordkeeping and disclosure average time and labor costs, excluding 
that which FTC staff believes entities incur customarily in the normal 
course of business and information compiled and produced in response to 
FTC law enforcement investigations or prosecutions.\13\
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    \13\ See 5 CFR 1320.4(a) (excluding information collected in 
response to, among other things, a federal civil action or ``during 
the conduct of an administrative action, investigation, or audit 
involving an agency against specific individuals or entities'').
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1. Regulation B

    The ECOA (Equal Credit Opportunity Act) prohibits discrimination in 
the extension of credit. Regulation B implements the ECOA, establishing 
disclosure requirements to assist customers in understanding their 
rights under the ECOA, recordkeeping requirements to assist agencies in 
enforcement, and monitoring and reporting requirements. Regulation B 
applies to retailers, mortgage lenders, mortgage brokers, finance 
companies, and diverse others. In 2023, the CFPB amended Regulation B, 
to create subparts A and B, in implementing amendments mandated by the 
Section 1071 of the Dodd Frank Act, 12 U.S.C. 1691c-2, pertaining to 
small business lending, including for small businesses owned by women 
or minorities.\14\ As a result, Regulation B, Subpart A, now contains 
the prior Regulation B requirements; Regulation B, Subpart B, contains 
the new small business lending requirements.\15\
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    \14\ See CFPB, Final Rule, Small Business Lending Under the 
Equal Credit Opportunity Act (Regulation B) (CFPB Rule), 88 FR 35150 
(May 31, 2023), available at https://www.govinfo.gov/content/pkg/FR-2023-05-31/pdf/2023-07230.pdf. The CFPB generally refers to these 
requirements as those pertaining to ``small business lending.'' See 
CFPB Rule, 88 FR at 35150. That term is also used herein.
    The Federal Reserve Board has not issued its related rule for 
these requirements covering certain motor vehicle dealers pursuant 
to the Dodd Frank Act, Section 1029, 12 U.S.C. 5519. In May 2024, 
following the U.S. Supreme Court ruling in Consumer Fin. Protection 
Bureau v. Community Fin. Servs. Ass'n of Am., Ltd. (CFPB v. CFSA), 
No. 22-448, 2024 WL 2193873 (U.S.S.C. May 16, 2024), available at 
https://www.supremecourt.gov/opinions/23pdf/22-448_o7jp.pdf, the 
CFPB issued informal guidance extending the compliance dates for the 
small business lending rule and indicated it would issue an interim 
final rule; on June 25, 2024, the CFPB issued an interim final rule, 
extending the compliance dates accordingly. See CFPB, Small Business 
Lending Rulemaking, available at https://www.consumerfinance.gov/1071-rule/. The FTC has hereunder included estimates of burden for 
these requirements, based on currently available information, 
including the supplementary information with the CFPB Rule, 88 FR 
35150, and its related CFPB Supporting Statement.
    \15\ In implementing Regulation B, Subpart B, the CFPB noted 
that merchant cash advances are covered under that part, and are 
``credit'' subject to Regulation B (and ECOA). See, e.g., 88 FR 
35223. When applicable, these entities (to the extent they are 
``creditors'' under Subpart A) also apparently would be subject to, 
for example, the requirement to provide notices whenever they take 
adverse action, such as denial of a credit application. The CFPB 
estimates about 100 merchant cash advance providers as active in the 
small business lending market. See CFPB Rule, 88 FR 35164. The FTC 
estimates below cover those providers as ``creditors'' for Subpart A 
and re applicable transactions. As noted above, in view of 
fluctuations that occurred with COVID-19 and have continued (and 
with respect to which the Commission did not reduce its prior burden 
estimates to avoid undercounting, despite varied market contractions 
and shifts), these entities are included within the burden estimates 
below.
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    FTC staff estimates that Regulation B, subpart A general 
recordkeeping requirements affect 530,762 credit firms subject to the 
Commission's jurisdiction, at an average annual burden of 1.25 hours 
per firm for a total of 663,453 hours. Staff also estimates that the 
requirement that mortgage creditors monitor information about race/
national origin, sex, age, and marital status imposes a maximum burden 
of one minute each (of skilled technical time) for approximately 2.6 
million credit applications (based on industry data regarding the 
approximate number of mortgage purchase and refinance originations), 
for a total of 43,333 hours.\16\ Staff also estimates that 
recordkeeping of self-testing subject to the regulation would affect 
1,500 firms, with an average annual burden of one hour (of skilled 
technical time) per firm, for a total of 1,500 hours, and that 
recordkeeping of any corrective action as a result of self-testing 
would affect 10% of them, i.e., 150 firms, with an average annual 
burden of four hours (of skilled technical time) per firm, for a total 
of 600 hours.\17\ This is a total of 708,886 hours for Subpart A.
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    \16\ Regulation B contains model forms that creditors may use to 
gather and retain the required information.
    \17\ In contrast to banks, for example, entities under FTC 
jurisdiction are not subject to audits by the FTC for compliance 
with Regulation B; rather they may be subject to FTC investigations 
and enforcement actions. This may impact the level of self-testing 
(as specifically defined by Regulation B) in a given year, and staff 
has sought to address such factors in its burden estimates.
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    Regulation B, Subpart B, also requires recordkeeping for its data 
requirements. Staff estimates that these requirements affect 681 
covered financial institutions subject to the Commission's 
jurisdiction, at an average annual burden of 32 hours per firm for 24 
Type A entities (state-chartered credit unions), 68 hours per firm for 
553 Type B entities (520 non-depositories plus 33 state-chartered 
credit unions) and 5,280 hours per firm for 104 entities (100 non-
depositories plus 4 state-chartered credit unions), for a total of 
587,492 recordkeeping hours for Subpart B.\18\
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    \18\ A financial institution is covered by Regulation B, Subpart 
B, if it originates at least 100 covered credit transactions for 
small businesses in each of the two preceding calendar years (once 
the compliance date takes effect). A ``covered credit transaction'' 
is one that meets the definition of business credit under Regulation 
B (as it existed before the small business lending amendments), with 
some exceptions, and includes, for example, loans, lines of credit, 
merchant cash advances and others. See generally 12 CFR 1002.104 and 
1002.105; CFPB Rule, 88 FR 35150. Burden hours for entities vary 
depending on the level of complexity of their transactions and 
procedures.
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    This yields a total annual recordkeeping burden of 1,296,378 hours 
for Regulation B, Subparts A and B.
    Regulation B, Subpart A, requires that creditors (i.e., entities 
that regularly

[[Page 62739]]

participate in the decision whether to extend credit under Regulation 
B) provide notices whenever they take adverse action, such as denial of 
a credit application. It requires entities that extend mortgage credit 
with first liens to provide a copy of the appraisal report or other 
written valuation to applicants.\19\ Regulation B, Subpart A, also 
requires that for accounts that spouses may use or for which they are 
contractually liable, creditors who report credit history must do so in 
a manner reflecting both spouses' participation. Further, it requires 
creditors that collect applicant characteristics for purposes of 
conducting a self-test to disclose to those applicants that: (1) 
providing the information is optional; (2) the creditor will not take 
the information into account in any aspect of the credit transactions; 
and (3) if applicable, the information will be noted by visual 
observation or surname if the applicant chooses not to provide it.\20\
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    \19\ While the rule also requires the creditor to provide a 
short written disclosure regarding the appraisal process, the 
disclosure is provided by the CFPB, and is thus not a ``collection 
of information'' for PRA purposes. Accordingly, it is not included 
in burden estimates below.
    \20\ The disclosure may be provided orally or in writing. The 
model form provided by Regulation B assists creditors in providing 
the written disclosure.
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    Regulation B, Subpart B requires covered financial institutions to 
collect and report annually to the CFPB various data on covered 
applications for covered credit transactions from small businesses, 
including those owned by women or minorities--which, among other 
things, generally involves entities with a gross annual revenue for the 
preceding fiscal year of $5 million or less. It covers credit such as 
loans, lines of credit, credit cards, merchant cash advances, and 
various other credit products. Collection and reporting to the CFPB 
follows procedures established under the regulation and certain data 
points.\21\ The burden hours below are based on those for DIs (state 
chartered credit unions, which are considered depository institutions, 
under the rule) and non-DIs (all other entities), and whether the 
applicable respondents are Type A, B, or C entities under the rule.\22\ 
Staff estimates that the reporting requirements (which under the rule 
include that for collection of data) for Regulation B, subpart B, 
involve both one-time and ongoing burden. Burden estimates relating to 
the disclosures required under Regulation B, Subpart A, and reporting 
required under Regulation B, subpart B, and labor cost estimates for 
Subparts A and B are provided in the tables below.
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    \21\ In addition to certain information related to the financial 
institution, such as a unique identifier and its name and address, 
these data points include, for example, the application date, 
application method, application recipient, credit type and credit 
purpose, amount applied for and amount approved or originated, 
action taken and date, denial reasons, pricing information, census 
tract, and other items, as well as certain demographics of 
applicants' ownership (including whether the applicant is a 
minority-owned business or women-owned business, whether the 
applicant is an LBGTQ+-owned business, and the ethnicity, race, and 
sex of the applicant's principal owners). See generally 12 CFR 
1002.107 and 1002.109; CFPB Rule, 88 FR 35150. The CFPB has provided 
a sample data collection form, which is voluntary, that financial 
institutions may use for data collection and reporting; in the 
alternative, they could use their own form that complies with the 
requirements. See 12 CFR part 1002, Appendix E. Although financial 
institutions must request the various information specified in the 
rule, small business entities need not provide it.
    In a few instances, Subpart B includes certain notices for 
financial institutions to provide to consumers in conjunction with 
the data collection and reporting. These notices are provided by the 
CFPB for the financial institution and are included within the 
reporting estimates (and are not separate collections of 
information). The first two notices pertain to information being 
requested by the financial institution. See 12 CFR 1002.107(a)(18) & 
(19) (that the financial institution cannot discriminate on the 
basis of minority-owned, women-owned, or LGBTQI+-owned business 
status, on the basis of a principal owner's ethnicity, race, or sex, 
or on whether the applicant provides any of this information, when 
the financial institution requests that information); and 
1002.108(c) & (d) (a financial institution could establish a 
``firewall'' so that employees and certain other persons cannot 
access certain protected financial information of the applicants but 
if it doesn't, the financial institution would instead notify small 
business entities when collecting information that certain employees 
or persons can access the demographic information provided). The 
above notices are included on the CFPB's data collection form. 
Additionally, these notices can be combined together (if the 
financial institution chooses to use its own form), and/or can be 
oral depending on the circumstances (including for in-person, oral, 
or telephone applications). The CFPB also has provided the third 
notice referenced above. See 12 CFR 1002.110(c) & (d), and 
1002.110(c)-1, Supp. 1, Regulation B Official Staff Commentary (a 
notice for the financial institution's website or otherwise upon 
request, that the financial institution's data is available from the 
CFPB). These notices are encompassed within the reporting 
requirements of the rule.
    \22\ Under the CFPB rule: Type A entities have the lowest level 
of complexity, and are estimated to originate less than 150 covered 
applications annually; Type B entities have a mid-level of 
complexity, and are estimated to originate 150-999 covered 
applications annually; and Type C entities have the highest level of 
complexity, and are estimated to originate 1000 or more covered 
applications annually. See CFPB Rule, 88 FR 35496-97.
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Burden Totals

    Recordkeeping: 1,296,378 annual hours; $32,783,491, associated 
annual labor costs.
    Disclosures and Reporting: 2,581,114 annual hours; $126,216,566, 
associated annual labor costs.

                                                   Regulation B, Subpart A: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Setup/monitoring \1\                             Transaction-related
                                         ------------------------------------------------------------------------------------------------
                                                                                                          Average burden                   Total burden
               Disclosures                                Average burden   Total setup/      Number of          per            Total          (hours)
                                            Respondents   per respondent    monitoring     transactions     transaction     transaction
                                                              (hours)     burden (hours)                     (minutes)    burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Credit history reporting................         133,553             .25          33,388      60,098,850             .25         250,412         283,800
Adverse action notices..................         530,762             .75         398,072      92,883,350             .25         387,014         785,086
Appraisal reports/written valuations....           4,650               1           4,650       1,725,150             .50          14,376          19,026
Self-test disclosures...................           1,500              .5             750          60,000             .25             250           1,000
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................  ..............  ..............  ..............  ..............  ..............  ..............       1,088,912
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations.


[[Page 62740]]


                        Regulation B, Subpart B: Reporting (Setup/One-Time)--Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                         Setup/one-time for reporting \1\
                                                                 -----------------------------------------------
                            Reporting                                             Average burden    Total setup
                                                                    Respondents   per respondent   for reporting
                                                                                      (hours)     burden (hours)
----------------------------------------------------------------------------------------------------------------
Type A DIs......................................................              24             273           6,552
Type B DIs......................................................              33             176           5,808
Type C DIs......................................................               4             503           2,012
All Non DIs.....................................................             620             253         156,860
                                                                 -----------------------------------------------
    Total.......................................................  ..............  ..............         171,232
----------------------------------------------------------------------------------------------------------------
\1\ The estimates assume that all applicable entities would be affected.


                           Regulation B, Subpart B: Reporting (Ongoing)--Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                             Ongoing for reporting \1\
                                                                 -----------------------------------------------
                            Reporting                                             Average burden       Total
                                                                    Respondents   per respondent     reporting
                                                                                      (hours)     burden (hours)
----------------------------------------------------------------------------------------------------------------
Type A DIs......................................................              24             112           2,688
Type B DIs......................................................              33             658          21,714
Type C DIs......................................................               4           9,177          36,708
Type B Non DIs..................................................             520             658         342,160
Type C Non-DIs..................................................             100          .9,177         917,700
                                                                 -----------------------------------------------
    Total.......................................................  ..............  ..............       1,320,970
----------------------------------------------------------------------------------------------------------------
\1\ The estimates assume that all applicable entities would be affected.


                                              Regulation B, Subpart A: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time (hours)   Cost ($66/hr.)   Time (hours)   Cost ($47/hr.)   Time (hours)   Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
General recordkeeping...................               0              $0          66,345      $3,118,215         597,108     $13,136,376     $16,254,591
Other recordkeeping.....................               0               0          43,333       2,036,651               0               0       2,036,651
Recordkeeping of self-test..............               0               0           1,500          70,500               0               0          70,500
Recordkeeping of corrective action......               0               0             600          28,200               0               0          28.200
                                         ---------------------------------------------------------------------------------------------------------------
    Total Recordkeeping.................  ..............  ..............  ..............  ..............  ..............  ..............      18,389,942
--------------------------------------------------------------------------------------------------------------------------------------------------------
Disclosures:
    Credit history reporting............          28,380       1,873,080         255,420      12,004,740               0               0      13,877,820
    Adverse action notices..............          78,509       5,181,594         706,577      33,209,199               0               0      38,390,793
    Appraisal reports...................           1,903         125,598          17,123         804,781               0               0         930,379
    Self-test disclosure................             100           6,600             900          42,300               0               0          48,900
                                         ---------------------------------------------------------------------------------------------------------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............      53,247,892
            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............      71,637,834
             Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                               Regulation B, Subpart B: Recordkeeping and Reporting--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time (hours)   Cost ($66/hr.)   Time (hours)   Cost ($47/hr.)   Time (hours)   Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................               0              $0          58,749      $2,761,203         528,743     $11,632,346     $14,393,549
                                         ---------------------------------------------------------------------------------------------------------------
    Total Recordkeeping.................  ..............  ..............  ..............  ..............  ..............  ..............      14,393,549
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reporting:
    One-time............................          17,123       1,130,118         154,109       7,243,123               0               0       8,373,241
    Ongoing.............................         132,097       8,718,402       1,188,873      55,877,031               0               0      64,595,433
                                         ---------------------------------------------------------------------------------------------------------------
        Total Reporting.................  ..............  ..............  ..............  ..............  ..............  ..............      72,968,674
            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............      87,362,223
             Reporting..................
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 62741]]


                                     Regulation B, Subparts A and B: Recordkeeping, Disclosures and Reporting--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time (hours)   Cost ($66/hr.)   Time (hours)   Cost ($47/hr.)   Time (hours)   Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Recordkeeping, Disclosures and      ..............  ..............  ..............  ..............  ..............  ..............     159,000,057
 Reporting..............................
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. Regulation E

    The EFTA (Electronic Fund Transfer Act) requires that covered 
entities provide consumers with accurate disclosure of the costs, 
terms, and rights relating to EFT and certain other services. 
Regulation E implements the EFTA, establishing disclosure and other 
requirements to aid consumers and recordkeeping requirements to assist 
agencies with enforcement. It applies to financial institutions, 
retailers, gift card issuers and others that provide gift cards, 
service providers, various federal and state agencies offering EFTs, 
prepaid account entities, etc. Staff estimates that Regulation E's 
recordkeeping requirements affect 251,053 firms offering EFT and 
certain other services to consumers and that are subject to the 
Commission's jurisdiction, at an average annual burden of one hour per 
firm, for a total of 251,053 hours. Burden estimates relating to the 
disclosures required under Regulation E and labor cost estimates are 
provided in the tables below.

Burden Totals

    Recordkeeping: 251,053 annual hours; $6,150,791, associated annual 
labor costs.
    Disclosures: 7,184,903 annual hours; $357,041,764, associated 
annual labor costs.

                                                         Regulation E--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Setup/monitoring                               Transaction-related
                                         ------------------------------------------------------------------------------------------------
                                                                                                          Average burden                   Total burden
               Disclosures                                Average burden   Total setup/      Number of          per            Total          (hours)
                                            Respondents   per respondent    monitoring     transactions     transaction     transaction
                                                              (hours)     burden (hours)                     (minutes)    burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial terms...........................          27,300              .5          13,650         273,000             .02              91          13,741
Change in terms.........................           8,550              .5           4,275      11,286,000             .02           3,762           8,037
Periodic statements.....................          27,300              .5          13,650     327,600,000             .02         109,200         122,850
Error resolution........................          27,300              .5          13,650         273,000               5          22,750          36,400
Transaction receipts....................          27,300              .5          13,650   1,375,000,000             .02         458,333         471,983
Preauthorized transfers.................         258,553              .5         129,277       6,463,825             .25          26,933         156,210
Service provider notices................          20,000             .25           5,000         200,000             .25             833           5,833
ATM notices.............................             125             .25              31      25,000,000             .25         104,167         104,198
Electronic check conversion.............          48,553              .5          24,277         728,295             .02             243          24,520
Overdraft services......................          15,000              .5           7,500       1,500,000             .02             500           8,000
Gift cards..............................          15,000              .5           7,500     750,000,000             .02         250,000         257,500
Remittance transfers:
    Disclosures.........................           4,800            1.25           6,000      96,000,000              .9       1,440,000       1,446,000
    Error resolution....................           4,800            1.25           6,000     120,960,000              .9       1,814,400       1,820,400
    Agent compliance....................           4,800            1.25           6,000      96,000,000              .9       1,440,000       1,446,000
Prepaid accounts and gov't benefits:
    Disclosures.........................             550     \1\ 40 x 10         220,000   2,750,000,000             .02         916,667       1,136,667
    Disclosures--updates................             138          1 x 10       \2\ 1,380             N/A  ..............  ..............           1,380
    Access to account information.......             550     \3\ 20 x 10         110,000       1,100,000             .01             183         110,183
    Error resolution....................             300           4 x 4           4,800         275,000               2           9,167          13,967
    Error resolution--followup \4\......  ..............             N/A  ..............           1,380              30             690             690
    Submission of agreements............             138           2 x 1             276             690               1              11             287
    Updates to agreements \5\...........  ..............             N/A  ..............             690               5              57              57
                                         ---------------------------------------------------------------------------------------------------------------
        Total...........................  ..............  ..............  ..............  ..............  ..............  ..............       7,184,903
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\2\ Individual burden hours are listed first, followed by the number of programs.
\3\ Burden hours are on a per program basis; individual burden hours are listed first, followed by the number of programs.
\4\ This pertains to prepaid accounts.
\5\ This pertains to prepaid accounts' agreements.


                                                    Regulation E--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time (hours)   Cost ($66/hr.)   Time (hours)   Cost ($47/hr.)   Time (hours)   Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................               0              $0          25,105      $1,179,935         225,948      $4,970,856      $6,150,791
Disclosures:
    Initial terms.......................           1,374          90,684          12,367         581,249               0               0         671,933
    Change in terms.....................             804          53,064           7,233         339,951               0               0         393,015
    Periodic statements.................          12,285         810,810         110,565       5,196,555               0               0       6,007,365
    Error resolution....................           3,640         240,240          32,760       1,539,720               0               0       1,779,960
    Transaction receipts................          47,198       3,115,068         424,785      19,964,895               0               0      23,079,963
    Preauthorized transfers.............          15,621       1,030,986         140,589       6,607,683               0               0       7,638,669
    Service provider notices............             583          38,478           5,250         246,750               0               0         285,228
    ATM notices.........................          10,420         687,720          93,778       4,407,566               0               0       5,095,286
    Electronic check conversion.........           2,452         161,832          22,068       1,037,096               0               0       1,198,928

[[Page 62742]]

 
    Overdraft services..................             800          52,800           7,200         338,400               0               0         391,200
    Gift cards..........................          25,750       1,699,500         231,750      10,892,250               0               0      12,591,750
Remittance transfers:
    Disclosures.........................         144,600       9,543,600       1,301,400      61,165,800               0               0      70,709,400
    Error resolution....................         182,040      12,014,640       1,638,360      77,002,920               0               0      89,017,560
    Agent compliance....................         144,600       9,543,600       1,301,400      61,165,800               0               0      70,709,400
Prepaid accounts and gov't. benefits:
    Disclosures.........................         113,667       7,502,022       1,023,000      48,081,000               0               0      55,583,022
    Disclosures--updates................             138           9,108           1,242          58,374               0               0          67,482
    Access to account information.......          11,018         727,188          99,165       4,660,755               0               0       5,387,943
    Error resolution....................           1,397          92,202          12,570         590,790               0               0       6,382,992
    Error resolution--follow-up.........              69           4,554             621          29,187               0               0          33,741
    Submission of agreements............              29          1,9,14             259          12,173               0               0          14,087
    Updates to agreements...............               6             396              52           2,444               0               0           2,840
                                         ---------------------------------------------------------------------------------------------------------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............     357,041,764
            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............     363,192,555
             Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. Regulation M

    The CLA (Consumer Leasing Act) requires that covered entities 
provide consumers with accurate disclosure of the costs and terms of 
leases. Regulation M implements the CLA, establishing disclosure 
requirements to help consumers comparison shop and understand the terms 
of leases and recordkeeping requirements. It applies to vehicle lessors 
(such as auto dealers, independent leasing companies, and 
manufacturers' captive finance companies), computer lessors (such as 
computer dealers and other retailers), furniture lessors, various 
electronic commerce lessors, diverse types of lease advertisers, and 
others. Staff estimates that Regulation M's recordkeeping requirements 
affect approximately 30,203 firms within the FTC's jurisdiction leasing 
products to consumers at an average annual burden of one hour per firm, 
for a total of 30,203 hours. Burden estimates relating to the 
disclosures required under Regulation M and labor cost estimates are 
provided in the tables below.

Burden Totals ²³
---------------------------------------------------------------------------

    \23\ Recordkeeping and disclosure burden estimates for 
Regulation M are more substantial for motor vehicle leases than for 
other leases, including burden estimates based on market changes and 
regulatory definitions of coverage. Based on industry information, 
the estimates for recordkeeping and disclosure costs assume the 
following: 90% managerial, and 10% skilled technical. As noted 
above, for purposes of PRA burden calculations for Regulations B, E, 
M, and Z, and given the different types of motor vehicle dealers, 
the FTC is including in its estimates burden for all of them.
---------------------------------------------------------------------------

    Recordkeeping: 30,203 annual hours; $1,936,018, associated annual 
labor costs.
    Disclosures: 71,750 annual hours; $4,599,175, associated annual 
labor costs.

                                                         Regulation M--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Setup/monitoring                               Transaction-related
                                         ------------------------------------------------------------------------------------------------
                                                          Average burden                                  Average burden                   Total burden
               Disclosures                                      per        Total setup/      Number of          per            Total          (hours)
                                            Respondents     respondents     monitoring     transactions     transaction     transaction
                                                              (hours)     burden (hours)                     (minutes)    burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Motor Vehicle Leases \1\................          26,690               1          26,690       4,000,000             .50          33,333          60,023
Other Leases \2\........................           3,513             .50           1,757          60,000             .25             250           2,007
Advertising.............................          14,615             .50           7,308         578,960             .25           2,412           9,720
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................  ..............  ..............  ..............  ..............  ..............  ..............          71,750
--------------------------------------------------------------------------------------------------------------------------------------------------------
 \1\ This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of
  payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  1013.2(e)(1). CLA and Regulation M now cover leases up to $69,500 plus an annual adjustment.
 \2\ This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small
  appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  1013.2(e)(1). CLA and Regulation M now cover leases up to $69,500 plus an annual adjustment.


                                                    Regulation M--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled Technical                   Clerical
                                         ------------------------------------------------------------------------------------------------
              Required Task                                                                                                 Cost ($122/   Total cost ($)
                                           Time (hours)   Cost ($66/hr.)   Time (hours)   Cost ($47/hr.)   Time (hours)        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................          27,183      $1,794,078           3,020        $141,940               0               0      $1,936,018
Disclosures:
    Motor Vehicle Leases................          54,021       3,565,386           6,002         282,094               0               0       3,847,480
    Other Leases........................           1,806         119,196             201           9,447               0               0         128,643
    Advertising.........................           8,748         577,368             972          45,684               0               0         623,052
                                         ---------------------------------------------------------------------------------------------------------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............       4,599,175

[[Page 62743]]

 
            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............       6,535,193
             Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------

4. Regulation Z

    The TILA (Truth In Lending Act) was enacted to foster comparison 
credit shopping and informed credit decision-making by requiring 
creditors and others to provide accurate disclosures regarding the 
costs and terms of credit to consumers. Regulation Z implements the 
TILA, establishing disclosure requirements to assist consumers and 
recordkeeping requirements to assist agencies with enforcement. These 
requirements pertain to open-end and closed-end credit and apply to 
various types of entities, including mortgage companies; finance 
companies; auto dealerships; private education loan companies; 
merchants who extend credit for goods or services; credit advertisers; 
acquirers of mortgages; and others. Additional requirements also exist 
in the mortgage area, including for high cost mortgages, higher-priced 
mortgage loans,\24\ ability to pay of mortgage consumers, mortgage 
servicing, loan originators, and certain integrated mortgage 
disclosures. FTC staff estimates that Regulation Z's recordkeeping 
requirements affect approximately 430,762 entities subject to the 
Commission's jurisdiction, at an average annual burden of 1.25 hours 
per entity with 0.25 additional hours per entity for 3,650 entities 
(ability to pay), and 5 additional hours per entity for 4,500 entities 
(loan originators). This yields a total annual recordkeeping burden of 
561,866 hours. Burden estimates relating to the disclosures required 
under Regulation Z and labor cost estimates are provided in the tables 
below.
---------------------------------------------------------------------------

    \24\ While Regulation Z also requires the creditor to provide a 
short written disclosure regarding the appraisal process for higher-
priced mortgage loans, the disclosure is provided by the CFPB. As a 
result, it is not a ``collection of information'' for PRA purposes 
(see 5 CFR 1320.3(c)(2)). It is thus excluded from the burden 
estimates below.
---------------------------------------------------------------------------

Burden Totals

    Recordkeeping: 561,866 annual hours; $13,765,727, associated annual 
labor costs.
    Disclosures: 7,854,575 annual hours; $384,097,822, associated 
annual labor costs.

                                                         Regulation Z--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Setup/monitoring                                       Transaction-related
                                         ---------------------------------------------------------------------------------------------------------------
                                                                                                          Average burden
             Disclosures \1\                              Average burden   Total setup/      Number of          per            Total       Total burden
                                            Respondents   per respondent    monitoring     transactions     transaction     transaction       (hours)
                                                              (hours)     burden (hours)                     (minutes)    burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:
    Initial terms.......................          23,650             .75          17,738      10,500,600            .375          65,629          83,367
    Initial terms--prepaid accounts.....               3       \2\ 4 x 1              12  \3\ 3 x 78,667            .125             492             504
    Rescission notices..................             750              .5             375           3,750             .25              16             391
    Subsequent disclosures..............           4,650             .75           3,488      23,250,000            .188          72,850          76,338
    Subsequent disclosures--prepaid                    3       \4\ 4 x 1              12  \5\ 3 x 78,667           .0625             246             258
     accounts...........................
    Periodic statements.................          23,650             .75          17,738     788,325,450           .0938       1,232,415       1,250,153
    Periodic statements--prepaid                       3      \6\ 40 x 1             120         \7\ 3 x          .03125           1,475           1,595
     accounts...........................                                                         944,000
    Error resolution....................          23,650             .75          17,738       2,104,850               6         210,485         228,223
    Error resolution--prepaid accounts                 3       \8\ 4 x 1              12   \9\ 3 x 1,180              15             885             897
     follow-up..........................
    Credit and charge card accounts.....          10,250             .75           7,688       5,125,000            .375          32,031          39,719
    Credit and charge card accounts--                  3      \10\ 4 x 1              12     \11\ 3 x 12             240             144             156
     prepaid accounts...................
    Settlement of estate debts..........          23,650             .75          17,738         496,650            .375           3,104          20,842
    Special credit card requirements....          10,250             .75           7,688       5,125,000            .375          32,031          39,719
    Home equity lines of credit.........             750              .5             375           5,250             .25              22             397
    Home equity lines of credit high-                250               2             500           1,500               2              50             550
     cost mortgages.....................
    College student credit card                    1,350              .5             675          81,000             .25             338           1,013
     marketing--ed. institutions........
    College student credit card                      150             .75             113           4,500             .75              56             169
     marketing--card issuer reports.....
    Posting and reporting of credit card          10,250             .75           7,688       5,125,000            .375          32,031          39,719
     agreements.........................
    Posting and reporting of prepaid                   3     \12\.75 x 1               2      \13\ 3 x 5             2.5               1               3
     account agreements.................
    Advertising.........................          38,650             .75          28,988         115,950             .75           1,449          30,437
    Advertising--prepaid accounts.......               3     \14\ 20 x 1              60             N/A  ..............  ..............              60
    Advertising--prepaid accounts                      3    \15\ 0.2 x 5               3             N/A  ..............  ..............               3
     Updates............................
    Sale, transfer, or assignment of                 500              .5             250         500,000             .25           2,083           2,333
     mortgages..........................
    Appraiser misconduct reporting......         301,150             .75         225,863       6,023,000            .375          37,644         263,507
    Mortgage servicing..................           1,500             .75           1,125         150,000              .5           1,250           2,375
    Loan originators....................           2,250               2           4,500          22,500               5           1,875           6,375
Closed-end credit:
    Credit disclosures..................         280,762             .75         210,572     112,304,800            2.25       4,211,430       4,422,002
    Rescission notices..................           3,650              .5           1,825       5,475,000               1          91,250          93,075

[[Page 62744]]

 
    Redisclosures.......................         101,150              .5          50,575         505,750            2.25          18,966          69,541
    Integrated mortgage disclosures.....           3,650              10          36,500      10,950,000             3.5         638,750         675,250
    Variable rate mortgages.............           3,650               1           3,650         365,000            1.75          10,646          14,296
    High cost mortgages.................           1,750               1           1,750          43,750               2           1,458           3,208
    Higher priced mortgages.............           1,750               1           1,750          14,000               2             467           2,217
    Reverse mortgages...................           3,025              .5           1,513          15,125               1             252           1,765
    Advertising.........................         205,762              .5         102,881       2,057,620               1          34,294         137,175
    Private education loans.............              75              .5              38          30,000             1.5             750             788
    Sale, transfer, or assignment of              48,850              .5          24,425       2,442,500             .25          10,177          34,602
     mortgages..........................
    Ability to pay/qualified mortgage...           3,650             .75           2,738               0               0               0           2,738
    Appraiser misconduct reporting......         301,150             .75         225,863       6,023,000            .375          37,644         263,507
    Mortgage servicing..................           3,650             1.5           5,475         730,000            2.75          33,458          38,933
    Loan originators....................           2,250               2           4,500          22,500               5           1,875           6,375
                                         ---------------------------------------------------------------------------------------------------------------
        Total open-end credit...........  ..............  ..............  ..............  ..............  ..............  ..............       2,089,103
        Total closed-end credit.........  ..............  ..............  ..............  ..............  ..............  ..............       5,765,472
            Total credit................  ..............  ..............  ..............  ..............  ..............  ..............       7,854,575
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $69,500 plus an annual adjustment
  (except that real estate credit and private education loans are covered regardless of amount).
\2\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\3\ This figure lists the number of entities followed by the number of responses or programs each.
\4\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\5\ This figure lists the number of entities followed by the number of responses or programs each.
\6\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\7\ This figure lists the number of entities followed by the number of responses or programs each.
\8\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\9\ This figure lists the number of entities followed by the number of responses or programs each.
\10\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\11\ This figure lists the number of entities followed by the number of responses or programs each.
\12\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\13\ This figure lists the number of entities followed by the number of responses or programs each.
\14\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\15\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.


                                                    Regulation Z--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time (hours)   Cost ($66/hr.)   Time (hours)   Cost ($47/hr.)   Time (hours)   Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................               0              $0          56,187      $2,640,789         505,679     $11,124,938     $13,765,727
Open-end credit Disclosures:
    Initial terms.......................           8,337         559,242          75,030       3,526,410               0               0       4,085,652
    Initial terms--prepaid accounts.....              50           3,300             454          21,338               0               0          24,638
    Rescission notices..................              39           2,574             352          16,544               0               0          19,118
    Subsequent disclosures..............           7,634         503,844          68,704       3,229,088               0               0       3,732,932
    Subsequent disclosures--prepaid                   26           1,716             232          10,904               0               0          12,620
     accounts...........................
    Periodic statements.................         125,015       8,250,990       1,125,138      52,881,486               0               0      61,132,476
    Periodic statements--prepaid                     159          10,494           1,436          67,492               0               0          77,986
     accounts...........................
    Error resolution....................          22,822       1,506,252         205,401       9,653,847               0               0      11,160,099
    Error resolution--prepaid accounts                90           5,940             807          37,929               0               0          43,869
     follow-up..........................
    Credit and charge card accounts.....           3,972         262,152          35,747       1,680,109               0               0       1,942,261
    Credit and charge card accounts--                 16           1,056             140           6,580               0               0           7,636
     prepaid accounts...................
    Settlement of estate debts..........           2,084         137,544          18,758         881,626               0               0       1,019,170
    Special credit card requirements....           3,972         262,152          35,747       1,680,109               0               0       1,942,261
    Home equity lines of credit.........              40           2,640             357          16,779               0               0          19,419
    Home equity lines of credit--high                 55           3,630             495          23,265               0               0          26,895
     cost mortgages.....................
    College student credit card                      101           6,666             912          42,864               0               0          49,530
     marketing--ed institutions.........
    College student credit card                       17           1,122             152           7,144               0               0           8,266
     marketing--card issuer reports.....
    Posting and reporting of credit card           3,972         262,152          35,747       1,680,109               0               0       1,942,261
     agreements.........................
    Posting and reporting of prepaid                   1              66               2              94               0               0             160
     accounts...........................
    Advertising.........................           3,044         200,904          27,393       1,287,471               0               0       1,488,375
    Advertising--prepaid accounts.......               6             396              54           2,538               0               0           2,934
    Advertising--prepaid accounts                      1              66               2              94               0               0             160
     Updates............................
    Sale, transfer, or assignment of                 233          15,378           2,100          98,700               0               0         114,078
     mortgages..........................
    Appraiser misconduct reporting......          26,351       1,739,166         237,156      11,146.332               0               0      12,885,498
    Mortgage servicing..................             238          15,708           2,137         100,439               0               0         116,147

[[Page 62745]]

 
    Loan originators....................             638          42,108           5,737         269,639               0               0         311,747
                                         ---------------------------------------------------------------------------------------------------------------
        Total open-end credit...........  ..............  ..............  ..............  ..............  ..............  ..............     102,166,188
Closed-end credit Disclosures:
    Credit disclosures..................         442,200      29,185,200       3,979,802     187,050,694               0               0     216,235,894
    Rescission notices..................           9,308         614,328          83,767       3,937,049               0               0       4,551,377
    Redisclosures.......................           6,954         458,964          62,587       2,941,589               0               0       3,400,553
    Integrated mortgage disclosures.....          67,525       4,456,650         607,725      28,563,075               0               0      33,019,725
    Variable rate mortgages.............           1,430          94,380          12,866         604,702               0               0         699,082
    High cost mortgages.................             321          21.186           2,887         135,689               0               0         156,875
    Higher priced mortgages.............             222          14,652           1,995          93,765               0               0         108,417
    Reverse mortgages...................             177          11,682           1,588          74,636               0               0          86,318
    Advertising.........................          13,718         905,388         123,457       5,802,479               0               0       6,707,867
    Private education loans.............              79           5,214             709          33,323               0               0          38,537
    Sale, transfer, or assignment of               3,460         228,360          31,142       1,463,674               0               0       1,692,034
     mortgages..........................
    Ability to pay/qualified mortgage...             274          18,084           2,464         115,808               0               0         133,892
    Appraiser misconduct reporting......          26,351       1,739,166         237,156      11,146,332               0               0      12,885,498
    Mortgage servicing..................           3,893         256,938          35,040       1,646,880               0               0       1,903,818
    Loan originators....................             638          42,108           5,737         269,639               0               0         311,747
                                         ---------------------------------------------------------------------------------------------------------------
        Total closed-end credit.........  ..............  ..............  ..............  ..............  ..............  ..............     281,931,634
            Total Disclosures...........  ..............  ..............  ..............  ..............  ..............  ..............     384,097,822
                Total Recordkeeping and   ..............  ..............  ..............  ..............  ..............  ..............     397,863,549
                 Disclosures............
--------------------------------------------------------------------------------------------------------------------------------------------------------

Request for Comment

    Pursuant to section 3506(c)(2)(A) of the PRA, the FTC invites 
comments on: (1) whether the disclosure and recordkeeping requirements 
are necessary, including whether the information will be practically 
useful; (2) the accuracy of our burden estimates, including whether the 
methodology and assumptions used are valid; (3) ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
(4) ways to minimize the burden of the collection of information.
    For the FTC to consider a comment, we must receive it on or before 
September 30, 2024. 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.
    You can file a comment online or on paper. Due to 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 file your comment on paper, write ``Regs BEMZ Rule, PRA 
Comment, P085405,'' on your comment and on the envelope, and mail it to 
the following address: Federal Trade Commission, Office of the 
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by 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 (1) be filed in paper form, (2) be clearly labeled 
``Confidential,'' and (3) 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 September 30, 
2024. 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. 2024-16970 Filed 7-31-24; 8:45 am]
BILLING CODE 6750-01-P

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