Spst0085(2008)

SPST0085(2008).doc

Recordkeeping and Disclosure Requirements in Connection with Regulation B (Equal Credit Opportunity)

OMB: 3064-0085

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SUPPORTING STATEMENT

RECORDKEEPING AND DISCLOSURE REQUIREMENTS

IN CONNECTION WITH REGULATION B

(OMB No. 3064‑0085)




INTRODUCTION


The Federal Deposit Insurance Corporation (“FDIC”) is requesting OMB approval to extend the information collection previously approved as 3064-0085. The current clearance for the collection expires on March 31, 2008.


A. Justification


1. Circumstances and Need


The requirements for this collection are contained in Regulation B – Equal Credit Opportunity, 12 C.F.R. Part 202, issued by the Board of Governors of the Federal Reserve System (“FRB”). Regulation B implements the Equal Credit Opportunity Act (“ECOA”), 15 U.S.C. §§ 1691 et seq. Section 1691(b) of ECOA designates the FRB as the issuer of the implementing regulations, and section 1691(c) designates the FDIC as having enforcement responsibilities in the case of state nonmember banks.


2. Use of Information Collected


ECOA and Regulation B prohibit discrimination in any aspect of a credit transaction because of race, color, religion, national origin, sex, martial status, age, receipt of public assistance, or having exercised a right under the Consumer Credit Protection Act. To aid in implementation of this prohibition, the statute and regulation also subject creditors to various mandatory disclosure requirements, notification provisions, credit history reporting, monitoring rules, and recordkeeping requirements. These requirements are triggered by specific events and disclosures must be provided within the time periods established by ECOA and the regulation. There are no mandatory reporting forms.


3. Use of Technology to Reduce Burden


Institutions may provide electronic disclosures consistent with the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq., and § 202.16 of Regulation B.






4. Efforts to Identify Duplication


No other federal law mandates the Regulation B disclosures, although the Fair Credit Reporting Act requires related, but different, disclosures on some of the same circumstances. Some states may have similar requirements.


5. Minimizing the Burden on Small Businesses


ECOA and Regulation B apply to all types of creditors. Regulation B provides model forms to ease the compliance burden. Creditors that receive fewer than 150 consumer credit applications per year may provide oral notice (instead of written) to applicants about the action taken on their application.


6. Consequence of Less Frequent Collections


The information collection is triggered by specific events consistent with the statute and Regulation M. The frequency of response varies according to the lessor’s level of consumer leasing and advertising activities.


7. Special Circumstances


None.


8. Consultation with Persons Outside the FDIC


A “first” Federal Register notice (attached) seeking comment was published on October 19, 2007 (72 Fed. Reg. 202,59289). No comments were received.


9. Payment or Gift to Respondents


None.


10. Confidentiality


As no information is collected, no issue of confidentiality arises.


11. Questions of a Sensitive Nature


Applicants for mortgage loans are asked to voluntarily provide information on age, sex, race, ethnicity, and marital status so that regulators may monitor for compliance with the law. It is at the option of the applicant to provide this information and if they do not the creditor must, to the extent possible, note the ethnicity, race and sex of the applicant(s) by visual observation or surname.



12. Estimates of Annualized Hour Burden and Associated Cost1


Burden Estimate

Number of respondents

Annual Frequency

Response Time

Annual Burden Hours

Notice of Action

5,200

1,715

2.5 minutes

371,583

Credit Reporting History

5,200

850

2.0 minutes

147,333

Monitoring Data

5,200

360

0.5 minutes

15,600

Appraisal:

Appraisal Report Upon Request

Notice of Right to Appraisal


5,200


5,200


190

1,650


5.0 minutes


0.25 minutes


82,333


35,750

Self-Testing:

Recordkeeping of Test

Recordkeeping of Corrective Action


1,100

275


1

1


2 hours

8 hours


2,200

2,200

Disclosure for Optional Self-test

1,100

2,500

1 minute

45,833

Total




702,832


Estimated annual cost to FDIC supervised institutions (at $20 hourly cost) is $14,056,640


13. Capital/Start-up and Operation/Maintenance Cost


None.


14. Cost to Government


Since the FDIC does not collect any information, the cost to the FDIC is negligible.


15. Reason for Change in Burden


The decrease in burden from 717,642 hours to 702,832 hours is the result of an adjustment to reflect the decrease in the number of respondent banks.


16. Publication


There is no publication of the information reported.


17. Display of Expiration Dates


Not applicable to these disclosures.


18. Exceptions to Certification


None.


B. STATISTICAL METHODS


Not applicable.



1 Consistent with the FRB’s analysis, the figures below are estimates of averages. The annual frequency estimates are based on FRB estimates. The frequencies of different kinds of disclosures can vary according to the number of applications denied or accounts terminated by a creditor; the number of accounts maintained by the creditor, the level of a creditor’s credit reporting, and the level of a creditor’s mortgage lending activity.

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File Typeapplication/msword
File TitleSUPPORTING STATEMENT
AuthorFDIC
Last Modified Byleneta gregorie
File Modified2008-03-10
File Created2008-03-10

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