Recordkeeping and Disclosure Requirements in Connection with Regulation Z (Truth in Lending) and Section 227.28 of Regulation AA (Unfair or Deceptive Acts or Practices (UDAP))
ICR 200904-7100-005 · OMB 7100-0199 · Historical Active
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Recordkeeping and Disclosure Requirements in Connection with Regulation Z (Truth in Lending) and Section 227.28 of Regulation AA (Unfair or Deceptive Acts or Practices (UDAP))
Truth In Lending Act (TILA) and Regulation Z ensure adequate disclosure of the costs and terms of credit to consumers. For open-end credit, creditors are required to disclose information about the initial costs and terms and to provide periodic statements of account activity, notices of changes in terms, and statements of rights concerning billing error procedures. The regulation also requires specific types of disclosures for credit and charge card accounts, and home-equity plans. For closed-end loans, such as mortgage and installment loans, cost disclosures are required to be provided prior to consummation. Special disclosures are required of certain products, such as reverse mortgages, certain variable-rate loans, and certain mortgages with rates and fees above specified thresholds. TILA and Regulation Z also contain rules concerning credit advertising. To ease the burden and cost of complying with Regulation Z (particularly for small entities), the Federal Reserve provides model forms, which are appended to the regulation. Creditors are required to retain evidence of compliance for twenty-four months (subpart D, section 226.25), but the regulation does not specify the types of records that must be retained.
On December 10, 2008, a notice of proposed rulemaking was published in the Federal Register for public comment (73 FR 74989). The Federal Reserve proposes to revise Regulation Z to implement provisions of the Mortgage Disclosure Improvement Act of 2008 (MDIA), as amended. The proposed revisions would require creditors to deliver good faith estimates of the required mortgage disclosures or place them in the mail no later than three business days after receiving a consumerÂs application for dwelling-secured credit. The delivery or mailing must occur at least seven business days before consummation, and before the consumer pays any fee, other than a bona fide and reasonable fee for obtaining the consumerÂs credit history. If the annual percentage rate provided in the good faith estimates changes beyond a stated tolerance, creditors must provide a corrected disclosure at least three business days before consummation of the transaction. The proposal would allow consumers to expedite consummation to meet a bona fide personal financial emergency. The PRA comment period expired February 9, 2009. The Federal Reserve received over 50 comment letters. On May 19, 2009, a notice of final rulemaking was published in the Federal Register adopting the amendments largely as proposed, with mandatory compliance by July 30, 2009 (74 FR 23289).
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
RegZ_R1340.MDIA.20090507.nfrm.pr.pdf
RegZ_R1340.MDIA.20090519.omb.doc
Subpart B - Open-end credit (Initial Disclosures)