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
Federal Form Document
⚠️ Notice: This information collection may be outdated. More recent filings for OMB 7100-0199 can be found here:
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 consumers
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 consumers 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)