The data collected will be used to inform CFPB's design and development of the mandated integrated disclosure and its implementation. The information collected through the one-on-one cognitive interviews will inform the design, using an iterative process to improve the disclosure so that the final disclosure is one that consumers can use to identify the terms of the loan being offered to them and use that information to compare among different loan offers.
The Department of the Treasury (Treasury), on behalf of itself and the Consumer Financial Protection Bureau (CFPB), respectfully requests emergency processing and approval of the collection of information to be used for the qualitative testing of integrated mortgage loan disclosure forms. The collection is needed prior to the expiration of the time periods set out in 5 C.F.R. Part 1320.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law No. 111-203, Title X (the ÂDodd-Frank ActÂ) requires CFPB to propose rules and model disclosures that combine the disclosures required under the Truth in Lending Act and sections 4 (the HUD-1) and 5 (the GFE) of the Real Estate Settlement Procedures Act, into a single, integrated disclosure for mortgage loan transactions covered by those laws. (Dodd-Frank Act § 1032(f)). The Dodd-Frank Act mandates that a proposed rule be issued within one year after the Transfer Date, which is July 21, 2011. The target date is to issue the proposed rule as soon after the Transfer Date as possible.
Section 1032 of the Dodd-Frank Act provides that any model form issued pursuant to this subsection shall be validated through consumer testing. To effectively test the model form, the CFPB implementation team has determined that both qualitative and quantitative testing of the form will be necessary. It has further determined that the qualitative evaluation of the form, as part of the iterative process of the design, needs to be initiated in May 2011, to allow five months for revisions and re-testing. Beginning in September, the CFPB implementation team will undertake a quantitative study to validate the form (an ICR for that data collection will be submitted separately). The aggressive schedule is necessary to have a validated disclosure form in January 2012, so that proposed regulations can be drafted and published by July 21, 2012, as mandated in the Dodd-Frank Act. The CFPB implementation team recognizes the importance of this disclosure to improving the market for mortgage loans and wants to move forward as quickly as possible with a regulation to implement a disclosure that successfully communicates information to consumers about the terms of loans and enables consumers to be able to understand and compare the loan products being offered.
Given the timing of the consumer testing, the CFPB implementation team cannot reasonably comply with the normal clearance procedures under 5 C.F.R. Part 1320 with respect to this information collection.
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.
Memo to OMB on changes.doc
Justification_for_Change_09June2011[1].docx
FRN 76FR18827.pdf
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