The Omnibus Appropriations Act, as clarified by Section 511 of the Credit CARD Act, and as amended by Section 1097 of the Dodd-Frank Act directs the Bureau of Consumer Financial Protection (CFPB) to issue rules that "relate to unfair or deceptive acts or practices" regarding mortgage loans. Regulation N prohibits misrepresentations about the terms of mortgage credit products in commercial communications and requires that covered persons keep certain related records for a period of twenty-four (24) months from last dissemination. Specifically, Regulation N requires covered persons to retain : (1) copies of all materially different commercial communications disseminated, including but not limited to sales scripts, training materials, related marketing materials, websites, and weblogs; (2) documents describing or evidencing all mortgage credit products available to consumers during the time period in which each commercial communication was disseminated, including but not limited to the names and terms of each such mortgage credit product available to consumers; and (3) documents describing or evidencing all additional products or services (such as credit insurance or credit disability insurance) that are or may be offered or provided with the mortgage credit products available to consumers during the time period in which each commercial communication was disseminated, including but not limited to the names and terms of each such additional product or service available to consumers. A failure to keep such records is a violation of Regulation N.
The FTC's record supports the conclusion that the information that Regulation N requires covered persons to retain is necessary to ensure efficient and effective law enforcement to address deceptive practices that occur in the mortgage advertising area. To gauge whether covered persons are complying with Regulation N or making prohibited misrepresentations, the FTC's record supports the conclusion that it is necessary to review the commercial communications that were disseminated and the information about the mortgage credit products and relevant additional products or services available during the time period in which each commercial communication was disseminated. Furthermore, the FTC's record supports the conclusion that a strong recordkeeping provision is necessary to foster effective enforcement of Regulation N.
The Bureau of Consumer Financial Protection (CFPB) respectfully requests emergency processing and approval of the collection of information discussed below because the use of normal clearance procedures is reasonably likely to prevent and disrupt an existing collection of information.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. 111-203, Section 1097, 124 Stat. 1376, 2102 (2010) (Dodd-Frank Act) transferred rulemaking authority for the Mortgage Acts and Practices  Advertising Rule (MAP), Section 626 of the 2009 Omnibus Appropriations Act, Pub. L. 111-8, 123 Stat. 524, 678 (2009) (codified at 15 U.S.C. 1638 note) (Omnibus Appropriations Act), as clarified by Section 511 of the Credit Card Accountability and Responsibility and Disclosure Act of 2009, Pub. L. 111-24, 123 Stat. 1734, 1763 (2009) (Credit CARD Act), and as amended by the Dodd-Frank Act, to the CFPB on July 21, 2011. In addition to the transfer of rulemaking authority under the Dodd-Frank Act, the CFPB received certain enforcement authorities with respect to MAP.
The CFPB is in the process of publishing for public comment an interim final rule establishing a new regulation in 12 CFR Part 1014 (Regulation N). Regulation N was originally submitted for OMB review by the Federal Trade Commission (FTC) as a proposed rule on September 30, 2010. The FTC later finalized Regulation N and published the final rule on July 22, 2011 (Rule). The FTCÂs record states that the RuleÂs recordkeeping requirement constitutes a Âcollection of information for purposes of the Paperwork Reduction Act and that, except for minor clarifying changes, the RuleÂs recordkeeping provision is the same as in the proposed rule. This interim final rule substantially replicates the Rule, and will not impose any new substantive obligations on regulated entities or any new information collection requirements.
As the CFPB now has enforcement authority over certain populations that have been under the jurisdiction of another agency, the CFPB is requesting approval of a new OMB control number for its collection activities under Regulation N. To prevent a disruption of an approved information collection, the CFPB is requesting emergency processing and approval of the following information collection request. Upon receipt of emergency approval from the Office of Management and Budget, the CFPB will begin a standard approval process for this collection and will seek public input at that time.
US Code:
15 USC 1638
Name of Law: The Omnibus Appropriations Act
PL:
Pub.L. 111 - 24 123
Name of Law: Credit Card Accountability and Responsibility and Disclosure Act
PL: Pub.L. 111 - 203 X Name of Law: Wall Street Reform and Consumer Protection Act
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.
Supporting Statement for Regulation N 20111020 v3.doc
Mortgage Acts and Practices Recordkeeping Requirement