Justification of Burden

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Overview

Cover
FCRA (V)

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Sheet 1: Cover

PRA Supporting Statement burden and cost calculations
This workbook contains justification for the numbers calculated for each regulation's PRA Supporting Statement.
Please refer to the Assumptions/Notes section below for general reasoning behind the calculations as well as exceptions to any methods used.
Assumptions/Notes
General
1) CFPB burden is for those depository institutions with over $10 billion in assets and their depository affiliates, as well as half of the FTC's burden net that which is attributed to the FTC for motor vehicle dealers. Dodd-Frank carves-out a specific section of motor vehicle dealers from the FTC for CFPB regulatory authority, however due to the calculation difficulty of carving out this smaller section, the FTC has attributed all burden attributed to motor vehicle dealers to themselves.
2) Whenever an agency did not have a complete burden and cost estimate analysis for any particular regulation, the Fed's burden and cost numbers were used, except for the OTS where the OCC's estimates were used where possible.
3) When the original agency's number of respondents for a particular line item was less than the total affected by the regulation, CFPB's affected number of respondents for that line item was calculated using the ratio of that number/total affected * the total number transferring to the CFPB.
4) Line items from different agencies' supporting statements were kept as close as possible to their original breakdown, with some assumptions made if breaking them up would still keep the accuracy of the numbers and would fit well with line items from other agencies.
5) The one-time changes in previous agencies' supporting statements were not accounted for in the CFPB's burden acquisition, since presumably the firms have already implemented these changes. The CFPB only assumed each agency's respective portion of ongoing burden. With respect to the FTC, however, since the FTC annualizes the one-time burden over the three-year clearance of the Supporting Statement, the CFPB did take half of their one-time burden for the one-time changes in the FTC's Supporting Statements.
6) The restatement process caused some forms associated with certain regulations to change, and the one-time burden calculated for these changes reflected in the PRA Supporting Statement is only for those entities for which the CFPB has enforcement authority. This burden is new burden and was not assumed during the restatement process.
7) The one-time costs for firms were estimated using the same cost structure as their previous regulatory agency used for any ongoing burden costs imposed on firms. The exception is for the FTC, since they used multiple cost structures for different burden items, a standard cost structure was used for them, taken from the estimates used by the FTC for TILA burden costs.
8) Estimates for non-labor costs and costs to government were estimated by taking the appropriate portion from the other agencies' supporting statements based on the CFPB's burden assumed from each respective agency who calculated these costs.
ECOA
9) For the one-time burden change: This includes all depository entities with over $10B in assets and all of their depository affiliates and consumer finance related non-depository affiliates, which are those entities which the CFPB has enforcement authority. For those entities under both the enforcement authority of the CFPB and the FTC, the CFPB and FTC are splitting the burden.
10) For the 1022 burden: This includes all institutions changing to the CFPB as described above, in addition to all those entities changing enforcement authorities from the OTS. For those entities under both the enforcement authority of the CFPB and the FTC, this burden is the full amount created by the changes in forms.
11) The one-time burden changes were estimated to be four hours per form, per firm, as the changes are relatively minor and simple. This estimate is an extrapolation from previous one-time estimates that the Fed has done.
TILA
12) The one-time burden changes were estimated to be four hours per form, per firm, as the changes are relatively minor and simple. This estimate is an extrapolation from previous one-time estimates that the Fed has done.
FCRA
13) The one-time burden changes were estimated to be two hours per form, per firm, as the changes are relatively minor and simple, and with a total of eleven forms changing, there should be increased efficiency with making multiple changes of the same thing. This estimate is an extrapolation from previous one-time estimates that the Fed has done.
RESPA
14) Modified Annual Escrow from 21,110 to 20,100 frequency of responses, so that the responses per annum add up.
		Instutions >$10B	Affiliates	Total
	Fed	21	4	25
	FDIC	23	18	41
	OCC	60	26	86
	NCUA	3		3

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Sheet 2: FCRA (V)

Fed	25								FDIC	41								OCC	86										NCUA	3								FTC																		CFPB
						Total Costs									Total Costs											Total Costs									Total Costs																Total Costs	Non-labor Costs	CFPB split								Total Costs	Non-labor Costs
	Estimated number of respondents	CFPB carve-out	Estimated annual frequency	Estimated response time (hours)	Estimated annual burden hours					Respondents	CFPB carve-out	Annual frequency	Time (hours)	Estimated annual burden hours					Respondents - OCC	Respondents - OTS	Total OCC & OTS	CFPB carve-out	Frequency	Time (hours)	Estimated annual burden hours					Respondents	CFPB carve-out	Frequency	Time (hours)	Estimated annual burden hours	No cost to respondents; No cost to gov't					Respondents	Auto dealer carve-out	New estimated number of respondents	FTC half + auto-dealers	CFPB half	Frequency	Estimated response time (hr)	Time annualized over 3 years	Auto dealer carve-out burden (hr)	FTC burden (hr)	CFPB estimated total annual burden (hr)							Estimated number of respondents	Estimated annual frequency	Estimated response time (hours)	Estimated annual burden hours
Negative information notice (Section 217)	30,000	25	1	0.25	6	$271			Banks	5,104	41	1	40	1,640	$101,106			Separate Notice - Ongoing	90	39	129	5	1	2	10	$434			Develop program	5,245	3	1	25	75	$3,255			128 (Free Annual File Disclosures)
Affiliate marketing opt-out notice (Section 214)									Frivolous or Irrelevant Dispute Notices	100,100	805	1	0.23	188	$18,020			Consolidated Notice - Ongoing	270	116	386	15	1	1	15	$651			Preparing annual report	5,245	3	1	4	12	$521				New annual file disclosure requests - '07	26,690,000		26,690,000	13,345,000	13,345,000	1			-	155,500	155,500	$2,595,000	$8,390,000	$4,195,000
Financial Institutions	2,619	25	1	18	450	$19,530												Consolidated, but not perpetual opt out notices	135	58	193	8	1	1	8	$347			Training	5,245	3	1	2	6	$260				CRAs have to remove adveritsing until after consumer has obtained requested annual file disclosure -'09	3		3	2	1	1	12	12	-	24	12	$710
Consumer Response	638,380	6,094	1	0.083	508	$10,665												Consumer Opt-out - Consolidated notices	406,125	145,109	551,234	2,049	1	0.017	34	$1,482			Developing policies and procedures to assess the validity of changes of addresses	5,245	3	1	4	12	$521
Red flags (Sections 114 and 315)[2]	1,172	25	1	41	1,025	$44,485												Consumer Opt-out - Not consolidated notices	135,375	48,370	183,745	6,828	1	0.067	455	$19,756			Developing policies and procedures to respond to notices of address discrepancies	5,245	3	1	4	12	$521			131 (FACT Act Affiliate Marketing Rule )
Risk-based pricing (Section 311)																																							Non-GLBA entities under the FACT Act Affiliate Marketing Rule	220,356	20	220,336	110,188	110,168	1	14	4.67	93	514,211	514,117	$16,977,623
Notice to consumers (on-going)	18,173	25	12	5	1,500	$65,100
Furnisher duties (Section 312)																																							GLBA entities under the FACT Act Affiliate Marketing Rule	3,350	1,838	1,512	2,594	756	1	14	4.67	8,577	12,105	3,528	$149,209
Policy & procedures	1,172	25	1	40	1,000	$43,400
Irrelevant dispute notices	611,966	13,054	1	0.23	3,046	$132,194																																132 (Prescreen Opt-Out Disclosure Rule)
																																							Prescreen Opt-Out Disclosure Rule	750	225	525	488	262	1	2	2	450	976	524	$131,000
																																						144 (Procedures to Enhance the Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies)
																																							660.3 rqmt to implement written policies to ensure accurate info, related training - Initial	6,133	1,840	4,293	3,986	2,147	1	24	8.00	14,720	31,888	17,176	$704,216
																																							660.3 rqmt to implement written policies to ensure accurate info, related training - Recurring	6,133	1,840	4,293	3,986	2,147	1	4	1.33	2,453	5,315	2,863	$117,369
																																							660.4 rqmts to amend procedures to handle complaints directly from cnsumers - Initial	6,133	1,840	4,293	3,986	2,147	1	8	2.67	4,907	10,629	5,725	$234,739
																																							660.4 implementation of rqmt to notify consumers that a dispute is frivolous - Initial	6,133	1,840	4,293	3,986	2,147	1	8	2.67	4,907	10,629	5,725	$234,739
																																							Time to prepare a sec.660.4 notice of frivolous or irrelevant dispute - Ongoing	21,720	217	21,503	10,968	10,752	1	0.233	0.233	51	2,559	2,509	$46,413
																																						145 (Fair Credit Reporting Risk-Based Pricing Regulations)
																																							Additional one-time burden to implement proposed amendments	199,500	117,631	81,869	158,566	40,934	1	32	10.67	1,254,731	1,691,371	436,629	$18,753,230
																																							Initial cost to implement changes	199,500	117,631	81,869	158,566	40,934	1	220	73.33	8,626,273	11,628,173	3,001,827	$51,716,016
One-time form changes									One-time form changes									One-time form changes											One-time form changes									One-time form changes
H Forms		25	7	2	350	$15,190			H Forms		41	7	2	574	$35,387			H Forms				86	7	2	1,204	$52,254			H Forms		3	7	2	42	$1,823				H Forms	199,500	117,631	81,869	158,566	40,934	7	2	2	1,646,834	2,219,924	573,076	$17,822,664
M Form		25	1	2	50	$2,170			M Form		41	1	2	82	$5,055			M Form				86	1	2	172	$7,465			M Form		3	1	2	6	$260				M Form	6,133	1,840	4,293	3,987	2,146	1	2	2	3,680	7,974	4,292	$133,481
I, K, N Forms			3	2	0	$0			I, K, N Forms			3	2	-	$-			I, K, N Forms					3	2	0	$0			I, K, N Forms			3	2	-	$-				I, K, N Forms	379		379	190	189	3	2	2	-	1,140	1,134	$35,267
Total					7,935	$333,004			Total					2,484	$159,568			Total							1,898	$82,388			Total					165	$7,161				Total											4,724,637	$109,651,676		$4,195,000			Total				4,737,120	$110,233,798	$4,195,000
Ongoing					7,535	$315,644			Ongoing					1,828	$119,126			Ongoing							522	$22,670			Ongoing					117	$5,078				Ongoing											4,146,135	$91,660,263					Ongoing				4,156,138	$92,122,781
One-time					400	$17,360			One-time					656	$40,442			One-time							1376	$59,718			One-time					48	$2,083				One-time											578,502	$17,991,412					One-time				580,982	$18,111,016
																																																								Industry before CFPB				19,017,312	$425,885,806
*Cost estimates for Fed in the SS are stated to be $16 for Office Support and $49 for Financial Managers, although they clearly used $17 and $50 in their analysis