Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z) (Concurrent Proposal)

Forms and Documents

Document Name	Status
QM ATR Supporting Statement.pdf Supporting Statement A	2013-01-30

IC Document Collections

IC ID	Document Title	Status
205622	One-Time Costs: Record Retention Requirement (Non-Depository Institutions & Privately-Insured Credit Unions)	New
205621	One-Time Costs: Ability-to-Repay Verification and Documentation Requirements (Non-Depository Institutions & Privately-Insured Credit Unions)	New
205620	One-Time Costs: Record Retention Requirement (Depository Institutions)	New
205619	One-Time Costs: Ability-to-Repay Verification and Documentation Requirements (Depository Institutions)	New

ICR Details

OMB Control No: 3170-0035	ICR Reference No: 201301-3170-009
Status: Historical Inactive	Previous ICR Reference No:
Agency/Subagency: CFPB	Agency Tracking No: Proposed Rule
Title: Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z) (Concurrent Proposal)
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Comment filed on proposed rule	Conclusion Date: 04/12/2013
	Date Received in OIRA: 01/31/2013
Terms of Clearance: OMB files this comment in accordance with 5 CFR 1320.11( c ). Agency will resubmit collection responding to any PRA related comments in the supporting statement of the ICR submitted at the final rule stage.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date		36 Months From Approved
Responses	0	0	0
Time Burden (Hours)	0	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: The Dodd-Frank Act amended TILA to mandate minimum standards for consideration of a consumer's repayment ability for creditors originating certain closed-end, residential mortgages. 15 U.S.C. 1639c. New TILA section 129C generally prohibits a creditor from making a residential mortgage loan unless the creditor makes a reasonable and good faith determination, based on verified and documented information, that the consumer has a reasonable ability to repay the loan according to its terms. To provide creditors more certainty about their potential liability under the ability-to-repay standards while protecting consumers from unaffordable loans, the Dodd-Frank Act creates a presumption of compliance with the ability-to-pay requirement when creditors make "qualified mortgages." Qualified mortgages do not contain certain features that Congress deemed to create a risk to consumers' ability to repay, and must be underwritten using standards set forth in the statute that are designed to assure that consumers will have the ability to repay these loans. Through a final rule published in the Federal Register in January 2013, the CFPB is amended Regulation Z to implement TILA's ability-to-repay requirement and qualified mortgage provisions, as required by the Dodd-Frank Act. Through this concurrent proposed rule, the CFPB is proposing to further amend Regulation Z. The proposed rule contains certain amendments to the final rule implementing the ability-to-repay requirements, including exemptions for certain nonprofit creditors and certain homeownership stabilization programs. It also adds an additional definition of a qualified mortgage for certain loans made and held in portfolio by small creditors that have total assets less than $1 billion at the end of the previous calendar year; and, together with all affiliates, originated and serviced 500 or fewer first-lien covered transactions during the previous calendar year.

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Authorizing Statute(s): US Code: 15 USC 1601 Name of Law: The Truth in Lending Act (TILA)
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3170-AA34	Proposed rulemaking	78 FR 6621	01/30/2013

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
One-Time Costs: Ability-to-Repay Verification and Documentation Requirements (Non-Depository Institutions & Privately-Insured Credit Unions)
One-Time Costs: Record Retention Requirement (Non-Depository Institutions & Privately-Insured Credit Unions)
One-Time Costs: Ability-to-Repay Verification and Documentation Requirements (Depository Institutions)
One-Time Costs: Record Retention Requirement (Depository Institutions)

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Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Through a concurrent proposed rule published in January 2013, the CFPB proposed to further amend Regulation Z. The proposed rule contains certain amendments to the final rule implementing the ability-to-repay requirements, including exemptions for certain nonprofit creditors and certain homeownership stabilization programs. It also adds an additional definition of a qualified mortgage for certain loans made and held in portfolio by small creditors that have total assets less than $2 billion at the end of the previous calendar year; and, together with all affiliates, originated 500 or fewer first-lien covered transactions during the previous calendar year.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 01/31/2013

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