Reporting, 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 201303-7100-001
OMB: 7100-0199
Federal Form Document
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Reporting, 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.
On September 5, 2012, a joint
notice of proposed rulemaking (NPRM) was published in the Federal
Register (77 FR 54722) for public comment to amend Regulation Z,
which implements TILA. This NPRM implements Section 129H of TILA,
which was enacted on July 21, 2010, by Section 1400 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act. TILA
Section 129H, sets forth appraisal requirements applicable to
''higher-risk mortgages.'' For mortgages with an annual percentage
rate that exceeds the average prime offer rate by a specified
percentage, the proposed rule would require creditors to obtain an
appraisal or appraisals meeting certain specified standards,
provide applicants with a notification regarding the use of the
appraisals, and give applicants a copy of the written appraisals
used. The comment period expired November 5, 2012. The Agencies
received one comment that specifically addressed the paperwork
burden estimates. The commenter asserted that the Agencies'
proposed PRA estimates to comply with the new requirements were
understated, but the commenter did not provide alternative
estimates. The Agencies recognize that the amount of time required
of institutions to comply with the requirements may vary; however,
the Agencies continue to believe that estimates provided are
reasonable averages. On February 13, 2013, a joint NFRM was
published in the Federal Register (78 FR 10368). The requirements
provided in the final rule are substantially similar to those
provided in the proposed rule. Compliance with this final rule is
effective January 18, 2014.
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_R1443_HPML_20131028_ombclean.docx
Reg_Z_R1443_HRMA_20130118_nfrm_pr.pdf
Subpart B - Account opening disclosures Section 226.6