Appraisals for Higher-Risk Mortgage Loans Amendment (Regulation Z)

Forms and Documents

Document Name	Status
3170-0026 SS - HRM Supp Final Rule (RIN 3170-AA11) 12.18.13.pdf Supporting Statement A	2013-12-18

IC Document Collections

IC ID	Document Title	Status
204864	Disclosure Requirements for Appraisals for Higher-Risk Mortgage Loans	Modified
204863	Conduct and Provide Second Appraisal (Depository Institutions)	Removed
204862	Investigate and Verify Requirement for Second Appraisal (Non-Depository Institutions)	Removed
204861	Investigate and Verify Requirement for Second Appraisal (Depository Institutions)	Removed
204860	Review and Provide a Copy of A Full Interior Appraisal (Non-Depository Institutions)	Removed
204859	Review and Provide a Copy of A Full Interior Appraisal (Depository Institutions)	Removed

ICR Details

OMB Control No: 3170-0026	ICR Reference No: 201312-3170-003
Status: Historical Active	Previous ICR Reference No: 201301-3170-005
Agency/Subagency: CFPB	Agency Tracking No: 3170-0015 (Reg Z)
Title: Appraisals for Higher-Risk Mortgage Loans Amendment (Regulation Z)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 03/04/2014
	Date Received in OIRA: 12/26/2013
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2017	36 Months From Approved	04/30/2016
Responses	85,192	0	150,790
Time Burden (Hours)	37,720	0	37,499
Cost Burden (Dollars)	0	0	0

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Abstract: In response to the recent mortgage crisis, Congress amended the Truth in Lending Act (TILA) to require creditors originating mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage (higher-risk mortgage loans) to obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of appraisals, and give applicants a copy of written appraisals used. These changes were enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Pub. L. 111-203, § 1471, 124 Stat. 1376, 2185 (2010). Section 1471 of the Dodd-Frank Act adds a new section to TILA, section 129H, addressing appraisal requirements for higher-risk mortgage loans.

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Authorizing Statute(s): PL: Pub.L. 111 - 203 1471, 124 Stat. 1376, 2185 (20 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3170-AA11	Final or interim final rulemaking	78 FR 78519	12/26/2013

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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: 1

IC Title	Form No.	Form Name
Disclosure Requirements for Appraisals for Higher-Risk Mortgage Loans
Review and Provide a Copy of A Full Interior Appraisal (Depository Institutions)
Review and Provide a Copy of A Full Interior Appraisal (Non-Depository Institutions)
Investigate and Verify Requirement for Second Appraisal (Depository Institutions)
Investigate and Verify Requirement for Second Appraisal (Non-Depository Institutions)
Conduct and Provide Second Appraisal (Depository Institutions)

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	85,192	150,790	0	-89	-65,509	0
Annual Time Burden (Hours)	37,720	37,499	0	-200	421	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to: Changing Regulations

Short Statement: The Bureau estimates that the changes contained in this supplemental rule would result in an on-going burden reduction in the form of a program change of approximately, 200 hours (from 1,500 to 1,300). The Bureau estimates the 36,000 hours of the one-time burden to read understand the legal requirements of final rule remains unchanged. The gross impact of the adjustment is actually greater, before accounting for the 200 hour reduction in the form of a program change is the result of the streamlined refinance and smaller-dollar exemptions as provided in this supplemental final rule.

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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: 12/26/2013

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