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 August 8, 2013, a joint notice of proposed rulemaking (NPRM) was published in the Federal Register (78 FR 48548) for public comment to amend Regulation Z, which implements TILA. This NPRM relates to an interagency appraisals final rule issued by the Agencies effective as of January 18, 2014. The interagency appraisal final rule implements a provision added to TILA by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) requiring appraisals for higher-risk mortgages. For certain mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the Final Rule requires 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 Agencies are proposing amendments to the final rule implementing these requirements; specifically, the Agencies are proposing exemptions from the rules for: (1) transactions secured by existing manufactured homes and not land; (2) certain "streamlined" refinancing; and (3) transactions of $25,000 or less. The NPRM comment period expired October 7, 2013. The Agencies received 12 comment letters regarding the NPRM from State credit union trade associations, national credit union trade association, state banking trade associations, small mortgage lenders, and community banking trade associations. On December 26, 2013, a joint notice of final rulemaking was published in the Federal Register (78 FR 78520). 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.
2 - RegZ_R1443_HPML_II_201502_omb.pdf
Subpart B - Account opening disclosures Section 226.6