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