The Mortgage Assistance Relief Service Rule was created under section 626 of the 2009 Omnibus Appropriations Act, Pub. L. No. 111-8, published as the MARS rule under 16 CFR 322, and clarified by section 511 of the Credit Card Accountability and Responsibility and Disclosure Act of 2009, Pub. L. No. 111-24 (Credit CARD Act). The Dodd-Frank act (Pub. L. 111-203, Sec. 1097) transfers rulemaking authority and shared enforcement authority to the CFPB under 12 CFR 1015. This rule covers Mortgage Assistance Relief Service providers, which are for-profit services which assist consumers who are struggling to meet mortgage obligations and/or avoid foreclosure.
The required disclosures under Regulation O 12 CFR 1015 assist prospective purchasers of Mortgage assistance relief services (MARS) in making well-informed decisions and avoiding deceptive and unfair acts and practices. The information that must be kept under Regulation O's recordkeeping requirements is used by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) for enforcement purposes and to ensure compliance by MARS providers with Regulation O. The information is requested only on a case-by-case basis.
PL:
Pub.L. 111 - 8 626
Name of Law: Omnibus Appropriations Act of 2009
PL:
Pub.L. 111 - 24 511
Name of Law: Credit Card Accountability and Responsibility and Disclosure Act of 2009
PL:
Pub.L. 111 - 203 1097
Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
Prior to this analysis, the CFPB and FTC's ongoing burden for Regulation O was approximately 65,000 hours annually, of which one half, 32,500 hours, were allocated to the CFPB. The drop in burden hours reflects a significant reduction in the estimated MARS providers and the lack of one-time startup costs associated with new entrants into the market (due to the fact that there are not expected to be any new market entrants in the next three years), as well as the lack of rule modification and regulatory litigation related to non-attorney MARS providers. The decrease in the estimated number of MARS providers is consistent with this regulation causing a reduction in apparent providers of mortgage relief services, which were not in fact providing legitimate relief services. These providers were sometimes mistaken for legitimate MARS providers (causing overestimation). The cost burden results from CFPB including a small materials cost which we feel more accurately represents the costs of these recordkeeping and disclosure requirements.
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.
Change Request - Remove Cost Burden.docx
3170-0007 MARS (O) 2015 renewal SS-30day-final.pdf
Regulation O Recordkeeping and Disclosure Requirements