The Truth in Lending Act (TILA), 15
U.S.C. 1601 et seq., was enacted to foster comparison credit
shopping and informed credit decision making by requiring accurate
disclosure of the costs and terms of credit to consumers. Creditors
are subject to disclosure and other requirements that apply to
open-end credit (e.g., revolving credit or credit lines) and
closed-end credit (e.g., installment financing). TILA imposes
disclosure requirements on all types of creditors in connection
with consumer credit, including mortgage companies, finance
companies, retailers, and credit card issuers, to ensure that
consumers are fully apprised of the terms of financing prior to
consummation of the transaction and, in some instances, during the
loan term. It also imposes advertising disclosure requirements on
advertisers of consumer credit. TILA also establishes billing error
resolution procedures for open-end credit and limits consumer
liability for the unauthorized use of credit cards. An amendment to
TILA, the Home Ownership and Equity Protection Act (HOEPA),
imposes, among other things, various disclosure and other
requirements on certain creditors offering high-cost mortgages to
consumers. The CFPB promulgated its Regulation Z to implement TILA,
as required by the statute. The CFPB enforces TILA as to certain
creditors and advertisers. TILA also contains a private right of
action for consumers and provides enhanced remedies to consumers in
high-cost mortgages for violations of HOEPA. Through a proposed
rule published in the Federal Register in August 2012, the CFPB is
proposing to amend Regulation Z to implement certain amendments
made to TILA by the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act), Pub. L. 111-203. The CFPB believes
that certain aspects of the proposed rule are information
collections under the PRA.
US Code:
15
USC 1601 Name of Law: Truth in Lending Act
The changes in burden and costs
are the result of several changes. Primarily, it is the result of a
dramatic decline in the total volume of HOEPA originations between
2013 and 2014. To a lesser extent, the previous supporting
statement assumed burden for providing a list of housing counselors
to high-cost mortgage borrowers, which we are now assuming under
the Regulation X supporting statement.
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.
3170-0023 Supporting statement 30 day -11-19-15_531pm.pdf
HOEPA Disclosure and Record-keeping requirements