RegZ_20160527_omb

Supporting Statement for the
Reporting, Recordkeeping, and Disclosure Requirements Associated with
Truth in Lending (Regulation Z)
(Reg Z; OMB No. 7100-0199)
Summary
The Board of Governors of the Federal Reserve System (Board), under delegated
authority from the Office of Management and Budget (OMB), proposes to extend for three years,
with revision, the mandatory Reporting, Recordkeeping, and Disclosure Requirements
Associated with Truth in Lending (Regulation Z) (Reg Z; OMB No. 7100-0199).1 Since 2011,
the Consumer Financial Protection Bureau (CFPB) has been responsible for issuing most of the
Truth in Lending Act (TILA) regulations except for provisions governing real estate appraisals
which are issued jointly by the Board, CFPB, Office of the Comptroller of the Currency (OCC),
Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA),
and Federal Housing Finance Administration (FHFA). The Board is also responsible for issuing
TILA regulations that apply to certain motor vehicle dealers. However, the Board continues to
be responsible under the Paperwork Reduction Act (PRA) for renewing every three years the
information collections mandated by Regulation Z for institutions that are supervised by the
Board.2 The PRA classifies reporting, recordkeeping, or disclosure requirements of a regulation,
including Regulation Z, as information collections.
The Board proposes to modify Reg Z to account for preexisting regulatory requirements
that were not included separately in prior notices and to account for the requirements of new
rules issued during the past three years. A summary of the changes follows below.
First, the Board proposes to modify Reg Z to account for new required rules issued by the
CFPB to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank Act).3 These include:
 Combined closed-end mortgage disclosures under TILA and the Real Estate Settlement
Procedures Act (RESPA)4,
 A requirement that creditors must run a credit check on loan originators,
 Requirements that creditors verify documents used to determine “qualified mortgage”
status,
 Mortgage payoff statement requirements,
 Revised and additional adjustable rate mortgage (ARM) disclosures,
 Periodic statements for closed-end residential mortgages, and
 Revised and additional disclosures for high-cost mortgages under the Home Ownership
Equity Protection Act5 (HOEPA).

Truth in Lending Act (TILA) is codified at 15 U.S.C. § 1601 et seq. The CFPB’s Regulation Z is published at
12 C.F.R. Part 1026 and the Board’s Regulation Z is published at 12 C.F.R. 226.
2
See 44 U.S.C. § 3501 et seq.
3
See Public Law 111-203, 124 Stat. 1376.
4
See 12 U.S.C § 2601 et seq.
5
See 15 U.S.C. § 1639 and 1640.
1

Second, the Board proposes to clarify and add several information collection elements for
regulatory requirements that previously were accounted for as part of a more general category of
information collections or were not previously included because institutions for whose burden
the Board accounts did not engage in the relevant line of business to a material degree. These
include:
 A requirement that creditors of open-end (not home-secured) credit have policies to
comply with requirements for the timely settlement of estate debts,
 A requirement that creditors of open-end (not home-secured) credit have policies to
comply with requirements to account for a consumer’s ability to repay a the debt,
 Separate disclosures for open-end (not home-secured) and open-end (home-secured)
credit, and
 Reverse mortgage disclosures.
Other proposed changes to Reg Z are non-substantive and intended for clarity.
The Board accounts for the paperwork burden associated with the regulation of only
Board-supervised institutions.6 The current total annual burden for the reporting, recordkeeping
and disclosure requirements of this information collection is estimated to be 1,525,822 hours and
with the proposed revisions would decrease by 113,320 hours, for a total of 1,412,502 hours,
including 14,089 hours of one time burden associated with regulation review and compliance set
up. This net decrease is primarily due to the decrease in the reporting panel.
Background and Justification
TILA and Regulation Z ensure adequate disclosure of the costs and terms of credit to
consumers. For open-end credit, such as credit cards and home-equity lines of credit (HELOCs),
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. For closed-end loans, such as mortgage and installment
loans, cost disclosures are required prior to and at consummation. Special disclosures are
required for certain products, such as reverse mortgages and high cost mortgages with rates and
fees above specified thresholds. TILA and Regulation Z also contain rules concerning credit
advertising.7

6

The Board accounts for the following types of institutions, except those that are supervised by the CFPB: state
member banks, their subsidiaries, subsidiaries of bank holding companies, U.S. branches and agencies of foreign
banks (other than federal branches, federal agencies, and insured state branches of foreign banks), commercial
lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of
the Federal Reserve Act (12 U.S.C. § 601-604a; 611-631). The CFPB supervises, among other institutions, insured
depository institutions with over $10 billion in assets and their affiliates.
Other federal agencies account for the paperwork burden that Regulation Z imposes on the institutions for which
they have supervisory authority.
7
In addition, Regulation Z contains requirements that are not considered information collections and thus are not
addressed here.

2

Creditors are required to comply with Regulation Z’s disclosure and other requirements
unless the transaction is exempt.8 Regulation Z generally does not apply to consumer credit
transactions that exceed a threshold amount, adjusted annually for inflation.9 The threshold
amount for credit extended during 2015 was $54,600; this threshold will remain the same in
2016.
However, regardless of the amount of credit extended, Regulation Z applies to
(1) consumer credit secured by real property, (2) consumer credit secured by personal property
used or expected to be used as the principal swelling of the consumer, and (3) private student
loans.
On July 21, 2011, rulemaking authority for TILA was transferred from the Board to the
CFPB under the Dodd-Frank Act.10 In December 2011, the CFPB published an interim final rule
establishing its own Regulation Z to implement TILA at 12 C.F.R. part 1026 that substantially
duplicated the Board’s Regulation Z.11 The CFPB has subsequently amended its Regulation Z to
adopt rules required by the Dodd-Frank Act.
Description of Information Collection
The reporting, recordkeeping, and disclosure requirements of Regulation Z that are
considered information collections applicable to Board-supervised institutions are described
below. The frequency of response varies according to the level of credit activity by a creditor.
No other federal law mandates these reporting, recordkeeping, and disclosure requirements, but
some states may have similar requirements.
This document summarizes only information collection requirements in Regulation Z, not
all Regulation Z requirements. Part I addresses information collection requirements for openend credit products. Part II reviews information collection requirements for closed-end credit.
Part III discusses information collection requirements that apply to both open- and closed-end
mortgage credit. Part IV summarizes information collection requirements for specific residential
mortgage types – namely, reverse mortgages and mortgage loans above certain price thresholds.
Part V reviews information collection requirements for private education loans. Finally, Parts VI
and VII discuss information collection requirements related to Regulation Z’s advertising and
record retention rules, respectively.

8

Exemptions include business credit, credit over applicable threshold amounts, public utility credit, securities or
commodities accounts, home fuel budget plans, certain student loan programs, and employer-sponsored retirement
plans. See 12 C.F.R. 1026.3.
9
See 12 C.F.R. 1026.3(b).
10
See P.L. 111-203(2010).
11
The CFPB’s Regulation Z generally applies to all creditors, including Board-supervised institutions, and thus are
cited throughout this memorandum. The Board’s Regulation Z generally applies only to certain motor vehicle
dealers, but appraisal requirements in the Board’s Regulation Z still apply to Board-supervised institutions.

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I. Open-end Credit Information Collections
A. Open-End (Not Home-Secured) Credit Plans
1. General Disclosure Rules for Open-End (Not Home-Secured) Credit Plans
a. Credit and Charge Card Applications and Solicitations
(Section 1026.60). Generally, credit and charge card issuers must provide
disclosures with applications and solicitations. When offering cards to
consumers by direct mail solicitation, card issuers must disclose in a highlystructured table, the key terms of the account, such as the APR, information
about variable rates, and fees such as annual fees, minimum finance charges,
and transaction fees for purchases. Similar disclosure rules apply in telephone
solicitations, and for “take-one” and magazine or catalog applications.
Special rules apply for charge cards.
b. Account-Opening Disclosures (Section 1026.6(b)). Creditors that offer
open-end credit are required to inform consumers of costs and terms before
they use the accounts. Account-opening information must include the finance
charge and other charges, each periodic rate that may be used to compute the
finance charge, a description of how balances (on which a finance charge is
based) will be calculated, a statement of billing rights, and any collateral that
will secure repayment. For open-end (not home-secured) plans, these
account-opening disclosures must comply with strict formatting rules where
certain terms must be presented in a tabular format.
c. Periodic Statements (Section 1026.7(b)). A written statement of activity
on open-end accounts must be provided each billing cycle (typically monthly).
The statement must be provided for each account that has a debit or credit
balance of more than $1 or on which a finance charge is imposed, and it must
include a description of activity on the account, opening and closing balances,
finance charges imposed, and payment information.
d. Change-in-Term Disclosures (Section 1026.9).
Checks and other supplemental access devices (Section 1026.9(b)(3)). A
card issuer that provides checks that access a credit card account must disclose
key terms in a summary table on the front of the page containing the checks if
they are provided more than 30 days after the account-opening disclosures (or
if the terms differ from the finance charges previously disclosed).
Significant changes (Section1026.9(c)(2)). For open-end (not homesecured) plans, if the creditor makes a significant change in account terms, a
creditor generally must provide written notice of the change at least 45 days
prior to the effective date of the change. For certain significant changes, the
creditor must provide the consumer a right to reject the change and provide

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disclosures regarding the right to reject, but may terminate or suspend further
advances if the consumer rejects the change.12
Renewals (Section 1026.9(e)). If a card issuer has changed any annual or
other periodic fee to renew a credit or charge card account or changed any
terms required to be disclosed at account opening (see Part I.A.1.a, above),
and has not previously disclosed these changes to the consumer, the card
issuer must mail or deliver written notice of the card renewal.
Credit Insurance (Section 1026.9(f)). A credit card issuer that plans to
change its credit insurance provider must provide 30 days’ advance notice to
cardholders with information on any increased cost or substantial decrease in
coverage that would result. The notice must inform consumers about their
right to cancel the insurance. No later than 30 days after the change, the
issuer must provide the cardholder with the following information: the name
and address of the new insurance provider; a copy of the new policy or group
certificate; and a statement that the cardholder may discontinue the insurance.
Increase in interest rates due to delinquency or default or as a penalty
(1026.9(g)). Creditors must provide written notice to the consumer with
specific information regarding the rate increase at least 45 days in advance of
an increased rate due to delinquency or default or as a penalty.
2. Other Information Collections for Credit and Charge Cards
a. Timely Settlement of Estate Debts (Section 1026.11(c)). For credit card
accounts under an open-end (not home-secured) plan, card issuers must adopt
reasonable written policies and procedures designed to ensure that an
administrator of an estate of a deceased accountholder can determine the
amount of and pay any balance on the account in a timely matter.13 Upon
request by the administrator of an estate, a card issuer must provide the
administrator with the amount of the balance on a deceased consumer’s
account in a timely manner.
b. Ability to Pay (Section 1026.51). Card issuers must establish and
maintain reasonable written policies and procedures to consider the
consumer’s ability to make the required minimum payments under the terms
of the account based on a consumer’s income or assets and a consumer’s
current obligations. For consumers less than 21 years old, the consumer must
provide financial information indicating the consumer has an independent
ability to pay and include a signed agreement of a cosigner, guarantor, or joint
applicant who is at least 21 years old to be secondarily or jointly liable on the
12

See 12 C.F.R. 1026.9(h).
Policies and procedures also need to include the requirement that the card issuer limit the fees and increases on
the annual percentage rate applicable to the account, and that, if payment is received in full within 30 days after
disclosure, the card issuer must waive or rebate any additional interest charged.
13

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account prior to opening an account or increasing the credit line on the
account.
c. Reporting and Marketing Rules for College Student Open-End Credit
(Section 1026.57(d)). Card issuers that are a party to one or more college
credit card agreements must submit annual reports to the CFPB regarding
those agreements by the first business day on or after March 31 of each
calendar year. The annual report must include the method or formula used to
determine the amount of payments from an issuer to an institution of higher
education or affiliated organization during the reporting period. In addition,
each annual report must include a copy of any memorandum of understanding
that directly or indirectly relates to the college credit card agreement or that
controls or directs any obligations or distribution of benefits between these
entities.
d. Internet Posting of Credit Card Agreements (Section 1026.58). Card
issuers must post on their Websites the credit card agreements they offer to
the public. Card issuers must also submit these agreements to the CFPB
quarterly for posting on the CFPB’s public Website.14 This requirement
applies to any card issuer that issues credit cards under a credit card account
under an open-end (not home-secured) consumer credit plan.15
B. Open-End Home-Equity Plans
Several disclosure requirements apply specifically to open-end credit plans
secured by a dwelling, commonly referred to as HELOCs.
1. Application Disclosures (Section 1026.40).
Creditors must provide to the consumer at the time of application a set of
disclosures describing various features of a creditor’s HELOC plans, including
the length of the draw and repayment periods, how the minimum required
payment is calculated, whether a balloon payment will be owed if a consumer
only makes minimum required payments, payment examples, and what fees are
charged by the creditor to open, use, and maintain the plan.
2. Account Opening (Section 1026.6(a)).
Before the first transaction on a HELOC, creditors must disclose to the
consumer the costs and terms of the plan, including the circumstances under
14

The CFPB has temporarily suspended the requirement to submit agreements to the CFPB until April 30, 2016, as
part of an effort to develop a more streamlined and automated submission process. The requirement to post
agreements on the card issuers’ own Websites is unaffected. See 80 FR 21153 (April 17, 2015).
15
A de minimis exception from the requirement to post agreements on issuers’ publicly available Websites, and
submit agreements to the CFPB for posting on the CFPB’s public website, applies to issuers with fewer than 10,000
open credit card accounts.

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which a “finance charge” may be imposed and how it will be determined (e.g.,
interest, transaction charges, minimum charges, and each periodic rate of interest
that may be applied to an outstanding balance) and the corresponding APR. In
addition, creditors must disclose the amount of certain charges other than finance
charges, such as a late payment charge.
3. Periodic Statements (Section 1026.7(a)).
Creditors must provide periodic statements reflecting account activity for the
billing cycle (typically, one month). In addition to identifying each transaction on
the account, creditors must identify each “finance charge,” using that term, and
each “other charge” assessed against the account during the statement period.
Creditors must disclose the periodic rate that applies to an outstanding balance
and its corresponding APR. Creditors also must disclose an “effective” or
“historical” APR for the billing cycle, which includes not just interest but also
finance charges imposed in the form of fees.
4. Change-in-Terms Notices (Section 1026.9(c)(1)(i) and (ii)).
Creditors must send, in most cases, notices 15 days before the effective date
of certain changes in the account terms.
5. Notices to Restrict Credit (Sections 1026.9(c)(1)(iii), 1026.40(f)(3)(i) and
(f)(3)(vi)).
If a creditor prohibits additional extensions of credit or reduces the credit limit
as permitted under certain provisions of Regulation Z, the creditor must mail or
deliver written notice to the consumer who will be affected. The notice must be
provided no later than three business days after the action is taken and must
contain the specific reasons for the action. If the creditor requires the consumer to
request reinstatement of the line, the notice also must state that fact.
C. Rules Applicable to All Open-End Credit
1. Error Resolution (Sections 1026.9(a) and 1026.13)
a. Summary. Creditors extending open-end credit must notify consumers
about their rights and responsibilities regarding billing problems. Creditors
may provide either a complete statement of billing rights each year, or a
summary on each periodic statement. The paperwork burden for the summary
is included in the estimated burden for periodic statements.
b. Error Resolution. When a consumer alleges a billing error, the creditor
must provide an acknowledgment, within 30 days of receipt, that the creditor
received the consumer’s error notice, and must report on the results of its
investigation within two complete billing cycles (but in no event later than 90

7

days). If a billing error did not occur, the creditor must provide an
explanation as to why the creditor believes an error did not occur and provide
documentary evidence to the consumer upon request. The creditor must also
give notice of the portion of the disputed amount and related finance or other
charges that the consumer still owes and notice of when payment is due.
II. Closed-end Credit Information Collections
A. Closed-End Credit Other than Real Estate, Home-Secured, and Private
Education Loans (Sections 1026.17 and .18)
Generally, before consummation of a closed-end consumer credit transaction, the
creditor must disclose to the consumer credit terms such as the amount financed, the
APR, the finance charge, and the payment schedule, among other information. Key
information must be highlighted for consumers through the use of certain terminology
and a specific format. Transactions where the amount financed exceeds $54,600
(adjusted annually based on increases in the consumer price index) are exempt unless
they are private education loans or secured by real property or a consumer’s dwelling.
B. Closed-End Mortgages
1. Application and Consummation Disclosures
On December 31, 2013, the CFPB published amendments to Regulation Z
(TILA) and Regulation X16 (RESPA) establishing new rules and forms that
combine disclosures that consumers receive when applying for and closing on a
closed-end consumer credit transaction secured by real property (other than a
reverse mortgage loan) (TILA-RESPA Final Rule).17 Effective October 3, 2015,
these new rules and forms replace some former information collections and
involve new information collections under Regulation Z.18
a. Loan Estimate (Sections 1026.19(e) and 1026.37). Creditors must
provide to consumers within three business days after receipt of the
consumer’s application an integrated Loan Estimate disclosure form that
replaces the early TILA disclosure form and RESPA Good Faith Estimate.
Creditors must provide revised Loan Estimates in transactions where the
closing costs increase from the amounts previously disclosed on the initial
Loan Estimate.19
16

See 12 C.F.R. part 1024.
See 78 FR 79730 (December 31, 2013).
18
The final rule reduces information collections under Regulation X, 12 C.F.R. part 1024. See 78 FR 79730, 80103
(December 31, 2013).
19
Consistent with an existing Regulation X requirement, the final rule also requires the creditor to provide the
consumer with a written list of available settlement service providers when the consumer has a choice. See Section
1026.19(e)(1)(vi). The CFPB included the burden of this requirement in the burden calculation for the Loan
Estimate, because the timing of this requirement coincides with the provision of the Loan Estimate. See 78 FR
79730, 80101 (December 31, 2013).
17

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b. Closing Disclosure (Sections 1026.19(f) and 1026.38). Creditors must
ensure that consumers receive a Closing Disclosure form at least three
business days before closing on a closed-end consumer credit transaction
(other than a reverse mortgage loan). The Closing Disclosure form replaces
the final TILA disclosure and RESPA settlement statement.
2. Post-Consummation Disclosures
a. Disclosure of Rate Adjustments Resulting in Payment Changes
(Section 1026.20(c)). Creditors, assignees, or servicers of adjustable rate
mortgages (ARMs) secured by a consumer’s principal dwelling are generally
required to provide consumers with disclosures with specific information
about the rate change and its timing prior to the adjustment of the interest rate
on the mortgage, if the interest rate change will result in a payment change.
The timing of the disclosures depends on the circumstances of the rate
adjustment.
Disclosures under section 1026.20(c) are not required for ARMs with a term
of one year or less or if the first interest rate and payment adjustment occurs
within the first 210 days and the new rate disclosed at consummation was not
an estimate.
b. Disclosure of Initial Rate Change for ARMs (Section 1026.20(d)).
Creditors, assignees, or servicers of ARMs secured by the consumer’s
principal dwelling are generally required to provide consumers with certain
information pertaining to the ARM’s initial rate change. This disclosure
must be provided between 210 and 240 days before the first payment at the
adjusted rate is due.
Disclosures required under this section must provide consumers with
information related to the timing and nature of the rate change. These
disclosures are not required for ARMs with a term of one year or less.
c. Post-Consummation Escrow Cancellation Notice (Section 1026.20(e)
and Partial Payment Policy Disclosure (Section 1026.39(d)(5)). The DoddFrank Act requires a Post-Consummation Escrow Cancellation Notice and a
post-consummation Partial Payment Policy disclosure for certain mortgage
transactions. The CFPB’s final TILA-RESPA rule requires separate forms for
these disclosures. The information required for these disclosures is obtained
as part of generating loan estimate and closing disclosures; thus, the burden
associated with this requirement is negligible.
d. Periodic Statements (Section 1026.41). On February 14, 2013, the CFPB
published a final rule to add a periodic statement requirement for certain

9

mortgage loans and specified information that must be disclosed.20 Under the
new rules, creditors, assignees, or servicers of closed-end, dwelling-secured
mortgages are generally required to provide consumers with periodic
statements for each billing cycle. Servicers must provide consumers that are
more than 45 days delinquent on past payments additional information
regarding their accounts on their periodic statements.
Periodic statements are not required for the following transaction types:
reverse mortgage transactions; mortgage loans secured by a consumer’s
interest in a timeshare plan; fixed-rate loans where the servicer currently
provides consumers with coupon books that contain certain information; and
creditors, assignees, or servicers that meet the “small servicer” exemption.21
3. Loan Originator Compensation (Section 1026.36)
On February 15, 2013, the CFPB published a final rule amending its
Regulation Z to reflect provisions of TILA enacted by the Dodd-Frank Act that
largely codified existing rules in Regulation Z concerning loan originator
compensation.22 Regulation Z generally prohibits basing a loan originator’s
compensation on any term of the credit transaction, other than the amount of
credit extended. The final rule amended Regulation Z to clarify the scope of this
prohibition and extend the recordkeeping requirements concerning loan originator
compensation from two to three years.
In addition, the final rule implemented new TILA Section 129B(b), which
generally requires loan originators to be qualified and licensed or registered to the
extent required by State or Federal law, including the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act), and to
otherwise meet minimum qualification standards. This final rule became
effective January 10, 2014.23
Under the loan originator rules, loan originator organizations must obtain a
criminal background check, credit report and information about any findings
against the loan originator by a government jurisdiction for each loan originator
20

See 78 FR 10902 (February 14, 2013), as amended at 78 FR 44686 (July 24, 2013); 78 FR 62993 (October 23,
2013); 79 FR 65300 (Nove 3, 2014). The final rule implemented section 1420 of the Dodd-Frank Act, which adds
section 128(f) to TILA. See 15 U.S.C. § 1638(f). The statute also gave the CFPB authority to require additional
content in the periodic statement.
21
A small servicer is a servicer that (1) services, together with any affiliates, 5,000 or fewer mortgage loans, for all
of which the servicer (or an affiliate) is the creditor or assignee, (2) is a Housing Finance Agency, as defined in
24 C.F.R. 266.5, or (3) is a nonprofit entity that services 5,000 or fewer mortgage loans, including any mortgage
loans serviced on behalf of associated nonprofit entities, for all of which the servicer or an associated nonprofit
entity is the creditor. See 12 C.F.R. 1026.41(e)(4).
22
See 78 FR 11280 (February 15, 2013) and 78 FR 58509 (September 24, 2010).
23
This final rule also implemented other provisions of the Dodd-Frank Act that prohibit the inclusion of arbitration
clauses in mortgage contracts and prohibit financing single-premium credit insurance on a loan secured by a
dwelling. The CFPB believed these final rule provisions would not impact information collection.

10

employee that is not required to be licensed under the SAFE Act and is not so
licensed. Entities must use these records and information to determine whether
the loan originator satisfies certain minimum qualification standards under section
1026.36(f)(3).
No additional burden is imposed on Board-supervised depositories by this
requirement. For each of their employed loan originators, depository institutions
subject to the Federal Reserve’s supervisory authority already obtain criminal
background checks and have access to information about findings against a loan
originator by a government entity, as part of the institution’s compliance with the
SAFE Act24 compliance.
4. Ability-to-Repay Requirements (Section 1026.43)
On January 30, 2013, the CFPB published a final rule amending its
Regulation Z to implement provisions of the Dodd-Frank Act that establish
minimum underwriting standards for residential mortgage loans.25 The final rule
requires creditors to make a reasonable and good faith determination, based on
verified and documented information, of a borrower’s ability to repay a loan
secured by a dwelling. The final rule also establishes a presumption of
compliance with the ability-to-repay requirement for creditors that make qualified
mortgages (QMs). In addition, the final rule implements provisions of the
Dodd-Frank Act that generally limit prepayment penalties to QMs and require
creditors to retain evidence of compliance with the ability-to-repay requirement
and prepayment penalty limitation for three years after making the loan.
This final rule became effective January 10, 2014.26 The Board estimates that
the verification and documentation of the ability-to-repay requirement and the
extended record retention requirement (see Part VII), which are discussed more
fully below, constitute information collections.
a. Minimum Standards for Transactions Secured by a Dwelling (Sections
1026.43(c)-(f)). Creditors must make a reasonable and good faith
determination, based on verified and documented information, that a borrower
has the ability to repay a loan. The verification and documentation of
information relied on to comply with this requirement is an information
collection under the PRA. This requirement applies generally to any loan
secured by a dwelling, but does not include, for example, HELOCs,
timeshares, or reverse mortgages. Section 1026.43(c)(2) requires that
24

See 12 U.S.C. § 5101 et seq.
See 78 FR 6408 (January 30, 2013) (implementing TILA section 129C, 15 U.S.C. § 1638c).
26
The CFPB issued several final rules to amend Regulation Z relating to the ability-to-repay requirement and QM
standards, including final rules that provided a new definition of QM for small creditors and an exemption for
certain creditors and community-focused lending programs from the ability-to-repay requirement (78 FR 35430
(June12, 2013)); clarified certain ability-to-repay and QM criteria (78 FR 44686 (July 24, 2013) and 78 FR 60382
(October 1, 2013)); and established a cure mechanism to the points and fees limit applicable to QM loans (78 FR
65300 (November 3, 2014). The CFPB believed these final rules would not impact information collection.
25

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creditors consider, at the minimum, the following eight factors when making
the ability-to-repay determination:
(1) monthly payment on the mortgage,
(2) monthly payment on a simultaneous loan (including HELOCs) that the
creditor “knows or has reason to know of”,
(3) monthly payment on mortgage-related obligations,
(4) current and reasonably expected income or assets,
(5) current employment status,
(6) current debt obligations, alimony, and child support,
(7) monthly debt-to-income or residual income, and
(8) credit history.
Creditors must verify the information relied upon to determine the
borrower’s ability-to-repay under using reliable third-party records.27 Special
rules are provided for verification of a consumer’s income or assets.28
Creditors may satisfy the ability-to-repay requirement and receive special
protection from liability by making a QM. There are several ways to make a
QM:
(1) Under the general definition of a QM, which requires in part that the
borrower’s total DTI not exceed 43%,29
(2) Under the temporary definition of QM for loans eligible for purchase
by the GSEs and certain other Federal agencies,30 and
(3) Under the special QM definitions for small creditors that meet certain
asset size and origination limits and that generally hold their loans in
portfolio or predominantly operate in rural or underserved areas.31
The verification requirements for QMs differ from those required for the
ability-to-repay determination.
b. Limitations on Prepayment Penalties (1026.43(g)). A covered
transaction cannot contain a prepayment penalty unless otherwise permitted
by state law and subject to certain limitations under Section 1026.43(g). In
addition, if a creditor makes a covered transaction that includes a prepayment
penalty, the creditor must also offer the consumer a comparable, alternative
loan without a prepayment penalty for which the creditor believes the
consumer may qualify. Creditors must maintain a record of compliance with
this provision. This is also noted in Part VII, Record Retention Requirements,
below.

27
28
29
30
31

See 12 C.F.R. 1026.43(c)(3).
See 12 C.F.R. 1026.43(c)(4).
See 12 C.F.R. 1026.43(e)(2).
See 12 C.F.R. 1026.43(e)(4).
See 12 C.F.R. 1026.43(f).

12

III. Open- and Closed-End Home Mortgage Loan Information Collections
A. Mortgage Servicing Disclosures
1. Payoff statements (Section 1026.36(c)(3))
On February 14, 2013, the CFPB published a final rule to make some changes
to existing Regulation Z requirements regarding responses to consumer requests
for payoff amounts for home loans.32 For consumer credit transactions secured by
a dwelling, a creditor, assignee, or servicer must provide an accurate statement of
the total outstanding balance that would be required to pay the consumer’s
obligation in full as of a specific date, no more than seven business days after
receiving a written request from the consumer or person acting on behalf of the
consumer.
2. Notification of the Sale or Transfer of Mortgage Loans (Section 1026.39)
In December of 2013, the CFPB amended a requirement that a new owner or
assignee of a mortgage loan notify a consumer of the sale or transfer of the loan
no later than 30 days after the date on which the new owner/assignee acquired the
loan.33 A person that acquires title to a loan must mail or deliver a disclosure to
the consumer on or before the 30th calendar day following the date of transfer.
The disclosure must identify the loan that was acquired or transferred and contain
the following information (1) the identity, address, and telephone number of the
person that acquired the mortgage loan, (2) the date of the transfer, (3) contact
information that the consumer can use to reach an agent or party authorized to
receive notice of the right to rescind and resolve issues concerning the consumer’s
loan payments, and (4) the place where the transfer of the ownership of the debt is
recorded or the fact that the transfer has not been recorded in public records at the
time the disclosure is provided. In addition, for certain closed-end mortgage
loans, the disclosure must state specified information about partial payments.
The disclosure requirements in section 1026.39 generally apply only to
persons that acquire legal title to more than one existing consumer mortgage loan
in any 12-month period.

32

See 78 FR 10902 (February 14, 2013). The final rule implemented section 1464 of the Dodd-Frank Act, which
adds section 129G to TILA, generally codifying existing Regulation Z requirements on responses to payoff requests.
See 15 U.S.C. § 1639f and 1639g.
33
See 78 FR 79730 (December 31, 2013). These amendments to Regulation Z implemented section 1414(d) of the
Dodd-Frank Act, which amended TILA section 129C to impose additional disclosure requirements on new owners
or assignees regarding partial payments. See 15 U.S.C. § 1639c.

13

B. Valuation Independence (Section 226.42(g)(1)) – Mandatory Reporting
As required by the Dodd-Frank Act, in October 2010 the Board issued an interim
final rule to implement amendments to TILA designed to promote the independence
of appraisers and other home valuation providers in mortgage transactions secured by
a consumer’s principal dwelling.34
The previously approved information collection under this rule was a one-time
burden to update systems, internal procedure manuals, and provide training for
relevant staff to comply with the following reporting requirement: persons covered
by the rule35 that reasonably believe an appraiser has not complied with the Uniform
Standards of Professional Appraisal Practice (USPAP) or ethical or professional
requirements for appraisers under applicable state or federal statutes or regulations
must refer the matter to the appropriate state agency if the failure to comply is
material. A failure to comply is “material” if it is likely significantly to affect the
value assigned to the consumer’s principal dwelling.
The Board believes that negligible ongoing burden is associated with this
requirement. One-time burden was previously accounted for to develop procedures,
update systems, and train staff.
IV. Special Rules for Certain Home Mortgage Types
Certain types of mortgage products trigger special disclosures, such as reverse
mortgages, high-cost mortgages, and “higher-priced mortgage loans.”
A. Reverse Mortgages (Sections 1026.31(c)(2) and 1026.33)
A reverse mortgage transaction is a loan secured by the equity in a home.
Disbursements are made to homeowners until the homeowner dies, moves
permanently, or sells the home. The creditor relies on the home’s future value for
repayment. Creditors offering reverse mortgages must provide the disclosures
generally required by Regulation Z for open- and closed-end mortgage loans, as
applicable.
In addition, Regulation Z requires reverse mortgage creditors to give consumers
disclosures specific to reverse mortgage transactions at least three business days
before loan consummation (for closed-end loans) or the first transaction (for open-end
loans), as follows:

34

See 75 FR 66554 (October 28, 2010) (implementing 15 U.S.C. § 1639e) and 12 C.F.R. 226.42 (Board) and
12 C.F.R. 1026.42 (CFPB).
35
“Covered person” is defined as “a creditor with respect to a covered transaction or a person that provides
‘settlement services,’ as defined in 12 U.S.C. § 2602(3) and implementing regulations, in connection with a covered
transaction.” See 12 C.F.R. 226.42(b)(1) (Board). “Covered transaction” means an extension of consumer credit
that is or will be secured by the consumer’s principal dwelling . . . .” See 12 C.F.R. 226.42(b)(2).

14






Projected total cost of credit for specified loan periods (two years, actuarial
life expectancy, or longer term), in a prescribed table format,
Itemization of loan terms, charges, the age of the youngest borrower, and the
appraised property value,
An explanation of the table of total annual loan cost rates, and
Notice that receiving disclosures or applying for the loan does not obligate the
consumer to complete the transaction.

B. Home Ownership and Equity Protection Act (HOEPA) Loans (Sections
1026.31, 1026.32, 1026.34, and 1026.36)
In addition to providing the other disclosures required for consumer mortgages by
Regulation Z, creditors offering mortgages with rates or fees above thresholds
outlined in the HOEPA (“high-cost mortgages”) must provide cost disclosures and a
notice at least three days before consummation or account opening. The cost
disclosures include the APR; regular payment amount, minimum payment
information for variable-rate loans, and the amount of any permitted balloon
payment; and the total amount borrowed for closed-end loans or credit limit for openend loans. A notice must warn consumers about losing their home and reminds
consumers that they are not obligated to complete the transaction. In addition, if the
creditor changes any terms that are to be reflected on the disclosures, the creditor
generally must provide the consumer with new disclosures and allow the consumer
another three days to consider the transaction before consummation.
In January 2013, the CFPB amended Regulation Z to implement the Dodd-Frank
Act’s amendments to TILA that expand the types of mortgage loans subject to the
protections of HOEPA. Accordingly, the new rules apply not only to closed-end
refinance and home equity loans, but also to purchase-money mortgages and
HELOCs.36 The new rules also revised and expanded the tests for coverage under
HOEPA, and imposed additional restrictions on mortgages that are covered by
HOEPA, including a pre-loan counseling requirement. The amendments were
effective for transactions for which the creditor received an application on or after
January 10, 2014.
New information collections based on the CFPB’s new rules are as follows:
1. HOEPA Disclosure Form (Section 1026.32(a)(1))
The new HOEPA rule extends coverage to purchase-money mortgage loans
and HELOCs. As a result, creditors that extend purchase-money mortgage loans
or HELOCs that are high-cost mortgages are required to provide borrowers with
the special HOEPA disclosures described above. Both one-time and on-going
costs are associated with this requirement.

36

See 78 FR 6856 (January 31, 2013).

15

2. Receipt of Certification of Counseling for High-Cost Mortgages
(Section 1026.34(a)(5)(i))
A creditor is prohibited from extending a high-cost mortgage unless the
creditor receives written certification that the consumer has obtained counseling
on the advisability of the mortgage from a counselor approved by the U.S.
Department of Housing and Urban Development (HUD), or a State housing
authority, if permitted by HUD. Both one-time and on-going costs are associated
with this requirement.
3. Receipt of Documentation of Counseling for Negative Amortization Loans
(Section 1026.36(k))
A creditor is prohibited from extending closed-end, dwelling-secured credit to
a first-time borrower that has negative amortization (other than a reverse
mortgage or a transaction secured by a timeshare plan interest), unless the creditor
receives documentation that the consumer has obtained homeownership
counseling from a counseling organization or counselor certified or approved by
HUD.
The Board concurs with the CFPB that the burden associated with this
requirement is minimal and therefore has not separately estimated paperwork
burden for this requirement.37
C. Higher-Priced Mortgage Loans (HPMLs)
1. Appraisal Requirements (226.43)
The Dodd-Frank Act amended TILA to impose special appraisal requirements
for loans meeting APR thresholds for “higher-priced mortgage loans” (HPMLs).38
Six federal agencies were required to issue joint rules implementing these
provisions, and did so in February 2013.39 A supplemental final rule providing
for additional exemptions from the special HPML appraisal requirements was
issued in December 2013.40 The effective date for these rules was January 18,
2014.
Previously approved information collections associated with the HPML
appraisal rule that need to be renewed are as follows:
a. Initial Written Appraisal (Section 226.43(c)(1)). Before consummating
an HPML, a creditor must obtain a written appraisal performed by a certified
37

In issuing its rule, the CFPB did not separately estimate the paperwork burden associated with this requirement.
See 78 FR 6856, 6960 (January. 31, 2013).
38
See 15 U.S.C. § 1639h.
39
See 78 FR 10368 (February 13, 2013).
40
See 78 FR 78520 (December 26, 2013).

16

or licensed appraiser who conducts a physical visit of the interior of the
property that will secure the transaction.
b. Safe Harbor (Section 226.43(c)(2)). The HPML appraisal rule provides a
“safe harbor” to creditors for compliance with the written appraisal
requirement. An information collection burden is associated with reviewing
each appraisal obtained for adherence to the safe harbor elements, as specified
in the rule text and Appendix N to the rule.
c. Additional Written Appraisal (Section 226.43(d)). A creditor is required
to obtain a second appraisal for a HPML if (1) the seller acquired the property
securing the loan 90 or fewer days prior to the date of the consumer’s
agreement to acquire the property and the resale price exceeds the seller’s
acquisition price by more than 10 percent or (2) the seller acquired the
property securing the loan 91 to 180 days prior to the date of the consumer’s
agreement to acquire the property and the resale price exceeds the seller’s
acquisition price by more than 20 percent. The Additional Written Appraisal
must meet the standards of the Initial Written Appraisal and contain additional
analyses.
As with the Initial Written Appraisal, information collection burden
associated with the Additional Written Appraisal requirement includes
reviewing the appraisal for adherence with the safe harbor.
d. Copy of Appraisals (Section 1026.43(f)(1)). A creditor is required to
provide a copy of the Initial Written Appraisal and the Additional Written
Appraisal to the consumer.
V.

Special Rules for Private Education Loans (Subpart F)41

Disclosures for private education loans must be given at different times in the loan
origination process. The content requirements of the disclosures varies depending on the
time at which they are provided. Generally, creditors must disclose, among other items,
the interest rate, fees, repayment terms, cost estimates, eligibility requirements, and loan
alternatives of the private education loan.
A. Application or Solicitation Disclosures (Section 1026.47(a))
Disclosures must be provided on or with any application or solicitation for a
private education loan. The creditor may provide the disclosures orally in a telephone
application or solicitation. Alternatively, if the creditor does not disclose the

41

Model forms for each of the following disclosures are available in Appendix H-18 for the application or
solicitation disclosures required in section 1026.47(a), Appendix H-19 for the approval disclosures required in
section 1026.47(b), and Appendix H-20 for the final disclosures required in section 1026.47(c).

17

information orally, the creditor generally must provide the disclosures or mail them
no later than three business days after the consumer has applied for the credit.42
B. Approval Disclosures (Section 1026.47(b))
Disclosures also must be provided before consummation on or with any notice to
the consumer that the creditor has approved the consumer’s application for a private
education loan. If the creditor provides approval to the consumer by mail, the
disclosures must be mailed at the same time as the approval. If the creditor provides
approval by telephone, the creditor must mail the disclosures within three business
days of the approval.
C. Final Disclosures (Section 1026.47(c))
Final disclosures must be provided to the consumer after the consumer accepts the
private education loan. The creditor is prohibited from disbursing funds until at least
three business days after the consumer receives the final disclosures.43
VI. Advertising and Notification Requirements
Advertising rules in sections 1026.16 (for open-end credit) and 1026.24 (for closedend credit apply to all persons who promote the availability of open-end or closed-end
credit through commercial messages in any form, including print or electronic media,
direct mailings, and displays. With some variations, sections 1026.16 and 1026.24 both
require advertisers to include certain basic credit information if the advertisement refers
to specified credit terms or costs. Additional disclosures are required for advertisements
of HELOCs (Section 1026.16(d)), open-end credit with a promotional rate
(Section 1026.16(g)), open-end credit with a deferred interest or similar offer
(Section 1026.16(h)), and closed-end credit secured by a consumer’s principal dwelling
(Section 1026.24(f)).
VII. Record Retention Requirements
Under section 1026.25(a), a creditor must retain evidence of compliance with
Regulation Z (other than the advertising requirements under sections 1026.16 and
1026.24, for which no record retention rules apply) for a two-year period after the date
the disclosures are required to be made or other action is required to be taken.
Generally, no paperwork burden is deemed to be associated with the recordkeeping
requirement of Regulation Z (subpart D, section 1026.25) because the regulation does not
specify records to be retained as evidence of compliance. Several new requirements
If the creditor either denies the consumer’s application or provides or mails the approval disclosures no later than
three business days after the consumer requests the credit, the creditor need not also provide the application
disclosures.
43
See 12 C.F.R. 1026.48(d).
42

18

issued by the CFPB specify particular records to be retained. These include record
retention requirements associated with the QM/ability-to-repay verification and
documentation requirements44 and the new requirement to offer consumers an alternative
to a loan with a prepayment penalty.45 Specifically, Regulation Z amendments extended
the time period creditors must retain evidence of compliance with the ability-to-repay and
QM requirements, as well as the prepayment penalty provisions from two years to three
years to make the record retention requirement consistent with the statute of limitations
on claims allowed under those provisions.46 The CFPB believes that any on-going
burden associated with these record-keeping requirements will be minimal, reasoning that
only information sufficient to reconstruct the required record is required to be retained.47
The Board concurs.
Time Schedule for Information Collection
Information collection pursuant to Regulation Z is event-generated and must be provided
to the borrower within the time periods established by the law and regulation as discussed above.
Creditors must keep evidence of compliance for 24 months.
Legal Status
The Board’s Legal Division has determined that the Reg Z information collection is
authorized by the Truth in Lending Act (15 U.S.C. § 1601 et seq.), which directs the CFPB and,
for certain lenders, the Board to issue regulations implementing the statute. Covered lenders are
required to comply with the reporting, recordkeeping, and disclosure provisions of Regulation Z.
Regulation Z is chiefly a disclosure regulation, so the issue of confidentiality does not normally
arise. One aspect of the rule requires certain card issuers to submit annual reports to the CFPB,
but no reports are filed with the Board.
Consultation Outside the Agency
On February 19, 2016, the Board published a notice in the Federal Register (81 FR 8492)
requesting comment for 60 days on the Reg Z information collection. The comment period
expired on April 19, 2016. The Board did not receive any comments. On May 5, 2016, the
Board published a final notice in the Federal Register (81 FR 27130).
Estimate of Respondent Burden
The current total annual burden for the reporting, recordkeeping, and disclosure
requirements of this information collection is estimated to be 1,525,822 hours and with the
proposed revisions would decrease by 113,320 hours, for a total of 1,412,502 hours, including
14,089 hours of one time burden associated with regulation review and compliance set up. This
net decrease is primarily due to the decrease in the reporting panel. These reporting,
44
45
46
47

See 12 C.F.R. 1026.43(c)-(f).
See 12 C.F.R. 1026.43(g).
See 12 C.F.R. 1026.25(c)(2) and (3).
See 78 FR 79730, 80100-80104 (December 31, 2013) and 78 FR 6408, 6582-6583 (January 30, 2013).

19

recordkeeping, and disclosure requirements represent 10.98 percent of the total Federal Reserve
System paperwork burden.

Reg Z Current

Number of
Annual
respondents frequency

Estimated
Estimated
average time annual burden
per response
hours

Subpart B
Open-end Credit (226.5-226.16)
Credit and Charge cards
Application and Solicitations
(Section 226.5(a))

226

12

8 hours

21,696

Home-Equity Plans (Section 226.5(b))
Application disclosure
Restriction disclosure

651
651

790
10

1.5 min
3 min

12,857
326

878

1,150

1.5 min

25,243

878

1,150

1 min

16,828

878

3,750

1 min

54,875

1,077

12

8 hours

103,392

1,077

1

8 hours

8,616

2,200

4

8 hours

70,400

226

145

30 min

16,385

1,077

2

30 min

1,077

1,077

2,472

6.5 min

288,421

1,077

1

120 hours

129,240

1,077

12

40 hours

516,960

Account opening disclosures
(Section 226.6)
Reg AA Cosigner disclosure
(Section 227.14(b))
Change-in-terms disclosures
(Section 226.9(c))
Periodic statements (Section 226.7)
Periodic statements (Section 226.7)
(for exempt transactions
(226.3(b)(1)(i)))
Subpart G
Reporting and Marketing Rules for
College Student Open-End Credit
(Section 226.57(d)) and Internet
posting of credit card agreements
(college) (Section 226.58)
Error resolution (Section 226.13)
Credit cards
Other Open-end credit
Subpart C
Closed-end Credit Disclosures
(Section 226.17)
Section 226.18(s) and (t)(1)
One-time (R-1366)
Section 226.18 (s) and (t)(1)
Ongoing (R-1366)

20

Subpart E
Pre-closing disclosure
(Sections 226.31-226.45)
Mortgage transfer disclosure
(Section 226.39)
Valuation Independence
(Section 226.42)
One-time R-1394
Section 226.43 (R-1443)
One-time update
Initial appraisal
Investigate and verify additional
appraisal
Review and provide a copy of
additional appraisal

30

250

3 min

375

68

12

8 hours

6,528

567

1

40 hours

22,680

418
418

1
24

8 hours
15 min

3,344
2,508

418

24

15 min

2,508

418

0.18

15 min

19

Subpart F
Private student loan disclosures
(Section 226.46)

1,075

12

17 hours

219,300

Subparts B and C
(Sections 226.16 and 226.24)
Advertising rules

1,077

5

25 min

2,244

Total

1,525,822

21

Reg Z Proposed
Open-End
(Not Home-Secured Credit):
Appendix A
Applications and solicitations
(Section 1026.60)
Account opening disclosures
(Section 1026.6(b))
Periodic statements
(Section 1026.7(b))
Change-in-terms disclosures
(Section 1026.9)
Timely settlement of estate debts
policies
(Section 1026.11(c)) one-time
Timely settlement of estate debts
policies
(Section 1026.11(c)) ongoing
Ability to pay policies
(Section 1026.51) one-time
Ability to pay policies
(Section 1026.51) ongoing

Number of
Annual
48
respondents
frequency

Estimated
average time
per response

Estimated
annual burden
hours

176

12

8 hours

16,896

176

1,150

1.5 minutes

5,060

992

12

8 hours

95,232

992

3,750

1 minute

62,000

992

1

8 hours

7,936

992

1

45 minutes

744

176

1

8 hours

1,408

176

1

45 minutes

132

Of the respondents, 121 for the Open-End (Not Home-Secured Credit) – applications and solicitations and
account opening disclosures; 706 for the Open-End (Not Home-Secured Credit) – periodic statements, change-interms disclosures, timely settlement of estate debts policies (one-time), and timely settlement of estate debts policies
(ongoing); 121 for the Open-End (Not Home-Secured Credit) – ability to pay policies (one-time), ability to pay
policies (ongoing), and reporting and marketing rules for college student open-end credit and Internet posting of
credit card agreements; 437 for Open-End Credit (Home Equity Plans) – application disclosures, account opening
disclosures, periodic statements, change-in-terms disclosures, and notices to restrict credit; 121 for All Open-End
Credit – Error Resolution: credit cards; 706 for All Open-End Credit – Error resolution: other open-end credit; 706
for Closed-End Credit (Non-Mortgage) – closed-end credit disclosures; 437 for Closed-End Credit (Mortgage) –
interest rate and payment summary and “no-guarantee-to-refinance” statement; ARM disclosure (one-time), ARM
disclosure (ongoing), initial rate adjustment notice (one-time), initial rate adjustment notice (ongoing), periodic
statements (one-time), periodic statements (ongoing), and verification of documents for qualified mortgage (QM)
and non-QM determination; 437 for Open and Closed-End Mortgage – prompt crediting & payoff statement (onetime), payoff statements (ongoing), and mortgage transfer disclosure; 4 for Certain Home Mortgage Types – reverse
mortgage disclosures; 15 for Certain Home Mortgage Types – HOEPA disclosure (one-time), HOEPA disclosure
(ongoing), HOEPA receipt of certification of counseling for high-cost mortgages (one-time), HOEPA receipt of
certification of counseling for high-cost mortgages (ongoing), Appraisals for higher-priced mortgage loans, order
and review initial appraisal, order and review additional appraisal, and provide copy of initial and additional
appraisals; 0 for Private Education Loans – private student loan disclosure; 706 for Advertising Rules (all credit
types) – advertising rules; and 437 for Record Retention are small entities as defined by the Small Business
Administration (i.e., entities with less than $550 million in total assets) ) www.sba.gov/contracting/getting-startedcontractor/make-sure-you-meet-sba-size-standards/table-small-business-size-standards.
48

22

Reporting and marketing rules for
college student open-end credit
(Section 1026.57(d)) and Internet
posting of credit card agreements
(Section 1026.58)

176

4

8 hours

5,632

634

790

1.5 minutes

12,522

634

1,150

1.5 minutes

18,228

634

12

8 hours

60,864

634

3,750

1 minute

39,625

634

10

3 minutes

317

All Open-End Credit:
Error resolution
(Sections 1026.9(a) and 1026.13):
Credit cards
Other open-end credit

176
992

145
2

30 minutes
30 minutes

12,760
992

Closed-End Credit – NonMortgage:
Closed-end Credit Disclosures
(Section 1026.17 and 1026.18)

992

2,472

6.5 minutes

265,658

634

12

40 hours

304,320

634

1

1.5 hours

951

634

600

17 minutes

107,780

634

1

2 hours

1,268

634

300

53,890

634

1

17 minutes
1 hour and
20 minutes

Open-End Credit -- Home-Equity
Plans:
Application disclosures
(Section 1026.40)
Account opening disclosures
(Section 1026.6)
Periodic statements
(Section 1026.7(a))
Change-in-terms disclosures
(Section 1026.9(c)(1)(i) and (ii))
Notices to restrict credit
(Sections 1026.9(c)(1)(iii) and
1026.40(f)(3)(i))

Closed-End Credit – Mortgage:
Interest Rate and Payment Summary
(Section 1026.18(s)) and “Noguarantee-to-refinance” statement
(Section 1026.18(t)(1))
ARM disclosure
(Section 1026.20(c)) one-time
ARM disclosures
(Section 1026.20(c )) ongoing
Initial rate adjustment notice
(Sections 1026.20(d) – one-time
Initial rate adjustment notice
(Section 1026.20(d) – ongoing
Periodic statements (Section
1026.41) one time

23

845

Periodic statements
(Section 1026.41) ongoing
Verification of documents for
Qualified Mortgage (QM) and nonQM determination (Section 1026.43)
one time
Open and Closed-End Mortgage:
Prompt crediting & payoff statement
(Section 1026.36(c)(3)) one time
Payoff statements
(Section 1026.36(c)(3)) ongoing
Mortgage transfer disclosure
(Section 1026.39)
Certain Home Mortgage Types:
Reverse mortgage disclosures
(Sections 1026.31(c)(2), and
1026.33)
HOEPA disclosures
(Sections 1026.32(a)(1) and
1026.32(c) one time
HOEPA disclosures
(Sections 1026.32(a)(1) and
1026.32(c) ongoing
HOEPA Receipt of certification of
counseling for high-cost mortgages
(Section 1026.34(a)(5)(i)) one time
HOEPA Receipt of certification of
counseling for high-cost mortgages
(Section 1026.34(a)(5)(i)) ongoing
Appraisals for higher-priced
mortgage loans (Sections 1026.43
(c)(1),(c)(2),(d), (e), and (f):
Order and review initial appraisal
Order and review additional
appraisal
Provide copy of initial and
additional appraisals
Private Education Loans:
Private student loan disclosures
(Section 1026.46)

634

42,400

0.5 minutes

224,013

634

1

42 minutes

444

634

1

50 minutes

528

634

800

5 minutes

42,267

634

12

8 hours

60,864

15

250

3 minutes

188

25

1

20 hours

500

25

12

14 hours

4,200

25

1

45 minutes

19

25

1

1 hour

25

25

24

15 minutes

150

25

24

15 minutes

150

25

0.18

15 minutes

1

9

12

17 hours

1,836

24

Advertising Rules (all credit types):
(Sections 1026.2, 1026.16 &
1026.24)
Advertising rules

992

5

25 minutes

2,067

Record Retention
(Section 1026.25(c)(3)) one time

634

1

18 minutes

190

Total

1,412,502

Change

(113,320)

The total annual cost to the public is estimated to be $75,074,481.49
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The cost to the Federal Reserve System is considered negligible.

49

Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $17, 45% Financial Managers at
$65, 15% Lawyers at $66, and 10% Chief Executives at $89). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2015, published March 30, 2016 www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

25