The Dodd-Frank Act amended the Truth in Lending Act (TILA), 15 U.S.C. 1601 et seq, and the Real Estate Settlement Procedures Act of 1974 (RESPA), 12 U.S.C. 2601 et seq., by, among other things, mandating new mortgage servicing disclosures and procedures to improve protections for consumers with certain residential mortgages. 12 U.S.C. 2601 et seq.; 15 U.S.C. 1638a, 1638(f), 1639f, and 1639g. Through a final rule issued on January 17, 2013, the Consumer Financial Protection Bureau (the Bureau) amended Regulation Z to implement the new TILA mortgage servicing provisions required by the Dodd-Frank Act and revised Regulation Zâs adjustable-rate mortgage rules under § 1026.20(c) and (d). The Bureau is further amending Regulation Z, which implements TILA, and the official interpretation of the regulation. Regulation Z 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 and to protect consumers against inaccurate and unfair credit billing practices. The final rule amends and clarifies several existing servicer obligations under TILA and Regulation Z, including the obligation to promptly credit payments and to make certain disclosures on periodic statements. The final rule also includes several new servicer obligations, including the obligation to apply all of the Regulation Z servicing rules to confirmed successors in interest; to provide periodic statements to certain consumers in bankruptcy; and to provide periodic statements to consumers whose loans have been charged-off. The final rule also amends the definition of small servicers that are exempt from many of the servicing rules in Regulation Z. Concurrently with the final rule, the Bureau also issued an interpretive rule under the Fair Debt Collection Practices Act, 15 U.S.C. 1692-1692p, relating to servicersâ compliance with certain mortgage servicing provisions in Regulation Z, as amended by the final rule. Most provisions of the final rule and interpretive rule take effect 12 months after publication in the Federal Register. The provisions relating to bankruptcy periodic statements and successors in interest take effect 18 months after publication in the Federal Register.
The Bureau has divided the rules amending these portions of the Bureauâs Regulations X and Z into two separate Information Collection Requests (ICRs) in OMBâs system (accessible at omb.report), OMB Control Numbers 3170-0027 and 3170-0028 respectively, to ease the publicâs ability to view and understand the individual final rules for discrete portions Regulation X and Regulation Z. Respondents should continue to use the 3170-0016 control number for Regulation X and the 3170-0015 control number for Regulation Z.
US Code:
15 USC 2601
Name of Law: Truth in Lending Act (TILA)
US Code: 15 USC 2601 Name of Law: Truth in Lending Act (TILA)
The information collections for the Bureauâs disclosures with respect to successors in interest and periodic statements for consumers in bankruptcy are new requirements under the final rule. This Collection adds 8,000 burden hours and $830,000 in on time and ongoing costs to those required to comply with this information collection
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.
3170-0028 Mortgage Servicing Reg Z PRA Supporting Statement - NFRM (RIN 3170-AA49) OMB Rev.pdf
Disclosure Requirements for TILA