[Federal Register Volume 77, Number 29 (Monday, February 13, 2012)]
[Proposed Rules]
[Pages 8072-8077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1667]
[[Page 8071]]
Vol. 77
Monday,
No. 29
February 13, 2012
Part XXIV
Federal Reserve System
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Semiannual Regulatory Agenda
Federal Register / Vol. 77, No. 29 / Monday, February 13, 2012 /
Unified Agenda
[[Page 8072]]
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FEDERAL RESERVE SYSTEM
12 CFR Ch. II
Semiannual Regulatory Flexibility Agenda
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Semiannual regulatory agenda.
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SUMMARY: The Board is issuing this agenda under the Regulatory
Flexibility Act and the Board's Statement of Policy Regarding Expanded
Rulemaking Procedures. The Board anticipates having under consideration
regulatory matters as indicated below during the period November 1,
2011 through April 30, 2012. The next agenda will be published in
spring 2012.
DATES: Comments about the form or content of the agenda may be
submitted any time during the next six months.
ADDRESSES: Comments should be addressed to Jennifer J. Johnson,
Secretary of the Board, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
FOR FURTHER INFORMATION CONTACT: A staff contact for each item is
indicated with the regulatory description below.
SUPPLEMENTARY INFORMATION: The Board is publishing its fall 2011 agenda
as part of the Fall 2011 Unified Agenda of Federal Regulatory and
Deregulatory Actions, which is coordinated by the Office of Management
and Budget under Executive Order 12866. The agenda also identifies
rules the Board has selected for review under section 610(c) of the
Regulatory Flexibility Act, and public comment is invited on those
entries. The complete Unified Agenda will be available to the public at
the following Web site: www.reginfo.gov. Participation by the Board in
the Unified Agenda is on a voluntary basis.
The Board's agenda is divided into four sections. The first,
Proposed Rule Stage, reports on matters the Board may consider for
public comment during the next six months. The second section, Final
Rule Stage, reports on matters that have been proposed and are under
Board consideration. A third section, Long-Term Actions, reports on
matters that have been proposed and under Board consideration, but a
completion date has not been determined. And a fourth section,
Completed Actions, reports on regulatory matters the Board has
completed or is not expected to consider further. A dot ()
preceding an entry indicates a new matter that was not a part of the
Board's previous agenda.
Margaret McCloskey Shanks,
Associate Secretary of the Board.
Federal Reserve System--Proposed Rule Stage
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Regulation
Sequence No. Title Identifier No.
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574....................... Regulation Y--Resolution 7100-AD73
Plans and Credit Exposure
Reports Require (Docket
No. R-1414).
575....................... Regulation CC-- 7100-AD68
Availability of Funds and
Collection of Checks
(Docket No. R-1408).
576....................... Regulation NN--Retail 7100-AD79
Foreign Exchange
Transactions (Docket No.
R-1428).
577....................... Regulation OO--Securities 7100-AD81
Holding Companies (Docket
No. R-1430).
578....................... Regulation LL--Savings and 7100-AD80
Loan Holding Companies
and Regulation MM--Mutual
Holding Companies (Docket
No. R-1429).
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Federal Reserve System--Long-Term Actions
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Regulation
Sequence No. Title Identifier No.
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579....................... Regulation KK--Margin and 7100-AD74
Capital Requirements for
Covered Swap Entities
(Docket No. R-1415).
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Federal Reserve System--Completed Actions
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Regulation
Sequence No. Title Identifier No.
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580....................... Regulation D, Q, and DD-- 7100-AD72
Prohibition Against
Payment of Interest on
Demand Deposits (Docket
No. R-1413).
581....................... Regulation II--Debit Card 7100-AD63
Interchange Fees and
Routing (Docket No. R-
1404).
582....................... Regulation Z--Truth in 7100-AD55
Lending (Docket No. R-
1393).
583....................... Regulation Z--Truth in 7100-AD56
Lending (Docket No. R-
1394).
584....................... Regulation Z--Escrow 7100-AD65
Requirements (Docket No.
R-1406).
585....................... Regulation Z--Truth in 7100-AD75
Lending (Docket No. R-
1417).
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FEDERAL RESERVE SYSTEM (FRS)
Proposed Rule Stage
574. Regulation Y--Resolution Plans and Credit Exposure
Reports Require (Docket No. R-1414)
Legal Authority: 12 U.S.C. 1817(j)(13); 12 U.S.C. 1818; 12 U.S.C.
1828(o); 12 U.S.C. 1851; * * *
Abstract: The Dodd-Frank Act requires certain financial
institutions to report to the Federal Reserve Board and the Federal
Deposit Insurance Corporation their plans for rapid and orderly
resolution under the U.S. Bankruptcy Code. The proposed rule would
establish requirements for the submission and content of a resolution
plan and credit exposure report. The resolution plan must include
information related to the organizational structure of the company, the
manner and extent to which any insured depository institution
affiliated with the company is protected from risks presented by non-
bank subsidiaries; identification of cross-guarantees, major counter
parties, and the parties to whom collateral is pledged; and certain
other elements including a strategic analysis of the company's plans
for maintaining core business lines and critical operations. Credit
Exposure Reports must include information related to the aggregate
credit exposure associated
[[Page 8073]]
with a range of transactions with every large financial firm.
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 04/22/11 76 FR 22648
Board Expects Further Action........ 01/00/12 .......................
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Barbara Bouchard, Senior Associate Director,
Federal Reserve System, Division of Banking Supervision and Regulation,
Phone: 202 452-3072.
RIN: 7100-AD73
575. Regulation CC--Availability of Funds and Collection of
Checks (Docket No. R-1408)
Legal Authority: 12 U.S.C. 4001 to 4010; 12 U.S.C. 5001 to 5018
Abstract: The Federal Reserve Board (the Board) proposed amendments
to Regulation CC to facilitate the banking industry's ongoing
transition to fully-electronic interbank check collection and return,
including proposed amendments to condition a depositary bank's right of
expeditious return on the depositary bank agreeing to accept returned
checks electronically either directly or indirectly from the paying
bank. The Board also proposed amendments to the funds availability
schedule provisions to reflect the fact that there are no longer any
non local checks. The Board proposed to revise the model forms in
appendix C that banks may use in disclosing their funds-availability
policies to their customers and to update the preemption determinations
in appendix F. Finally, the Board requested comment on whether it
should consider future changes to the regulation to improve the check
collection system, such as decreasing the time afforded to a paying
bank to decide whether to pay a check in order to reduce the risk to a
depositary bank of having to make funds available for withdrawal before
learning whether a deposited check has been returned unpaid.
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 03/25/11 76 FR 16862
Board Expects Further Action........ 12/00/11 .......................
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Dena Milligan, Attorney, Federal Reserve System,
Legal Division, Phone: 202 452-3900.
RIN: 7100-AD68
576. Regulation NN--Retail Foreign Exchange Transactions
(Docket No. R-1428)
Legal Authority: 7 U.S.C. 2(i)(2)(E); 12 U.S.C. 248; 12 U.S.C. 321
to 338; 12 U.S.C. 1818; 12 U.S.C. 3108; * * *
Abstract: The Federal Reserve Board is publishing for comment a
regulation to permit banking organizations under its supervision to
engage in off-exchange transactions in foreign currency with retail
customers. Section 2(c)(Z)(E) of the Commodity Exchange Act, as amended
by the Dodd-Frank Act, requires U.S. financial institutions to effect
these transactions only pursuant to rules adopted by their federal
regulatory authority.
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 08/03/11 76 FR 46652
Board Expects Further Action........ 12/00/11 .......................
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Scott J. Holz, Senior Counsel, Federal Reserve
System, Legal Division, Phone: 202 452-2966.
RIN: 7100-AD79
577. Regulation OO--Securities Holding Companies (Docket No.
R-1430)
Legal Authority: 12 U.S.C. 1850a
Abstract: The Federal Reserve Board (the Board) is issuing a
proposed rule to implement section 618 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act which permits nonbank companies that
own at least one registered securities broker or dealer, and that are
required by a foreign regulator or provision of foreign law to be
subject to comprehensive consolidated supervision, to register with the
Board and subject themselves to supervision by the Board. The proposed
rule outlines the requirements that a securities holding company must
satisfy to make an effective election, including filing the appropriate
form with the responsible Reserve Bank, providing all additional
required information, and satisfying the statutory waiting period of 45
days or such shorter period as the Board determines appropriate.
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 08/31/11 76 FR 54717
Board Expects Further Action........ 12/00/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Amanda K. Allexon, Senior Counsel, Federal Reserve
System, Legal Division, Phone: 202 452-3818.
RIN: 7100-AD81
578. Regulation LL--Savings and Loan Holding Companies and
Regulation MM--Mutual Holding Companies (Docket No. R-1429)
Legal Authority: 5 U.S.C. 552; 5 U.S.C. 559; 5 U.S.C. 1813; 5
U.S.C. 1817; 5 U.S.C. 1828; * * *
Abstract: Dodd-Frank Wall Street Reform and Consumer Protection
Act. The interim final rules provide for the corresponding transfer
from the Office of Thrift Supervision (OTS) to the Federal Reserve
Board (the Board) of the regulations necessary for the Board to
administer the statutes governing the Savings and Loan Holding
Companies (SLHCs).
The Dodd-Frank Act transferred from OTS to the Board responsibility
for supervision of SLHCs and their non-depository subsidiaries. The
Dodd-Frank Act also transferred supervisory functions related to
Federal savings associations and state savings associations to the
Office of the Comptroller of the Currency (OCC) and the Federal Deposit
Insurance Corporation (FDIC), respectively. The Board of Governors of
the Federal Reserve System is publishing an interim final rule with a
request for public comment that sets forth regulations for savings and
loan holding companies (SLHCs). On July 21, 2011, the responsibility
for supervision and regulation of SLHCs transferred from the Office of
Thrift Supervision (OTS) to the Board pursuant to section 312 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank
Act). This interim final rule provides for the corresponding transfer
from the OTS to the Board of the regulations necessary for the Board to
administer the statutes governing SLHCs. Technical changes to other
regulations have also been made to account for the transfer of
authority over SLHCs to the Board.
The interim final rule has three components: (1) New Regulation LL
(Part 238), which sets forth regulations generally governing SLHCs; (2)
new Regulation MM (Part 239), which sets forth regulations governing
SLHCs in
[[Page 8074]]
mutual form; and (3) technical amendments to current Board regulations
necessary to accommodate the transfer of supervisory authority for
SLHCs from the OTS to the Board.
The structure of the new Regulation LL closely follows that of the
Board's Regulation Y, which houses regulations directly related to bank
holding companies (BHCs), in order to provide an overall structure to
rules that were previously found in disparate locations. In many
instances, Regulation LL incorporates current OTS regulations, with
only technical modifications to account for the shift in supervisory
responsibility from the OTS to the Board. Additionally, the Board added
or modified regulations to reflect substantive changes introduced by
the Dodd-Frank Act. Those include revisions to applications processing
procedures, control determinations, requirements to engage in
nonbanking activities, and notice procedures for receipt of dividends
by subsidiary savings associations.
Regulation MM organizes the current OTS regulations specific to
SLHCs in mutual form (MHCs) and their subsidiary holding companies into
a single part of the Board's regulations. In many cases, Regulation MM
mirrors the current OTS rules with only technical modifications to
account for the shift in supervisory responsibility from the OTS to the
Board. Additionally, the Board added or modified regulations to reflect
substantive changes introduced by the Dodd-Frank Act. Those include
revisions to applications processing procedures, dividend waiver
procedures, review of offering circulars, forms of proxy, and proxy
statements, and stock repurchases.
The Board has made technical amendments to Board rules to
facilitate supervision of SLHCs. These amendments include revisions to
the interagency rules implementing requirements relating to the
Community Reinvestment Act, as well as the procedural and
administrative rules of the Board including those relating to the
Freedom of Information Act. In addition, the Board made technical
amendments to implement section 312(b)(2)(A) of the Dodd Frank Act,
which transfers to the Board all rulemaking authority under section 11
of HOLA relating to transactions with affiliates and extensions of
credit to executive officers, directors, and principal shareholders.
These amendments include revisions to parts 215 (Insider Transactions)
and part 223 (Transactions with Affiliates) of Board regulations.
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 09/13/11 76 FR 56508
Board Expect Further Action......... 12/00/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Amanda K. Allexon, Senior Counsel, Federal Reserve
System, Legal Division, Phone: 202 452-3818.
RIN: 7100-AD80
FEDERAL RESERVE SYSTEM (FRS)
Long-Term Actions
579. Regulation KK--Margin and Capital Requirements for
Covered Swap Entities (Docket No. R-1415)
Legal Authority: 7 U.S.C. 6s; 15 U.S.C. 78o-10
Abstract: The Office of the Comptroller of the Currency, Federal
Reserve Board, Federal Deposit Insurance Corporation, Farm Credit
Administration, and Federal Housing Finance Agency (the Agencies) are
requesting comment on a proposal to establish minimum margin and
capital requirements for registered swap dealers, major swap
participants, security-based swap dealers, and major security-based
swap participants for which one of the Agencies is the prudential
regulator. This proposed rule implements sections 731 and 764 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, which
require the Agencies to adopt rules jointly to establish capital
requirements and initial and variation margin requirements for such
entities on all non-cleared swaps and non-cleared security-based swaps
in order to offset the greater risk to such entities and the financial
system arising from the use of swaps and security-based swaps that are
not cleared.
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 04/12/11 76 FR 27564
Comment Period End.................. 07/11/11 76 FR 37029
Next Action Undetermined............
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Michael Gibson, Senior Associate Director, Federal
Reserve System, Division of Banking Supervision and Regulation, Phone:
202 452-2495.
RIN: 7100-AD74
FEDERAL RESERVE SYSTEM (FRS)
Completed Actions
580. Regulation D, Q, and DD--Prohibition Against Payment of
Interest on Demand Deposits (Docket No. R-1413)
Legal Authority: 12 U.S.C. 371a
Abstract: Section 627 of the Dodd-Frank Act repeals section 19(i)
of the Federal Reserve Act in its entirety, effective July 21, 2011.
The Federal Reserve Board's Regulation Q (Prohibitions Against Payment
of Interest on Demand Deposits) implemented section 19(i) of the
Federal Reserve Act. Accordingly, the Federal Reserve Board has
repealed Regulation Q in its entirety effective July 21, 2011.
Timetable:
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Action Date FR Cite
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Board Adopted Final Rule............ 07/18/11 76 FR 42015
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Sophia Allison, Senior Counsel, Federal Reserve
System, Legal Division, Phone: 202 452-3565.
RIN: 7100-AD72
581. Regulation II--Debit Card Interchange Fees and Routing (Docket No.
R-1404)
Legal Authority: 15 U.S.C. 1693O
Abstract: The Federal Reserve Board (the Board) published the final
rule for new Regulation II, Debit Card Interchange Fees and Routing.
The rule implements the provisions of section 920 of the Electronic
Fund Transfer Act, including standards for reasonable and proportional
interchange transaction fees for electronic debit transactions,
exemptions from the interchange transaction fee limitations,
prohibitions on evasion and circumvention, prohibitions on payment card
network exclusivity arrangements and routing restrictions for debit
card transactions, and reporting requirements for debit card issuers
and payment card networks.
The Board also adopted an interim final rule and requested comment
on provisions in Regulation II that govern adjustments to debit
interchange transaction fees for fraud-prevention costs. The provisions
allow an issuer to receive and adjustment of 1 cent to its interchange
transaction fee if the issuer develops, implements, and updates
[[Page 8075]]
policies and procedures that are reasonably designed to identify and
prevent fraudulent electronic debit transactions, and secure debit card
and cardholder data. Comments on the interim final rule must be
submitted by September 30, 2011.
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 12/16/10 75 FR 81722
Board Adopted Final Rule............ 06/29/11 76 FR 43394
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Dena Milligan, Attorney, Federal Reserve System,
Legal Division, Phone: 202 452-3900.
RIN: 7100-AD63
582. Regulation Z--Truth in Lending (Docket No. R-1393)
Legal Authority: 12 U.S.C. 3806; 15 U.S.C. 1604; 15 U.S.C. 1637; 15
U.S.C. 1639; * * *
Abstract: This proposed rule seeks to clarify aspects of the
Federal Reserve Board's final rules implementing the Credit Card
Accountability, Responsibility, and Disclosure Act of 2009 (Pub. L.
111-24), which were published in February 2010 (75 FR 7658) and June
2010 (75 FR 37526). The Board published a final rule substantially as
proposed on April 25, 2011 (76 FR 22948).
Timetable:
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Action Date FR Cite
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Board Issued Interim Final Rule..... 11/02/10 75 FR 67458
Board Issued Final Rule............. 04/25/11 76 FR 22948
Board Issued Final Rule Effective... 10/01/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Benjamin K. Olson, Attorney, Federal Reserve
System, Division of Consumer and Community Affairs, Phone: 202 452-
2826.
RIN: 7100-AD55
583. Regulation Z--Truth in Lending (Docket No. R-1394)
Legal Authority: 12 U.S.C. 3806; 15 U.S.C. 1604; 15 U.S.C. 1637c
Abstract: On October 28, 2010, the Federal Reserve Board (the
Board) approved for public comment an interim final rule amending
Regulation Z (Truth in Lending) (75 FR 66554). The interim rule
implements section 129E of the Truth in Lending Act (TILA), which was
enacted on July 21, 2010, as section 1472 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act. TILA section 129E establishes new
requirements for appraisal independence for consumer credit
transactions secured by the consumer's principal dwelling. The
amendments are designed to ensure that real estate appraisals used to
support creditors' underwriting decisions are based on the appraiser's
independent professional judgment, free of any influence or pressure
that may be exerted by parties that have an interest in the
transaction. The amendments also seek to ensure that creditors and
their agents pay customary and reasonable fees to appraisers. The Board
sought comment on all aspects of the interim final rule, which were due
by December 27, 2010. Compliance is mandatory for residential mortgage
applications received by creditors on or after April 1, 2011.
Timetable:
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Action Date FR Cite
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Board Issued Interium Final Rule and 10/28/10 75 FR 66554
Request for Public Comment.
Board Expects No Futher Action...... 10/01/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Lorna Neill, Senior Attorney, Federal Reserve
System, Division of Consumer and Community Affairs, Phone: 202 452-
3667.
RIN: 7100-AD56
584. Regulation Z--Escrow Requirements (Docket No. R-1406)
Legal Authority: 12 U.S.C. 3806; 15 U.S.C. 1604; 15 U.S.C.
1637(c)(5); 15 U.S.C. 1639
Abstract: The Federal Reserve Board (Board) published in the
Federal Register on March 2, 2011, a proposed rule that would amend
Regulation Z (Truth in Lending) to implement certain amendments to the
Truth in Lending Act made by the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act). Regulation Z currently
requires creditors to establish escrow accounts for higher-priced
mortgage loans secured by a first lien on a dwelling. The proposal
would implement statutory changes made by the Dodd-Frank Act that
lengthen the time for which a mandatory escrow account established for
a higher-priced mortgage loan must be maintained. In addition, the
proposal would implement the Act's disclosure requirements regarding
escrow accounts. The proposal also would exempt certain loans from the
statute's escrow requirement. The primary exemption would apply to
mortgage loans extended by creditors that operate predominantly in
rural or underserved areas, originate a limited number of mortgage
loans, and do not maintain escrow accounts for any mortgage loans they
service.
The comment period for the proposed rule ended on May 1, 2011. Rule
making authority transferred to the CFPB on July 21, 2011. This
proposal will be transferred to the CFPB which will be responsible for
issuing a final rule.
Timetable:
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Action Date FR Cite
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Board Expects No Further Action..... 07/21/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Nikita M. Pastor, Senior Attorney, Federal Reserve
System, Division of Consumer and Community Affairs, Phone: 202 452-
3667.
RIN: 7100-AD65
585. Regulation Z--Truth in Lending (Docket No. R-1417)
Legal Authority: 15 U.S.C. 1604(a); 15 U.S.C. 1639b(e); 15 U.S.C.
1639c(b)
Abstract: On May 11, 2011, the Federal Reserve Board published for
public comment proposed amendments to Regulation Z (Truth in Lending)
and the staff commentary to the regulation to implement amendments to
the Truth in Lending Act (TILA) made by the Dodd-Frank Wall Street
Reform and Consumer Protection Act (the Dodd-Frank Act). Regulation Z
currently prohibits a creditor from making a higher-priced mortgage
loan without regard to the consumer's ability to repay the loan. The
proposal would implement statutory changes made by the Dodd-Frank Act
that expand the scope of the ability-to-repay requirement to cover any
consumer credit transaction secured by a dwelling (excluding an open-
end credit plan, timeshare plan, reverse mortgage, or temporary loan).
In addition, the proposal would establish standards for complying
with the ability-to-repay requirement, including by making a
``qualified mortgage.'' The proposal also implements the Act's limits
on prepayment penalties. Rulemaking authority for TILA was transferred
to the Consumer Financial Protection Bureau (CFPB) on July 21,2011.
Accordingly, this rulemaking become a proposal of the CFPB on that date
and any further action will be taken by the CFPB. The public comment
period ended on July 22, 2011.
[[Page 8076]]
Timetable:
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Action Date FR Cite
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Board Requested Comment............. 05/11/11 76 FR 27390
Proposal Transferred to CFPB........ 07/21/11
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Regulatory Flexibility Analysis Required: Yes.
Agency Contact: Maureen Yap, Senior Attorney, Federal Reserve
System, Division of Consumer and Community Affairs, Phone: 202 452-
2412.
RIN: 7100-AD75
[FR Doc. 2012-1667 Filed 2-10-12; 8:45 am]
BILLING CODE 6210-01-P