[Federal Register Volume 77, Number 173 (Thursday, September 6, 2012)]
[Proposed Rules]
[Pages 54844-54846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-21998]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1026

[Docket No. CFPB-2012-0029]
RIN 3170-AA12


High-Cost Mortgage and Homeownership Counseling Amendments to the 
Truth in Lending Act (Regulation Z) and Homeownership Counseling 
Amendments to the Real Estate Settlement Procedures Act (Regulation X)

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice of request for public comment; extension of comment 
period.

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SUMMARY: On July 9, 2012, the Consumer Financial Protection Bureau 
(Bureau) published on its Web site and transmitted to the Federal 
Register a notice requesting comment on, among other things, proposed 
changes to Regulation Z (Truth in Lending) to implement amendments to 
the Truth in Lending Act made by the Dodd-Frank Wall Street Reform and 
Consumer Protection Act that expand the types of mortgage loans that 
are subject to the protections of the Home Ownership and

[[Page 54845]]

Equity Protection Act of 1994 (HOEPA) (the HOEPA Proposal). The 
proposed rule was published in the Federal Register on August 15, 2012. 
See 77 FR 49089 (Aug. 15, 2012). The proposed rule set a comment 
deadline of September 7, 2012. In a separate rulemaking published on 
the Bureau's Web site on July 9, 2012 and published in the Federal 
Register on August 23, 2012 (see 77 FR 51116 (Aug. 23, 2012)), the 
Bureau proposed changes to the definition of the finance charge, which 
would result in a simpler, more inclusive definition of the finance 
charge (TILA-RESPA Integration Proposal). In light of these proposed 
changes, the HOEPA Proposal seeks comment on whether and how to account 
for the implications of a more inclusive finance charge on the scope of 
HOEPA coverage. Although the TILA-RESPA Integration Proposal set an 
initial comment deadline regarding the proposed changes to the finance 
charge definition of September 7, 2012, by separate notice, the Bureau 
is extending that deadline to November 6, 2012. For the same reasons 
discussed in that notice, the Bureau has determined that an extension 
of the comment period until November 6, 2012 for the portion of the 
HOEPA Proposal regarding whether and how to account for the 
implications of a more inclusive finance charge on the scope of HOEPA 
coverage is appropriate. This extension does not apply to any other 
aspect of the HOEPA Proposal.

DATES: The comment period for whether and how to account for the 
implications of a more inclusive finance charge on the scope of HOEPA 
coverage, see proposed Sec.  1026.32(a)(1)(i) and (b)(1)(i), is 
extended to November 6, 2012. The comment period for all other proposed 
amendments in that notice, which ends on September 7, 2012, is 
unchanged.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2012-
0028 or RIN 3170-AA19, by any of the following methods:
     Electronic: http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Mail/Hand Delivery/Courier: Monica Jackson, Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1700 G 
Street NW., Washington, DC 20552.
    Instructions: All submissions should include the agency name and 
docket number or Regulatory Information Number (RIN) for this 
rulemaking. Because paper mail in the Washington, DC area and at the 
Bureau is subject to delay, commenters are encouraged to submit 
comments electronically. In general, all comments received will be 
posted without change to http://www.regulations.gov. In addition, 
comments will be available for public inspection and copying at 1700 G 
Street, NW., Washington, DC 20552, on official business days between 
the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an 
appointment to inspect the documents by telephoning (202) 435-7275.
    All comments, including attachments and other supporting materials, 
will become part of the public record and subject to public disclosure. 
Sensitive personal information, such as account numbers or Social 
Security Numbers, should not be included. Comments will not be edited 
to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Priscilla Walton-Fein, Counsel, or 
Paul Mondor, Managing Counsel, Office of Regulations, at (202) 435-
7700.

SUPPLEMENTARY INFORMATION: On July 9, 2012, the Consumer Financial 
Protection Bureau (Bureau) published on its Web site and transmitted to 
the Federal Register a notice requesting comment on, among other 
things, proposed changes to Regulation Z (Truth in Lending) to 
implement amendments to the Truth in Lending Act (TILA) made by the 
Dodd-Frank Wall Street Reform and Consumer Protection Act that expand 
the types of mortgage loans that are subject to the protections of the 
Home Ownership and Equity Protection Act of 1994 (HOEPA) (the HOEPA 
Proposal). The proposed rule was published in the Federal Register on 
August 15, 2012. See 77 FR 49089 (Aug. 15, 2012). The proposed rule set 
a comment deadline of September 7, 2012.\1\
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    \1\ Comments on the Paperwork Reduction Act (PRA) analysis are 
due October 15, 2012.
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    In a separate rulemaking published on the Bureau's Web site on July 
9, 2012 and published in the Federal Register on August 23, 2012 (77 FR 
51116 (Aug. 23, 2012)), the Bureau proposed changes to the definition 
of the finance charge, which would result in a simpler, more inclusive 
definition of the finance charge (the TILA-RESPA Integration Proposal). 
Although the proposed changes to the definition of the finance charge 
were proposed in this separate rulemaking, the HOEPA Proposal seeks 
comment on whether and how to account for the implications of a more 
inclusive finance charge on the scope of HOEPA coverage, if the more 
inclusive finance charge is adopted. In particular, the HOEPA Proposal 
seeks comment and data on potential modifications to HOEPA's annual 
percentage rate (APR) coverage threshold (proposed Sec.  1026.32(a)) 
and points and fees threshold (proposed Sec.  1026.32(b)) to account 
for an expanded finance charge, and also seeks comment on the timing of 
implementation for any change to the definition of finance charge and 
any related change to the HOEPA APR and points and fees thresholds.
    The TILA-RESPA Integration Proposal set an initial comment deadline 
regarding the proposed changes to the definition of the finance charge 
of September 7, 2012. This comment period was based in part on the 
Bureau's desire to evaluate comments on the expanded definition of the 
finance charge simultaneously with comments on the other proposed 
rules, including the HOEPA Proposal, that address loan pricing 
thresholds for coverage of various substantive requirements that are 
based on the finance charge and corresponding APR. However, by separate 
notice, the Bureau is extending that comment deadline to November 6, 
2012. For the same reasons discussed in that notice, the Bureau has 
determined that it is appropriate to extend the comment period 
regarding whether and how to account for the implications of a more 
inclusive finance charge on the scope of HOEPA coverage until November 
6, 2012. The comment period for all other proposed amendments in the 
HOEPA Proposal, which ends September 7, 2012, is unchanged.
    In light of the extended comment periods and the subsequent, 
necessary analysis of comments and data received, the Bureau does not 
expect to address any proposed changes to the definition of the finance 
charge or the related portions of the HOEPA Proposal until after the 
Bureau has met its deadlines to issue final rules to implement 
requirements of the Dodd-Frank Act that would otherwise take effect on 
January 21, 2013. Instead, the Bureau expects to address the proposal 
to expand the finance charge when it finalizes the disclosures in the 
TILA-RESPA Integration Proposal. If the Bureau expands the definition 
of the finance charge, the Bureau will at the same time address the 
proposals to adjust the coverage thresholds that depend on the finance 
charge or the APR in the HOEPA Proposal and the other proposed rules 
implementing title XIV of the Dodd-Frank Act.
    The comment period for all other aspects of the HOEPA Proposal, 
which ends September 7, 2012, is unchanged. The Bureau continues to 
encourage commenters to submit comments during the relevant comment 
periods.


[[Page 54846]]


    Dated: August 31, 2012.
Meredith Fuchs,
General Counsel, Bureau of Consumer Financial Protection.
[FR Doc. 2012-21998 Filed 9-5-12; 8:45 am]
BILLING CODE 4810-AM-P