[Federal Register Volume 80, Number 115 (Tuesday, June 16, 2015)]
[Notices]
[Pages 34422-34433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-14802]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Submission; Comment 
Request; Extension

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Notice.

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SUMMARY: The FTC intends to ask the Office of Management and Budget 
(``OMB'') to extend for an additional three years the current Paperwork 
Reduction Act (``PRA'') clearance for the FTC's enforcement of the 
information collection requirements in four consumer financial 
regulations enforced by the Commission. Those clearances expire on June 
30, 2015.

DATES: Comments must be filed by July 16, 2015.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Regs BEMZ, PRA 
Comments, P084812'' on your comment and file your comment online at 
https://ftcpublic.commentworks.com/ftc/RegsBEMZpra2 by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, mail or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania 
Avenue NW, Suite CC-5610 (Annex J), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex J), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Carole Reynolds or Thomas Kane, Attorneys, Division of Financial 
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Ave., NW., Washington, DC 20580, (202) 326-3224.

SUPPLEMENTARY INFORMATION: The four regulations covered by this notice 
are:
    (1) Regulations promulgated under the Equal Credit Opportunity Act, 
15 U.S.C. 1691 et seq. (``ECOA'') (``Regulation B'') (OMB Control 
Number: 3084-0087);
    (2) Regulations promulgated under the Electronic Fund Transfer Act, 
15 U.S.C. 1693 et seq. (``EFTA'') (``Regulation E'') (OMB Control 
Number: 3084-0085);
    (3) Regulations promulgated under the Consumer Leasing Act, 15 
U.S.C. 1667 et seq. (``CLA'') (``Regulation M'') (OMB Control Number: 
3084-0086); and
    (4) Regulations promulgated under the Truth-In-Lending Act, 15 
U.S.C. 1601 et seq. (``TILA'') (``Regulation Z'') (OMB Control Number: 
3084-0088).
    The FTC enforces these statutes as to all businesses engaged in 
conduct these laws cover unless these businesses (such as federally 
chartered or insured depository institutions) are subject to the 
regulatory authority of another federal agency.
    Under the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank Act''), Public Law 111-203, 124 Stat. 1376 (2010), almost 
all rulemaking authority for the ECOA, EFTA, CLA, and TILA transferred 
from the Board of Governors of the Federal Reserve System (Board) to 
the Consumer Financial Protection Bureau (CFPB) on July 21, 2011 
(``transfer date''). To

[[Page 34423]]

implement this transferred authority, the CFPB published interim final 
rules for new regulations in 12 CFR part 1002 (Regulation B), 12 CFR 
part 1005 (Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR 
part 1026 (Regulation Z) for those entities under its rulemaking 
jurisdiction.\1\ Although the Dodd-Frank Act transferred most 
rulemaking authority under ECOA, EFTA, CLA, and TILA to the CFPB, the 
Board retained rulemaking authority for certain motor vehicle dealers 
\2\ under all of these statutes and also for certain interchange-
related requirements under EFTA.\3\
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    \1\ 12 CFR part 1002 (Reg. B) (76 FR 79442, Dec. 21, 2011); 12 
CFR part 1005 (Reg. E) (76 FR 81020, Dec. 27, 2011); 12 CFR part 
1013 (Reg. M) (76 FR 78500, Dec. 19, 2011); 12 CFR part 1026 (Reg. 
Z) (76 FR 79768, Dec. 22, 2011).
    \2\ Generally, these are dealers ``predominantly engaged in the 
sale and servicing of motor vehicles, the leasing and servicing of 
motor vehicles, or both.'' See Dodd-Frank Act, sec. 1029(a)-(c).
    \3\ See Dodd-Frank Act, sec. 1075 (these requirements are 
implemented through Board Regulation II, 12 CFR part 235, rather 
than EFTA's implementing Regulation E).
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    As a result of the Dodd-Frank Act, the FTC and the CFPB now share 
the authority to enforce Regulations B, E, M, and Z for entities for 
which the FTC had enforcement authority before the Act, except for 
certain motor vehicle dealers. Because of this shared enforcement 
jurisdiction, the two agencies have divided the FTC's previously-
cleared PRA burden between them,\4\ except that the FTC has assumed all 
of the part of that burden associated with motor vehicle dealers (for 
brevity, referred to in the burden summaries below as a ``carve-
out'').\5\ The division of PRA burden hours not attributable to motor 
vehicle dealers is reflected in the CFPB's PRA clearance requests to 
OMB, as well as in the FTC's burden estimates below.
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    \4\ The CFPB also factored into its burden estimates respondents 
over which it has jurisdiction but the FTC does not.
    \5\ See Dodd-Frank Act sec. 1029 (a), as limited by subsection 
(b). Subsection (b) does not preclude CFPB regulatory oversight 
regarding, among others, businesses that extend retail credit or 
retail leases for motor vehicles in which the credit or lease 
offered is provided directly from those businesses, rather than 
unaffiliated third parties, to consumers. It is not practicable, 
however, for PRA purposes, to estimate the portion of dealers that 
engage in one form of financing versus another (and that would or 
would not be subject to CFPB oversight). Thus, FTC staff's ``carve-
out'' for this PRA burden analysis reflects a general estimated 
volume of motor vehicle dealers. This attribution does not change 
actual enforcement authority.
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    As a result of the Dodd-Frank Act, the FTC generally has sole 
authority to enforce Regulations B, E, M, and Z regarding certain motor 
vehicle dealers predominantly engaged in the sale and servicing of 
motor vehicles, the leasing and servicing of motor vehicles, or both, 
that, among other things, assign their contracts to unaffiliated third 
parties.\6\ Because the FTC has exclusive jurisdiction to enforce these 
rules for such motor vehicle dealers and retains its concurrent 
authority with the CFPB for other types of motor vehicle dealers, and 
in view of the different types of motor vehicle dealers, the FTC is 
including for itself the entire PRA burden for all motor vehicle 
dealers in the burden estimates below.
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    \6\ See Dodd-Frank Act, sec 1029(a)-(c).
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    The regulations impose certain recordkeeping and disclosure 
requirements associated with providing credit or with other financial 
transactions. Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must 
get OMB approval for each collection of information they conduct or 
sponsor. ``Collection of information'' includes agency requests or 
requirements to submit reports, keep records, or provide information to 
a third party. See 44 U.S.C. 3502(3); 5 CFR 1320.3(c).
    All four of these regulations require covered entities to keep 
certain records, but FTC staff believes these records are kept in the 
normal course of business even absent the particular recordkeeping 
requirements.\7\ Covered entities, however, may incur some burden 
associated with ensuring that they do not prematurely dispose of 
relevant records (i.e., during the time span they must retain records 
under the applicable regulation).
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    \7\ PRA ``burden'' does not include ``time, effort, and 
financial resources'' expended in the ordinary course of business, 
regardless of any regulatory requirement. See 5 CFR 1320.3(b)(2).
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    The regulations also require covered entities to make disclosures 
to third-parties. Related compliance involves set-up/monitoring and 
transaction-specific costs. ``Set-up'' burden, incurred only by covered 
new entrants, includes their identifying the applicable required 
disclosures, determining how best to comply, and designing and 
developing compliance systems and procedures. ``Monitoring'' burden, 
incurred by all covered entities, includes their time and costs to 
review changes to regulatory requirements, make necessary revisions to 
compliance systems and procedures, and to monitor the ongoing operation 
of systems and procedures to ensure continued compliance. 
``Transaction-related'' burden refers to the time and cost associated 
with providing the various required disclosures in individual 
transactions.
    The required disclosures do not impose PRA burden on some covered 
entities because they make those disclosures in their normal course of 
activities. For other covered entities that do not, their compliance 
burden will vary widely depending on the extent to which they have 
developed effective computer-based or electronic systems and procedures 
to communicate and document required disclosures.\8\
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    \8\ For example, large companies may use computer-based and/or 
electronic means to provide required disclosures, including issuing 
some disclosures en masse, e.g., notice of changes in terms. Smaller 
companies may have less automated compliance systems but may 
nonetheless rely on electronic mechanisms for disclosures and 
recordkeeping. Regardless of size, some entities may utilize 
compliance systems that are fully integrated into their general 
business operational system; if so, they may have minimal additional 
burden. Other entities may have incorporated fewer of these 
approaches into their systems and thus may have a higher burden.
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    Calculating the burden associated with the four regulations' 
disclosure requirements is very difficult because of the highly diverse 
group of affected entities. The ``respondents'' included in the 
following burden calculations consist of, among others, credit and 
lease advertisers, creditors, owners (such as purchasers and assignees) 
of credit obligations, financial institutions, service providers, 
certain government agencies and others involved in delivering 
electronic fund transfers (``EFTs'') of government benefits, and 
lessors.\9\ The burden estimates represent FTC staff's best assessment, 
based on its knowledge and expertise relating to the financial services 
industry, of the average time to complete the aforementioned tasks 
associated with recordkeeping and disclosure. Staff considered the wide 
variations in covered entities' (1) size and location; (2) credit or 
lease products offered, extended, or advertised, and their particular 
terms; (3) EFT types used; (4) types and frequency of adverse actions 
taken; (5) types of appraisal reports utilized; and (6) computer 
systems and electronic features of compliance operations.
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    \9\ The Commission generally does not have jurisdiction over 
banks, thrifts, and federal credit unions under the applicable 
regulations.
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    The cost estimates that follow relate solely to labor costs, and 
they include the time necessary to train employees how to comply with 
the regulations. Staff calculated labor costs by multiplying 
appropriate hourly wage rates by the burden hours described above. The 
hourly rates used were $56 for managerial oversight, $42 for skilled 
technical services, and $17 for clerical work. These figures are 
averages drawn

[[Page 34424]]

from Bureau of Labor Statistics data.\10\ Further, the FTC cost 
estimates assume the following labor category apportionments, except 
where otherwise indicated below: recordkeeping--10% skilled technical, 
90% clerical; disclosure--10% managerial, 90% skilled technical.
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    \10\ These inputs are based broadly on mean hourly data found 
within the ``Bureau of Labor Statistics, Economic News Release,'' 
March 25, 2015, Table 1, ``National employment and wage data from 
the Occupational Employment Statistics survey by occupation, May 
2014.'' http://www.bls.gov/news.release/ocwage.t01.htm.
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    The applicable PRA requirements impose minimal capital or other 
non-labor costs. Affected entities generally already have the necessary 
equipment for other business purposes. Similarly, FTC staff estimates 
that compliance with these rules entails minimal printing and copying 
costs beyond that associated with documenting financial transactions in 
the ordinary course of business.
    On April 2, 2015, the FTC sought public comment on the information 
collection requirements associated with these four regulations. 80 FR 
17749. The Commission received a comment from the National Automobile 
Dealers Association (``NADA'') pertaining to regulatory burden 
affecting Regulations B, M, and Z. The comment repeats many of the 
points NADA made in its comments submitted in 2012 when the FTC last 
sought renewed OMB clearance regarding the FTC's enforcement oversight 
of the recordkeeping and disclosure provisions of these regulations 
issued by the Federal Reserve Board and Consumer Financial Protection 
Bureau.\11\
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    \11\ NADA's 2015 comment and related 2012 comment are available 
at https://ftcpublic.commentworks.com/ftc/RegsBEMZpra2. The 
remaining (two) commenters' submissions were not relevant to the 
statutes and regulations at issue.
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    As before, NADA asserts that the FTC's burden estimates greatly 
underestimate its members' \12\ regulatory burdens under these rules, 
particularly those under Regulations B, M, and Z. Despite the FTC's 
prior and continuing explanation in its Federal Register Notices 
regarding the terms ``setup,'' ``monitoring,'' and ``transaction-
related,'' NADA has misinterpreted FTC estimates of disclosure time per 
transaction as the estimated time the FTC accords to monitoring to 
review compliance.\13\ Rather, FTC estimates of ``monitoring'' burden 
address covered entities' time and costs to review changes to 
regulatory requirements, make necessary revisions to compliance systems 
and procedures, and to monitor the ongoing operation of systems and 
procedures to ensure continued compliance. ``Transaction-related'' 
burden, by contrast, refers to the disclosure time and cost per 
individual transaction, thus, generally, of much lesser magnitude than 
``monitoring'' (or ``setup'') burden. And, as stated in the FTC's April 
27, 2012 Federal Register Notice--and as still applicable here--the 
population of affected motor vehicle dealers is one component of a much 
larger universe of such entities.\14\
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    \12\ NADA states that it represents approximately 16,000 new car 
and truck dealers, both domestic and import, with over 32,500 
separate franchises. Id.
    \13\ In NADA's 2015 comment, it misread the 15 second and 60 
second estimates the FTC accorded to disclosure time per lease and 
credit advertisement, respectively, as the time the FTC estimated 
for dealer monitoring of advertisements for respective compliance 
under Regulations M and Z. In actuality, the FTC estimate for the 
latter monitoring category, and as reappearing in the Regulation M 
and Z disclosure hour tables in this Notice, is 30 minutes for lease 
advertising and 30 minutes for closed-end credit advertising.
    \14\ See 77 FR 25170, 25174.
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    In addition, NADA's comment states that, for both Regulations Z and 
M, respectively, the estimates that assumed an average of two 
advertising transactions per respondent for credit, and forty per 
respondent for leasing, are not adequate, and that dealers advertise 
hundreds, if not thousands, of vehicles per year with many ads being 
subject to Regulations Z or M.
    However, the FTC's estimates of transaction time and volume are 
intended as averages: for Regulation Z, highly diverse entities and 
types of transactions are covered, and for both regulations, some 
respondents may have more covered ads, and others may have fewer (if 
any). Moreover, the number of vehicles advertised is not the issue for 
compliance with the requirements; rather, the question is whether 
specific terms used in the advertisements trigger the disclosure 
responsibilities of these regulations.\15\ Some entities' 
advertisements may not include terms that are covered by these 
requirements at all, or they may be subject to exceptions such that 
disclosures are inapplicable.\16\
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    \15\ Further, to facilitate compliance, both regulations permit 
the use of illustrative transactions to make the necessary 
disclosures. That is, where a range of terms is possible or offered, 
the ad may use examples of typical transactions and include the 
required disclosures, rather than stating a wide list of 
transactions and terms for multiple vehicles. See 12 CFR 
1013.7(d)(1)-1, Supp. 1, and 12 CFR 213.7(d)(1)-1, Supp. 1, CFPB and 
FRB Regulation M Official Staff Commentaries, respectively (leases); 
12 CFR 1026.24(d)(2)-5, Supp. 1, and 12 CFR 226.24(d)(2)-5, Supp. 1, 
CFPB and FRB Regulation Z Official Staff Commentaries, respectively 
(credit).
    \16\ For example, some advertisements may promote sale prices 
rather than credit or lease terms, and are not subject to 
Regulations Z or M. Other ads generally may promote the availability 
of financing or leasing without specific terms, such as ``welcome 
college graduates and military.'' Some ads may offer terms that do 
not trigger advertising responsibilities under Regulations Z or M, 
such as ``take years to repay'' or ``we offer long-term leasing.'' 
Still other ads may promote terms that are subject to exceptions 
under Regulation Z, and disclosures would not be required, such as 
``no downpayment required,'' in credit ads.
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    Nonetheless, in recognition of motor vehicle dealers' substantially 
greater proportion of overall covered entities under Regulation M, the 
FTC estimates for that regulation have been partially revised in 
response to some of NADA's comments. This is covered in more detail in 
the discussion of Regulation M and related burden calculation 
tables.\17\
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    \17\ The FTC has retained its burden and cost estimates for 
Regulations B and Z. As noted above, these regulations apply to a 
wide variety of entities and transactions. Some entities provide 
disclosures in the ordinary course of business--which is not 
included in PRA burden; others have minimal setup burden and few 
transactions covered by the requirements, while other entities may 
have more setup and transaction-related burden. The FTC's estimates 
reflect these complex considerations. Moreover, based on the FTC's 
administrative experience in this enforcement area, some dealers use 
the same or similar advertisements for many of their franchises or 
locations-- an approach that can facilitate compliance by limiting 
the number of applicable advertisements for which disclosures are 
provided, and hence, costs.
     In addition, we note that the report developed for NADA and 
attached to NADA's comment by the Center for Automotive Research 
(``CAR Report'') addresses the impact on franchised automobile 
dealerships related to many federal statutes, regulations, and 
requirements. NADA stated these requirements cover diverse issues 
but that the regulations in this matter still ``represent a material 
portion of dealers' regulatory obligations.'' See, e.g., NADA 
comment, CAR Report at 2, 3, 19-34. However, NADA's specific points 
refer to a generalized concern about regulatory burden for 
automobile dealers. Because franchised automobile dealers are a 
component of a broad, highly diverse population of credit entities 
and transactions, we believe that the estimates for Regulations B 
and Z remain reasonable, bearing in mind the complexity of this 
assessment for such a wide-ranging group.
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    The following discussion and tables present FTC estimates under the 
PRA of recordkeeping and disclosure average time and labor costs, 
excluding that which the FTC believes entities incur customarily in the 
ordinary course of business\18\ and information compiled and produced 
in response to FTC law enforcement investigations or prosecutions.\19\
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    \18\ See supra note 7 and accompanying text.
    \19\ See 5 CFR 1320.4(a) (excluding information collected in 
response to, among other things, a federal civil action or ``during 
the conduct of an administrative action, investigation, or audit 
involving an agency against specific individuals or entities'').
    FTC enforcement initiatives are based on diverse statutory and 
regulatory requirements. Some actions are brought in partnership 
with other federal and state agencies and encompass matters enforced 
by those agencies, not solely issues related to Regulations M and Z. 
Further, even where Regulations M and Z matters also are involved in 
FTC actions, or are in the broader initiative or enforcement sweep 
of automobile actions, the actions frequently include charges of 
unfair and/or deceptive practices under Section 5 of the FTC Act, 15 
U.S.C. 45(a), and/or may involve warranty violations under the 
Magnuson Moss Warranty Act, 15 U.S.C. 2301-2312, and other issues 
not pertinent to this PRA submission. See, e.g., FTC, Press Release, 
FTC, Multiple Law Enforcement Partners Announce Crackdown on 
Deception, Fraud in Auto Sales, Financing and Leasing, Mar. 26, 
2015, available at https://www.ftc.gov/news-events/press-releases/2015/03/ftc-multiple-law-enforcement-partners-announce-crackdown. 
The FTC also frequently issues business ``blog'' guidance with its 
enforcement initiatives to guide and facilitate compliance. See, 
e.g., Lesley Fair, Operation Ruse Control: Six tips if cars are up 
your alley, FTC BUSINESS CENTER BLOG (Mar. 26, 2015), available at 
https://www.ftc.gov/news-events/blogs/business-blog/2015/03/operation-ruse-control-6-tips-if-cars-are-your-alley; Lesley Fair, 
``Advertise auto promotions car-fully,'' FTC BUSINESS CENTER BLOG 
(Dec. 23, 2014), available at https://www.ftc.gov/news-events/blogs/business-blog/2014/12/advertise-auto-promotions-car-fully.

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[[Page 34425]]

1. Regulation B

    The ECOA prohibits discrimination in the extension of credit. 
Regulation B implements the ECOA, establishing disclosure requirements 
to assist customers in understanding their rights under the ECOA and 
recordkeeping requirements to assist agencies in enforcement. 
Regulation B applies to retailers, mortgage lenders, mortgage brokers, 
finance companies, and others.

Recordkeeping

    FTC staff estimates that Regulation B's general recordkeeping 
requirements affect 530,080 credit firms subject to the Commission's 
jurisdiction, at an average annual burden of 1.25 hours per firm for a 
total of 662,600 hours.\20\ Staff also estimates that the requirement 
that mortgage creditors monitor information about race/national origin, 
sex, age, and marital status imposes a maximum burden of one minute 
each (of skilled technical time) for approximately 2.9 million credit 
applications (based on industry data regarding the approximate number 
of mortgage purchase and refinance originations), for a total of 48,333 
hours.\21\ Staff also estimates that recordkeeping of self-testing 
subject to the regulation would affect 1,375 firms, with an average 
annual burden of one hour (of skilled technical time) per firm, for a 
total of 1,375 hours, and that recordkeeping of any corrective action 
as a result of self-testing would affect 10% of them, i.e., 138 firms, 
with an average annual burden of four hours (of skilled technical time) 
per firm, for a total of 552 hours.\22\ Keeping records of race/
national origin, sex, age, and marital status requires an estimated one 
minute of skilled technical time.
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    \20\ Section 1071 of the Dodd-Frank Act amends the ECOA to 
require financial institutions to collect and report information 
concerning credit applications by women- or minority-owned 
businesses and small businesses, effective on the July 21, 2011 
transfer date. Both the CFPB and the Board have exempted affected 
entities from complying with this requirement until a date set by 
the prospective final rules these agencies issue to implement the 
Dodd-Frank Act's requirements. The Commission will address PRA 
burden for its enforcement of these requirements after the CFPB and 
the Board have issued the associated final rules.
    \21\ Regulation B contains model forms that creditors may use to 
gather and retain the required information.
    \22\ In contrast to banks, for example, entities under FTC 
jurisdiction are not subject to audits for compliance with 
Regulation B; rather they may be subject to FTC investigations and 
enforcement actions. This may impact the level of self-testing (as 
specifically defined by Regulation B) in a given year, and staff has 
sought to address such factors in its burden estimates.
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Disclosure

    Regulation B requires that creditors (i.e., entities that regularly 
participate in the decision whether to extend credit under Regulation 
B) provide notices whenever they take adverse action, such as denial of 
a credit application. It requires entities that extend mortgage credit 
with first liens to provide a copy of the appraisal report or other 
written valuation to applicants.\23\ Finally, Regulation B also 
requires that for accounts which spouses may use or for which they are 
contractually liable, creditors who report credit history must do so in 
a manner reflecting both spouses' participation. Further, it requires 
creditors that collect applicant characteristics for purposes of 
conducting a self-test to disclose to those applicants that: (1) 
Providing the information is optional; (2) the creditor will not take 
the information into account in any aspect of the credit transactions; 
and (3) if applicable, the information will be noted by visual 
observation or surname if the applicant chooses not to provide it.\24\
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    \23\ While the rule also requires the creditor to provide a 
short written disclosure regarding the appraisal process, the 
disclosure is now provided by the CFPB, and is thus not a 
``collection of information'' for PRA purposes. See 5 CFR 
1320.3(c)(2) and CFPB, Final Rule, Disclosure and Delivery 
Requirements for Copies of Appraisals and Other Written Valuations 
Under the Equal Credit Opportunity Act (Regulation B), 78 FR 7216, 
7247 (Jan. 31, 2013). Accordingly, it is not included in burden 
estimates below.
    \24\ The disclosure may be provided orally or in writing. The 
model form provided by Regulation B assists creditors in providing 
the written disclosure.
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Burden Totals

Recordkeeping: 712,860 hours (637,310 + 75,550 carve-out for motor 
vehicles); $15,031,620 ($13,550,520 + $1,481,100 carve-out for motor 
vehicles), associated labor costs
Disclosures: 1,166,563 hours (1,036,040 + 130,523 carve-out for motor 
vehicles); $50,628,816 ($44,964,122 + $5,664,694 carve-out for motor 
vehicles), associated labor costs

                                                         Regulation B--Disclosures--Burden Hours
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                                                       Setup/monitoring \1\                           Transaction-related \2\
                                         ------------------------------------------------------------------------------------------------
                                                                                                              Average                      Total burden
               Disclosures                                Average burden   Total setup/      Number of      burden per         Total          (hours)
                                            Respondents   per respondent    monitoring     transactions     transaction     transaction
                                                              (hours)     burden (hours)                     (minutes)    burden (hours)
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Credit history reporting................         132,520             .25          33,130      66,260,000             .25         276,083         309,213
Adverse action notices..................         530,080             .75         397,560     106,016,000             .25         441,733         839,293
Appraisal reports/written valuations....           5,000            1              5,000       1,450,000             .50          12,083          17,083
Self-test disclosures...................           1,375             .5              688          68,750             .25             286             974
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    Total...............................  ..............  ..............  ..............  ..............  ..............  ..............       1,166,563
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\1\ The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations (with the FTC
  having approximately one-half of that amount). An increase in burden is noted due to changed rules requiring provision of appraisals reports as well
  as other written valuations, for first lien mortgages. The former ``Appraisal disclosure'' item was deleted; the information is now supplied by the
  rule.
\2\ The transaction-related figures reflect a decrease in mortgage transactions, compared to prior FTC estimates. The figures assume that approximately
  three-quarters of applicable mortgage transactions (.75 x 2,900,000, or 2,175,000) would not otherwise provide this information, and that another
  725,000 transactions (not closed, etc.) would be affected; the FTC would have one-half of the total, or 1,450,000.


[[Page 34426]]


                                                  Regulation B--Recordkeeping and Disclosures--Cost 25
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                                                    Managerial                   Skilled Technical                   Clerical
                                         ------------------------------------------------------------------------------------------------
              Required task                                 Cost  ($56/                     Cost  ($42/                     Cost  ($17/   Total cost ($)
                                           Time  (hours)       hr.)        Time  (hours)       hr.)        Time  (hours)       hr.)
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General recordkeeping...................               0              $0          66,260      $2,782,920         596,340     $10,137,780     $12,920,700
Other recordkeeping.....................               0               0          48,333       2,029,986               0               0       2,029,986
Recordkeeping of self-test..............               0               0           1,375          57,750               0               0          57,750
Recordkeeping of corrective action......               0               0             552          23,184               0               0          23,184
                                         ---------------------------------------------------------------------------------------------------------------
    Total Recordkeeping.................  ..............  ..............  ..............  ..............  ..............  ..............      15,031,620
Disclosures:
    Credit history reporting............          30,921       1,731,576         278,292      11,688,264               0               0      13,419,840
    Adverse action notices..............          83,929       4,700,024         755,364      31,725,288               0               0      36,425,312
    Appraisal reports...................           1,708          95,648          15,375         645,750               0               0         741,398
    Self-test disclosure................              97           5,432             877          36,834               0               0          42,266
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        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............      50,628,816
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            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............      65,660,436
             Disclosures................
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2. Regulation E
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    \25\ NADA's comment, in part, refers to dealer burden related to 
credit reports and the provision of credit score disclosures, which 
fall under the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., 
and the Risk-Based Pricing Rule, 16 CFR part 640. They are not the 
subject of this PRA submission.
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    The EFTA requires that covered entities provide consumers with 
accurate disclosure of the costs, terms, and rights relating to EFT and 
certain other services. Regulation E implements the EFTA, establishing 
disclosure and other requirements to aid consumers and recordkeeping 
requirements to assist agencies with enforcement. It applies to 
financial institutions, retailers, gift card issuers and others that 
provide gift cards, service providers, various federal and state 
agencies offering EFTs, etc. Staff estimates that Regulation E's 
recordkeeping requirements affect 327,460 firms offering EFT services 
to consumers and that are subject to the Commission's jurisdiction, at 
an average annual burden of one hour per firm, for a total of 327,460 
hours.

Burden Totals

Recordkeeping: 327,460 hours (312,500 + 15,040 carve-out); $6,385,470 
($6,092,190 + $293,280 carve-out), associated labor costs
Disclosures: 7,179,270 hours (7,162,563 + 16,707 carve-out); 
$311,588,654 ($310,863,566 + $725,088 carve-out), associated labor 
costs

                                                         Regulation E--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Setup/Monitoring                                Transaction-related
                                      ---------------------------------------------------------------------------------------------------
                                                           Average      Total setup/                          Average                      Total burden
             Disclosures                                 burden per      monitoring        Number of        burden per         Total          (hours)
                                         Respondents     respondent        burden         transactions      transaction     transaction
                                                           (hours)         (hours)                           (minutes)    burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial terms........................          50,000              .5          25,000            500,000             .02             167          25,167
Change in terms......................          12,500              .5           6,250         16,500,000             .02           5,500          11,750
Periodic statements..................          50,000              .5          25,000        600,000,000             .02         200,000         225,000
Error resolution.....................          50,000              .5          25,000            500,000               5          41,667          66,667
Transaction receipts.................          50,000              .5          25,000      2,500,000,000             .02         833,333         858,333
Preauthorized transfers \1\..........         257,520              .5         128,760          6,438,000             .25          26,825         155,585
Service provider notices.............          50,000             .25          12,500            500,000             .25           2,083          14,583
Govt. benefit notices................           5,000              .5           2,500         50,000,000             .25         208,333         210,833
ATM notices..........................             250             .25              63         50,000,000             .25         208,333         208,396
Electronic check conversion \2\......          57,520              .5          28,760          1,150,400             .02             383          29,143
Payroll cards........................             125              .5              63            500,000               3          25,000          25,063
Overdraft services...................          50,000              .5          25,000          2,500,000             .02             833          25,833

[[Page 34427]]

 
Gift cards \3\.......................          25,000              .5          12,500      1,250,000,000             .02         416,667         429,167
Remittance transfers \4\
    Disclosures......................           5,000            1.25           6,250        100,000,000              .9       1,500,000       1,506,250
    Error resolution.................           5,000            1.25           6,250        125,000,000              .9       1,875,000       1,881,250
    Agent compliance.................           5,000            1.25           6,250        100,000,000              .9       1,500,000       1,506,250
                                      ------------------------------------------------------------------------------------------------------------------
        Total........................  ..............  ..............  ..............  .................  ..............  ..............       7,179,270
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Preauthorized transfer respondents and transactions have decreased slightly.
\2\ Electronic check conversion respondents and transactions have decreased slightly.
\3\ Gift card entities and transactions under FTC jurisdiction (which excludes banks and bank transactions) have decreased.
\4\ Remittance transfer respondents now focus primarily on those that may offer services and are responsible for legal requirements (not separate
  inclusion of their offices). Legal changes have eased compliance, but they require system changes causing an increase in setup burden and a decrease
  in transaction burden. Remittance transfers have increased substantially but error resolutions have increased to a smaller degree due to changes in
  legal requirements. The resulting transaction burden in each category for remittance transfers has increased due to the upswing in transaction volume.


                                                    Regulation E--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time  (hours)  Cost ($56/hr.)   Time  (hours)  Cost ($42/hr.)   Time  (hours)  Cost ($17/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................               0              $0          32,746      $1,375,332         294,714      $5,010,138      $6,385,470
Disclosures:
    Initial terms.......................           2,517         140,952          22,650         951,300               0               0       1,092,252
    Change in terms.....................           1,175          65,800          10,750         451,500               0               0         517,300
    Periodic statements.................          22,500       1,260,000         202,500       8,505,000               0               0       9,765,000
    Error resolution....................           6,667         373,352          60,000       2,520,000               0               0       2,893,352
    Transaction receipts................          85,833       4,806,648         772,500      32,445,000               0               0      37,251,648
    Preauthorized transfers.............          15,558         871,248         140,027       5,881,134               0               0       6,752,382
    Service provider notices............           1,458          81,648          13,125         551,250               0               0         632,898
    Govt. benefit notices...............          21,083       1,180,648         189,750       7,969,500               0               0       9,150,148
    ATM notices.........................          20,840       1,167,040         187,556       7,877,352               0               0       9,044,392
    Electronic check conversion.........           2,914         163,184          26,229       1,101,618               0               0       1,264,802
    Payroll cards.......................           2,506         140,336          22,557         947,394               0               0       1,087,730
    Overdraft services..................           2,583         144,648          23,250         976,500               0               0       1,121,148
    Gift cards..........................          85,833       2,403,352         386,250      16,222,500               0               0      18,626,852
Remittance transfers:
    Disclosures.........................         150,625       8,435,000       1,355,625      56,936,250               0               0      65,371,250
    Error resolution....................         188,125      10,535,000       1,693,125      71,111,250               0               0      81,646,250
    Agent compliance....................         150,625       8,435,000       1,355,625      56,936,250               0               0      65,371,250
                                         ---------------------------------------------------------------------------------------------------------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............     311,588,654
                                         ---------------------------------------------------------------------------------------------------------------
            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............     317,974,124
             Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. Regulation M

    The CLA requires that covered entities provide consumers with 
accurate disclosure of the costs and terms of leases. Regulation M 
implements the CLA, establishing disclosure requirements to help 
consumers comparison shop and understand the terms of leases and 
recordkeeping requirements. It applies to vehicle lessors (such as auto 
dealers, independent leasing companies, and manufacturers' captive 
finance companies), computer lessors (such as computer dealers and 
other retailers),

[[Page 34428]]

furniture lessors, various electronic commerce lessors, diverse types 
of lease advertisers, and others.
    Staff estimates that Regulation M's recordkeeping requirements 
affect approximately 32,577 firms within the FTC's jurisdiction leasing 
products to consumers at an average annual burden of one hour per firm, 
for a total of 32,577 hours.
    In its June 1, 2015 comment, NADA asserts that ``daily compliance 
burdens at a dealership often must be handled by managerial, not 
clerical staff.'' \26\ NADA also asserts that ``[m]any dealers are 
small businesses that do not benefit from sophisticated records 
retention or computer systems, and cannot leverage robust compliance 
structures. Even larger dealer groups often do not have the economy of 
scale necessary to justify in-house legal counsel, compliance staff, or 
other expert or technical resources. As a result, they rely heavily on 
outside counsel, consultants, and computer and other experts to help 
them to comply with their regulatory obligations--and pay the 
concomitant fees associated with those third party services.''
---------------------------------------------------------------------------

    \26\ However, the only apportioning in the FTC's estimates to 
clerical staff was for recordkeeping. The remaining attributions, 
for disclosure, had been to managerial (10%) and skilled technical 
(90%) staff.
---------------------------------------------------------------------------

    While Regulation M covers not only NADA's membership of franchised 
car and truck dealers, but also independent motor vehicle dealers and 
non-motor vehicle dealers, NADA's constituency comprises a 
significantly large proportion of the overall affected population to 
warrant a reassessment of and adjustment to FTC staff's prior estimates 
of labor cost burden under Regulation M. It is not practicable, 
however, to make projections about and provide estimates regarding the 
additional or alternative use of such outside sources to maintain 
regulatory compliance (neither has NADA attempted to do so in its 
comment). Instead, the FTC's revised labor cost estimates increase 
apportionment to managerially performed tasks from 10% to 90%, and 
remove ``clerical'' support, while allocating the remaining 10% to 
skilled technical staff.\27\ It is worth noting that in NADA's survey 
of its members in 2012--reincorporated in NADA's 2015 comment--the 
purported average response for labor apportionment for all facets of 
complying with Regulation M was no more than 61.5% for managerial 
staff, 24.7% for technical staff, and 13.9% for clerical staff. 
Accordingly, FTC staff believes that its reapportionment of labor 
costing under Regulation M is a fair response to these varying 
propositions and conditions.
---------------------------------------------------------------------------

    \27\ As noted above, although NADA made these same assertions 
for Regulations B and Z as it had for Regulation M, NADA's members 
comprise a significantly smaller proportion of those regulations' 
covered entities than they do for Regulation M. In FTC staff's view, 
to adopt the same revised assumptions and adjustments for those 
regulations as made here for Regulation M would unduly skew the 
results for Regulations B and Z. Accordingly, the FTC has retained 
its prior analysis regarding those regulations. See supra note 17.
---------------------------------------------------------------------------

Burden Totals 28
---------------------------------------------------------------------------

    \28\ Recordkeeping and disclosure burden estimates for 
Regulation M are more substantial for motor vehicle leases than for 
other leases, including burden estimates based on market changes and 
regulatory definitions of coverage. As noted above, for purposes of 
burden calculations, and in view of the different types of motor 
vehicle dealers, the FTC is including the entire PRA burden for all 
motor vehicle dealers in the burden estimates below.
---------------------------------------------------------------------------

Recordkeeping: 32,577 hours (5,000 + 27,577 carve-out); $1,778,700 
($273,000 + $1,505,700 carve-out), associated labor costs
Disclosures: 73,933 hours (2,986 + 70,947 carve-out); $4,036,732 
($163,030 + $3,873,702 carve-out), associated labor costs

                                                         Regulation M--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Setup/monitoring                               Transaction-related
                                         ------------------------------------------------------------------------------------------------
                                                                           Total setup/                       Average          Total       Total burden
               Disclosures                                Average burden    monitoring       Number of      burden per      transaction       (hours)
                                            Respondents   per respondent      burden       transactions     transaction       burden
                                                              (hours)         (hours)                        (minutes)        (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Motor Vehicle Leases \1\................          27,577            1             27,577       4,000,000             .50          33,333          60,910
Other Leases \2\........................           5,000             .50           2,500         100,000             .25             417           2,917
Advertising \3\.........................          15,181             .50           7,591         603,490             .25           2,515          10,106
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................  ..............  ..............  ..............  ..............  ..............  ..............          73,933
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of
  payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  1013.2(e)(1). While the number of respondents for vehicle leases has decreased, the number of vehicle lease transactions has increased, with market
  changes, from past FTC estimates. Additionally, leases up to $54,600 (plus an annual adjustment) are now covered. The resulting total burden has
  increased.
\2\ This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small
  appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  1013.2(e)(1). The number of respondents has decreased, based on market changes in companies and types of transactions they offer; the number of such
  transactions has also declined, based on types of transactions offered that are covered by the CLA. Leases up to $54,600 (plus an annual adjustment)
  are now covered. The resulting total burden has decreased.
\3\ Respondents for advertising have increased as have lease advertisements, based on market changes, from past FTC estimates. More types of lease
  advertisements are occurring. The resulting total burden has increased.


                                                    Regulation M--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
                                         ------------------------------------------------------------------------------------------------
              Required task                                 Cost  ($56/                     Cost  ($42/                     Cost  ($17/   Total cost ($)
                                           Time  (hours)       hr.)        Time  (hours)       hr.)       Total  (hours)       hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................          29,319      $1,641,864           3,258        $136,836               0               0      $1,778,700
Disclosures:

[[Page 34429]]

 
    Motor Vehicle Leases................          54,819       3,069,864           6,091         255,822               0               0       3,325,686
                                         ---------------------------------------------------------------------------------------------------------------
    Other Leases........................           2,625         147,000             292          12,264               0               0         159,264
    Advertising.........................           9,095         509,320           1,011          42,462               0               0         551,782
                                         ---------------------------------------------------------------------------------------------------------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............       4,036,732
                                         ---------------------------------------------------------------------------------------------------------------
            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............       5,815,432
             Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------

4. Regulation Z

    The TILA was enacted to foster comparison credit shopping and 
informed credit decision making by requiring creditors and others to 
provide accurate disclosures regarding the costs and terms of credit to 
consumers. Regulation Z implements the TILA, establishing disclosure 
requirements to assist consumers and recordkeeping requirements to 
assist agencies with enforcement. These requirements pertain to open-
end and closed-end credit and apply to various types of entities, 
including mortgage companies; finance companies; auto dealerships; 
private education loan companies; merchants who extend credit for goods 
or services; credit advertisers; acquirers of mortgages; and others. 
New requirements have been established in the mortgage area, including 
for high cost mortgages, higher-priced mortgage loans,\29\ ability to 
pay of mortgage consumers, mortgage servicing, loan originators, and 
certain integrated mortgage disclosures.
---------------------------------------------------------------------------

    \29\ While Regulation Z also requires the creditor to provide a 
short written disclosure regarding the appraisal process for higher-
priced mortgage loans, the disclosure is now provided by the CFPB. 
As a result, it is not a ``collection of information'' for PRA 
purposes; it is therefore excluded from the burden estimates below. 
See 5 CFR 1320.3(c)(2), and CFPB, Final Rule, Appraisals for Higher-
Priced Mortgage Loans, 78 FR 10368, 10430 (Feb. 13, 2013), and 
Supplemental Final Rule, Appraisals for Higher-Priced Mortgage 
Loans, 78 FR 78520, 78575 (Dec. 26, 2013).
---------------------------------------------------------------------------

    FTC staff estimates that Regulation Z's recordkeeping requirements 
affect approximately 530,080 entities subject to the Commission's 
jurisdiction, at an average annual burden of 1.25 hours per entity with 
.25 additional hours per entity for 5,000 entities (ability to pay), 
and 5 additional hours per entity for 5,000 entities (loan 
originators).

Burden Totals

Recordkeeping: 688,850 hours (613,650 + 75,200 carve-out); $13,432,575 
($11,966,175 + $1,466,400 carve-out), associated labor costs
Disclosures: 13,008,452 hours (11,964,361 + 1,044,091 carve-out); 
$553,563,761 ($508,250,213 + $45,313,548 carve-out), associated labor 
costs

                                                         Regulation Z--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Setup/monitoring                                Transaction-related
                                      ---------------------------------------------------------------------------------------------------
                                                           Average      Total setup/                          Average          Total       Total burden
           Disclosures \1\                               burden per      monitoring        Number of        burden per      transaction       (hours)
                                         Respondents   respondent \2\      burden         transactions      transaction       burden
                                                           (hours)         (hours)                        \3\  (minutes)      (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:
    Initial terms....................          45,000             .75          33,750         20,000,000            .375         125,000         158,750
    Rescission notices \4\...........           1,500              .5             750              8,000             .25              33             783
    Subsequent disclosures...........          10,000             .75           7,500         62,500,000            .188         195,833         203,333
    Periodic statements..............          45,000             .75          33,750      1,750,000,000           .0938       2,735,833       2,769,583
    Error resolution.................          45,000             .75          33,750          4,000,000               6         400,000         433,750
    Credit and charge card accounts..          25,000             .75          18,750         12,500,000            .375          78,125          96,875
    Settlement of estate debts.......          45,000             .75          33,750          1,000,000            .375           6,250          40,000
    Special credit card requirements.          25,000             .75          18,750         12,500,000            .375          78,125          96,875
    Home equity lines of credit \5\..           1,500              .5             750             10,000             .25              42             792

[[Page 34430]]

 
    Home equity lines of credit--high             500               2           1,000              5,000               2             167           1,167
     cost mortgages \6\..............
    College student credit card                 2,500              .5           1,250            250,000             .25           1,042           2,292
     marketing--ed. institutions.....
    College student credit card                   300             .75             225             18,000             .75             225             450
     marketing--card issuer reports..
    Posting and reporting of credit            25,000             .75          18,750         12,500,000            .375          78,125          96,875
     card agreements.................
    Advertising......................         100,000             .75          75,000            300,000             .75           3,750          78,750
    Sale, transfer, or assignment of            1,500              .5             750          1,750,000             .25           7,292           8,042
     mortgages \7\...................
    Appraiser misconduct reporting...         625,000             .75         468,750         12,500,000            .375          78,125         546,875
    Mortgage servicing \8\...........           2,500              .5           1,250            500,000              .5           4,167           5,417
    Loan originators \9\.............           2,500               2           5,000             25,000               5           2,083           7,083
Closed-end credit:
    Credit disclosures \10\..........         380,080             .75         285,060        163,054,320            2.25       6,114,537       6,399,597
    Rescission notices \11\..........           5,000              .5           2,500          7,500,000               1         125,000         127,500
    Redisclosures....................         200,000              .5         100,000          1,000,000            2.25          37,500         137,500
    Integrated mortgage disclosures             5,000              10          50,000         15,000,000             3.5         875,000         925,000
     \12\............................
    Variable rate mortgages \13\.....           5,000               1           5,000            500,000            1.75          14,583          19,583
    High cost mortgages \14\.........           3,000               1           3,000             75,000               2           2,500           5,500
    Higher priced mortgages \15\.....           3,000               1           3,000             25,000               2             833           3,833
    Reverse mortgages \16\...........           7,500              .5           3,750             35,000               1             583           4,333
    Advertising \17\.................         248,360              .5         124,180          2,483,600               1          41,393         165,573
    Private education loans..........             100              .5              50             50,000             1.5           1,250           1,300
    Sale, transfer, or assignment of          100,000              .5          50,000          5,000,000             .25          20,833          70,833
     mortgages.......................
    Ability to pay/qualified mortgage           5,000             .75           3,750                  0               0               0           3,750
     \18\............................
    Appraiser misconduct reporting...         625,000             .75         468,750         12,500,000            .375          78,125         546,875
    Mortgage servicing \19\..........           5,000               1           5,000          1,000,000            2.25          37,500          42,500
    Loan originators \20\............           2,500               2           5,000             25,000               5           2,083           7,083
                                      ------------------------------------------------------------------------------------------------------------------

[[Page 34431]]

 
        Total open-end credit........  ..............  ..............  ..............  .................  ..............  ..............       4,547,692
                                      ------------------------------------------------------------------------------------------------------------------
        Total closed-end credit......  ..............  ..............  ..............  .................  ..............  ..............       8,460,760
                                      ------------------------------------------------------------------------------------------------------------------
            Total credit.............  ..............  ..............  ..............  .................  ..............  ..............      13,008,452
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $54,600 plus an annual adjustment
  (except that real estate credit and private education loans are covered regardless of amount), generally causing an increase in transactions. In some
  instances noted below, market changes have reduced estimated PRA burden. In other instances noted below, changes to Regulation Z have increased
  estimated PRA burden. The overall effect of these competing factors, combined with the FTC sharing with the CFPB estimated PRA burden (for all but
  motor vehicle dealers) yields a net increase from the FTC's prior reported estimate for open-end credit and for closed-end credit.
\2\ Burden per respondent in some categories has increased compared to prior FTC estimates, due to changes in rules.
\3\ Burden per transaction in some categories has increased compared to prior FTC estimates, due to changes in rules.
\4\ Respondents for mortgages involving rescission have decreased, as have transactions.
\5\ Respondents for home equity lines of credit have decreased, as have transactions.
\6\ Regulation Z high cost mortgage rules now cover certain open-end mortgages, and a new counseling rule also applies.
\7\ Respondents for sale, transfer or assignment of mortgages have decreased.
\8\ Regulation Z has expanded various mortgage servicing requirements for prompt crediting and payoff responses.
\9\ Regulation Z includes new loan originator compensation requirements.
\10\ Respondents for credit disclosures have decreased, as have transactions.
\11\ Respondents for mortgages involving rescission have decreased.
\12\ Regulation Z now has integrated mortgage disclosure requirements for loan estimates and loan closing documents, with other requirements.
\13\ Respondents for variable rate mortgages have decreased but Regulation Z has expanded mortgage disclosure requirements affecting subsequent
  disclosures, increasing burden.
\14\ Regulation Z high rate/high fee mortgages are now called ``high cost'' mortgages. Respondents in high cost mortgages have decreased, but the rules
  cover more types of mortgages and include a counseling requirement, increasing burden. However, these types of transactions have decreased, reducing
  total burden.
\15\ Respondents for higher priced mortgages have decreased. However, Regulation Z now has certain appraisal requirements for higher-priced mortgages,
  increasing burden. However, these types of transactions have decreased, reducing total burden.
\16\ Reverse mortgage respondents and transactions have decreased.
\17\ Advertising respondents have increased, as have transactions, causing an increased total burden.
\18\ Regulation Z now includes ability to pay rules that affect setup costs.
\19\ Regulation Z has expanded various mortgage servicing requirements for prompt crediting and payoff responses. It also requires periodic statements
  (or a coupon book, for fixed-rate mortgages).
\20\ Regulation Z includes new loan originator compensation requirements.


                                                    Regulation Z--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time  (hours)  Cost ($56/hr.)   Time  (hours)  Cost ($42/hr.)   Time  (hours)  Cost ($17/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................               0              $0          68,885      $2,893,170         619,965     $10,539,405     $13,432,575
Open-end credit Disclosures:
    Initial terms.......................          15,875         889,000         142,875       6,000,750               0               0       6,889,750
    Rescission notices..................              78           4,368             705          29,610               0               0          33,978
    Subsequent disclosures..............          20,333       1,138,648         183,000       7,686,000               0               0       8,824,648
    Periodic statements.................         276,958      15,509,648       2,492,625     104,690,250               0               0     120,199,898
    Error resolution....................          43,375       2,429,000         390,375      16,395,750               0               0      18,824,750
    Credit and charge card accounts.....           9,688         474,712          87,187       2,615,610               0               0       3,090,322
    Settlement of estate debts..........           4,000         196,000          36,000       1,080,000               0               0       1,276,000
    Special credit card requirements....           9,688         474,712          87,187       2,615,610               0               0       3,090,322
    Home equity lines of credit.........             458          22,442           4,126         123,780               0               0         146,222

[[Page 34432]]

 
    Home equity lines of credit--high                117           6,552            1050          44,100               0               0          50,662
     cost mortgages.....................
    College student credit card                      229          11,221           2,063          61,890               0               0          73,111
     marketing--ed institutions.........
    College student credit card                       45           2,205             405          12,150               0               0          14,355
     marketing--card issuer reports.....
    Posting and reporting of credit card           9,688         474,712          87,187       2,615,610               0               0       3,090,322
     agreements.........................
    Advertising.........................           7,875         385,875          70,875       2,126,250               0               0       2,512,125
    Sale, transfer, or assignment of                 823          40,327           7,407         222,210               0               0         262,537
     mortgages..........................
    Appraiser misconduct reporting......          54,687       2,679,663         492,188      14,765,640               0               0      17,445,303
    Mortgage servicing..................             542          30,352           4,875         204,750               0               0         235,102
    Loan originators....................             708          39,648           6,375         267,750               0               0         307,398
                                         ---------------------------------------------------------------------------------------------------------------
        Total open-end credit...........  ..............  ..............  ..............  ..............  ..............  ..............     186,366,805
Closed-end credit Disclosures:
    Credit disclosures..................         639,960      35,837,760       5,759,637     241,904,754               0               0     277,742,514
    Rescission notices..................          12,750         714,000         114,750       4,819,500               0               0       5,533,500
    Redisclosures.......................          13,750         770,000         123,750       5,197,500               0               0       5,967,500
    Integrated mortgage disclosures.....          92,500       5,180,000         832,500      34,965,000               0               0      40,145,000
    Variable rate mortgages.............           1,958         109,648          17,625         740,250               0               0         849,898
    High cost mortgages.................             550          30,800           4,950         207,900               0               0         238,700
    Higher priced mortgages.............             383          21,448           3,450         144,900               0               0         166,348
    Reverse mortgages...................             433          24,248           3,900         163,800               0               0         188,048
    Advertising.........................          16,557         927,192         149,016       6,258,672               0               0       7,185,864
    Private education loans.............             130           7,280           1,170          49,140               0               0          56,420
    Sale, transfer, or assignment of               7,083         396,648          63,750       2,677,500               0               0       3,074,148
     mortgages..........................
    Ability to pay/qualified mortgage...             375          21,000           3,375         141,750               0               0         162,750
    Appraiser misconduct reporting......          54,687       3,062,472         492,188      20,671,896               0               0      23,734,368
    Mortgage servicing..................           4,250         238,000          38,250       1,606,500               0               0       1,844,500
    Loan originators....................             708          39,648           6,375         267,750               0               0         307,398
                                         ---------------------------------------------------------------------------------------------------------------
        Total closed-end credit.........  ..............  ..............  ..............  ..............  ..............  ..............     367,196,956
                                         ---------------------------------------------------------------------------------------------------------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............     553,563,761
                                         ---------------------------------------------------------------------------------------------------------------
            Total Recordkeeping and       ..............  ..............  ..............  ..............  ..............  ..............     566,996,336
             Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Request for Comment: You can file a comment online or on paper. For 
the Commission to consider your comment, we must receive it on or 
before July 16, 2015. Write ``Regs BEMZ, PRA Comments, P084812'' on 
your comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding,

[[Page 34433]]

including to the extent practicable, on the public Commission Web site, 
at http://www.ftc.gov/os/publiccomments.shtm. As a matter of 
discretion, the Commission tries to remove individuals' home contact 
information from comments before placing them on the Commission Web 
site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment doesn't include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, don't 
include any ``[t]rade secret or any commercial or financial information 
. . . which is privileged or confidential'' as provided in Section 6(f) 
of the FTC Act 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, don't include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c)).\30\ Your comment will be kept confidential only if 
the FTC General Counsel, in his or her sole discretion, grants your 
request in accordance with the law and the public interest.
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    \30\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), CFR 4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/RegsBEMZpra2, by following the instructions on the web-based form. 
When this Notice appears at http://www.regulations.gov/#!home, you also 
may file a comment through that Web site.
    If you file your comment on paper, write ``Regs BEMZ, PRA Comments, 
P084812'' on your comment and on the envelope, and mail or deliver it 
to the following address: Federal Trade Commission, Office of the 
Secretary, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex J), or 
deliver your comment to the following address: Federal Trade 
Commission, Office of the Secretary, Constitution Center, 400 7th 
Street SW., 5th Floor, Suite 5610 (Annex J), Washington, DC 20024. If 
possible, submit your paper comment to the Commission by courier or 
overnight service.
    The FTC Act and other laws that the Commission administers permit 
the collection of public comments to consider and use in this 
proceeding as appropriate. The Commission will consider all timely and 
responsive public comments that it receives on or before July 16, 2015. 
For information on the Commission's privacy policy, including routine 
uses permitted by the Privacy Act, see http://www.ftc.gov/ftc/privacy.htm. For supporting documentation and other information 
underlying the PRA discussion in this Notice, see http://www.reginfo.gov/public/jsp/PRA/praDashboard.jsp.
    Comments on the information collection requirements subject to 
review under the PRA should additionally be submitted to OMB. If sent 
by U.S. mail, they should be addressed to Office of Information and 
Regulatory Affairs, Office of Management and Budget, Attention: Desk 
Officer for the Federal Trade Commission, New Executive Office 
Building, Docket Library, Room 10102, 725 17th Street NW., Washington, 
DC 20503. Comments sent to OMB by U.S. postal mail, however, are 
subject to delays due to heightened security precautions. Thus, 
comments instead should be sent by facsimile to (202) 395-5806.

Christian S. White,
Acting Principal Deputy General Counsel.
[FR Doc. 2015-14802 Filed 6-15-15; 8:45 am]
 BILLING CODE 6750-01-P