[Federal Register Volume 81, Number 33 (Friday, February 19, 2016)]
[Notices]
[Pages 8492-8494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03445]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board of Governors of the Federal Reserve System 
(Board) its approval authority under the Paperwork Reduction Act (PRA), 
to approve of and assign OMB numbers to collection of information 
requests and requirements conducted or sponsored by the Board. Board-
approved collections of information are incorporated into the official 
OMB inventory of currently approved collections of information. Copies 
of the PRA Submission, supporting statements and approved collection of 
information instruments are placed into OMB's public docket files. The 
Federal Reserve may not conduct or sponsor, and the respondent is not 
required to respond to, an information collection that has been 
extended, revised, or implemented on or after October 1, 1995, unless 
it displays a currently valid OMB number.

DATES: Comments must be submitted on or before April 19, 2016.

ADDRESSES: You may submit comments, identified by Reg Z, by any of the 
following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Robert deV. Frierson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue NW., 
Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street (between 18th and 19th Streets NW.,)Washington, DC 
20006 between 9:00 a.m. and 5:00 p.m. on weekdays. Additionally, 
commenters may send a copy of their comments to the OMB Desk Officer--
Shagufta Ahmed--Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235 725 
17th Street NW., Washington, DC 20503 or by fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documentation will be placed into OMB's public 
docket files, once approved. These documents will also be made 
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of 
the Chief Data Officer, Board of Governors of the Federal Reserve 
System, Washington, DC 20551 (202) 452-3829. Telecommunications Device 
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors 
of the Federal Reserve System, Washington, DC 20551.

SUPPLEMENTARY INFORMATION:

Request for Comment on Information Collection Proposal

    The following information collection, which is being handled under 
this delegated authority, has received initial Board approval and is 
hereby published for comment. At the end of the comment period, the 
proposed information collection, along with an analysis of comments and 
recommendations received, will be submitted to the Board for final 
approval under OMB delegated authority. Comments are invited on the 
following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions, including 
whether the information has practical utility;
    b. The accuracy of the Federal Reserve's estimate of the burden of 
the proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

[[Page 8493]]

Proposal To Approve Under OMB Delegated Authority the Extension for 
Three Years, With Revision, of the Following Report

    Report title: Recordkeeping and disclosure requirements associated 
with the Truth in Lending Act (TILA) (Regulation Z).
    Agency form number: Reg Z.
    OMB control number: 7100-0199.
    Frequency: Event-generated.
    Respondent types: State member banks, their subsidiaries, 
subsidiaries of bank holding companies, U.S. branches and agencies of 
foreign banks (other than federal branches, federal agencies, and 
insured state branches of foreign banks), commercial lending companies 
owned or controlled by foreign banks, and organizations operating under 
section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601-604a; 611-
631).
    Estimated annual burden hours: Open-end (not home-secured credit): 
Applications and solicitations, 16,896 hours; Account opening 
disclosures, 5,060 hours; Periodic statements, 95,232 hours; Change-in-
terms disclosures, 62,000 hours; Timely settlement of estate debts 
policies (one-time), 7,936 hours; Timely settlement of estate debts 
policies (ongoing), 744 hours; Ability to pay policies (one-time), 
1,408 hours; Ability to pay policies (ongoing), 132 hours; and 
Reporting and marketing rules for college student open-end credit and 
Internet posting of credit card agreements, 5,632 hours; Open-end 
credit (Home Equity Plans): Application disclosures, 12,522 hours; 
Account opening disclosures, 18,228 hours; Periodic statements, 60,864 
hours; Change-in-terms disclosures, 39,625 hours; and Notices to 
restrict credit, 317 hours; All open-end credit: Error resolution--
credit cards, 12,760 hours and other open-end credit, 992 hours; 
Closed-end credit (Non-mortgage): Closed-end credit disclosures, 
265,658 hours; Closed-end credit (Mortgage): Interest rate and payment 
summary and ``No guarantee-to-refinance'' statement, 304,320 hours; ARM 
disclosure (one-time), 951 hours; ARM disclosures (ongoing), 107,780 
hours; Initial rate adjustment notice (one-time), 1,268 hours; Initial 
rate adjustment notice (ongoing), 53,890 hours; Periodic statements 
(one-time), 845 hours; Periodic statements (ongoing), 224,013 hours; 
Credit check for loan originators (one-time), 2,536 hours; Credit check 
for loan originators (ongoing), 9,510 hours; and Verification of 
documents for Qualified Mortgage (QM) and non-QM determination (one-
time), 444 hours; Open and closed-end mortgage: Prompt crediting & 
payoff statement (one-time), 528 hours; Payoff statements (ongoing), 
42,267 hours; and Mortgage transfer disclosure, 60,864 hours; Certain 
home mortgage types: Reverse mortgage disclosures, 188 hours; HOEPA 
disclosures (one-time), 500 hours; HOEPA disclosures (ongoing), 4,200 
hours; HOEPA receipt of certification of counseling for high-cost 
mortgages (one-time), 19 hours; HOEPA receipt of certification of 
counseling for high-cost mortgages (ongoing), 25 hours; Appraisals for 
higher-priced mortgage loans: Order and review initial appraisal, 150 
hours; Order and review additional appraisal, 150 hours; and Provide 
copy of initial and additional appraisals, 1 hour; Private education 
loans: Private student loan disclosures, 1,836 hours; Advertising rules 
(all credit types): Advertising rules, 2,067 hours; and Record 
retention (one-time), 190 hours.
    Estimated average hours per response: Open-end (not home-secured 
credit): Applications and solicitations, 8 hours; Account opening 
disclosures, 1.5 minutes; Periodic statements, 8 hours; Change-in-terms 
disclosures, 1 minute; Timely settlement of estate debts policies (one-
time), 8 hours; Timely settlement of estate debts policies (ongoing), 
45 minutes; Ability to pay policies (one-time), 8 hours; Ability to pay 
policies (ongoing), 45 minutes; and Reporting and marketing rules for 
college student open-end credit and Internet posting of credit card 
agreements, 8 hours; Open-end credit (Home Equity Plans): Application 
disclosures, 1.5 minutes; Account opening disclosures, 1.5 minutes; 
Periodic statements, 8 hours; Change-in-terms disclosures, 1 minute; 
and Notices to restrict credit, 3 minutes; All open-end credit: Error 
resolution--credit cards, 30 minutes and other open-end credit, 30 
minutes; Closed-end credit (Non-mortgage): Closed-end credit 
disclosures, 6.5 minutes; Closed-end credit (Mortgage): Interest rate 
and payment summary and ``No guarantee-to-refinance'' statement, 40 
hours; ARM disclosure (one-time), 1.5 hours; ARM disclosures (ongoing), 
17 minutes; Initial rate adjustment notice (one-time), 2 hours; Initial 
rate adjustment notice (ongoing), 17 minutes; Periodic statements (one-
time), 1 hour, 20 minutes; Periodic statements (ongoing), 0.5 minutes; 
Credit check for loan originators (one-time), 4 hours; Credit check for 
loan originators (ongoing), 15 hours; and Verification of documents for 
Qualified Mortgage (QM) and non-QM determination (one-time), 42 
minutes; Open and closed-end mortgage: Prompt crediting & payoff 
statement (one-time), 50 minutes; Payoff statements (ongoing), 5 
minutes; and Mortgage transfer disclosure, 8 hours; Certain home 
mortgage types: Reverse mortgage disclosures, 3 minutes; HOEPA 
disclosures (one-time), 20 hours; HOEPA disclosures (ongoing), 14 
hours; HOEPA receipt of certification of counseling for high-cost 
mortgages (one-time), 45 minutes; HOEPA receipt of certification of 
counseling for high-cost mortgages (ongoing), 1 hour; Appraisals for 
higher-priced mortgage loans: Order and review initial appraisal, 15 
minutes; Order and review additional appraisal, 15 minutes; and Provide 
copy of initial and additional appraisals, 15 minutes; Private 
education loans: Private student loan disclosures, 17 hours; 
Advertising rules (all credit types): Advertising rules, 25 minutes; 
and Record retention (one-time), 18 minutes.
    Number of respondents: Open-end (not home-secured credit): 
Applications and solicitations and Account opening disclosures, 176 
respondents; Periodic statements, Change-in-terms disclosures, Timely 
settlement of estate debts policies (one-time), and Timely settlement 
of estate debts policies (ongoing), 992 respondents; Ability to pay 
policies (one-time), Ability to pay policies (ongoing), and Reporting 
and marketing rules for college student open-end credit and Internet 
posting of credit card agreements, 176 respondents; Open-end credit 
(Home Equity Plans): Application disclosures, Account opening 
disclosures, Periodic statements, Change-in-terms disclosures, and 
Notices to restrict credit, 634 respondents; All open-end credit: Error 
resolution--credit cards, 176 respondents and other open-end credit, 
992 respondents; Closed-end credit (Non-mortgage): Closed-end credit 
disclosures, 992 respondents; Closed-end credit (Mortgage): Interest 
rate and payment summary and ``No guarantee-to-refinance'' statement, 
ARM disclosure (one-time), ARM disclosures (ongoing), Initial rate 
adjustment notice (one-time), Initial rate adjustment notice (ongoing), 
Periodic statements (one-time), Periodic statements (ongoing), Credit 
check for loan originators (one-time), Credit check for loan 
originators (ongoing), and Verification of documents for Qualified 
Mortgage (QM) and non-QM determination (one-time), 634 respondents; 
Open and closed-end mortgage: Prompt crediting & payoff statement (one-
time), Payoff statements (ongoing), and Mortgage transfer disclosure, 
634 respondents; Certain home mortgage types: Reverse mortgage 
disclosures, 15 respondents; HOEPA disclosures (one-time), HOEPA

[[Page 8494]]

disclosures (ongoing), HOEPA receipt of certification of counseling for 
high-cost mortgages (one-time), HOEPA receipt of certification of 
counseling for high-cost mortgages (ongoing), Appraisals for higher-
priced mortgage loans: Order and review initial appraisal, Order and 
review additional appraisal, and Provide copy of initial and additional 
appraisals, 25 respondents; Private education loans: Private student 
loan disclosures, 9 respondents; Advertising rules (all credit types): 
Advertising rules, 992 respondents; and Record retention (one-time), 
634 respondents.
    Legal authorization and confidentiality: The disclosure, record-
keeping, and other requirements of Regulation Z are authorized by the 
TILA, which directs the Consumer Financial Protection Bureau (CFPB) 
and, for certain lenders, the Federal Reserve to issue regulations 
implementing the statute. Covered lenders are required to comply with 
the recordkeeping, reporting, and disclosure provisions of Regulation 
Z. Regulation Z is chiefly a disclosure regulation, so the issue of 
confidentiality does not normally arise. One aspect of the rule 
requires certain card issuers to submit annual reports to the CFPB, but 
no reports are filed with the Federal Reserve.
    Abstract: TILA and Regulation Z ensure adequate disclosure of the 
costs and terms of credit to consumers. For open-end credit, such as 
credit cards and home-equity lines of credit (HELOCs), creditors are 
required to disclose information about the initial costs and terms and 
to provide periodic statements of account activity, notices of changes 
in terms, and statements of rights concerning billing error procedures. 
For closed-end loans, such as mortgage and installment loans, cost 
disclosures are required prior to and at consummation. Special 
disclosures are required for certain products, such as reverse 
mortgages and high cost mortgages with rates and fees above specified 
thresholds. TILA and Regulation Z also contain rules concerning credit 
advertising.\1\
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    \1\ In addition, Regulation Z contains requirements that are not 
considered information collections and thus are not addressed here.
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    Creditors are required to comply with Regulation Z's disclosure and 
other requirements unless the transaction is exempt.\2\ Regulation Z 
generally does not apply to consumer credit transactions that exceed a 
threshold amount, adjusted annually for inflation.\3\ The threshold 
amount for credit extended during 2015 was $54,600; this threshold will 
remain the same in 2016. However, regardless of the amount of credit 
extended, Regulation Z applies to: (1) Consumer credit secured by real 
property; (2) consumer credit secured by personal property used or 
expected to be used as the principal swelling of the consumer; and (3) 
private student loans.
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    \2\ Exemptions include business credit, credit over applicable 
threshold amounts, public utility credit, securities or commodities 
accounts, home fuel budget plans, certain student loan programs, and 
employer-sponsored retirement plans. See 12 CFR 1026.3.
    \3\ 12 CFR 1026.3(b).
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    Current Actions: The Federal Reserve proposes to modify and update 
Reg Z to account for preexisting regulatory requirements that were not 
included separately in prior notices and to account for the 
requirements of new rules issued during the past three years. A summary 
of the changes is as follows:
    First, the Federal Reserve proposes to modify Reg Z to account for 
new required rules issued by the CFPB to implement the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act).\4\ These 
include:
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    \4\ Public Law 111-203, 124 Stat. 1376.
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     Combined closed-end mortgage disclosures under TILA and 
the Real Estate Settlement Procedures Act (RESPA); \5\
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    \5\ 12 U.S.C. 2601 et seq.
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     A requirement that creditors must run a credit check on 
loan originators;
     Requirements that creditors verify documents used to 
determine ``qualified mortgage'' status;
     Mortgage payoff statement requirements;
     Revised and additional adjustable rate mortgage (ARM) 
disclosures;
     Periodic statements for closed-end residential mortgages;
     Revised and additional disclosures for high-cost mortgages 
under the Home Ownership Equity Protection Act \6\ (HOEPA).
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    \6\ 15 U.S.C. 1639, 1640.
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    Second, the Federal Reserve proposes to clarify and add several 
information collection elements for regulatory requirements that 
previously were accounted for as part of a more general category of 
information collections or were not previously included because 
institutions for whose burden the Federal Reserve accounts did not 
engage in the relevant line of business to a material degree.
    These include:
     A requirement that creditors of open-end (not home-
secured) credit have policies to comply with requirements for the 
timely settlement of estate debts;
     A requirement that creditors of open-end (not home-
secured) credit have policies to comply with requirements to account 
for a consumer's ability to repay a the debt;
     Separate disclosures for open-end (not home-secured) and 
open-end (home-secured) credit;
     Reverse mortgage disclosures.
    Other proposed changes to Reg Z are non-substantive and intended 
for clarity.

    Board of Governors of the Federal Reserve System, February 12, 
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-03445 Filed 2-18-16; 8:45 am]
BILLING CODE 6210-01-P