[Federal Register Volume 81, Number 82 (Thursday, April 28, 2016)]
[Rules and Regulations]
[Pages 25323-25326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09431]



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 Rules and Regulations
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  Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Rules 
and Regulations  

[[Page 25323]]



BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Parts 1002, 1003, 1005, 1006, 1007, 1008, 1009, 1010, 1011, 
1012, 1013, 1014, 1015, 1016, 1022, 1024, 1026, and 1030

RIN 3170-AA06


Finalization of Interim Final Rules (Subject to Any Intervening 
Amendments) Under Consumer Financial Protection Laws

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; official interpretations.

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SUMMARY: Title X of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act) transferred rulemaking authority for a 
number of consumer financial protection laws from seven Federal 
agencies to the Bureau of Consumer Financial Protection (Bureau) as of 
July 21, 2011. In December 2011, the Bureau republished the existing 
regulations implementing those laws, as previously adopted by the seven 
predecessor agencies, as interim final rules (December 2011 IFRs) with 
technical and conforming changes to reflect the transfer of authority 
and certain other changes made by the Dodd-Frank Act. The December 2011 
IFRs did not impose any new substantive obligations on persons subject 
to the existing regulations. This final rule adopts the December 2011 
IFRs as final, subject to any intervening final rules published by the 
Bureau.

DATES: This final rule is effective April 28, 2016.

FOR FURTHER INFORMATION CONTACT: Kristen Phinnessee, Counsel, Office of 
Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., 
Washington, DC 20552, at (202) 435-7700.

SUPPLEMENTARY INFORMATION:

I. Background and Summary of the Final Rule

    In response to an unprecedented cycle of expansion and contraction 
in the mortgage market that sparked the most severe U.S. recession 
since the Great Depression, Congress passed the Dodd-Frank Act, which 
was signed into law on July 21, 2010. In the Dodd-Frank Act, Congress 
established the Bureau and generally consolidated the rulemaking 
authority for Federal consumer financial laws in the Bureau.\1\ Title X 
of the Dodd-Frank Act transferred rulemaking authority for a number of 
consumer financial protection laws from seven Federal agencies to the 
Bureau as of July 21, 2011. These included the Consumer Leasing Act 
(CLA), the Electronic Fund Transfer Act (except with respect to section 
920) (EFTA), the Equal Credit Opportunity Act (ECOA), the Fair Credit 
Reporting Act (except with respect to sections 615(e) and 628) (FCRA), 
the Fair Debt Collection Practices Act (FDCPA), Subsections (b) through 
(f) of section 43 of the Federal Deposit Insurance Act (FDIA), sections 
502 through 509 of the Gramm-Leach-Bliley Act (except for section 505 
as it applies to section 501(b)) (GLBA), the Home Mortgage Disclosure 
Act (HMDA), the Real Estate Settlement Procedures Act of 1974 (RESPA), 
the S.A.F.E. Mortgage Licensing Act of 2008 (SAFE), the Truth in 
Lending Act (TILA), the Truth in Savings Act (TISA), section 626 of the 
Omnibus Appropriations Act, 2009 (MAP and MARS), and the Interstate 
Land Sales Full Disclosure Act (ILSA) (together, the 14 Acts).
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    \1\ See, e.g., sections 1011 and 1021 of the Dodd-Frank Act, 12 
U.S.C. 5491 and 5511 (establishing and setting forth the purpose, 
objectives, and functions of the Bureau); section 1061 of the Dodd-
Frank Act, 12 U.S.C. 5581 (consolidating certain rulemaking 
authority for Federal consumer financial laws in the Bureau).
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    From December 16-27, 2011, the Bureau republished in the Federal 
Register the regulations implementing the 14 Acts as new parts of title 
12 of the Code of Federal Regulations, through interim final rules, 
with only certain technical and conforming changes to reflect the 
transfer of authority and certain other changes made by the Dodd-Frank 
Act (the December 2011 IFRs). The December 2011 IFRs did not impose any 
new substantive obligations on persons subject to the existing 
regulations. The final rule adopts the December 2011 IFRs with no 
changes, subject to any intervening final rules published by the 
Bureau.

II. Summary of the Rulemaking Process

    On December 16, 19-22, and 27, 2011, the Bureau published in the 
Federal Register its interim final rules adopting certain regulations 
implementing a number of consumer financial protection laws transferred 
to the Bureau by title X of the Dodd-Frank Act.\2\ The comment periods 
closed on various dates from February 14-27, 2012. In response to the 
December 2011 IFRs, the Bureau received over 100 comments from consumer 
groups, creditors, industry trade associations, and others. As 
discussed in more detail below, the Bureau has considered these 
comments in adopting this final rule.
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    \2\ 76 FR 78121 (Dec. 16, 2011), 76 FR 78126 (Dec. 16, 2011), 76 
FR 78130 (Dec. 16, 2011), 76 FR 78465 (Dec. 19, 2011), 76 FR 78483 
(Dec. 19, 2011), 76 FR 78500 (Dec. 19, 2011), 76 FR 78978 (Dec. 20, 
2011), 76 FR 79025 (Dec. 21, 2011), 76 FR 79276 (Dec. 21, 2011), 76 
FR 79308 (Dec. 21, 2011), 76 FR 79442 (Dec. 21, 2011), 76 FR 79486 
(Dec. 21, 2011), 76 FR 79768 (Dec. 22, 2011), and 76 FR 81020 (Dec. 
27, 2011).
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III. Legal Authority

    The Bureau is issuing this final rule pursuant to its authority 
under the 14 Acts and the Dodd-Frank Act. Effective July 21, 2011, 
section 1061 of the Dodd-Frank Act transferred to the Bureau the 
``consumer financial protection functions'' previously vested in 
certain other Federal agencies. The term ``consumer financial 
protection functions'' is defined to include ``all authority to 
prescribe rules or issue orders or guidelines pursuant to any Federal 
consumer financial law, including performing appropriate functions to 
promulgate and review such rules, orders, and guidelines.'' \3\ The 14 
Acts are all Federal consumer financial laws.\4\ Accordingly, effective 
July 21, 2011, except with respect to persons excluded from the 
Bureau's

[[Page 25324]]

rulemaking authority by section 1029 of the Dodd-Frank Act, the 
authority to issue regulations pursuant to the 14 Acts transferred to 
the Bureau.\5\
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    \3\ Public Law 111-203, section 1061(a)(1). Effective on the 
designated transfer date, July 21, 2011, the Bureau was also granted 
``all powers and duties'' vested in each of the Federal agencies, 
relating to the consumer financial protection functions, on the day 
before the designated transfer date.
    \4\ Public Law 111-203, section 1002(14) (defining ``Federal 
consumer financial law'' to include the ``enumerated consumer 
laws''); id. section 1002(12) (defining ``enumerated consumer laws'' 
to include the 14 Acts).
    \5\ See also 15 U.S.C. 1691b; 12 U.S.C. 2804; 15 U.S.C. 1693b; 
15 U.S.C. 1692l; 12 U.S.C. 5106-5108; 12 U.S.C. 1831t(c), 1831t(d); 
15 U.S.C. 1718; 15 U.S.C. 1667f; Public Law 111-8, section 626, 123 
Stat. 524, as amended by Public Law 111-24, section 511, 123 Stat. 
1734; 15 U.S.C. 6804(a)(1)(A); 15 U.S.C. 1681s(e); 12 U.S.C. 2603-
2605, 2607, 2609, 2617; 12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 
3353, 5511, 5512, 5532, 5581; 15 U.S.C. 1604(a); 12 U.S.C. 4308.
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IV. Summary of Comments to the December 2011 Interim Final Rules

    As noted above, the Bureau received over 100 comments in response 
to the issuance of the December 2011 IFRs. The comments generally fall 
into four broad categories. First, a number of comments discussed 
possible typographical, grammatical, or similar errors in the 
underlying regulations as they were originally adopted by the 
predecessor agencies and then restated by the Bureau. Second, a number 
of comments discussed the fact that, with the change in codification, 
existing internet links across a range of Web pages to the original 
citations in the electronic Code of Federal Regulations would become 
obsolete. Third, a number of comments asked the Bureau to confirm that 
it is bound by existing informal advisory opinions issued by 
predecessor agencies. Fourth, a number of comments urged that the 
Bureau make various substantive changes to the regulations adopted by 
the December 2011 IFRs.
    The Bureau has considered all of the comments received and has 
decided to adopt the December 2011 IFRs as final without change, 
subject to any intervening final rules published by the Bureau. The 
purpose of this notice is strictly to finalize the December 2011 IFRs; 
as any potential typographical errors do not change the meaning of the 
regulations, possible typographical, grammatical, or similar errors in 
the original regulations may be addressed in subsequent rulemakings. 
Similarly, substantive changes to the regulations adopted by the 
December 2011 IFRs have been, and may further be, addressed in 
subsequent rulemakings. Further, although it is regrettable that 
existing internet links may have become obsolete because of the changes 
in codification, the Bureau believes that such issues most likely have 
been overcome over the approximately four years since the Bureau 
adopted the December 2011 IFRs by changes made to the old links. In any 
event, the Bureau was charged by Congress with conducting certain 
rulemakings, and it was necessary for the Bureau to put in place its 
own regulations in order to do so.
    Lastly, with regard to the treatment of informal advisory opinions 
issued by predecessor agencies, the Bureau had addressed the issue 
prior to the December 2011 IFRs. Section 1063(i) of the Dodd-Frank Act 
required the Bureau to identify the rules and orders that would be 
transferred to the Bureau from each transferor agency. On July 21, 
2011, the Bureau published in the Federal Register the identification 
of enforceable rules and orders.\6\ In this notice, the Bureau 
published a list of rules that will be enforceable by the Bureau and 
also noted that it ``will give due consideration to the application of 
other written guidance, interpretations, and policy statements issued 
prior to July 21, 2011, by a transferor agency in light of all relevant 
factors . . .''.\7\
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    \6\ 76 FR 43569 (July 21, 2011).
    \7\ Id., at 43570.
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V. Dodd Frank Act Section 1022(b) Analysis

    In developing the final rule, the Bureau has considered potential 
benefits, costs, and impacts.\8\ In addition, the Bureau has consulted, 
or offered to consult with, the prudential regulators, the Securities 
and Exchange Commission, the Department of Housing and Urban 
Development, the Federal Housing Finance Agency, the Federal Trade 
Commission, and the Department of the Treasury, including regarding 
consistency with any prudential, market, or systemic objectives 
administered by such agencies.
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    \8\ Section 1022(b)(2)(A) of the Dodd-Frank Act requires the 
Bureau to consider the potential benefits and costs of regulation to 
consumers and covered persons, including the potential reduction of 
access by consumers to consumer financial products or services; the 
impact on depository institutions and credit unions with $10 billion 
or less in total assets as described in section 1026 of the Dodd-
Frank Act; and the impact on consumers in rural areas. Section 
1022(b)(2)(B) requires that the Bureau ``consult with the 
appropriate prudential regulators or other Federal agencies prior to 
proposing a rule and during the comment process regarding 
consistency with prudential, market, or systemic objectives 
administered by such agencies.''
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    This rule adopts the December 2011 IFRs with no changes, subject to 
any intervening final rules published by the Bureau. The rule will not 
impose any new substantive obligations on consumers or covered persons 
and is not expected to have any impact on consumers' access to consumer 
financial products and services. As a general matter, the final rule 
does not impose additional reporting, disclosure, or other requirements 
beyond those previously in existence.
    The Bureau has chosen to evaluate the benefits, costs and impacts 
of the final rule against the current state of the world, which takes 
into account the current regulatory regime. The Bureau is not aware of 
any significant benefits or costs to consumers or covered persons 
associated with the final rule relative to the baseline. Because the 
final rule adopts no changes to any of the subject regulations, which 
are already in place as a consequence of the December 2011 IFRs, there 
is no practical impact on consumers or covered persons.
    The final rules will have no unique impact on depository 
institutions or credit unions with $10 billion or less in assets as 
described in section 1026(a) of the Dodd-Frank Act. Also, the final 
rules will have no unique impact on rural consumers.

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996, requires each 
agency to consider the potential impact of its regulations on small 
entities, including small businesses, small governmental units, and 
small not-for-profit organizations.\9\ The RFA generally requires an 
agency to conduct an initial regulatory flexibility analysis (IRFA) and 
a final regulatory flexibility analysis (FRFA) of any rule subject to 
notice-and-comment rulemaking requirements, unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities.\10\ The Bureau also is subject to 
certain additional procedures under the RFA involving the convening of 
a panel to consult with small business representatives prior to 
proposing a rule for which an IRFA is required.\11\
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    \9\ 5 U.S.C. 601-612.
    \10\ 5 U.S.C. 603, 604.
    \11\ 5 U.S.C. 609.
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    The IRFA and FRFA requirements described above apply only where a 
notice of proposed rulemaking is required,\12\ and the panel 
requirement applies only when a rulemaking requires an IRFA.\13\ The 
Bureau concluded that a notice of proposed rulemaking was not required 
for the December 2011 IFRs. This final rule adopts the December 2011 
IFRs as final, except to the extent they have been amended in 
subsequent rulemakings. Therefore, a FRFA is not required.
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    \12\ 5 U.S.C. 603(a), 604(a); 5 U.S.C. 553(b).
    \13\ 5 U.S.C. 609(b).
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VII. Paperwork Reduction Act

    According to the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C.

[[Page 25325]]

3501, et seq.) the Bureau may not conduct or sponsor and, 
notwithstanding any other provision of law, a respondent is not 
required to respond to an information collection unless it displays a 
currently valid Office of Management and Budget (OMB) control number. 
This rule contains no new or revised information collection 
requirements. The Bureau's OMB control numbers for the information 
collections in the respective existing regulations are as follows:

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                Regulation                         OMB Control No.
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Regulation B..............................  3170-0013.
Regulation C..............................  3170-0008.
Regulation E..............................  3170-0014.
Regulation F..............................  3170-0056.
Regulations G & H.........................  Regulation G: 3170-0005.
                                            Regulation H: Not
                                             applicable.\14\
Regulation I..............................  3170-0062.
Regulations J, K, & L.....................  3170-0012.
Regulation M..............................  3170-0006.
Regulation N..............................  3170-0009.
Regulation O..............................  3170-0007.
Regulation P..............................  3170-0010.
Regulation V..............................  3170-0002.
Regulation X..............................  3170-0016.
Regulation Z..............................  3170-0015.
Regulation DD.............................  3170-0004.
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    \14\ Regulation H contains no information collections requiring 
approval under the PRA.
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List of Subjects

12 CFR Part 1002

    Aged, Banking, Banks, Civil rights, Consumer protection, Credit, 
Credit unions, Discrimination, Fair lending, Marital status 
discrimination, National banks, National origin discrimination, 
Penalties, Race discrimination, Religious discrimination, Reporting and 
recordkeeping requirements, Savings associations, Sex discrimination.

12 CFR Part 1003

    Banking, Banks, Credit unions, Mortgages, National banks, Savings 
associations, Reporting and recordkeeping requirements.

12 CFR Part 1005

    Automated teller machines, Banking, Banks, Consumer protection, 
Credit unions, Electronic fund transfers, National banks, Remittance 
transfers, Reporting and recordkeeping requirements, Savings 
associations.

12 CFR Part 1006

    Administrative practice and procedure, Consumer protection, Credit, 
Intergovernmental relations.

12 CFR Parts 1007 and 1008

    Accounting, Administrative practice and procedure, Advertising, 
Agriculture, Bank deposit insurance, Banking, Banks, Confidential 
business information, Conflict of interests, Consumer protection, 
Credit unions, Crime, Currency, Exports, Foreign banking, Grant 
programs--housing and community development, Holding companies, 
Insurance, Investments, Loan programs--housing and community 
development, Licensing, Mortgages, National banks, Penalties, 
Registration, Reporting and recordkeeping requirements, Rural areas, 
Savings associations, Securities, Surety bonds.

12 CFR Part 1009

    Credit unions, Depository institutions, Federal Deposit Insurance 
Act, Federal Trade Commission Act, Federal deposit insurance.

12 CFR Parts 1010, 1011, and 1012

    Adjudicatory proceedings, Advertising disclaimers, Certification of 
substantially equivalent state law, Filing assistance, Land 
registration, Reporting requirements, Purchasers' revocation rights, 
Unlawful sales practices.

12 CFR Part 1013

    Advertising, Consumer leasing, Reporting and recordkeeping 
requirements, Truth in lending.

12 CFR Parts 1014 and 1015

    Advertising, Business practices related to mortgage loans, 
Communications, Consumer protection, Credit, Mortgages, Telemarketing, 
Trade practices.

12 CFR Part 1016

    Banking, Banks, Consumer protection, Credit, Credit unions, Foreign 
banking, Holding companies, National banks, Privacy, Reporting and 
recordkeeping requirements, Savings associations, Trade practices.

12 CFR Part 1022

    Banking, Banks, Consumer protection, Credit unions, Fair Credit 
Reporting Act, Holding companies, National banks, Privacy, Reporting 
and recordkeeping requirements, Savings associations, State member 
banks.

12 CFR Part 1024

    Condominiums, Consumer protection, Housing, Insurance, Mortgagees, 
Mortgages, Mortgage servicing, Reporting and recordkeeping 
requirements.

12 CFR Part 1026

    Advertising, Appraisal, Appraiser, Banking, Banks, Consumer 
protection, Credit, Credit unions, Mortgages, National banks, Reporting 
and recordkeeping requirements, Savings associations, Truth in lending.

12 CFR Part 1030

    Advertising, Banking, Banks, Consumer protection, National banks, 
Reporting and recordkeeping requirements, Savings associations, Truth 
in savings.

Authority and Issuance

    For the foregoing reasons, the Bureau adopts as final the December 
2011 IFRs, excluding the listed related amendments, as follows:
    A. 76 FR 79442 (Dec. 21, 2011), as amended by 78 FR 7216 (Jan. 31, 
2013), and 78 FR 60382 (Oct. 1, 2013);
    B. 76 FR 78465 (Dec. 19, 2011), as amended by 77 FR 8721 (Feb. 15, 
2012), 77 FR 76839 (Dec. 31, 2012), 78 FR 79285 (Dec. 30, 2013), 79 FR 
77854 (Dec. 29, 2014), 80 FR 66128 (Oct. 28, 2015), 80 FR 69567 (Nov. 
10, 2015), and 80 FR 79673 (Dec. 23, 2015);
    C. 76 FR 81020 (Dec. 27, 2011), as amended by 77 FR 6194 (Feb. 7, 
2012), 77 FR 40459 (July 10, 2012), 77 FR 50244 (Aug. 20, 2012), 78 FR 
6025 (Jan. 29, 2013), 78 FR 18221 (Mar. 26, 2013), 78 FR 30662 (May 22, 
2013), 78 FR 49365 (Aug. 14, 2013), and 79 FR 55970 (Sept. 18, 2014);
    D. 76 FR 78121 (Dec. 16, 2011);
    E. 76 FR 78483 (Dec. 19, 2011);
    F. 76 FR 78126 (Dec. 16, 2011);
    G. 76 FR 79486 (Dec. 21, 2011), as amended by 77 FR 26154 (May 3, 
2012);
    H. 76 FR 78500 (Dec. 19, 2011), as amended by 76 FR 81789 (Dec. 29, 
2011), 77 FR 69735 (Nov. 21, 2012), 78 FR 70193 (Nov. 25, 2013), 79 FR 
56482 (Sept. 22, 2014), and 80 FR 73945 (Nov. 27, 2015);
    I. 76 FR 78130 (Dec. 16, 2011);
    J. 76 FR 79025 (Dec. 21, 2011), as amended by 79 FR 64057 (Oct. 28, 
2014);
    K. 76 FR 79308 (Dec. 21, 2011), as amended by 77 FR 67744 (Nov. 14, 
2012);
    L. 76 FR 78978 (Dec. 20, 2011), as amended by 78 FR 6856 (Jan. 31, 
2013), 78 FR 10696 (Feb. 14, 2013), 78 FR 44686 (July 24, 2013), 78 FR 
60382 (Oct. 1, 2013), 78 FR 62993 (Oct. 23, 2013), 78 FR 68343 (Nov. 
14, 2013), 78 FR 79730 (Dec. 31, 2013), 80 FR 8767 (Feb.19, 2015), 80 
FR 22091 (Apr. 21, 2015), 80 FR 43911 (July 24, 2015), 80 FR 80228 
(Dec. 24, 2015), and 81 FR 7032 (Feb. 10, 2016);
    M. 76 FR 79768 (Dec. 22, 2011), as amended by 77 FR 69736 (Nov. 21,

[[Page 25326]]

2012), 77 FR 69738 (Nov. 21, 2012), 77 FR 70105 (Nov. 23, 2012), 78 FR 
4726 (Jan. 22, 2013), 78 FR 6408 (Jan. 30, 2013), 78 FR 6856 (Jan. 31, 
2013), 78 FR 10368 (Feb. 13, 2013), 78 FR 10902 (Feb. 14, 2013), 78 FR 
11280 (Feb. 15, 2013), 78 FR 18795 (Mar. 28, 2013), 78 FR 25818 (May 3, 
2013), 78 FR 30739 (May 23, 2013), 78 FR 32547 (May 31, 2013), 78 FR 
35430 (June 12, 2013), 78 FR 44686 (July 24, 2013), 78 FR 45842 (July 
30, 2013), 78 FR 60382 (Oct. 1, 2013), 78 FR 62993 (Oct. 23, 2013), 78 
FR 70194 (Nov. 25, 2013), 78 FR 76033 (Dec. 16, 2013), 78 FR 78520 
(Dec. 26, 2013), 78 FR 79286 (Dec. 30, 2013), 78 FR 79730 (Dec. 31, 
2013), 79 FR 41631 (July 17, 2014), 79 FR 48015 (Aug. 15, 2014), 79 FR 
56483 (Sept. 22, 2014), 79 FR 65300 (Nov. 3, 2014), 79 FR 77855 (Dec. 
29, 2014), 79 FR 78296 (Dec. 30, 2014), 80 FR 8767 (Feb. 19, 2015), 80 
FR 21153 (Apr. 17, 2015), 80 FR 22091 (Apr. 21, 2015), 80 FR 32658 
(June 9, 2015), 80 FR 43911 (July 24, 2015), 80 FR 56895 (Sept. 21, 
2015), 80 FR 59944 (Oct. 2, 2015), 80 FR 73943 (Nov. 27, 2015), 80 FR 
73947 (Nov. 27, 2015), 80 FR 79674 (Dec. 23, 2015), 80 FR 80228 (Dec. 
24, 2015), 81 FR 7032 (Feb. 10, 2016), and 81 FR 16074 (Mar. 25, 2016); 
and N. 76 FR 79276 (Dec. 21, 2011).

    Dated: April 12, 2016.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2016-09431 Filed 4-27-16; 8:45 am]
 BILLING CODE 4810-AM-P