[Federal Register Volume 81, Number 87 (Thursday, May 5, 2016)]
[Notices]
[Pages 27130-27132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10557]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority, as per 5 CFR 1320.16 (OMB 
Regulations on Controlling Paperwork Burdens on the Public). Board-
approved collections of information are incorporated into the official 
OMB inventory of currently

[[Page 27131]]

approved collections of information. Copies of the Paperwork Reduction 
Act Submission, supporting statements and approved collection of 
information instrument(s) 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 control number.

FOR FURTHER INFORMATION CONTACT: 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.
    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.
    Final approval under OMB delegated authority of 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.
    Reporters: 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 reporting 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; 
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; 
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,

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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), 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 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.
    General description of report: 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.
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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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    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.
    Current Actions: On February 19, 2016 the Federal Reserve published 
a notice in the Federal Register (81 FR 8492) requesting public comment 
for 60 days on the extension, with revision, of Reg Z. The comment 
period for this notice expired on April 19, 2016. The Federal Reserve 
did not receive any comments. The revisions will be implemented as 
proposed.

    Board of Governors of the Federal Reserve System, May 2, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-10557 Filed 5-4-16; 8:45 am]
 BILLING CODE 6210-01-P