[Federal Register Volume 86, Number 64 (Tuesday, April 6, 2021)]
[Rules and Regulations]
[Pages 17694-17695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06968]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1010


Rescission of Statement of Policy on Supervisory and Enforcement 
Practices Regarding Certain Filing Requirements Under the Interstate 
Land Sales Full Disclosure Act and Regulation J

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Rescission of statement of policy.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
rescinding the Statement on Supervisory and Enforcement Practices 
Regarding Certain Filing Requirements Under the Interstate Land Sales 
Full Disclosure Act and Regulation J.

DATES: This rescission is applicable on April 1, 2021.

FOR FURTHER INFORMATION CONTACT: Zixta Q. Martinez, Division of 
Supervision, Enforcement, and Fair Lending, at (202) 435-7204. If you 
require this document in an alternative electronic format, please 
contact [email protected].

SUPPLEMENTARY INFORMATION: On April 27, 2020, the Bureau issued a 
statement entitled, ``Statement on Supervisory and Enforcement 
Practices Regarding Certain Filing Requirements Under the Interstate 
Land Sales Full Disclosure Act and Regulation J'' (Statement), 
regarding the Bureau's exercise of its supervisory and enforcement 
discretion in connection to certain annual reports of activity and 
financial statements by land developers who are subject to the 
Interstate Land Sales Full Disclosure Act (ILSA), 15 U.S.C. 1701, et 
seq., as implemented by Regulation J (10 CFR part 1010).\1\
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    \1\ https://files.consumerfinance.gov/f/documents/cfpb_ilsa_relief-statement-covid-19_2020-04.pdf.

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[[Page 17695]]

    Specifically, the Statement provided that the Bureau, until further 
notice, did not intend to take supervisory or enforcement action 
against land developers subject to ILSA and Regulation J for:
     Delays in filing annual reports of activity with the 
Bureau, which Regulation J requires within 30 days of the annual 
anniversary of the effective date of a developer's initial statement of 
record (12 CFR 1010.310), provided that developers are making good 
faith efforts to file these reports within a reasonable time; and
     Delays in filing financial statements with the Bureau, 
which Regulation J requires within120 days of the close of a 
developer's fiscal year (12 CFR 1010.212(d)), provided that developers 
are making good faith efforts to file these reports within a reasonable 
time.
    The Bureau hereby rescinds, as of April 1, 2021, the Statement and 
provides guidance as to how land developers should now meet this 
obligation.
    The Statement expressed the Bureau's recognition of the serious 
impact of the COVID-19 pandemic on consumers and on the operations of 
many entities, including land developers subject to ILSA. The Bureau 
issued the Statement to provide land developers with flexibility and 
reduce administrative burden. With regard to the filing of the noted 
annual reports of activity and financial statements, the Bureau 
believes that land developers have had sufficient time to adapt to the 
pandemic and should now be able to file annual reports of activity and 
financial statements without the flexibility afforded under the 
Statement. The Bureau notes that immediately following the stay-at-home 
orders issued by States and other jurisdictions, there was a drop-off 
in ILSA filings with the Bureau. As States and other jurisdictions have 
rescinded and modified stay-at-home orders over the course of the 
pandemic, the Bureau notes that land developers have resumed filing of 
annual reports of activity and financial statements without significant 
delays. In addition, because the Statement did not create binding legal 
obligations on the Bureau or create or confer any substantive rights on 
external parties, it did not create any reasonable reliance interests 
for industry participants. Additionally, the Bureau never intended the 
Statement to be permanent.
    The Bureau rescinds the Statement and reminds land developers 
subject to ILSA and Regulation J to resume:
     Filing annual reports of activity with the Bureau, which 
Regulation J requires within 30 days of the annual anniversary of the 
effective date of a developer's initial statement of record (12 CFR 
1010.310), and
     Filing financial statements with the Bureau, which 
Regulation J requires within 120 days of the close of a developer's 
fiscal year (12 CFR 1010.212(d)).
    The Bureau does not intend to take supervisory or enforcement 
action against land developers subject to ILSA for delays in filing 
annual reports of activity or financial statements with the Bureau, who 
make any such delayed submission by April 30, 2021 for the time period 
that the Statement was in effect beginning April 27, 2020 through April 
30, 2021.

Regulatory Requirements

    The Statement constituted a general statement of policy exempt from 
the notice and comment rulemaking requirements of the Administrative 
Procedure Act (APA). It was intended to provide information regarding 
the Bureau's general plans to exercise its supervisory and enforcement 
discretion and did not impose any legal requirements on external 
parties, nor did it create or confer any substantive rights on external 
parties that could be enforceable in any administrative or civil 
proceeding. This rescission likewise is a general statement of policy 
exempt from the notice and comment rulemaking requirements of the APA. 
It is intended to provide information regarding the Bureau's general 
plans to exercise its supervision and enforcement discretion and does 
not impose any legal requirements on external parties or create or 
confer any substantive rights on external parties that could be 
enforceable in any administrative or civil proceedings. No notice of 
proposed rulemaking was originally required in issuing the Statement, 
and it is not required in issuing this rescission. The Regulatory 
Flexibility Act also does not require an initial or final regulatory 
flexibility analysis for this rescission. The Bureau has also 
determined that the rescission of the Statement does not impose any new 
or revise any existing recordkeeping, reporting, or disclosure 
requirements on covered entities or members of the public that would be 
collections of information requiring approval by the Office of 
Management and Budget under the Paperwork Reduction Act.

    Dated: March 29, 2021.
David Uejio,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2021-06968 Filed 4-5-21; 8:45 am]
BILLING CODE 4810-AM-P