[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Page 77078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27324]


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BUREAU OF CONSUMER FINANCIAL PROTECTION


Notice of Availability of Revised Consumer Information 
Publication

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice of availability.

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SUMMARY: The Consumer Financial Protection Bureau (Bureau or CFPB) 
announces the availability of an updated consumer publication, ``What 
You Should Know about Home Equity Lines of Credit,'' also known as the 
HELOC booklet, required by the Truth in Lending Act (TILA), as 
implemented by Regulation Z. This version of the HELOC booklet is 
updated to align with the Bureau's educational efforts, to be more 
concise, and to improve readability and usability.

ADDRESSES: The updated consumer publication is available for download 
on the Bureau's website at https://www.consumerfinance.gov/learnmore 
and can also be found in the Catalog of U.S. Government Publications 
(https://catalog.gpo.gov), maintained by Superintendent of Documents, 
U.S. Government Printing Office, Washington, DC 20402.

FOR FURTHER INFORMATION CONTACT: Davida Farrar, Supervisory Attorney 
Advisor, Consumer Education and External Affairs Division; Laura 
Schlachtmeyer, Senior Financial Education Content Specialist, Office of 
Financial Education; [email protected] or (202) 435-7700. If 
you require this document in an alternative electronic format, please 
contact [email protected].

SUPPLEMENTARY INFORMATION: The Bureau is hereby publishing this notice 
of availability to inform the public of the existence of an updated 
version of the booklet entitled, ``What You Should Know about Home 
Equity Lines of Credit.''

Background on the HELOC Booklet

    The Truth in Lending Act (TILA) \1\ was enacted in part to ensure 
consumers have clear, accurate information about credit terms and 
conditions to assist them in comparison shopping. TILA provisions 
include requirements that lenders give consumers certain disclosures 
related to a number of credit transactions. The Home Equity Loan 
Consumer Protection Act of 1988 expanded TILA to require additional 
disclosures for ``open end consumer credit plans . . . secured by the 
consumer's principal dwelling.'' \2\ The amendments included? a 
provision for the Board of Governors of the Federal Reserve System to 
develop consumer pamphlets that provide ``a general description of open 
end consumer credit plans secured by the consumer's principal dwelling 
and the terms and conditions under which such loans are generally 
extended'' and ``a discussion of the potential advantages and 
disadvantages of such plans, including how to compare among home equity 
plans and between home equity and closed end credit plans.'' \3\
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    \1\ Truth in Lending Act, Public Law 90-321, 82 Stat. 146, 15 
U.S.C. 1601 et seq. (1968).
    \2\ Home Equity Loan Consumer Protection Act, Public Law 100-
709, 102 Stat. 4725, 15 U.S.C. 1637a (1988).
    \3\ Id. section 4 at 4733.
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    Prior to the Dodd-Frank Act, the Board implemented this requirement 
in 12 CFR 226.5b(e) and developed and published the HELOC Brochure to 
consumers with basic information about the features of a home equity 
line of credit and what to look for and compare when shopping for 
credit. Under the Dodd-Frank Act, the responsibility for the HELOC 
Brochure transferred to the CFPB. Under the CFPB's Regulation Z, at the 
time an application for a HELOC is provided to the consumer, a creditor 
must provide certain disclosures and ``the home equity brochure 
entitled `What You Should Know About Home Equity Lines of Credit' or a 
suitable substitute. . . .'' \4\
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    \4\ 12 CFR 1026.40(e). Under certain circumstances, the 
disclosures and the brochure may be delivered or placed in the mail 
not later than three business days following receipt of a consumer's 
application. See 12 CFR 1026.40(b).
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Contents of the Updated Version of the HELOC Booklet

    The Bureau is updating the HELOC booklet so that it aligns with the 
Bureau's educational efforts, to be more concise, and to improve 
readability and usability. New features include clear instructions on 
how consumers can use the pamphlet to explore their options, and a 
comparison table with examples of loans that utilize home equity and 
other sources of financing consumer might consider, including closed-
end credit. To encourage consumers to understand the terms of their 
HELOC and to shop for the most advantageous offer, the booklet expands 
the tables for consumers to compare three estimates. The design of the 
HELOC booklet has a look and feel similar to ``Your Home Loan Toolkit: 
A Step-By-Step Guide,'' and the ``Consumer Handbook on Adjustable-Rate 
Mortgages,'' other consumer disclosures that the Bureau is responsible 
for producing.
    In January 2021, CFPB released a statement encouraging financial 
institutions to make financial products and services available to 
consumers with limited English proficiency. One of the tenets of that 
statement is that financial institutions provide consumers with clear 
disclosures in languages other than English.\5\ To further this goal of 
inclusion, the HELOC booklet is also available in Spanish. The Bureau 
encourages financial institutions to disseminate these booklets to 
consumers to expand the availability and understanding of products and 
services to all consumers.
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    \5\ See Statement Regarding the Provision of Financial Products 
and Services to Consumers With Limited English Proficiency, 86 FR 
6306 (Jan. 1, 2021), available at https://www.federalregister.gov/documents/2021/01/21/2021-01116/statement-regarding-the-provision-of-financial-products-and-services-to-consumers-with-limited.

Rohit Chopra,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2022-27324 Filed 12-15-22; 8:45 am]
BILLING CODE 4810-AM-P