Truth In Lending Act (TILA) and
Regulation Z ensure adequate disclosure of the costs and terms of
credit to consumers. For open-end credit, 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. The regulation also requires specific types of
disclosures for credit and charge card accounts, and home-equity
plans. For closed-end loans, such as mortgage and installment
loans, cost disclosures are required to be provided prior to
consummation. Special disclosures are required of certain products,
such as reverse mortgages, certain variable-rate loans, and certain
mortgages with rates and fees above specified thresholds. TILA and
Regulation Z also contain rules concerning credit advertising. To
ease the burden and cost of complying with Regulation Z
(particularly for small entities), the Federal Reserve provides
model forms, which are appended to the regulation. Creditors are
required to retain evidence of compliance for twenty-four months
(subpart D, section 226.25), but the regulation does not specify
the types of records that must be retained.
The final rule will impose a
one-time increase in the total annual burden under Regulation Z by
46,880 hours from 552,398 to 599,278 hours. This burden increase
will be imposed on all Federal Reserve-regulated institutions that
are deemed to be respondents for the purposes of the PRA. Note that
these burden estimates do not include the burden addressing changes
to format, timing, and content requirements for the five main types
of open-end credit disclosures governed by Regulation Z as
announced in a separate proposed rulemaking (Docket No.
R-1286).
$0
No
No
Uncollected
Uncollected
Uncollected
Uncollected
John Schmidt 202-728-5859
john.schmidt@frb.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
RegZ_R1305.HOEPA.20080731.omb.doc
RegZ.R_1305_HOEPA.20080730.nfrm.pdf
Subpart B - Open-end credit (Initial Disclosures)