Agency Information Collection Activities: Proposed Collection Renewal; Comment Request

FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0082 -0084]

Agency Information Collection Activities: Proposed Collection Renewal; Comment Request

AGENCY:

Federal Deposit Insurance Corporation (FDIC).

ACTION:

Notice and request for comment.

SUMMARY:

The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to take this opportunity to comment on the renewal of the existing information collections described below (OMB Control No. 3064-0082; -0084).

DATES:

Comments must be submitted on or before April 27, 2021.

ADDRESSES:

Interested parties are invited to submit written comments to the FDIC by any of the following methods:

•

https://www.FDIC.gov/regulations/laws/federal.

•

Email: comments@fdic.gov.

Include the name and number of the collection in the subject line of the message.

•

Mail:

Manny Cabeza (202-898-3767), Regulatory Counsel, MB-3128, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429.

•

Hand Delivery:

Comments may be hand-delivered to the guard station at the rear of the 17th Street building (located on F Street), on business days between 7:00 a.m. and 5:00 p.m.

All comments should refer to the relevant OMB control number. A copy of the comments may also be submitted to the OMB desk officer for the FDIC: Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT:

Manny Cabeza, Regulatory Counsel, 202-898-3767,

mcabeza@fdic.gov,

MB-3128, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

Proposal to renew the following currently approved collections of information:

1.

Title:

Recordkeeping, Disclosure and Reporting Requirements in Connection with Regulation Z.

OMB Number:

3064-0082.

Form Number:

None.

Affected Public:

FDIC-supervised institutions.

Burden Estimate:

The total estimated annual burden is 2,395,630 hours (36 hours estimated implementation burden, plus 2,395,594 hours estimated ongoing burden). The burden estimate is detailed on the following

tables:

1

FDIC estimates that all existing FDIC-supervised institutions have implemented the policies and procedures required by Regulation Z and will only face the estimated ongoing (transaction) burdens reflected in the Ongoing Burden Estimate table. The respondent count of 1 is intended as a placeholder for the associated burden estimate to account for any institution(s) that may become subject to the information collection requirements in the future.

Implementation (One-Time) Burden Estimate

Obligation to respond/

type of burden

Estimated

number of

respondents

1

Estimated

average

number

of credit

accounts

Frequency

of response

Number of

responses

Estimated

time per

response

(minutes)

Total

estimated

annual

burden

(hours)

Open-End Credit Products

•

Not Home-Secured Open-End Credit Plans

Credit and Charge Card Provisions:

Timely Settlement of Estate Debts (1026.11(c)(1)) Written Policies and Procedures

Mandatory Recordkeeping

1

N/A

1

1

480.00

8

Ability to Pay (1026.51(a)(ii)) Written Policies and Procedures

Mandatory Recordkeeping

1

N/A

1

1

480.00

8

Mortgage Products (Open and Closed-End)

•

Valuation Independence

Mandatory Reporting:

Implementation of Policies and Procedures (1026.42(g))

Mandatory Recordkeeping

1

N/A

1

0

1,200.00

20

Total Estimated Implementation Burden

36

Ongoing Burden Estimate

Obligation to respond/

type of burden

Estimated

number of

respondents

1

Estimated

average

number

of credit

accounts

Frequency

of response

Number of

responses

Estimated

time per

response

(minutes)

Total

estimated

annual

burden

(hours)

Open-End Credit Products

•

Not Home-Secured Open-End Credit Plans

General Disclosure Rules for Not Home-Secured Open-End Credit Plans:

Credit and Charge Card Applications and Solicitations (1026.60)

Mandatory Disclosure

634

N/A

1

634

480.00

5,072

Account Opening Disclosures (1026.6(b))

Mandatory Disclosure

634

N/A

1

634

720.00

7,608

Periodic Statements (1026.7(b))

Mandatory Disclosure

634

N/A

12

7,608

480.00

60,864

Annual Statement of Billing Rights (1026.9(a)(1))

Mandatory Disclosure

317

N/A

1

317

480.00

2,536

Alternative Summary Statement of Billing Rights (1026.9(a)(2))

Voluntary Disclosure

317

N/A

12

3,804

480.00

30,432

Change in Terms Disclosures (1026.9(b) through (h))

Mandatory Disclosure

634

N/A

1

634

480.00

5,072

Credit and Charge Card Provisions:

Timely Settlement of Estate Debts (1026.11(c)(2))

Mandatory Disclosure

634

428

1

271,352

5.00

22,613

Ability to Pay (1026.51)

Mandatory Recordkeeping

634

N/A

1

634

720.00

7,608

College Student Credit Annual Report (1026.57(d))

Mandatory Reporting

634

N/A

1

634

480.00

5,072

Submission of Credit Card Agreements (1026.58(c))

Mandatory Reporting

634

N/A

4

2,536

180.00

7,608

Internet Posting of Credit Card Agreements (1026.58(d))

Mandatory Disclosure

634

N/A

4

2,536

360.00

15,216

Individual Credit Card Agreements (1026.58(e))

Mandatory Disclosure

634

125

1

79,250

15.00

19,813

•

Home Equity Open-End Credit Plans (HELOC)

•

General Disclosure Rules for HELOC's:

Application Disclosures (1026.40)

Mandatory Disclosure

2,717

N/A

1

2,717

720.00

32,604

Account Opening Disclosures (1026.6(a))

Mandatory Disclosure

2,717

N/A

1

2,717

720.00

32,604

Periodic Statements (1026.7(a))

Mandatory Disclosure

2,717

N/A

1

2,717

480.00

21,736

Annual Statement of Billing Rights (1026.9(a)(1))

Mandatory Disclosure

2,717

N/A

1

2,717

480.00

21,736

Alternative Summary Statement of Billing Rights (1026.9(a)(2))

Voluntary Disclosure

2,717

N/A

1

2,717

480.00

21,736

Change in Terms Disclosures (1026.9(b) through (h))

Mandatory Disclosure

2,717

N/A

1

2,717

480.00

21,736

Notice to Restrict Credit (1026.9(c)(1)(iii); .40(f)(3)(i) and (vi))

Mandatory Disclosure

2,717

N/A

1

2,717

120.00

5,434

•

All Open-End Credit Plans

Error Resolution (1026.13)

Mandatory Disclosure

3,624

2,963

1

10,737,912

1.0

178,965

Closed-End Credit Products

•

General Rules for Closed-End Credit

Other than Real Estate, Home-Secured and Private Education Loans (1026.17 and .18)

Mandatory Disclosure

1

N/A

1

1

720.00

12

•

Closed-End Mortgages

Application and Consummation:

Loan Estimate (1026.19(e); and .37)

Mandatory Disclosure

3,628

N/A

1

3,628

480.00

29,024

Closing Disclosure (1026.19(f); and .38)

Mandatory Disclosure

3,628

N/A

1

3,628

480.00

29,024

Record Retention of Disclosures (1026.19(e), (f); .37; and .38)

Mandatory Recordkeeping

3,628

N/A

1

3,628

18.00

1,088

Post-Consummation Disclosures:

Interest Rate and Payment Summary (1026.18(s))

Mandatory Disclosure

3,628

N/A

1

3,628

2,400.00

145,120

No Guarantee to Refinance Statement (1026.18(t))

Mandatory Disclosure

3,628

N/A

1

3,628

480.00

29,024

ARMs Rate Adjustments with Payment Change Disclosures (1026.20(c))

Mandatory Disclosure

3,628

N/A

1

3,628

90.00

5,442

Initial Rate Adjustment Disclosure for ARMs (1026.20(d))

Mandatory Disclosure

3,628

N/A

1

3,628

120.00

7,256

Escrow Cancellation Notice (1026.20(e))

Mandatory Disclosure

3,628

N/A

1

3,628

480.00

29,024

Periodic Statements (1026.41)

Mandatory Disclosure

3,628

N/A

1

3,628

480.00

29,024

Ability to Repay Requirements:

Minimum Standards (1026.43(c) through (f))

Mandatory Recordkeeping

3,628

926

1

3,359,528

15.00

839,882

Prepayment Penalties (1026.43(g))

Mandatory Disclosure

3,628

16

1

58,048

12.00

11.610

Mortgage Products (Open and Closed-End)

•

Mortgage Servicing Disclosures

Payoff Statements:

Payoff Statements (1026.36(c)(3))

Mandatory Disclosure

3,628

N/A

1

3,628

480.00

29,024

Notice of Sale or Transfer:

Notice of Sale or Transfer (1026.39)

Mandatory Disclosure

3,628

N/A

1

3,628

480.00

29,204

•

Valuation Independence

Mandatory Reporting:

Reporting Appraiser Noncompliance (1026.42(g))

Mandatory Reporting

3,628

1

1

3,628

10.00

605

Reverse and High-Cost Mortgages

•

Reverse Mortgages

Reverse Mortgage Disclosures:

Reverse Mortgage Disclosures (1026.31(c)(2) and .33)

Mandatory Disclosure

14

N/A

1

14

1,440.00

336

•

High-Cost Mortgage Loans

HOEPA Disclosures and Notice:

HOEPA Disclosures and Notice (1026.32(c)

Mandatory Disclosure

3,628

N/A

1

3,628

14.00

847

Private Education Loans

•

Initial Disclosures

Application and Solicitation Disclosures:

Application or Solicitation Disclosures (1026.47(a))

Mandatory Disclosure

3,561

N/A

1

3,561

3,600.00

213,660

Approval Disclosures:

Approval Disclosures (1026.47(b))

Mandatory Disclosure

3,561

N/A

1

3,561

3,600.00

213,660

Final Disclosures:

Final Disclosures (1026.47(c))

Mandatory Disclosure

3,561

N/A

1

3,561

3600.00

213,660

Advertising Rules

•

All Credit Types

Open-End Credit:

Open-End Credit (1026.16)

Mandatory Disclosure

3,624

5

1

18,120

20.00

6,040

Closed-End Credit:

Closed-End Credit (1026.24)

Mandatory Disclosure

3,628

5

1

18,140

20.00

6,047

Record Retention

•

Evidence of Compliance

Regulation Z in General (1026.25)

Mandatory Recordkeeping

3,652

N/A

1

3,652

18.00

1,096

Total Estimated Ongoing Burden

2,395,594

Total Estimated Annual Burden

2,395,630

General Description of Collection:

Consumer Financial Protection Bureau (CFPB) Regulation Z—12 CFR 1026 implements the Truth in Lending Act (15 U.S.C. 1601,

et seq.

) and certain provisions of the Real Estate Settlement Procedures Act (12 U.S.C. 2601

et seq.

). This regulation prescribes uniform methods for computing the cost of credit, the disclosure of credit terms and costs, the resolution of errors and imposes various other recordkeeping, reporting and disclosure requirements. The FDIC has enforcement authority on the requirements of the CFPB's Regulation over the financial institutions it supervises. This information collection captures the recordkeeping, reporting and disclosure burdens of Regulation Z on FDIC-supervised institutions.

To arrive at the estimated annual burden the FDIC assessed the number of potential respondents to the information collection by identifying the number of FDIC-supervised institutions who reported activity that would be within the scope of the information collection requirements according to data from the most recent CALL Report. Additionally, the FDIC estimated the frequency of responses to the recordkeeping, reporting, or disclosure requirements by assessing the dollar volume of activity that would be within the scope of the information collection. In some instances the FDIC used information provided by other sources to estimate the magnitude and scope of activity attributable to FDIC-supervised institutions when more immediate information sources did not exist.

2.

Title:

Account Based Disclosures in Connection with Consumer Financial Protection Bureau Regulations E and DD and Federal Reserve Regulation CC.

OMB Number:

3064-0084.

Form Number:

None.

Affected Public:

FDIC-supervised institutions.

Burden Estimate:

Summary of Annual Burden

Type of

burden

Obligation

to respond

Estimated

number of

respondents

Estimated

time per

response

(hours)

Estimated

frequency

Frequency

of response

Total annual

estimated

burden

Reg. E—12 C.F.R. Part 1005

Initial disclosures:

General (1005.7(b))

Disclosure

Mandatory

3,674

0.025

83

On Occasion

7,624

Payroll cards (1005.18(c)(1))

Disclosure

Mandatory

6

0.025

5,000

On Occasion

750

Change-in-terms (1005.8(a))

Disclosure

Mandatory

3,674

0.017

113

On Occasion

6,919

Transaction disclosures (sections 1005.9(a) and 1005.10)

Disclosure

0

Periodic statements (section 1005.9(b))

Disclosure

0

Error resolution rules:

General (1005.8(b) and 1005.11)

Disclosure

Mandatory

3,674

0.500

3

On Occasion

5,511

Payroll cards (1005.18)

Disclosure

Mandatory

6

0.500

8

On Occasion

24

Overdraft opt-in disclosures (1005.17, FRB

R-1343):

Revise and update initial disclosures (1005.17(c)(2)) for new customers

Disclosure

Mandatory

3,625

16.000

1

On Occasion

58,000

Prepare and send new opt-in notices to existing customers (1005.17(c)(1))

Disclosure

Mandatory

3,625

16.000

1

On Occasion

58,000

Consumer response (section 1005.17)

Recordkeeping

Voluntary

3,625

0.083

7,207

On Occasion

2,177,115

Gift card/gift certificate (section 1005.20, FRB R-1377):

Exclusion policies & procedures (1005.20(b)(2)) one-time

Recordkeeping

Mandatory

6

40.000

1

On Occasion

240

Exclusion policies & procedures (1005.20(b)(2)) ongoing

Recordkeeping

Mandatory

6

8.000

1

On Occasion

48

Policy & procedures (1005.20(e)(1)) one-time

Recordkeeping

Mandatory

6

40.000

1

On Occasion

240

Policy & procedures (1005.20(e)(1)) ongoing

Recordkeeping

Mandatory

6

8.000

1

On Occasion

48

Systems change to implement disclosure update (1005.20(e)(3))

Disclosure

Mandatory

6

40.000

1

On Occasion

240

Subtotal Reg. E Burden

2,314,759

General Description of Collection:

Regulations E & DD (Consumer Financial Protection Bureau's Regulations) and Regulation CC (the Federal Reserve's Regulation) ensure adequate disclosures regarding accounts, including electronic fund transfer services, availability of funds, and fees and annual percentage yield for deposit accounts. Generally, the Regulation E disclosures are designed to ensure consumers receive adequate disclosure of basic terms, costs, and rights relating to electronic fund transfer (EFT) services provided to them so that they can make informed decisions. Institutions offering EFT services must disclose to consumers certain information, including: Initial and updated EFT terms, transaction information, the consumer's potential liability for unauthorized transfers, and error resolution rights and procedures.

Like Regulation E, Regulation CC has consumer protection disclosure requirements. Specifically, Regulation CC requires depository institutions to make funds deposited in transaction accounts available within specified time periods, disclose their availability policies to customers, and begin accruing interest on such deposits promptly. The disclosures are intended to alert customers that their ability to use deposited funds may be delayed, prevent unintentional (and costly) overdrafts, and allow customers to compare the policies of different institutions before deciding at which institution to deposit funds. Depository institutions must also provide an awareness disclosure regarding substitute checks. The regulation also requires notice to the depositary bank and to a customer of nonpayment of a check. Regulation DD also has similar consumer protection disclosure requirements that are intended to assist consumers in comparing deposit accounts offered by institutions, principally through the disclosure of fees, the annual percentage yield, and other account terms. Regulation DD requires depository institutions to disclose yields, fees, and other terms concerning deposit accounts to consumers at account opening, upon request, and when changes in terms occur. Depository institutions that provide periodic statements are required to include information about fees imposed, interest earned, and the annual percentage yield (APY) earned during those statement periods. It also contains rules about advertising deposit accounts. There is no change in the method or substance of the collection. The overall reduction in burden hours is the result of economic fluctuation and the reduced number of FDIC-supervised institutions since the last submission in 2014. In particular, the number of respondents has decreased while the hours per response and frequency of responses have remained the same.

Request for Comment

Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the FDIC's functions, including whether the information has practical utility; (b) the accuracy of the estimates of the burden of the information collection, including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. All comments will become a matter of public record.

Federal Deposit Insurance Corporation.

Dated at Washington, DC, on February 23, 2021.

James P. Sheesley,

Assistant Executive Secretary.

[FR Doc. 2021-04046 Filed 2-25-21; 8:45 am]

BILLING CODE 6714-01-P