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F ederal Reserve Bank OF DALLAS ROBERT D. M c T E E R , J R . P R E S ID E N T AND C H IE F E X E C U T IV E O F F IC E R November 1, 1995 DALLAS, T E X A S 75265-5906 Notice 95-102 TO: The Chief Executive Officer of each member bank and others concerned in the Eleventh Federal Reserve District SUBJECT Correction to the Final Rule to Regulation Z (Truth in Lending) DETAILS The Board of Governors of the Federal Reserve System has issued a correc tion to the final rule amending Regulation Z (Truth in Lending), which was published in this Bank’s Notice 95-36. That final rule concerned new disclosure requirements for reverse mortgage transactions, as well as for certain home loans bearing rates above a certain percentage or amount. The correction to the amendments was effective September 25, 1995. ATTACHMENT A copy of the Board’s notice as it appears on page 50400, Vol. 60, No. 189, of the Federal Register dated September 29, 1995, is printed on the reverse of this Bank’s notice. MORE INFORMATION For more information, please contact Eugene Coy at (214) 922-6201. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 922-5254. Sincerely yours, For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 50400 Federal Register / Vol. 60, No. 189 / Friday, September 29, 1995 / Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Regulation Z; Docket No. R-0858] Truth in Lending; Mortgage Disclosures; Correction AGENCY: Board of Governors of the Federal Reserve System. ACTION: Technical Correction to final regulation. SUMMARY: This docum ent contains a correction to the final rule (Docket No. R -0 8 5 8 ) which was published Friday, March 2 4 ,1 9 9 5 (60 FR 15463). The amendments to Regulation Z concerned new disclosure requirements on reverse mortgage transactions (as well as on certain home loans bearing rates or fees above a certain percentage or amount). EFFECTIVE DATE: September 2 5 ,1 9 9 5 . SUPPLEMENTARY INFORMATION: Background The regulation that is the subject of this correction is Regulation Z (12 CFR part 226), which implements the Truth in Lending A ct (15 U.S.C. 1601 -16 6 6)). The act (TILA) requires creditors to disclose credit terms for consumer transactions. The Home Ownership and Equity Protection A ct of 1994 (HOEPA), contained in the Riegle Community Development and Regulatory Improvement A ct of 1994 (Pub. L. 1 0 3 3 2 5 ,1 0 8 Stat. 2160) amended the TILA. Section 154 of the HOEPA added a new section 1 3 8 to the TILA dealing with disclosures required for reverse mortgage transactions. The final rule implementing these provisions in Regulation Z was published on March 24, 1995 (60 FR 15463). FOR FURTHER INFORMATION CONTACT: Need for Correction Sheilah Goodman or Kurt Schumacher, Staff Attorneys, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 4 5 2 -3 6 6 7 or 4 5 2 -2 4 1 2 ; for the hearing impaired only, Dorothea Thompson, Telecommunications Device for the Deaf, at (202) 4 5 2 -3 5 4 4 . As published, the final rule implementing new TILA section 138 contains an error in the unit period used in the first example of the total annual loan cost rate computation in appendix K to part 226, which also results in an erroneous total annual loan cost rate being shown for that example. The error i = .1317069438 Total annual loan cost rate (100(. 13170694 3 8 X 1)) = 1 3 . 1 7 % ( 2) * * * Board of Governors of the Federal Reserve System, September 25, 1995. William W . Wiles, Secretary o f the Board. [FR Doc. 9 5-24240 Filed 9 -2 8 -9 5 ; 8:45 am] BILLING CODE 6210-01-P resulted from the use of a monthly unit period in the transaction, whereas, under the definition of a unit period for single-advance single-payment transactions (paragraph (b)(4)(ii) of appendix K), the proper unit period is 1 year. This error has been corrected. For consistency and ease of understanding, the Bain figure has also been revised to reflect the use of an annual unit period. Correction of Publication Accordingly, the publication on March 24, 1995, of the final regulation (Docket No. R -0 8 5 8 ), which was the subject of FR Doc. 9 5 -7 2 3 1 , is corrected as follows; A p p en d ix K to Part 2 2 6 — [Corrected] On page 1 5475, in the example in paragraph (c)(1) of appendix K to Part 226, the formula (which follows the phrase “Assumed annual dwelling appreciation rate: 4 % ”) is corrected to read as follows; * * * * * (c) * * * (1) * * * P ,0 = Min (1 03,385.84, 137,662.72)
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