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Federal Reserve Bank of Dallas R O B E R T D. McTEER, JR. DALLAS, TEXAS P R E S ID E N T a n d c h ie f e x e c u t iv e o f f ic e r February 13, 1998 75265-5906 Notice 98-15 TO: The Chief Executive Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Request for Additional Public Comment on the Truth in Lending Act DETAILS The Economic Growth and Regulatory Paperwork Reduction Act of 1996 directs the Board and the Department of Housing and Urban Development to simplify and improve consumer disclosures under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) and to provide a single format satisfying the requirements of those laws. If legislation is necessary to accom plish these goals, the agencies are to submit recommendations to the Congress. In December 1996, the agencies published for comment an advance notice of proposed rulemaking. After consideration of the comments and further review, the Board determined that regula tory changes alone would be inadequate to achieve the goals of the Congress and that legislative changes are necessary to harmonize TILA and RESPA. In April 1997, the Board published a notice to invite additional public comments on possible legislative action. To obtain even further comments from con sumers, the Board has reopened and extended the public comment period. The Board must receive comments by March 9, 1998. Please address comments to William W. Wiles, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, DC 20551. All comments should refer to Docket No. R-0954. ATTACHMENT A copy of the Board’s notice as it appears on pages 6112, Vol. 63, No. 25 of the Federal Register dated February 6, 1998, is attached. MORE INFORMATION For more information, please contact Eugene Coy at (214) 922-6201. For additional copies of this Bank’s notice, contact the Public Affairs Department at (214) 922-5254. Sincerely yours, A. ■ 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) 6112 Proposed Rules Federal Register Vol. 63, No. 25 Friday, February 6, 1998 FEDERAL RESERVE SYSTEM 12CFR Part 226 [Regulation Z; Docket No. R -0 95 4 ] Truth in Lending Board of G overnors of the F ederal Reserve System . ACTION: R equest for com m ents; ex ten sio n of co m m en t period. AGENCY: SUMMARY: T he E conom ic G row th an d R egulatory P ap erw o rk R ed u ctio n A ct of 1996 directs th e B oard a n d the D ep artm en t of H ousing a n d U rban D evelo pm ent (HUD), w h ere possible, to sim p lify a n d im pro ve co n su m er d isclosures req u ired u n d e r th e T ru th in L ending A ct (TILA) a n d th e Real Estate S ettlem en t P rocedures A ct (RESPA) an d to p ro v id e a single form at satisfying the req u irem en ts of th o se law s. If legislation is necessary to acco m p lish these goals, th e agencies are to su b m it legislative rec o m m e n d atio n s to th e Congress. In D ecem ber 1996, th e agencies p u b lish e d for co m m en t an adv an ce no tice of p ro p o se d rulem aking. After c o n sid eratio n of th e co m m ents an d fu rth er review , th e Board d eterm in e d th a t regulatory changes alone w o u ld be in a d eq u a te to ach ieve th e goals of the Congress a n d th a t legislative changes are n ecessary to h arm o n ize TILA an d RESPA. In A p ril 1997, th e B oard p u b lish e d a n o tice to in v ite ad d itio n a l p u b lic com m ents o n possible legislative action. In th e n ex t few m o n th s, the B oard an d HUD w ill rep o rt to the C ongress on p o te n tia l legislative changes. In o rd er to o btain ad d itio n a l com m ents from in d iv id u a l consum ers, th e B oard h as re o p e n e d an d ex ten d ed th e p u b lic co m m en t period. DATES: C om m ents m u st be su b m itte d on or before M arch 9, 1998. ADDRESSES: C om m ents sh o u ld refer to D ocket No. R -0 9 5 4 a n d m ay be m ailed to W illiam W. W iles, Secretary, Board of G overnors of th e F ederal Reserve System , 20th S treet a n d C on stitutio n A venue, NW., W ashington, DC 20551. C om m ents m ay also be d eliv ere d to Room B -2222 of th e Eccles B uilding b etw e en 8:45 a.m. a n d 5:15 p.m. w eekdays, or to th e g uard station in th e Eccles B uilding co u rty ard o n 20th Street N W (betw een C o n stitu tio n A venue an d C Street) at any tim e. C om m ents m ay be in sp e c te d in Room M P -5 0 0 o f the M artin B u ild in g b etw e en 9:00 a.m. an d 5:00 p.m . w eekday s, ex cep t as p ro v id ed in § 12 CFR 261.8 of th e B oard ’s Rules R egarding A vailability of Inform ation. FOR FURTHER INFORMATION CONTACT: M ichael L. H entrel, N atalie E. Taylor, Staff A ttorneys, or James A. M ichaels, S enior A ttorney, D ivision of C onsum er a n d C o m m u nity Affairs, B oard of G overnors of th e F ederal Reserve System , at (202) 452-3667; for users of T eleco m m u n icatio n s D evice for th e D eaf (TDD) only, D iane Jenkins, at (202) 4 5 2 3544. SUPPLEMENTARY INFORMATION: Section 2101 of th e E conom ic G row th an d Regulatory P ap erw o rk R ed u ctio n A ct of 1996 (Pub. L. 104-208, 110 Stat. 3009) directs th e B oard an d HUD to sim plify a n d im p ro v e th e d isclosures given in a h o m e m ortgage tran sa ctio n subject to TILA a n d RESPA, an d to create a single d isclo su re th a t w ill satisfy th e req u irem en ts of b o th statutes, if possible. If legislation is n ecessary to develop a single sim p lified disclosure, th e B oard a n d HUD are d irected to su b m it legislative rec o m m e n d atio n s to th e Congress. T he statutes im pose n u m e ro u s req u irem en ts a n d serve various purp o ses. TILA seeks to p ro m o te th e info rm ed u se of co nsum er cre d it b y req u irin g sta n d ard iz ed d isclosures abo ut credit term s a n d costs. T he d isclosures are in te n d e d to focus c o n su m ers’ a tten tio n on certain aspects of th e ir tran sa ctio n a n d to assist th e m in co m p ariso n sh opp ing . TILA establishes a d d itio n a l d isclo su re req u irem en ts for ho m e-secu red loans, an d in som e cases p erm its co n su m ers to resc in d su ch loans. RESPA co ntain s b o th d isclo sure a n d price-related p rovisions. It requires th a t ce rtain disclosures be given at v arious p o in ts in m ost mortgage tran sa ctio n s to en su re th a t consum ers receive tim ely an d u seful info rm atio n abou t the costs associated w ith the tran saction . It also p ro h ib its kickbacks an d referral fees am ong se ttlem en t service providers. O n D ecem ber 31, 1996 (61 FR 69055), th e B oard an d HUD jointly p u b lish e d for co m m en t an adv an ce n o tice of p ro p o se d rulem aking o n th e issue of sim plifying a n d com binin g th e disclosu re req u irem en ts of RESPA an d TILA. T he B oard a n d HUD received m ore th a n 80 co m m en t letters, p rim arily from cred itors a n d th e ir rep resentatives. A fter rev iew in g th e com m ents, an d u p o n fu rth e r analy sis in co n su lta tio n w ith HUD, th e B oard d e c id e d n o t to pro p o se an y changes to R egulation Z. T he B oard d eterm in e d th a t harm o n izin g TILA an d RESPA to any significant degree re q u ire d changes th a t co u ld only com e abo ut th ro u g h legislative action. A s a resu lt, th e B oard p u b lish e d a n otice in vitin g a d d itio n a l p u b lic co m m en t on po ssible legislative actio n on A pril 2, 1997 (62 FR 15624). T he B oard an d HUD receiv ed m ore th a n 160 co m m ent letters from co n su m ers a n d in d u stry representatives. T he B oard is ex ten d in g th e com m ent p erio d u n til M arch 9, 1998, in o rd er to ob tain v iew s from co nsum ers on m atters su c h as th e tim ing, con tent, an d reliab ility of disclosures; th e B oard w ill do so b y in v itin g certain first tim e h o m eb u y ers a n d prev io u s h om e p u rch a sers to p a rticip a te in focus groups. T he co m m en t p e rio d is being e x ten d e d p rim a rily for th e p u rp o se of c o n d u c tin g these focus group in terv iew s. O th er m em bers of the p u b lic m ay su b m it co m m en ts d u rin g this p erio d , b u t th e y are encourag ed to su b m it th e m as soon as possible. T his ex ten sio n w ill n o t delay th e B oard in p ro v id in g its rep o rt to th e Congress. By order of the Secretary of the Board, acting pursuant to delegated authority for Board of Governors of the Federal Reserve System, January 30, 1998. W illiam W. W iles, Secretary o f the Board. [FR Doc. 98-2899 Filed 2-5-98 ; 8:45 am] BILLING CODE 6210 -01 -P