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FRS

RIN: 7100-AD17

Publication ID: Fall 2008

Title: Regulation Z--Truth in Lending (Docket No. R-1305)
Abstract: The Board amended Regulation Z, which implements the Truth in Lending Act and Home Ownership and Equity Protection Act. The goals of the amendments are to protect consumers in the mortgage market from unfair, abusive, or deceptive lending and servicing practices while preserving responsible lending and sustainable home ownership; ensure that advertisements for mortgage loans provide accurate and balanced information and do not contain misleading or deceptive representations and provide consumers transaction-specific disclosures early enough to use while shopping for a mortgage. The revisions apply four protections to a newly-defined category of higher-priced mortgage loans secured by a consumer's principal dwelling, including a prohibition of lending based on the collateral without regard to consumer's ability to repay their obligations from income, or from other sources besides the collateral. The revisions apply one new protection to mortgage loans secured by a consumer's principal dwelling regardless of loan price, including a prohibition on abusive servicing practices. The rule also requires that advertisements provide accurate and balanced information, in a clean and conspicuous manner, about rates, monthly payments, and other loan features; and bans several deceptive or misleading advertising practices, including representations that a rate or payment is "fixed" when it can change. Finally, the rule requires creditors to provide consumers with transaction-specific mortgage loan disclosures before they pay any fee except a reasonable fee for reviewing credit history.
Agency: Federal Reserve System(FRS)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Completed Actions
Major: No	Unfunded Mandates: No
CFR Citation: 12 CFR 226
Legal Authority: 12 USC 3806 15 USC 1604 15 USC 1637(c)(5) 15 USC 1637(l)

Legal Deadline: None

Timetable:

Action	Date	FR Cite
Board Requested Comment	01/09/2008	73 FR 1672
Board Adopted Final Rule	08/08/2008	73 FR 46190

Regulatory Flexibility Analysis Required: Yes	Government Levels Affected: None
Small Entities Affected: Businesses	Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: Yes
Agency Contact: Kathleen Ryan Counsel Federal Reserve System Division of Consumer and Community Affairs, Phone:202 452-3667