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FRS RIN: 7100-AD33 Publication ID: Fall 2010 
Title: Regulation Z--Truth in Lending Act (Docket Number: R-1366) 
Abstract: In August 2009 the Board issued a proposed rule amending Regulation Z's disclosures for closed-end mortgages. The proposed rule would make comprehensive changes to the disclosures consumers receive before and after application for a closed-end mortgage loan. The proposed disclosures included, among other things, disclosures of information about interest rates and payment changes in the form of a table. This disclosure would implement changes to the Truth in Lending Act made by the Mortgage Disclosure Improvement Act (the MDIA). The Board also proposed to prohibit certain payments to mortgage loan originators (mortgage brokers and loan officers) that are based on the loan's terms or conditions, and prohibit steering consumers to transactions that are not in their interest to increase compensation received. In August 2010, the Board finalized two elements of the August 2009 proposed rule. First, the Board issued an interim final rule requiring creditors to disclose certain summary information about interest rates and payment changes in the form of a table for closed-end mortgage loans secured by a real property or dwelling. The Board took this action to ensure that the creditors have guidance on how to make the interest rate and payment disclosure required by MDIA before the statutory effective date of January 30, 2011. The Board's interim final rule adopts the August 2009 proposed rule regarding the interest rate and payment summary tables substantially as proposed. Public comments on the interim final rule are due 60 days after publication in the Federal Register. Second, the Board adopted the proposed rule regarding originator compensation, substantially as proposed. The final rule also prohibits payments to mortgage originators that are based on the loan's terms or conditions. The final rule also prohibits a mortgage originator from steering consumers to transactions that are not in their interest to increase the originator's compensation. The final rule applies to closed-end mortgage loans secured by a dwelling, and is substantially similar to the proposed rule. 
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 226.4    12 CFR 226.17 to 226.19    ...     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 15 USC 1601 et seq   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Board Requested Comment  08/26/2009  74 FR 43232   
Board Adopted Final Rule  09/24/2010  75 FR 58509   
Final Rule Effective  04/01/2011    
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: None 
Small Entities Affected: Businesses, Governmental Jurisdictions, Organizations  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