The Omnibus Appropriations Act, as
clarified by Section 511 of the Credit CARD Act, and as amended by
Section 1097 of the Dodd-Frank Act directs the Bureau of Consumer
Financial Protection (CFPB) to issue rules that "relate to unfair
or deceptive acts or practices" regarding mortgage loans.
Regulation N prohibits misrepresentations about the terms of
mortgage credit products in commercial communications and requires
that covered persons keep certain related records for a period of
twenty-four (24) months from last dissemination. Specifically,
Regulation N requires covered persons to retain : (1) copies of all
materially different commercial communications disseminated,
including but not limited to sales scripts, training materials,
related marketing materials, websites, and weblogs; (2) documents
describing or evidencing all mortgage credit products available to
consumers during the time period in which each commercial
communication was disseminated, including but not limited to the
names and terms of each such mortgage credit product available to
consumers; and (3) documents describing or evidencing all
additional products or services (such as credit insurance or credit
disability insurance) that are or may be offered or provided with
the mortgage credit products available to consumers during the time
period in which each commercial communication was disseminated,
including but not limited to the names and terms of each such
additional product or service available to consumers. A failure to
keep such records is a violation of Regulation N. The FTC's record
supports the conclusion that the information that Regulation N
requires covered persons to retain is necessary to ensure efficient
and effective law enforcement to address deceptive practices that
occur in the mortgage advertising area. To gauge whether covered
persons are complying with Regulation N or making prohibited
misrepresentations, the FTC's record supports the conclusion that
it is necessary to review the commercial communications that were
disseminated and the information about the mortgage credit products
and relevant additional products or services available during the
time period in which each commercial communication was
disseminated. Furthermore, the FTC's record supports the conclusion
that a strong recordkeeping provision is necessary to foster
effective enforcement of Regulation N.
The Bureau of Consumer
Financial Protection (CFPB) respectfully requests emergency
processing and approval of the collection of information discussed
below because the use of normal clearance procedures is reasonably
likely to prevent and disrupt an existing collection of
information. The Dodd-Frank Wall Street Reform and Consumer
Protection Act, Pub. L. 111-203, Section 1097, 124 Stat. 1376, 2102
(2010) (Dodd-Frank Act) transferred rulemaking authority for the
Mortgage Acts and Practices Advertising Rule (MAP), Section 626
of the 2009 Omnibus Appropriations Act, Pub. L. 111-8, 123 Stat.
524, 678 (2009) (codified at 15 U.S.C. 1638 note) (Omnibus
Appropriations Act), as clarified by Section 511 of the Credit Card
Accountability and Responsibility and Disclosure Act of 2009, Pub.
L. 111-24, 123 Stat. 1734, 1763 (2009) (Credit CARD Act), and as
amended by the Dodd-Frank Act, to the CFPB on July 21, 2011. In
addition to the transfer of rulemaking authority under the
Dodd-Frank Act, the CFPB received certain enforcement authorities
with respect to MAP. The CFPB is in the process of publishing for
public comment an interim final rule establishing a new regulation
in 12 CFR Part 1014 (Regulation N). Regulation N was originally
submitted for OMB review by the Federal Trade Commission (FTC) as a
proposed rule on September 30, 2010. The FTC later finalized
Regulation N and published the final rule on July 22, 2011 (Rule).
The FTCs record states that the Rules recordkeeping requirement
constitutes a collection of information for purposes of the
Paperwork Reduction Act and that, except for minor clarifying
changes, the Rules recordkeeping provision is the same as in the
proposed rule. This interim final rule substantially replicates the
Rule, and will not impose any new substantive obligations on
regulated entities or any new information collection requirements.
As the CFPB now has enforcement authority over certain populations
that have been under the jurisdiction of another agency, the CFPB
is requesting approval of a new OMB control number for its
collection activities under Regulation N. To prevent a disruption
of an approved information collection, the CFPB is requesting
emergency processing and approval of the following information
collection request. Upon receipt of emergency approval from the
Office of Management and Budget, the CFPB will begin a standard
approval process for this collection and will seek public input at
that time.
US Code:
15
USC 1638 Name of Law: The Omnibus Appropriations Act
PL:
Pub.L. 111 - 24 123 Name of Law: Credit Card Accountability and
Responsibility and Disclosure Act
PL: Pub.L. 111 - 203 X Name of Law: Wall
Street Reform and Consumer Protection Act
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Supporting Statement for Regulation N 20111020 v3.doc
Mortgage Acts and Practices Recordkeeping Requirement