This is a request for emergency
clearance by the Consumer Financial Protection Bureau (CFPB or
Bureau) to allow for qualitative testing of mortgage servicing
related model forms and disclosures. The research will result in
the development of, and revisions to, proposed and final model
forms and disclosures provided to consumers in connection with
mortgage loan obligations after origination. The research
activities will be conducted primarily by an external contractor
(Contractor) employing cognitive psychological testing methods.
This approach has been demonstrated to be feasible and valuable by
the CFPB and other agencies in developing disclosures and other
forms. The planned research activities will be conducted during FY
2012 with the goal of creating effective disclosures and related
materials for consumers regarding mortgage loan obligations after
origination.
The Consumer Financial
Protection Bureau (CFPB or Bureau) respectfully requests emergency
processing and approval of the collection of information to be used
for the qualitative testing of mortgage servicing related model
forms and disclosures. The collection is needed prior to the
expiration of the time periods set out in 5 C.F.R. Part 1320. The
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public
Law No. 111-203, Title XIV (Dodd-Frank Act), requires the CFPB to
publish, in final form, certain mortgage servicing rules by January
21, 2013. These rules implement sections 1418 (Reset of Hybrid
Adjustable Rate Mortgages), 1420 (Periodic Mortgage Loan
Statements) and 1463 (Force-Placed Insurance Disclosures) of the
Dodd-Frank Act. The CFPB has determined that model forms and
disclosures are required for these rules. The CFPB has determined
that qualitative testing is necessary to effectively test the model
forms and disclosures. The CFPB has further determined that the
qualitative testing of the forms, as part of the iterative design
process, needs to be initiated in January 2012, to allow for three
rounds of testing to be conducted in three cities, with sufficient
time for analysis and revisions between each round. The aggressive
schedule is necessary so that the Bureau can publish the final
rules by January 21, 2013, as mandated in the Dodd-Frank Act. In
order to meet that deadline, the Bureau must draft proposed rules,
complete impact analyses and other applicable requirements, provide
commenters with a 60 day comment period with respect to a proposed
rule, allow enough time to consider the comments received, and
issue the final rules. To meet these requirements, the Bureau needs
to be able to publish a proposed rule by July 2012. Without model
forms and disclosures printed in final form by January 21, 2013,
consumers will not gain the benefit of clear, uniform, and tested
forms and disclosures and mortgage servicers will find themselves
subject to provisions of the Dodd-Frank Act without the benefit of
model forms or disclosures to help them comply with their
obligations. The CFPB published a generic clearance for notice and
comment on November 2, 2011 and intends to finalize that clearance.
However, given the timing constraints of the project, the CFPB
cannot reasonably comply with the normal clearance procedures under
5 C.F.R. Part 1320 with respect to this information collection and
still meet the January 21, 2013 deadline. Accordingly, the CFPB
respectfully requests emergency processing and approval of the
collection of information to be used for the qualitative testing of
mortgage servicing related model forms and disclosures so that
consumer testing may begin by January 20, 2012.
PL:
Pub.L. 111 - 203 X Name of Law: Wall Street Reform and Consumer
Protection 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.