FINAL_3133-0103_Supporting Statement_110816

Supporting Statement
National Credit Union Administration
Recordkeeping and Disclosure Requirements
Associated with Regulations B, E, M, and CC
OMB No. 3133-0103

INTRODUCTION
The National Credit Union Administration (NCUA) is requesting OMB approval for the
reinstatement of OMB Control Number 3133-0103, which has combined the recordkeeping and
disclosure requirements of Regulations B, E, and M, issued by the Consumer Financial
Protection Bureau (CFPB), and Regulation CC, issued by the Board of Governors of the Federal
Reserve System (FRB), under a single OMB number. Although CFPB and FRB issue these
regulations, each bank regulator calculates the burden for the institutions it supervises.
A.

Justification

1.

Circumstances that make the collection necessary
This information collection request provides for the application of three CFPB rules and
one FRB rule. NCUA has enforcement responsibility for these rules for federal credit
unions. These rules are:

Regulation B (“Equal Credit Opportunity Act,” 12 CFR Part 1002);

Regulation E (“Electronic Fund Transfers,” 12 CFR Part 1005);

Regulation M (“Consumer Leasing,” 12 CFR Part 1013); and

Regulation CC (“Availability of Funds and Collection of Checks,” 12 CFR Part
229).
Regulation B – 12 CFR Part 1002 – Equal Credit Opportunity Act (ECOA) (15 U.S.C.
1691)
The ECOA was enacted in 1974 and is implemented by Regulation B. ECOA and
Regulation B prohibit lenders from discriminating in any aspect of a credit transaction on
the basis of the applicant’s sex, marital status, race, color, religion, national origin, or age.
It also prohibits discrimination because an applicant’s income is derived from a public
assistance program, or because the applicant has in good faith exercised any right under
the Consumer Credit Protection Act (Pub.L. 90-321, 82 Stat.146).
The regulation establishes guidelines for gathering and evaluating information about
personal characteristics in applications for certain dwelling-related loans, requires lenders
to provide applicants with certain information including copies of appraisal reports in
connection with credit transactions, and requires written notification of action taken on a
credit application. The regulation contains rules relating to the use of co-signers. The

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regulation also requires spousal information to be reported to consumer reporting
agencies to reflect participation of both spouses.
Regulation E – 12 CFR. Part 1005 – Electronic Fund Transfers (Electronic Fund Transfer
Act, 15 U.S.C. 1693 et seq.)
The Electronic Fund Transfer Act (EFTA) was enacted in 1978 and is implemented by
Regulation E. The EFTA and Regulation E establish the rights, liabilities, and
responsibilities of parties in electronic fund transfer (EFT) services and offer protections
to consumers when they use such systems. The disclosures required by this regulation are
designed to ensure consumer receive adequate disclosure of basic terms, costs, and rights
relating to EFT services provided to them so that they can make informed decisions.
Credit unions offering EFT services must disclose certain information to consumers
including the following: initial and updated EFT terms, transaction information, the
consumer’s potential liability for unauthorized transfers, and error resolution rights and
procedures. The regulation also covers change-in-terms notices if the change would
result in increased liability for the consumer, increased fees, fewer types of available
EFTs, or stricter limitations on the frequency or dollar amounts of transfers; disclosures
related to loyalty, award, or promotional gift cards; and requirements for gift card and gift
certificate exclusions, prohibition on sale of gift certificates or cards with expiration
dates, and other certificate and card disclosures. Subpart B of the regulation covers
activities of remittance transfer providers.
Regulation M – 12 CFR Part 1013 – Consumer Leasing (Consumer Leasing Act, 15
U.S.C. § 1667-1667f)
The Consumer Leasing Act (CLA) was enacted in 1976 as an amendment to the Truth in
Lending Act (TILA). The CLA and Regulation M are intended to provide consumers
with meaningful disclosures about the costs and terms of leases for personal property.
The disclosures enable consumers to compare the terms for a particular lease with those
for other leases and, when appropriate, to compare lease terms with those for credit
transactions. The CLA and Regulation M also contain rules about advertising consumer
leases and limit the size of balloon payments in consumer lease transactions. The CLA
and regulation M requires lessors to disclose to consumers uniformly the costs, liabilities,
and terms of consumer lease transactions. Disclosures are provided to consumers before
they enter into lease transactions and in advertisements that state the availability of
consumer leases on particular terms. The regulation generally applies to consumer leases
of personal property in which the contractual obligation does not exceed $54,6001 and has
a term of more than four months.

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The threshold amount is adjusted annually to reflect increase in the Consumer Price Index for Urban Wage Earners
and Clerical Workers (§1013.1(e)(1)).

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Regulation CC – 12 CFR Part 229 – Availability of Funds and Collection of Checks
(Expedited Funds Availability Act, 12 U.S.C. 4001-4010 and the Check Clearing for the
21st Century Act, 12 U.S.C. 5001-5018)
This regulation establishes timeframes to govern the availability of funds deposited in
checking accounts, rules to govern the collection and return of checks, and general
provisions to govern the use of substitute checks. The regulation has consumer protection
disclosure requirements and requires credit unions to make funds deposited in transaction
accounts available within specified time periods, disclose their availability policies to
customers, and begin accruing interest on such deposit promptly. The disclosures are
intended to alert customers that their ability to used deposited funds may be delayed,
prevent unintentional (and costly) overdrafts, and allow customers to compare the
policies of different institutions before deciding at which institution to deposit funds. The
regulation also requires notice to the depositary bank and to a customer of nonpayment of
a check.
2.

Use of the Information
The third party disclosure and recordkeeping requirements in this collection are required
by statute and regulation, as explained above. The regulations prescribe certain aspects of
the credit application and notification process, making certain disclosures, uniform
methods for computing the costs of credit, disclosing credit terms and cost, resolving
errors on certain types of credit accounts, and timing requirements and disclosures
relating to the availability of deposited funds.

3.

Use of Technology to Reduce Burden
Credit unions may provide electronic disclosures consistent with the Electronic
Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq..
Regulation B (ECOA) permits a creditor to retain records and monitoring information in
a variety of electronic media.

4.

Efforts to Identify Duplication
The recordkeeping requirement of Regulation B (ECOA) preserves the information
considered by the creditor in deciding whether to extend credit or terminate an existing
credit account. The creditor is the only source of this information, and no other federal
law mandates its retention. Similarly, the creditor is the only source of the information
provided by appraisal reports, adverse action notices, and self-testing information. No
other federal law mandates their disclosure, nor does it appear that any state law exists
that mandates their disclosure.

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5.

Minimizing the Burden on Small Businesses
Generally, the relevant statutes require the disclosures to be made notwithstanding the
size of the credit union. Most credit unions today utilize some degree of computerization,
which further assists in facilitating compliance with the regulations. Further, the
regulations provide model forms and clauses that may be used in compliance with
regulatory requirements. Correct use of these disclosures insulates creditors from liability
from the respective requirements.
Regulation B (ECOA) allows credit unions that receive fewer than 150 applications
annually to provide rejection notices orally rather than in writing.

6.

Consequence of Less Frequent Collections
Information collection pursuant to the underlying regulations is triggered by specific
events, and disclosures must be provided to consumers within the time periods
established by the law and regulation. If these requirements were conducted less
frequently or eliminated, consumers would not have access to critical information needed
to make informed decisions.

7.

Special Circumstances
Each of the regulations in the collection have minimum record retention requirements.
They generally are as follows:
 Regulation B (ECOA): 25 months
 Regulation E (EFTA): 2 years
 Regulation M (CLA): 2 years
 Regulation CC (EFAA): 2 years

8.

Consultation with Persons Outside the NCUA
A 60-day notice was published in the Federal Register on September 12, 2016, at 81 FR
62767, soliciting comments from the public and no comments were received.

9.

Payment or Gift to Respondents
No payments or gifts are provide to respondents from this collection.

10.

Confidentiality
There is no assurance of confidentiality provided to respondent.

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11.

Questions of a Sensitive Nature
Applicants for mortgage loans, under Regulation B, are asked to voluntarily provide
information on ethnicity, sex, age, and marital status so that regulators may monitor for
compliance with the law. It is at the option of the applicant to provide this information
and if they do not the creditor must, to the extent possible, note the ethnicity, race and sex
of the applicant by visual observation or surname.

12.

Estimate of Annualized Hour Burden
A summary of the hour burden associated with Regulations B, E, M, and CC is shown
below. A detailed burden table identifying each information collection activity is
attached.
No.
Respondents
Federal Credit Union Burden
REG B
3,811
REG E
2,938
REG M
35
REG CC
4,957
Total
Consumer Burden
REG E
24,700,000
TOTAL

13.

No. Annual
Responses

Total Annual
Burden (hours)

11,972,625
1,834,360
3,500
17,409,004
31,219,489

484,351
195,986
2,625
504,610
1,187,571

24,700,000
55,919,489

2,058,333
3,245,905

Capital/Start-up and Operation/Maintenance Cost
There are no capital/start-up costs or ongoing operation/maintenance costs associated
with this information collection.

14.

Cost to Federal Government
Since the NCUA does not collect any information, the cost to the agency is negligible.

15.

Reason for Change in Burden
This is a reinstatement with change of a previously approved collection. The NCUA is
consolidating the disclosure and recordkeeping requirement contained under Regulations
B, E, M, and CC under a single information collection. Information collection
requirements previously cleared under OMB control numbers 3133-0104 and 3133-0105
will be consolidated under 3133-0103.

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16.

Publication
This information will not be published.

17.

Display of Expiration Dates
The OMB control number and expiration date associated with this PRA submission will
be displayed on the Federal government’s electronic PRA docket at www.reginfo.gov.

18.

Exceptions to Certification
There are no exceptions to the certification statement.

B.

Collections of Information Employing Statistical Methods

This collection does not involve statistical methods.

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