Reg Z 2018 Supptg Stmt fin

Federal Trade Commission
Supporting Statement for Information Collection
Provisions of Regulation Z
(Truth in Lending Act)
12 C.F.R. 226; 12 C.F.R. 1026
(OMB Control Number: 3084-0088)
1.

Necessity for Collecting the Information

The Truth in Lending Act (“TILA”), 15 U.S.C. 1601 et seq., was enacted to foster comparison
credit shopping and informed credit decision making by requiring accurate disclosure of the costs and
terms of credit to consumers. Creditors and others are subject to calculation and disclosure requirements
that apply to open-end credit (e.g., revolving credit or credit lines) and closed-end credit (e.g., installment
financing) up to $55,800 plus an annual adjustment (except for private education loans and credit secured
by real property, which are covered regardless of dollar amount).1
The TILA imposes disclosure requirements on all types of creditors in connection with consumer
credit, including mortgage companies, finance companies, retailers, credit card issuers, and private
education loan companies, to ensure that consumers are fully apprised of the terms of financing It also
imposes advertising disclosure requirements on advertisers of consumer credit. It also requires acquirers of
mortgage loans to disclose the change in the ownership of the loan to the borrower, and requires creditors
and others to report appraiser misconduct to state licensing authorities. The TILA requires institutions of
higher education to disclose their agreements regarding the marketing of credit cards and requires credit
card issuers to annual submit reports of credit card agreements. The TILA also requires credit card issuers
to post credit card agreements on their web sites. The TILA also establishes procedures for billing error
resolution and limits consumer liability for the unauthorized use of credit cards. It also requires credit card
issuers to establish written policies and procedures to ensure that an administrator of an estate of a
deceased account holder can ascertain the amount of an account balance in a timely fashion. An
amendment to the TILA, the Home Ownership and Equity Protection Act (“HOEPA”), imposes, among
other things, various disclosure and other requirements on creditors offering certain high-rate, high-fee
mortgage loans to consumers; various requirements also apply to certain higher priced mortgages.
Subject to the discussion below, the Federal Trade Commission (“FTC” or “Commission”)
enforces the TILA as to all creditors and others and advertisers except those (such as federally chartered or
insured depository institutions) that are subject to the regulatory authority of another federal agency. The
TILA also contains a private right of action with a one-year statute of limitations for consumers; for certain
mortgage actions, TILA now provides a three-year statute of limitations.
The Board of Governors of the Federal Reserve System (“Board”) promulgated the original
Regulation Z (12 C.F.R. Part 226) to implement the TILA, as required by the statute. Under the DoddFrank Act, however, almost all rulemaking authority for the TILA transferred from the Board to the
Bureau of Consumer Financial Protection (“BCFP” or “CFPB”) on July 21, 2011 (“transfer date”).
Although the Dodd-Frank Act transferred most rulemaking authority under TILA to the BCFP, the Board

The change in coverage based on the dollar amount was made by the Dodd-Frank Wall Street Reform and
Consumer Protection Act (“Dodd-Frank Act”), Pub. L. 111-203, 124 Stat 1376 (2010).
1

retained rulemaking authority for certain motor vehicle dealers.2 The BCFP’s regulations for entities under
its jurisdiction for Regulation Z appear in 12 C.F.R. Part 1026.3
As a result of the Dodd-Frank Act, the FTC and BCFP generally share the authority to enforce
Regulation Z for entities for which the FTC had enforcement authority before the Act, except for certain
motor vehicle dealers4 and certain state-chartered credit unions.5 The FTC generally has sole authority to
enforce Regulation Z regarding motor vehicle dealers predominantly engaged in the sale and servicing of
motor vehicles, the leasing and servicing of motor vehicles, or both.6
Recordkeeping
Sections 226.25(a)/1026.25(a) of Regulation Z requires creditors to retain evidence of compliance
with the regulation (other than the advertising requirements) for two years after the date disclosures are
required to be made or other action is required to be taken. Regulation Z also provides that the FTC (and
other administrative agencies responsible for enforcing the TILA) may require creditors under their
jurisdictions to retain records for a longer period if necessary to carry out their enforcement responsibilities
under the TILA. The recordkeeping requirement ensures that records that might contain evidence of
violations of the TILA remain available to the FTC and other agencies, as well as to private litigants.
Disclosure
The disclosures required by Regulation Z are derived from statutory provisions under the TILA.
See e.g., 12 C.F.R. 226.5a, 12 C.F.R. 1026.6(a), 15 U.S.C. 1637(c)-(g); 12 C.F.R. 226.5b, 12 C.F.R.
1026.40, 15 U.S.C. 1637a and 1647; 12 C.F.R. 226.6, 12 C.F.R. 1026.6, 15 U.S.C. 1637(a); 12 C.F.R.
226.7, 12 C.F.R. 1026.7, 15 U.S.C. 1637(b) (various open-end disclosures); 12 C.F.R. 226.11(c); 12
2

Generally, these are dealers “predominantly engaged in the sale and servicing of motor vehicles, the leasing and
servicing of motor vehicles, or both.” See Dodd-Frank Act, § 1029(a), -(c).
3

Because both the Board and BCFP have certain rulemaking authority under Regulation Z – as discussed further
below – citations to both aspects of the regulation are included in this document. Hence, 12 C.F.R. 226 refers to the
Board-issued Regulation Z; 12 C.F.R. 1026 refers to the BCFP-issued Regulation Z. Generally, these two aspects of
Regulation Z are similar in many respects, other than citations. However, the BCFP-issued Regulation Z includes
certain mortgage and other requirements mandated by the Dodd-Frank Act and various other statutory changes; the
Board-issued Regulation Z does not.
See Dodd-Frank Act § 1029(a), as limited by subsection (b) as to motor vehicle dealers. Subsection (b) does not
preclude BCFP regulatory oversight regarding, among others, businesses that extend retail credit or retail leases for
motor vehicles in which the credit or lease offered is provided directly from those businesses to consumers, where
the contract is not routinely assigned to unaffiliated third parties.
4

The FTC’s enforcement authority includes state-chartered credit unions. In varying ways, other federal agencies
also have enforcement authority over state-chartered credit unions. For example, for large credit unions (exceeding
$10 billion in assets), the BCFP has certain authority. The National Credit Union Administration also has certain
authority for state-chartered federally insured credit unions, and it additionally provides insurance for certain statechartered credit unions through the National Credit Union Share Insurance Fund and examines state-chartered credit
unions for various purposes. See generally Dodd-Frank Act, §§ 1061, 1025, 1026.
5

6

See Dodd-Frank Act, § 1029(a), -(c).

2

C.F.R. 1026.11(c); 15 U.S.C. 1651 (timely settlement of estate of deceased obligors); 12 C.F.R. 226.18, 12
C.F.R. 1026.18, 15 U.S.C. 1638; 12 C.F.R. 226.33, 12 C.F.R.1026.33, 15 U.S.C. 1648 (various closedend credit and reverse mortgage disclosures);7 12 C.F.R. 226.32 and 226.34, 12 C.F.R. 1026.32 and
1026.34, 15 U.S.C. 1639 (various high-rate, high-fee closed-end credit disclosures); 12 C.F.R. 1026.36,
and 1026.41, 15 U.S.C. 1638(f), 1638a, 1639f, 1639g (mortgage servicing); 12 C.F.R. 226.39; 12 C.F.R.
1026.39; 15 U.S.C. 1641(g) (disclosure of change in mortgage loan ownership); 12 C.F.R. 226.42(g); 12
C.F.R. 1026.42(g); 15 U.S.C. 1639e (appraisal independence requirements); 12 C.F.R. 1026.36, 15 U.S.C.
1639b (loan originator requirements); 12 C.F.R. 1026.36, 15 U.S.C. 1639b(a)(2) (ability to pay
requirements); 12 C.F.R. 226.57(b); 12 C.F.R. 1026.57(b); 15 USC 1650(f) (disclosure of credit card
marketing agreements by institutions of higher education); 12 C.F.R. 226.57(d); 12 C.F.R. 1026.57(d); 15
U.S.C. 1637(r)(2) (annual reporting by credit card issuers of agreements with institutions of higher
education and others); 12 C.F.R. 226.58; 12 C.F.R. 1026.58; 15 U.S.C. 1632(d)(1) (internet posting of
credit card agreements).8
The Board and BCFP have issued model forms and clauses that can be used to comply with the
written disclosure (non-advertising) requirements of the TILA and Regulation Z. See, e.g., Appendices DH and K-L 12 to C.F.R. Part 226; Appendices D-H and K-L to 12 C.F.R. Part 1026. Correct use of these
model forms and clauses insulates creditors from liability under the TILA and Regulation Z. See Board
Official Staff Commentary to Regulation Z (“Board Commentary”), Appendixes G and H, Comment 1; 12
C.F.R. 226, Appendixes G and H, Supp. 1; BCFP Official Staff Commentary to Regulation Z (“BCFP
Commentary”), Appendixes G and H, Comment 1; 12 C.F.R. 226, Appendixes G and H, Supp. 1.
2.

Use of the Information

As noted above, consumers rely on the disclosures required by the TILA and Regulation Z to
comparison credit shop and to facilitate informed credit decision making. Without this information,
consumers would be severely hindered in their ability to assess the true costs and terms of financing
offered. Also, without the special billing error information and other credit card provisions, such as
limitation of consumer liability for unauthorized use of credit, consumers would be unable to detect and
correct errors on their credit card accounts and fraudulent charges. The FTC, other agencies, and private
litigants use the recordkeeping information to ascertain whether accurate and complete disclosures of the
cost of credit have been provided to consumers prior to consummation of the credit obligation and, in some
instances, during the loan term. The information also is used to determine whether other actions required
under the TILA, including complying with billing error resolution procedures and limitation of consumer
liability for unauthorized use of credit, have been met. The information retained provides the primary
evidence of law violations in TILA enforcement actions brought by the FTC. Without the Regulation Z
recordkeeping requirement and the required disclosures, the FTC’s (and consumers’) ability to enforce the
TILA would be significantly impaired. See 15 U.S.C. 1607, 1640.

7

Integrated mortgage disclosures for certain closed-end mortgage loans are also required. See, e.g., 12 C.F.R.
1026.19(e)-(f), based on the Dodd-Frank Act, §§ 1032(f), 1098, and 1100A.
On May 24, 2018, President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act
(Act), Pub. L. No. 115-174. Among other things, the Act amends the TILA in several respects, and will be
implemented by the BCFP through amendments to Regulation Z. The Commission will address PRA burden for its
enforcement of the requirements after the BCFP has issued the associated final rules.
8

3

3.

Consideration of the Use of Improved Information Technology

The Board and BCFP have issued rules to establish uniform standards for using electronic
communication to deliver disclosures required under Regulation Z, within the context of the Electronic
Signatures in Global and National Commerce Act (“ESIGN”), 15 U.S.C. 7001 et seq.; and Sections
226.5(a)/1026.5(a) and 226.17(a)/1026.17(a) of Regulation Z. These rules enable businesses to utilize
electronic disclosures and compliance, consistent with the requirements of ESIGN. Use of such electronic
communications is also consistent with the Government Paperwork Elimination Act (“GPEA”), codified at
44 U.S.C. 3504, note. ESIGN and GPEA serve to reduce businesses’ compliance burden related to federal
requirements, including Regulation Z, by enabling businesses to utilize more efficient electronic media for
disclosures and compliance.
Regulation Z also permits creditors to retain records on microfilm or microfiche or any other
method that reproduces records accurately, including computer programs. Creditors need only retain
enough information to reconstruct the required disclosure or other records. Section 226.25(a)-2 of the
Board Commentary, 12 C.F.R. 226.25(a)-2; Section 1026.25(a)-2 of the BCFP Commentary, 12 C.F.R.
1026.25(a)-2.
4.

Efforts to Identify Duplication/Availability of Similar Information

The recordkeeping requirement of Regulation Z preserves the information utilized by the creditor
in making disclosures (and underlying calculations) of the terms of consumer credit and other required
actions. The creditor is the only source of this information. No other federal law mandates these
disclosures (in a fully duplicative manner) and other required actions.9 No state law known to staff
imposes these requirements, although some states may have other rules applicable to consumer credit
transactions.
Similarly, the disclosures required by the TILA and Regulation Z are not otherwise available.
Although some credit cost information is contained in contractual documents, the information is not
standardized. As a result, consumers cannot use it efficiently to comparison shop or to fully appreciate the
9

The TILA requirement to provide applicants with copies of written appraisals for certain higher-priced mortgage
loans, 15 U.S.C. 1639h, in part overlaps with the ECOA requirement to provide applicants with copies of written
appraisals. The Dodd-Frank Act amended both ECOA and TILA to add the appraisal rules that overlap only in part.
For example, the TILA appraisal rule applies to those loans that meet all of the following conditions: (1) any lien;
(2) involving consumer transactions; and (3) that are higher-priced mortgage loans (HPMLs) (a type of closed-end
credit) under TILA and not exempt under those rules (such as bridge loans, reverse mortgages, loans for $25,000 or
less as indexed each year for inflation, and any mortgage that constitutes a qualified mortgage under TILA or that
meets rules on qualified mortgages issued by the U.S. Dept. of Housing and Urban Development, U.S. Dept. of
Agriculture, or U.S. Dept. of Veterans Affairs). The ECOA appraisal rule applies to those transactions that meet all
of the following conditions: (1) first liens; (2) involving business or consumer transactions; and (3) that are openend or closed-end mortgages. However, where duplicative requirements apply (e.g., for consumer credit that
involves first lien, closed-end HPMLs that are also non-exempt under the TILA appraisal rules), creditors can
provide one appraisal, based upon the applicable rules. See CFPB, TILA Higher-Priced Mortgage Loans (HPML)
Appraisal Rule, Small Entity Compliance Guide (Jan. 13, 2014), and CFPB, Equal Credit Opportunity Act (ECOA)
Valuations Rule, Small Entity Compliance Guide (Jan. 13, 2014). This approach ensures that applicants will receive
a copy of the required appraisal, and it also limits burden to creditors.

4

credit terms. The creditor (and/or advertiser) is the only source of this information. No other federal law
mandates these disclosures. State laws do not duplicate these requirements, although some states may have
other rules applicable to consumer credit transactions.
5.

Efforts to Minimize Burdens on Small Businesses

The TILA and Regulation Z recordkeeping and disclosure requirements are imposed (in most
instances) on creditors. The recordkeeping requirement is mandated by Regulation Z. The disclosure
requirements are mandated jointly by the TILA and Regulation Z. As previously noted, the FTC’s role in
this area is limited to enforcement, because the TILA vested rulemaking authority in the Board and BCFP.
Additionally, as noted above, Regulation Z provides model forms and clauses that may be used in
compliance with its requirements. Correct use of these forms and clauses insulates a creditor from liability
as to proper format.
6.

Consequences of Conducting Collection Less Frequently

The current record retention period of two years in most instances, with three years for loan
originator requirements and certain ability to pay requirements, three years for integrated mortgage
requirements, and five years for integrated mortgage requirements concerning completed closing
disclosures, supports the general one-year statute of limitations and the three-year statute of limitations (for
loan originator, ability to pay, and high cost mortgages) for private actions. In addition, because
consumers can assert violations of TILA in an action to collect the debt that was brought more than one
year after the violation, as a matter of defense by recoupment or set-off in that action unless prohibited by
state law, the three-year and five-year recordkeeping requirements support the consumer’s ability to assert
violations over a longer period. The retention periods also support the FTC’s (and other administrative
agencies’) need for sufficient time to bring enforcement actions regarding credit transactions. If the
retention period were shortened, consumers who sue under the TILA or who seek to raise violations by
recoupment or set-off in collection actions, and the administrative agencies, might find that records needed
to prove violations of the TILA no longer exist.
As noted, the disclosure requirements are needed to facilitate comparison cost shopping and to
spur informed credit decision-making. Without these requirements, consumers would not have access to
this critical information. Their right to sue under the TILA would be undermined, and the FTC (and other
administrative agencies) could not fulfill their mandate to enforce the TILA.
7.

Circumstances Requiring Collection Inconsistent with Guidelines

Regulation Z’s recordkeeping and disclosure requirements are generally consistent with the
applicable guidelines in 5 C.F.R. 1320.5(d)(2). While Regulation Z has lengthened retention periods for
integrated mortgage disclosures, the longer periods derive from Regulation X, which implements the Real
Estate Settlement Procedures Act (“RESPA”). When the BCFP merged certain mortgage disclosures
required by TILA and RESPA into integrated mortgage disclosures, as required by the Dodd-Frank Act, it
applied the Regulation X extended retention period to the new record retention requirements.10 Thus, the
10

The five-year recordkeeping requirement under Regulation X became effective in 1992. See 57 Fed. Reg. 49,600,

5

requirement to retain for three years many aspects of integrated mortgage disclosures, and for five years
integrated mortgage disclosures related to completed closing disclosures, derives from previously existing
periods under Regulation X. The documents to be retained serve as both the record of all fees associated
with the transaction and as part of the official disbursement record. In addition, the lengthened
recordkeeping requirement ensures that there will be an available record for use regarding state and local
real property laws that may depend on the information being available for five years.
8.

Consultation Outside the Agency

The recordkeeping and disclosure requirements of Regulation Z were issued by the Board and
BCFP. Before the regulation was initially issued and prior to each amendment, the amendments were
published for public comment in the Federal Register.
More recently, the Commission sought public comment in connection with its latest PRA
clearance request for these regulations, in accordance with 5 C.F.R. 1320.8(d). See 83 Fed. Reg. 14,273
(April 3, 2018). No relevant comments were received. Consistent with 5 C.F.R. 1320.12(c), the FTC is
again seeking public comment contemporaneously with this submission.
9.

Payments or Gifts to Respondents
Not applicable.

10 & 11.

Assurances of Confidentiality/Matters of a Sensitive Nature

The required recordkeeping and disclosures also contain private financial information about
persons who use consumer credit that is protected by the Right to Financial Privacy Act, 12 U.S.C. 3401 et
seq. Such records may also constitute confidential customer lists. Any of these records provided to the
FTC would be covered by the protections of Sections 6(f) and 21 of the FTC Act, 15 U.S.C. 46(f) and 57b2, by Section 4.10 of the Commission’s Rules of Practice, 16 C.F.R. 4.10, and by the applicable
exemptions of the Freedom of Information Act, 5 U.S.C. 552(b), as applicable.
12.

Estimated Hours and Labor Cost Burden
Estimated Hours Burden: 8,416,441 hours (561,866 recordkeeping hours: 484,961 + 76,905
carve-out + 7,854,575 disclosure hours: 6,838,256 + 1,016,319 carve-out)

Given their generally shared enforcement jurisdiction for Regulation Z,11 the BCFP and FTC have
divided the FTC’s previously cleared PRA burden between them, except that the FTC has wholly assumed the
part of that burden associated with motor vehicle dealers and now is also doing so, when appropriate,
regarding estimated burden for state-chartered credit unions (these respective assumptions of burden estimation
are reflected in the burden summaries below and immediately above as a “carve-out”).12 The division of PRA
49,607 (Nov. 2, 1992).
11

See supra notes 4 and 5 and accompanying text.

12

As of the third quarter of 2017, there were approximately the following number of state-chartered credit unions:

6

burden hours not attributable to motor vehicle dealers and, when appropriate, to state-chartered credit unions,
is reflected in the BCFP’s PRA clearance requests to OMB,13 as well as in the FTC’s burden estimates below.
The following discussion and tables present FTC estimates under the PRA of recordkeeping and
disclosure average time and labor costs, excluding that which the FTC believes entities incur customarily in the
normal course of business14 and information compiled and produced in response to FTC law enforcement
investigations or prosecutions.15
Recordkeeping
FTC staff estimates that Regulation Z’s recordkeeping requirements affect approximately 430,762
entities subject to the Commission’s jurisdiction, at an average annual burden of 1.25 hours per entity, with
.25 additional hours per entity for 3,650 entities (ability to pay), and 5 additional hours per entity for 4,500
entities (loan originators).
Disclosure
Regulation Z disclosure requirements pertain to open-end and closed-end credit. It applies to
various types of entities, including mortgage companies; finance companies; auto dealerships; private
education loan companies; merchants who extend credit for goods or services, credit advertisers; acquirers
of mortgages; and others. Additional requirements also exist in the mortgage area, including for high cost
mortgages, higher-priced mortgage loans,16 ability to pay of mortgage consumers, mortgage servicing, loan
originators, and certain integrated mortgage disclosures, and for prepaid accounts with certain credit
features. Below is staff’s best estimate of burden applicable to this very spectrum of covered entities.

Regulation Z: Disclosures – Burden Hours

2,347 state-chartered credit unions - 2,106 federally insured, 125 privately insured, and 116 in Puerto Rico insured
by a quasi-governmental entity. Because of the difficulty in parsing out PRA burden for such entities in view of
agencies’ overlapping enforcement authority (see supra note 4 and accompanying text), the FTC’s figures include
PRA burden for all state-chartered credit unions (rounded to 2,300). Similarly, because it is not practicable for PRA
purposes to estimate the portion of motor vehicle dealers that engage in one form of financing versus another (and
that would or would not be subject to BCFP oversight), the FTC staff’s “carve-out” for this PRA burden analysis
reflects a general estimated volume of motor vehicle dealers. These attributions of burden estimation for motor
vehicle dealers and state-chartered credit unions do not bear on actual enforcement authority.
13

OMB Control Number 3170-0015 (Regulation Z).

14

PRA “burden” does not include “time, effort, and financial resources” expended in the normal course of business,
regardless of any regulatory requirement. See 5 C.F.R. 1320.3(b)(2).
15

See 5 C.F.R. 1320.4(a) (excluding information collected in response to, among other things, a federal civil action
or “during the conduct of an administrative action, investigation, or audit involving an agency against specific
individuals or entities”).
16

While Regulation Z also requires the creditor to provide a short written disclosure regarding the appraisal process
for higher-priced mortgage loans, the disclosure is provided by the BCFP. As a result, it is not a “collection of
information” for PRA purposes (see 5 C.F.R. 1320.3(c)(2)). It is thus excluded from the burden estimates below.

7

Disclosures1
Open-end credit:

--------------- Setup/Monitoring ------------------------ Transaction-related ----------Average
Total Setup/
Average
Total
Burden per
Monitoring
Number of Burden per Transaction
Total
Respondents Respondent
Burden
Transactions(minutes)
Transaction
Burden
Burden
(hours)
(hours)
(hours)
(hours)

Initial terms
23,650
.75
Initial terms – prepaid accounts
3
4x12
Rescission notices
750
.5
Subsequent disclosures
4,650
.75
Subsequent disclosures – prepaid
accounts
3
4x14
Periodic statements
23,650
.75
Periodic statements – prepaid
accounts
3
40x16
Error resolution
23,650
.75
Error resolution – prepaid accounts
followup
3
4x18
Credit and charge card accounts
10,250
.75
Credit and charge card accounts –
prepaid accounts
3
4x110
Settlement of estate debts
23,650
.75
Special credit card requirements
10,250
.75
Home equity lines of credit
750
.5
Home equity lines of credit highcost mortgages
250
2
College student credit card
marketing – ed. institutions
1,350
.5
College student credit card
marketing – card issuer reports
150
.75
Posting and reporting of
credit card agreements
10,250
.75
Posting and reporting of
prepaid account agreements
3 .75x112
Advertising
38,650
.75
Advertising – prepaid accounts
3 20x114
Advertising – prepaid accounts
Updates
3 0.2 x 515
Sale, transfer, or assignment
of mortgages
500
.5
Appraiser misconduct
reporting
301,150
.75
Mortgage servicing16
1,500
.75
Loan originators
2,250
2
Closed-end credit:
Credit disclosures
280,762
Rescission notices
3,650
Redisclosures
101,150
Integrated mortgage disclosures
3,650
Variable rate mortgages
3,650
`
High cost mortgages
1,750
Higher priced mortgages
1,750
Reverse mortgages
3,025
Advertising
205,762
Private education loans
75
Sale, transfer, or assignment
of mortgages
48,850
Ability to pay/qualified mortgage
3,650
Appraiser misconduct reporting
301,150
Mortgage servicing17
3,650
Loan originators
2,250

17,738
12
375
3,488

10,500,600
3x78,6673
3,750
23,250,000

.375
.125
.25
.188

65,629
492
16
72,850

83,367
504
391
76,338

12
17,738

3x78,6675
788,325,450

.0625
.0938

246
1,232,415

258
1,250,153

120
17,738

3x944,0007
2,104,850

.03125
6

1,475
210,485

1,595
228,223

12
7,688

3x1,1809
5,125,000

15
.375

885
32,031

897
39,719

12
17,738
7,688
375

3x1211
496,650
5,125,000
5,250

240
.375
.375
.25

144
3,104
32,031
22

156
20,842
39,719
397

500

1,500

2

50

550

675

81,000

.25

338

1,013

113

4,500

.75

56

169

7,688

5,125,000

.375

32,031

39,719

2
28,988
60

3x513
115,950
N/A

2.5
.75

1
1,449

3
30,437
60

3

N/A

250

500,000

.25

2,083

2,333

225,863
1,125
4,500

6,023,000
150,000
22,500

.375
.5
5

37,644
1,250
1,875

263,507
2,375
6,375

.75
.5
.5
10
1
1
1
.5
.5
.5

210,572
1,825
50,575
36,500
3,650
1,750
1,750
1,513
102,881
38

112,304,800
5,475,000
505,750
10,950,000
365,000
43,750
14,000
15,125
2,057,620
30,000

2.25
1
2.25
3.5
1.75
2
2
1
1
1.5

4,211,430
91,250
18,966
638,750
10,646
1,458
467
252
34,294
750

4,422,002
93,075
69,541
675,250
14,296
3,208
2,217
1,765
137,175
788

.5
.75
.75
1.5
2

24,425
2,738
225,863
5,475
4,500

2,442,500
0
6,023,000
730,000
22,500

.25
0
.375
2.75
5

10,177
0
37,644
33,458
1,875

34,602
2,738
263,507
38,933
6,375

Total open-end credit

3

2,089,103

8

Total closed-end credit

5,765,472

Total credit

7,854,575

1

Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $55,800 plus an annual
adjustment (except that real estate credit and private education loans are covered regardless of amount). For most disclosure types listed in this
table, FTC staff has reduced prior PRA burden estimates due to business shifts and other market changes. In the case of mortgage servicing (openand closed-credit), however, staff has increased burden estimates per respondent due to amendments to Regulation Z. In addition, due to
Regulation Z’s new requirements for prepaid accounts with certain credit aspects, staff has added burden estimates for these items. However, the
overall effect of these competing factors yields a net decrease from the FTC’s prior reported estimate for open-end credit and for closed-end credit.
2
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
3
This figure lists the number of entities followed by the number of responses or programs each.
4
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
5
This figure lists the number of entities followed by the number of responses or programs each.
6
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
7
This figure lists the number of entities followed by the number of responses or programs each.
8
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
9
This figure lists the number of entities followed by the number of responses or programs each.
10
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
11
This figure lists the number of entities followed by the number of responses or programs each.
12
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
13
This figure lists the number of entities followed by the number of responses or programs each.
14
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
15
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
16
Regulation Z has expanded various mortgage servicing requirements for successors-in-interest, which in some instances can affect open-end
credit, increasing burden per respondent. However, the estimated number of entities and transactions under FTC jurisdiction is reduced, thereby
reducing aggregate estimated burden compared to prior FTC estimates.
17
Regulation Z has expanded various mortgage servicing requirements for successors-in-interest, and periodic statement requirements including for
consumers in bankruptcy, among other things, affecting closed-end credit, increasing burden per respondent. However, the estimated number of
entities and transactions under FTC jurisdiction is reduced, thereby reducing aggregate estimated burden compared to prior FTC estimates.

Associated labor costs: $329,558,129 ($10,956,397 recordkeeping costs: $9,456,749 +
$1,499,648 carve-out + $318,601,732 disclosure costs: $274,493,500 + $44,108,232 carve-out)
Staff calculated labor costs by applying appropriate hourly cost figures to the burden hours
described above. The hourly rates used below ($56 for managerial or professional time, $42 for skilled
technical time, and $17 for clerical time) are averages drawn from Bureau of Labor Statistics data.17
Recordkeeping
For the 561,866 recordkeeping hours, staff estimates that 10 percent of the burden hours require
skilled technical time and 90 percent require clerical time. As shown below, the total recordkeeping cost is
$10,956,397.
Disclosure
For each notice or information item listed, staff estimates that 10 percent of the burden hours
require managerial or professional time and 90 percent require skilled technical time. As shown below, the
total disclosure cost is $318,601,732.

17

These inputs are based broadly on mean hourly data found within the “Bureau of Labor Statistics, Economic News
Release,” March 31, 2017, Table 1, “National employment and wage data from the Occupational Employment
Statistics survey by occupation, May 2016.” http://www.bls.gov/news.release/ocwage.t01.htm.

9

Regulation Z: Recordkeeping and Disclosures – Cost
Required Task
Recordkeeping
Open-end credit Disclosures:
Initial terms
Initial terms – prepaid accounts
Rescission notices
Subsequent disclosures
Subsequent disclosures –
prepaid accounts
Periodic statements
Periodic statements –
prepaid accounts
Error resolution
Error resolution –
prepaid accounts followup
Credit and charge card accounts
Credit and charge card accounts prepaid accounts
Settlement of estate debts
Special credit card requirements
Home equity lines of credit
Home equity lines of credit –high
cost mortgages
College student credit card
marketing – ed institutions
College student credit card
marketing – card issuer reports
Posting and reporting of
credit card agreements
Posting and reporting of
prepaid accounts
Advertising
Advertising – prepaid accounts
Advertising – prepaid accounts
Updates
Sale, transfer, or assignment
of mortgages
Appraiser misconduct reporting
Mortgage servicing
Loan originators
Total open-end credit
Closed-end credit Disclosures:
Credit disclosures
Rescission notices
Redisclosures
Integrated mortgage disclosures
Variable rate mortgages
High cost mortgages
Higher priced mortgages
Reverse mortgages
Advertising
Private education loans
Sale, transfer, or assignment
of mortgages
Ability to pay/qualified mortgage
Appraiser misconduct reporting
Mortgage servicing
Loan originators

------Managerial-----Time
Cost
(hours)
($56/hr.)
0
0

-----Skilled Technical------------Clerical-------Total
Time
Cost
Time
Cost
Cost
(hours)
($42/hr.)
(hours)
($17/hr.)
($)
56,187
2,359,854
505,679
$8,596,543 $10,956,397

8,337
50
39
7,634

$466,872
$2,800
$2,184
$427,504

75,030
454
352
68,704

$3,151,260
$19,068
$14,784
$2,885,568

0
0
0
0

$0
$0
$0
$0

$3,618,132
$21,868
$16,968
$3,313,072

26
125,015

$1.456
$7,000,840

232
1,125,138

$9,744
$47,255,796

0
0

$0
$0

$11,200
$54,256,636

159
22,822

$8,904
$1,278,032

1436
205,401

60,312
$8,626,842

0
0

$0
$0

$69.216
$9,904,874

90
3,972

5,040
$222,432

807
35,747

33.894
$1,501,374

0
0

$0
$0

$38,934
$1,723,806

16
2,084
3,972
40

896
$116,704
$222,432
$2,240

140
18,758
35,747
357

5,880
$787,836
$1,501,374
$14,994

0
0
0
0

$0
$0
$0
$0

$6,776
$904,540
$1,723,806
$17,234

55

$3,080

495

$20,790

0

$0

$23,870

101

$5,656

912

$38,304

0

$0

$43,960

17

$952

152

$6,384

0

$0

$7,336

3,972

$222,432

35,747

$1,501,374

0

$0

$1,723,806

1
3,044
6

$56
$170,464
$336

2
27,393
54

$84
$1,150,506
$2,268

0
0
0

$0
$0
$0

$140
$1,320,970
$2,604

1

$56

2

$84

0

$0

$140

233
26,351
238
638

$13,048
$1,475,656
$13,328
$35,728

2,100
237,156
2,137
5,737

$88,200
$9,960,552
$89,754
$240,954

0
0
0
0

$0
$0
$0
$0

$101,248
$11,436,208
$103,082
$276,682
$90,667,108

442,200
9,308
6,954
67,525
1,430
321
222
177
13,718
79

$2,476,300
$521,248
$389,424
$3,781,400
$80,080
$17,976
$12,432
$9,912
$768,208
$4,424

3,979,802 $167,151,684
83,767
$3,518,214
62,587
$2,628,654
607,725 $25,524,450
12,866
$540,372
2,887
$121,254
1,995
$83,790
1,588
$66,696
123,457
$5,185,194
709
$29,778

0
0
0
0
0
0
0
0
0
0

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

$169,627,984
$4,039,462
$3,018,078
$29,305,850
$620,452
$139,230
$96,222
$76,608
$5,953,402
$34,202

3,460
274
26,351
3,893
638

$193,760
$15,344
$1,475,656
$218,008
35,728

0
0
0
0
0

$0
$0
$0
$0
$0

$1,501,724
$118,832
$11,436,208
$1,689,688
$276,682

31,142
2,464
237,156
35,040
5,737

10

$1,307,964
$103,488
$9,960,552
$1,471,680
$240,954

Total closed-end credit

$227,934,624

Total Disclosures

$318,601,732

Total Recordkeeping and Disclosures

$329,558,129

13.

Estimated Capital and Other Non-Labor Costs

The applicable requirements impose minimal start-up costs, as creditors and/or advertisers
generally have or obtain necessary equipment for other business purposes. For the same reason, staff
believes that the cost of printing and copying to comply with Regulation Z is minimal. Staff anticipates
that the above requirements necessitate ongoing, regular training so that covered entities stay current and
have a clear understanding of federal mandates. This training, however, would be a small portion of and
subsumed within the ordinary training that employees receive apart from that associated with collecting
information to comply with Regulation Z.

11

14.

Estimated Cost to Federal Government

The Board and BCFP issued the recordkeeping requirement of Regulation Z, so there is no cost to
the FTC for that purpose. Enforcement of the recordkeeping requirements of Regulation Z is incidental to
overall enforcement of the TILA. Staff estimates that enforcing the recordkeeping requirement will cost
the FTC Bureau of Consumer Protection approximately $86,805, which is a representative year’s cost of
enforcing Regulation Z’s requirements during the three-year clearance period sought. This estimate is
based on the assumption that one-half of one attorney work year will be expended. Clerical and other
support services are included in this estimate.
The Board and BCFP issued the disclosure requirements of Regulation Z, so there is no cost to the
FTC for that purpose. Regarding enforcement of the disclosure requirements, staff estimates that the cost
to the FTC Bureau of Consumer Protection of administering all TILA requirements will approximate $1.39
million. This estimate is based on the assumption that eight full attorney work years will be expended to
enforce various aspects of these rules. Clerical and other support services are also included in this
estimate.
15.

Program Changes or Adjustments

Due to business shifts and other market changes, FTC staff has substantially adjusted downward
its prior overall burden estimate by 5,280,861 hours (from 13,697,302 to 8,416,441 hours). Examples of
these changing conditions include, but are not limited to merger consolidations, credit business shifting to
entities outside of FTC jurisdiction, declines both in credit and the diverse types of mortgages (e.g., reverse
mortgages, occasioned in part by changes related to home equity conversion mortgages underwritten by
HUD), declines in variable rate transactions (either because fixed rates declined or held at low levels), and
declines in high cost mortgages and higher priced mortgages (fewer people opted for them and mortgage
creditors reduced emphasis on such mortgages, with some of those creditors having left that market
altogether).
16.

Publishing Results of the Collection of Information
Not applicable.

17.

Display of Expiration Date for OMB Approval
Not applicable.

18.

Exceptions to the Certifications for PRA Submissions
Not applicable.

12