78130 Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 

1Public L. 111–8, 123 Stat. 524 (2009). The 

Omnibus Appropriations Act also directed the FTC 

to use notice and comment procedures under 

section 553 of the Administrative Procedure Act 

(APA), 5 U.S.C. 553, to promulgate rules pursuant 

to the Omnibus Appropriations Act in lieu of the 

procedures set forth in section 18 of the FTC Act, 

15 U.S.C. 57a. The FTC noted in its Advance Notice 

of Proposed Rulemaking: Mortgage Acts and 

Practices, 74 FR 26118 (June 1, 2009), that because 

Omnibus Appropriations Act rulemaking is not 

undertaken pursuant to section 18, 15 U.S.C. 57a(f), 

Federal banking agencies are not required to 

promulgate substantially similar regulations for 

entities within their jurisdiction. Id. at 26119, note 

2. 

2Public Law 111–24, 123 Stat. 1734 (2009). 

3 Id. Section 511(a)(1)(B). 

(A) A conspicuous card containing 

the information described in paragraphs 

(a)(1) and (2) of this section, and a line 

for the signature of the depositor; and 

(B) Accompanying materials 

requesting that the depositor sign the 

card, and return the signed card to the 

institution. 

(2) An institution described in 

paragraph (c)(1) of this section must 

have made the transmission described 

in paragraph (c)(1)(ii) of this section via 

mail not later than three months after 

October 13, 2006. The institution must 

have made a second identical 

transmission via mail not less than 30 

days, and not more than three months, 

after the first transmission to the 

depositor in accordance with paragraph 

(c)(1)(ii) of this section, if the institution 

has not, by the date of such mailing, 

received from the depositor a card 

referred to in paragraph (c)(1)(i) of this 

section which has been signed by the 

depositor. 

(d) Format and type size. The 

disclosures required by this section 

must be clear and conspicuous and 

presented in a simple and easy to 

understand format, type size, and 

manner. 

§ 1009.6 Exception for certain depository 

institutions. 

The requirements of this part do not 

apply to any depository institution 

lacking Federal deposit insurance and 

located within the United States that 

does not receive initial deposits of less 

than an amount equal to the standard 

maximum deposit insurance amount 

from individuals who are citizens or 

residents of the United States, other 

than money received in connection with 

any draft or similar instrument issued to 

transmit money. 

§ 1009.7 Enforcement. 

Compliance with the requirements of 

this part shall be enforced under the 

Consumer Financial Protection Act of 

2010, Public Law 111–203, Title X, 124 

Stat. 1955, by the Bureau of Consumer 

Financial Protection, subject to subtitle 

B of the Consumer Financial Protection 

Act of 2010, and under the Federal 

Trade Commission Act, 15 U.S.C. 41 et 

seq, by the Federal Trade Commission. 

Dated: October 24, 2011. 

Alastair M. Fitzpayne, 

Deputy Chief of Staff and Executive Secretary, 

Department of the Treasury. 

[FR Doc. 2011–31732 Filed 12–15–11; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Parts 1014 and 1015 

[Docket No. CFPB–2011–0027] 

RIN 3170–AA06 

Mortgage Acts and Practices— 

Advertising (Regulation N); Mortgage 

Assistance Relief Services (Regulation 

O) 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Interim final rule with request 

for public comment. 

SUMMARY: Title X of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act) 

transferred rulemaking authority for a 

number of consumer financial 

protection laws from seven Federal 

agencies to the Bureau of Consumer 

Financial Protection (Bureau) as of July 

21, 2011. The Bureau is in the process 

of republishing the regulations 

implementing those laws with technical 

and conforming changes to reflect the 

transfer of authority and certain other 

changes made by the Dodd-Frank Act. 

In light of the transfer of the Federal 

Trade Commission’s (FTC’s) rulemaking 

authority for section 626 of the Omnibus 

Appropriations Act, 2009 (Omnibus 

Appropriations Act) to the Bureau, the 

Bureau is publishing for public 

comment an interim final rule 

establishing a new Regulation N 

(Mortgage Acts and Practices— 

Advertising Rule) and a new Regulation 

O (Mortgage Assistance Relief Services 

Rule). This interim final rule does not 

impose any new substantive obligations 

on persons subject to the existing 

Mortgages Acts and Practices— 

Advertising Rule or the existing 

Mortgage Assistance Relief Services 

Rule, previously published by the FTC. 

DATES: This interim final rule is 

effective December 30, 2011. Comments 

must be received on or before February 

14, 2012. 

ADDRESSES: You may submit comments, 

identified by Docket No. CFPB–2011– 

0027 or RIN 3170–AA06, by any of the 

following methods: 

• Electronic: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Monica Jackson, Office of the 

Executive Secretary, Bureau of 

Consumer Financial Protection, 1500 

Pennsylvania Ave. NW., (Attn: 1801 L 

Street), Washington, DC 20220. 

• Hand Delivery/Courier in Lieu of 

Mail: Monica Jackson, Office of the 

Executive Secretary, Bureau of 

Consumer Financial Protection, 1700 G 

Street NW., Washington, DC 20006. 

All submissions must include the 

agency name and docket number or 

Regulatory Information Number (RIN) 

for this rulemaking. In general, all 

comments received will be posted 

without change to http:// 

www.regulations.gov. In addition, 

comments will be available for public 

inspection and copying at 1700 G Street 

NW., Washington DC 20006, on official 

business days between the hours of 

10 a.m. and 5 p.m. Eastern Time. You 

can make an appointment to inspect the 

documents by telephoning (202) 435– 

7275. 

All comments, including attachments 

and other supporting materials, will 

become part of the public record and 

subject to public disclosure. Sensitive 

personal information, such as account 

numbers or social security numbers, 

should not be included. Comments will 

not be edited to remove any identifying 

or contact information. 

FOR FURTHER INFORMATION CONTACT: Jane 

Gao or Krista Ayoub, Office of 

Regulations, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Congress enacted section 626 of the 

Omnibus Appropriations Act, 2009 

(Omnibus Appropriations Act) on 

March 11, 2009 and directed the Federal 

Trade Commission (FTC) to commence 

a rulemaking proceeding within 90 days 

of enactment with respect to mortgage 

loans.1 On May 22, 2009, the enactment 

of the Credit Card Accountability 

Responsibility and Disclosure Act of 

2009 2 clarified the FTC’s rulemaking 

authority under the Omnibus 

Appropriations Act to specify that the 

FTC’s rulemaking based on its authority 

pursuant to the Omnibus 

Appropriations Act ‘‘shall relate to 

unfair or deceptive acts or practices 

regarding mortgage loans,’’ which may 

involve loan modification and 

foreclosure rescue services.3


jlentini on DSK4TPTVN1PROD with RULES
Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 78131 

4Public Law 111–203, 124 Stat. 1376 (2010). 

5The regulatory text of the FTC’s Mortgage Acts 

and Practices—Advertising Rule contains a clear 

statement that the rule only applies to persons over 

which the FTC has jurisdiction under the Federal 

Trade Commission Act in the scope section of the 

regulation. See 16 CFR 321.1. The existing text of 

the Mortgage Assistance Relief Services Rule does 

not contain a similar statement in the scope section 

of the regulation; however, in the definitions 

section of the regulation, the definition of ‘‘person’’ 

subject to the regulation specifically excludes 

entities excluded from the FTC’s jurisdiction under 

the Federal Trade Commission Act. See 16 CFR 

322.2. FTC staff recommended to the Bureau that 

the Bureau add a clear statement in the scope 

section of the Mortgage Assistance Relief Services 

Rule that states the rule does not apple to entities 

over which the FTC lacks jurisdiction. Accordingly, 

the Bureau has added the following sentence, ‘‘This 

part applies to persons over which the Federal 

Trade Commission has jurisdiction under the 

Federal Trade Commission Act.’’ at the end of 

§ 1015.1. 

6Public Law 111–203, section 1061(b)(5). 

7 Id. Section 1002(12)(Q) (defining ‘‘enumerated 

consumer laws’’ to include the Omnibus 

Appropriations Act). 

8Section 1066 of the Dodd-Frank Act grants the 

Secretary of the Treasury interim authority to 

perform certain functions of the Bureau. Pursuant 

to that authority, Treasury is publishing this interim 

final rule on behalf of the Bureau. Until this and 

other interim final rules take effect, existing 

regulations for which rulemaking authority 

transferred to the Bureau continue to govern 

persons covered by this rule. See 76 FR 43569 (July 

21, 2011). 

9 5 U.S.C. 551 et seq. 

10 5 U.S.C. 553(b), (c). 

11 5 U.S.C. 553(b)(3)(A), (B). 

Prior to July 21, 2011, rulemaking 

authority for the Omnibus 

Appropriations Act was vested in the 

FTC. The Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act) 4 amended a number 

of consumer financial protection laws, 

including the Omnibus Appropriations 

Act. In addition to various substantive 

amendments, the Dodd-Frank Act 

transferred rulemaking authority for the 

Omnibus Appropriations Act to the 

Bureau of Consumer Financial 

Protection (Bureau), effective July 21, 

2011. See sections 1061 and 1097 of the 

Dodd-Frank Act. Pursuant to the DoddFrank Act and the Omnibus 

Appropriations Act, as amended, the 

Bureau is publishing for public 

comment an interim final rule 

establishing a new Regulation N 

(Mortgage Acts and Practices— 

Advertising), 12 CFR part 1014, and a 

new Regulation O (Mortgage Assistance 

Relief Services), 12 CFR part 1015, 

implementing the Omnibus 

Appropriations Act. 

II. Summary of the Interim Final Rule 

A. General 

The interim final rule substantially 

duplicates the FTC’s Mortgage Acts and 

Practices—Advertising Rule as the 

Bureau’s new Regulation N, 12 CFR part 

1014, and the FTC’s Mortgage 

Assistance Relief Services Rule as the 

Bureau’s new Regulation O, 12 CFR part 

1015, making only certain nonsubstantive, technical, formatting, and 

stylistic changes. To minimize any 

potential confusion, other than 

republishing 16 CFR parts 321 and 322 

with the Bureau’s part number, the 

Bureau is preserving where possible the 

numbering the FTC used in the two 

rules. Additionally, while this interim 

final rule generally incorporates the 

FTC’s existing regulatory text, the rule 

has been edited as necessary to reflect 

nomenclature and other technical 

amendments required by the DoddFrank Act. Notably, this interim final 

rule does not impose any new 

substantive obligations on regulated 

entities. In future rulemakings, the 

Bureau expects to amend Regulations N 

and O to implement certain other 

changes to the Omnibus Appropriations 

Act made by the Dodd-Frank Act, such 

as expanding the scope of Regulations N 

and O to include persons excluded from 

coverage under the FTC’s existing 16 

CFR parts 321 and 322 due to the fact 

that they are not subject to the FTC’s 

enforcement jurisdiction.5

B. Specific Changes 

References to the FTC’s rulemaking 

authority have been replaced with 

references to the Bureau. Conforming 

edits have been made to internal crossreferences. Historical references that are 

no longer applicable, and references to 

effective dates that have passed, have 

been removed as appropriate. In 

addition, with respect to the Mortgage 

Assistance Relief Services Rule, the 

Bureau is correcting a citation error in 

the FTC’s existing § 322.9(c). As 

adopted by the FTC, § 322.9(c) contains 

a cross-reference to § 322.10(a). The 

correct citation should be to §§ 322.9(a) 

and (b). The Bureau is republishing 

§ 322.9(c) as § 1015.9(c) with the 

citation corrected to read §§ 1015.9(a) 

and (b). 

III. Legal Authority 

A. Rulemaking Authority 

The Bureau is issuing this interim 

final rule pursuant to its authority under 

the Omnibus Appropriations Act and 

the Dodd-Frank Act. Effective July 21, 

2011, section 1061 of the Dodd-Frank 

Act transferred to the Bureau all of the 

FTC’s authority under an enumerated 

consumer law to prescribe rules, issue 

guidelines, conduct studies, or issue 

reports.6 The Omnibus Appropriations 

Act is an enumerated consumer law.7

Accordingly, effective July 21, 2011, the 

authority of the FTC to issue regulations 

pursuant to the Omnibus 

Appropriations Act transferred to the 

Bureau.8

The Omnibus Appropriations Act, as 

amended, authorizes the Bureau to issue 

regulations in accordance with section 

553 of the Administrative Procedure Act 

(APA), 5 U.S.C. 553, to carry out the 

provisions of the Omnibus 

Appropriations Act. These regulations 

may pertain to unfair or deceptive acts 

or practices regarding mortgage loans, 

which may include unfair or deceptive 

acts or practices involving loan 

modification and foreclosure rescue 

services. In its existing regulations, the 

FTC used this Omnibus Appropriations 

Act authority to adopt the Mortgage 

Acts and Practices—Advertising Rule 

and the Mortgage Assistance Relief 

Services Rule. 

B. Authority To Issue an Interim Final 

Rule Without Prior Notice and Comment 

The Administrative Procedure Act 

(APA) 9 generally requires public notice 

and an opportunity to comment before 

promulgation of regulations.10 The APA 

provides exceptions to notice-andcomment procedures, however, where 

an agency for good cause finds that such 

procedures are impracticable, 

unnecessary, or contrary to the public 

interest or when a rulemaking relates to 

agency organization, procedure, and 

practice.11 The Bureau finds that there 

is good cause to conclude that providing 

notice and opportunity for comment 

would be unnecessary and contrary to 

the public interest under these 

circumstances. In addition, substantially 

all the changes made by this interim 

final rule, which were necessitated by 

the Dodd-Frank Act’s transfer of 

Omnibus Appropriations Act authority 

from the FTC to the Bureau, relate to 

agency organization, procedure, and 

practice and are thus exempt from the 

APA’s notice-and comment 

requirements. 

The Bureau’s good cause findings are 

based on the following considerations. 

As an initial matter, the FTC’s existing 

regulations were a result of notice-andcomment rulemaking to the extent 

required. Moreover, the interim final 

rule published today does not impose 

any new, substantive obligations on 

regulated entities. Rather, the interim 

final rule makes only non-substantive, 

technical changes to the existing text of 

the regulations, such as renumbering, 

changing internal cross-references, and 

replacing appropriate nomenclature to 

reflect the transfer of authority to the 

Bureau. Given the technical nature of 

these changes, and the fact that the 

interim final rule does not impose any 


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78132 Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 

12This interim final rule is one of 14 companion 

rulemakings that together restate and recodify the 

implementing regulations under 14 existing 

consumer financial laws (part III.C, below, lists the 

14 laws involved). In the interest of proper 

coordination of this overall regulatory framework, 

which includes numerous cross-references among 

some of the regulations, the Bureau is establishing 

the same effective date of December 30, 2011 for 

those rules published on or before that date and 

making those published thereafter (if any) effective 

immediately. 

13Section 1022(b)(2)(A) of the Dodd-Frank Act 

addresses the consideration of the potential benefits 

and costs of regulation to consumers and covered 

persons, including the potential reduction of access 

by consumers to consumer financial products or 

services; the impact on depository institutions and 

credit unions with $10 billion or less in total assets 

as described in section 1026 of the Dodd-Frank Act; 

and the impact on consumers in rural areas. Section 

1022(b)(2)(B) requires that the Bureau ‘‘consult with 

the appropriate prudential regulators or other 

Federal agencies prior to proposing a rule and 

during the comment process regarding consistency 

with prudential, market, or systemic objectives 

administered by such agencies.’’ The manner and 

extent to which these provisions apply to interim 

final rules and to benefits, costs, and impacts that 

are compelled by statutory changes rather than 

discretionary Bureau action is unclear. 

Nevertheless, to inform this rulemaking more fully, 

the Bureau performed the described analyses and 

consultations. 

14The fourteen laws implemented by this and its 

companion rulemakings are: the Consumer Leasing 

Act, the Electronic Fund Transfer Act (except with 

respect to section 920 of that Act), the Equal Credit 

Opportunity Act, the Fair Credit Reporting Act 

(except with respect to sections 615(e) and 628 of 

that act), the Fair Debt Collection Practices Act, 

Subsections (b) through (f) of section 43 of the 

Federal Deposit Insurance Act, sections 502 through 

509 of the Gramm-Leach-Bliley Act (except for 

section 505 as it applies to section 501(b)), the 

Home Mortgage Disclosure Act, the Real Estate 

Settlement Procedures Act, the S.A.F.E. Mortgage 

Licensing Act, the Truth in Lending Act, the Truth 

in Savings Act, section 626 of the Omnibus 

Appropriations Act, 2009, and the Interstate Land 

Sales Full Disclosure Act. 

15 In light of the technical but voluminous nature 

of this recodification project, the Bureau focused 

the consultation process on a representative sample 

of the recodified regulations, while making 

information on the other regulations available. The 

Bureau expects to conduct differently its future 

consultations regarding substantive rulemakings. 

16 5 U.S.C. 601 et seq. 

additional substantive requirements on 

covered entities, an opportunity for 

prior public comment is unnecessary. In 

addition, recodifying the FTC’s 

regulations to reflect the transfer of 

authority to the Bureau will help 

facilitate compliance with the Omnibus 

Appropriations Act and its 

implementing regulations, and will help 

reduce uncertainty regarding the 

applicable regulatory framework. Using 

notice-and-comment procedures would 

delay this process and thus be contrary 

to the public interest. 

The APA generally requires that rules 

be published not less than 30 days 

before their effective dates. See 5 U.S.C. 

553(d). As with the notice and comment 

requirement, however, the APA allows 

an exception when ‘‘otherwise provided 

by the agency for good cause found and 

published with the rule.’’ 5 U.S.C. 

553(d)(3). The Bureau finds that there is 

good cause for providing less than 30 

days notice here. A delayed effective 

date would harm consumers and 

regulated entities by needlessly 

perpetuating discrepancies between the 

amended statutory text and the 

implementing regulations, thereby 

hindering compliance and prolonging 

uncertainty regarding the applicable 

regulatory framework.12

In addition, delaying the effective 

date of the interim final rule for 30 days 

would provide no practical benefit to 

regulated entities in this context and in 

fact could operate to their detriment. As 

discussed above, the interim final rule 

published today does not impose any 

new, substantive obligations on 

regulated entities. Instead, the rule 

makes only non-substantive, technical 

changes to the existing text of the 

regulations. Thus, regulated entities that 

are already in compliance with the 

existing rules will not need to modify 

business practices as a result of this 

rule. 

C. Section 1022(b)(2) of the Dodd-Frank 

Act 

In developing the interim final rule, 

the Bureau has conducted an analysis of 

potential benefits, costs, and impacts.13

The Bureau believes that the interim 

final rule will benefit consumers and 

covered persons by updating and 

recodifying Regulations N and O to 

reflect the transfer of authority to the 

Bureau and certain other changes 

mandated by the Dodd-Frank Act. This 

will help facilitate compliance with the 

Omnibus Appropriations Act and its 

implementing regulations and help 

reduce any uncertainty regarding the 

applicable regulatory framework. The 

interim final rule will not impose any 

new substantive obligations on 

consumers or covered persons and is 

not expected to have any impact on 

consumers’ access to consumer financial 

products and services. 

Although not required by the interim 

final rule, covered entities may incur 

some costs in updating compliance 

manuals and related materials to reflect 

the new numbering and other technical 

changes reflected in the new 

Regulations N and O. The Bureau has 

worked to reduce any such burden by 

preserving the existing numbering to the 

extent possible and believes that such 

costs will likely be minimal. These 

changes could be handled in the short 

term by providing a short, standalone 

summary alerting users to the changes 

and in the long term could be combined 

with other updates at the firm’s 

convenience. The Bureau intends to 

continue investigating the possible costs 

to affected entities of updating manuals 

and related materials to reflect these 

changes and solicits comments on this 

and other issues discussed in this 

section. 

The interim final rule will have no 

unique impact on depository 

institutions or credit unions with $10 

billion or less in assets as described in 

section 1026(a) of the Dodd-Frank Act. 

Also, the interim final rule will have no 

unique impact on rural consumers. 

In undertaking the process of 

recodifying Regulations N and O, as 

well as regulations implementing 

thirteen other consumer financial 

laws,14 the Bureau consulted the 

Federal Deposit Insurance Corporation, 

the Office of the Comptroller of the 

Currency, the National Credit Union 

Administration, the Board of Governors 

of the Federal Reserve System, the 

Federal Trade Commission, and the 

Department of Housing and Urban 

Development, including with respect to 

consistency with any prudential, 

market, or systemic objectives that may 

be administered by such agencies.15 The 

Bureau also has consulted with the 

Office of Management and Budget for 

technical assistance. The Bureau 

expects to have further consultations 

with the appropriate Federal agencies 

during the comment period. 

IV. Request for Comment 

Although notice and comment 

rulemaking procedures are not required, 

the Bureau invites comments on this 

notice. Commenters are specifically 

encouraged to identify any technical 

issues raised by the rule. The Bureau is 

also seeking comment in response to a 

notice published at 76 FR 75825 (Dec. 

5, 2011) concerning its efforts to identify 

priorities for streamlining regulations 

that it has inherited from other Federal 

agencies to address provisions that are 

outdated, unduly burdensome, or 

unnecessary. 

V. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA), 

as amended by the Small Business 

Regulatory Enforcement Fairness Act of 

1996, requires each agency to consider 

the potential impact of its regulations on 

small entities, including small 

businesses, small governmental units, 

and small not-for-profit organizations.16

The RFA generally requires an agency to 

conduct an initial regulatory flexibility 

analysis (IRFA) and a final regulatory 

flexibility analysis (FRFA) of any rule 


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Federal Register / Vol. 76, No. 242 / Friday, December 16, 2011 / Rules and Regulations 78133 

17 5 U.S.C. 603, 604. 

18 5 U.S.C. 609. 

19 5 U.S.C. 603(a), 604(a); 5 U.S.C. 553(b)(B). 

20 5 U.S.C. 609(b). 

subject to notice-and-comment 

rulemaking requirements, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities.17

The Bureau also is subject to certain 

additional procedures under the RFA 

involving the convening of a panel to 

consult with small business 

representatives prior to proposing a rule 

for which an IRFA is required.18

The IRFA and FRFA requirements 

described above apply only where a 

notice of proposed rulemaking is 

required,19 and the panel requirement 

applies only when a rulemaking 

requires an IRFA.20 As discussed above 

in part III, a notice of proposed 

rulemaking is not required for this 

rulemaking. 

In addition, as discussed above, this 

interim final rule has only a minor 

impact on entities subject to Regulations 

N and O. The rule imposes no new, 

substantive obligations on covered 

entities. Accordingly, the undersigned 

certifies that this interim final rule will 

not have a significant economic impact 

on a substantial number of small 

entities. 

VI. Paperwork Reduction Act 

The Bureau may not conduct or 

sponsor, and a respondent is not 

required to respond to, an information 

collection unless it displays a currently 

valid Office of Management and Budget 

(OMB) control number. This rule 

contains information collection 

requirements under the Paperwork 

Reduction Act (PRA), which have been 

previously approved by OMB, and the 

ongoing PRA burden for which is 

unchanged by this rule. There are no 

new information collection 

requirements in this interim final rule. 

The Bureau’s OMB control numbers for 

this information collection are: 3170– 

0009 for Regulation N (Mortgage Acts 

and Practices—Advertising) and 3170– 

0007 for Regulation O (Mortgage 

Assistance Relief Services). 

List of Subjects in 12 CFR Parts 1014 

and 1015 

Advertising, Communications, 

Consumer protection, Credit, Mortgages, 

Business practices related to mortgage 

loans, Trade practices, Telemarketing. 

Authority and Issuance 

For the reasons set forth above, the 

Bureau of Consumer Financial 

Protection adds parts 1014 and 1015 to 

Chapter X in Title 12 of the Code of 

Federal Regulations to read as follows: 

PART 1014—MORTGAGE ACTS AND 

PRACTICES—ADVERTISING 

(REGULATION N) 

Sec. 

1014.1 Scope of regulations in this part. 

1014.2 Definitions. 

1014.3 Prohibited representations. 

1014.4 Waiver not permitted. 

1014.5 Recordkeeping requirements. 

1014.6 Actions by states. 

1014.7 Severability. 

Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 

1638 note. 

§ 1014.1 Scope of regulations in this part. 

This part, known as Regulation N, is 

issued by the Bureau of Consumer 

Financial Protection to implement the 

2009 Omnibus Appropriations Act, 

Public L. 111–8, section 626, 123 Stat. 

524 (Mar. 11, 2009), as amended by the 

Credit Card Accountability 

Responsibility and Disclosure Act of 

2009, Public Law 111–24, section 511, 

123 Stat. 1734 (May 22, 2009), and as 

amended by the Dodd-Frank Wall Street 

Reform and Consumer Financial 

Protection Act of 2010, Public Law 111– 

203, section 1097, 124 Stat. 1376 (July 

21, 2010). This part applies to persons 

over which the Federal Trade 

Commission has jurisdiction under the 

Federal Trade Commission Act. 

§ 1014.2 Definitions. 

For the purposes of this part: 

Commercial communication means 

any written or oral statement, 

illustration, or depiction, whether in 

English or any other language, that is 

designed to effect a sale or create 

interest in purchasing goods or services, 

whether it appears on or in a label, 

package, package insert, radio, 

television, cable television, brochure, 

newspaper, magazine, pamphlet, leaflet, 

circular, mailer, book insert, free 

standing insert, letter, catalogue, poster, 

chart, billboard, public transit card, 

point of purchase display, film, slide, 

audio program transmitted over a 

telephone system, telemarketing script, 

on-hold script, upsell script, training 

materials provided to telemarketing 

firms, program-length commercial 

(‘‘infomercial’’), the internet, cellular 

network, or any other medium. 

Promotional materials and items and 

Web pages are included in the term 

commercial communication. 

Consumer means a natural person to 

whom a mortgage credit product is 

offered or extended. 

Credit means the right to defer 

payment of debt or to incur debt and 

defer its payment. 

Dwelling means a residential structure 

that contains one to four units, whether 

or not that structure is attached to real 

property. The term includes any of the 

following if used as a residence: an 

individual condominium unit, 

cooperative unit, mobile home, 

manufactured home, or trailer. 

Mortgage credit product means any 

form of credit that is secured by real 

property or a dwelling and that is 

offered or extended to a consumer 

primarily for personal, family, or 

household purposes. 

Person means any individual, group, 

unincorporated association, limited or 

general partnership, corporation, or 

other business entity. 

Term means any of the fees, costs, 

obligations, or characteristics of or 

associated with the product. It also 

includes any of the conditions on or 

related to the availability of the product. 

§ 1014.3 Prohibited representations. 

It is a violation of this part for any 

person to make any material 

misrepresentation, expressly or by 

implication, in any commercial 

communication, regarding any term of 

any mortgage credit product, including 

but not limited to misrepresentations 

about: 

(a) The interest charged for the 

mortgage credit product, including but 

not limited to misrepresentations 

concerning: 

(1) The amount of interest that the 

consumer owes each month that is 

included in the consumer’s payments, 

loan amount, or total amount due, or 

(2) Whether the difference between 

the interest owed and the interest paid 

is added to the total amount due from 

the consumer; 

(b) The annual percentage rate, simple 

annual rate, periodic rate, or any other 

rate; 

(c) The existence, nature, or amount 

of fees or costs to the consumer 

associated with the mortgage credit 

product, including but not limited to 

misrepresentations that no fees are 

charged; 

(d) The existence, cost, payment 

terms, or other terms associated with 

any additional product or feature that is 

or may be sold in conjunction with the 

mortgage credit product, including but 

not limited to credit insurance or credit 

disability insurance; 

(e) The terms, amounts, payments, or 

other requirements relating to taxes or 

insurance associated with the mortgage 

credit product, including but not 

limited to misrepresentations about: 

(1) Whether separate payment of taxes 

or insurance is required; or 

(2) The extent to which payment for 

taxes or insurance is included in the 


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loan payments, loan amount, or total 

amount due from the consumer; 

(f) Any prepayment penalty 

associated with the mortgage credit 

product, including but not limited to 

misrepresentations concerning the 

existence, nature, amount, or terms of 

such penalty; 

(g) The variability of interest, 

payments, or other terms of the 

mortgage credit product, including but 

not limited to misrepresentations using 

the word ‘‘fixed’’; 

(h) Any comparison between: 

(1) Any rate or payment that will be 

available for a period less than the full 

length of the mortgage credit product; 

and 

(2) Any actual or hypothetical rate or 

payment; 

(i) The type of mortgage credit 

product, including but not limited to 

misrepresentations that the product is or 

involves a fully amortizing mortgage; 

(j) The amount of the obligation, or 

the existence, nature, or amount of cash 

or credit available to the consumer in 

connection with the mortgage credit 

product, including but not limited to 

misrepresentations that the consumer 

will receive a certain amount of cash or 

credit as part of a mortgage credit 

transaction; 

(k) The existence, number, amount, or 

timing of any minimum or required 

payments, including but not limited to 

misrepresentations about any payments 

or that no payments are required in a 

reverse mortgage or other mortgage 

credit product; 

(l) The potential for default under the 

mortgage credit product, including but 

not limited to misrepresentations 

concerning the circumstances under 

which the consumer could default for 

nonpayment of taxes, insurance, or 

maintenance, or for failure to meet other 

obligations; 

(m) The effectiveness of the mortgage 

credit product in helping the consumer 

resolve difficulties in paying debts, 

including but not limited to 

misrepresentations that any mortgage 

credit product can reduce, eliminate, or 

restructure debt or result in a waiver or 

forgiveness, in whole or in part, of the 

consumer’s existing obligation with any 

person; 

(n) The association of the mortgage 

credit product or any provider of such 

product with any other person or 

program, including but not limited to 

misrepresentations that: 

(1) The provider is, or is affiliated 

with, any governmental entity or other 

organization; or 

(2) The product is or relates to a 

government benefit, or is endorsed, 

sponsored by, or affiliated with any 

government or other program, including 

but not limited to through the use of 

formats, symbols, or logos that resemble 

those of such entity, organization, or 

program; 

(o) The source of any commercial 

communication, including but not 

limited to misrepresentations that a 

commercial communication is made by 

or on behalf of the consumer’s current 

mortgage lender or servicer; 

(p) The right of the consumer to reside 

in the dwelling that is the subject of the 

mortgage credit product, or the duration 

of such right, including but not limited 

to misrepresentations concerning how 

long or under what conditions a 

consumer with a reverse mortgage can 

stay in the dwelling; 

(q) The consumer’s ability or 

likelihood to obtain any mortgage credit 

product or term, including but not 

limited to misrepresentations 

concerning whether the consumer has 

been preapproved or guaranteed for any 

such product or term; 

(r) The consumer’s ability or 

likelihood to obtain a refinancing or 

modification of any mortgage credit 

product or term, including but not 

limited to misrepresentations 

concerning whether the consumer has 

been preapproved or guaranteed for any 

such refinancing or modification; and 

(s) The availability, nature, or 

substance of counseling services or any 

other expert advice offered to the 

consumer regarding any mortgage credit 

product or term, including but not 

limited to the qualifications of those 

offering the services or advice. 

§ 1014.4 Waiver not permitted. 

It is a violation of this part for any 

person to obtain, or attempt to obtain, a 

waiver from any consumer of any 

protection provided by or any right of 

the consumer under this part. 

§ 1014.5 Recordkeeping requirements. 

(a) Any person subject to this part 

shall keep, for a period of twenty-four 

months from the last date the person 

made or disseminated the applicable 

commercial communication regarding 

any term of any mortgage credit 

product, the following evidence of 

compliance with this part: 

(1) Copies of all materially different 

commercial communications as well as 

sales scripts, training materials, and 

marketing materials, regarding any term 

of any mortgage credit product, that the 

person made or disseminated during the 

relevant time period; 

(2) Documents describing or 

evidencing all mortgage credit products 

available to consumers during the time 

period in which the person made or 

disseminated each commercial 

communication regarding any term of 

any mortgage credit product, 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 the person made or disseminated 

each commercial communication 

regarding any term of any mortgage 

credit product, including but not 

limited to the names and terms of each 

such additional product or service 

available to consumers. 

(b) Any person subject to this part 

may keep the records required by 

paragraph (a) of this section in any 

legible form, and in the same manner, 

format, or place as they keep such 

records in the ordinary course of 

business. Failure to keep all records 

required under paragraph (a) of this 

section shall be a violation of this part. 

§ 1014.6 Actions by states. 

Any attorney general or other officer 

of a state authorized by the state to bring 

an action under this part may do so 

pursuant to section 626(b) of the 2009 

Omnibus Appropriations Act, Public 

Law 111–8, section 626, 123 Stat. 524 

(Mar. 11, 2009), as amended by the 

Credit Card Accountability 

Responsibility and Disclosure Act of 

2009, Public Law 111–24, section 511, 

123 Stat. 1734 (May 22, 2009), and as 

amended by Public Law 111–203, 

section 1097, 124 Stat. 2102 (July 21, 

2010). 

§ 1014.7 Severability. 

The provisions of this part are 

separate and severable from one 

another. If any provision is stayed or 

determined to be invalid, it is the 

Bureau of Consumer Financial 

Protection’s intention that the remaining 

provisions shall continue in effect. 

PART 1015—MORTGAGE 

ASSISTANCE RELIEF SERVICES 

(REGULATION O) 

Sec. 

1015.1 Scope of regulations in this part. 

1015.2 Definitions. 

1015.3 Prohibited representations. 

1015.4 Disclosures required in commercial 

communications. 

1015.5 Prohibition on collection of 

advance payments and related 

disclosures. 

1015.6 Assisting and facilitating. 

1015.7 Exemptions. 

1015.8 Waiver not permitted. 


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1015.9 Recordkeeping and compliance 

requirements. 

1015.10 Actions by states. 

1015.11 Severability. 

Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 

1638 note. 

§ 1015.1 Scope of regulations in this part. 

This part, known as Regulation O, is 

issued by the Bureau of Consumer 

Financial Protection to implement the 

2009 Omnibus Appropriations Act, 

Public Law 111–8, section 626, 123 Stat. 

524 (Mar. 11, 2009), as clarified by the 

Credit Card Accountability 

Responsibility and Disclosure Act of 

2009, Public Law 111–24, section 511, 

123 Stat. 1734 (May 22, 2009), and as 

amended by the Dodd-Frank Wall Street 

Reform and Consumer Financial 

Protection Act of 2010, Public Law 111– 

203, section 1097, 124 Stat. 1376 (July 

21, 2010). This part applies to persons 

over which the Federal Trade 

Commission has jurisdiction under the 

Federal Trade Commission Act. 

§ 1015.2 Definitions. 

For the purposes of this part: 

Clear and prominent means: 

(1) In textual communications, the 

required disclosures shall be easily 

readable; in a high degree of contrast 

from the immediate background on 

which it appears; in the same languages 

that are substantially used in the 

commercial communication; in a format 

so that the disclosure is distinct from 

other text, such as inside a border; in a 

distinct type style, such as bold; parallel 

to the base of the commercial 

communication, and, except as 

otherwise provided in this rule, each 

letter of the disclosure shall be, at a 

minimum, the larger of 12-point type or 

one-half the size of the largest letter or 

numeral used in the name of the 

advertised Web site or telephone 

number to which consumers are referred 

to receive information relating to any 

mortgage assistance relief service. 

Textual communications include any 

communications in a written or printed 

form such as print publications or 

words displayed on the screen of a 

computer; 

(2) In communications disseminated 

orally or through audible means, such as 

radio or streaming audio, the required 

disclosures shall be delivered in a slow 

and deliberate manner and in a 

reasonably understandable volume and 

pitch; 

(3) In communications disseminated 

through video means, such as television 

or streaming video, the required 

disclosures shall appear simultaneously 

in the audio and visual parts of the 

commercial communication and be 

delivered in a manner consistent with 

paragraphs (1) and (2) of this definition. 

The visual disclosure shall be at least 

four percent of the vertical picture or 

screen height and appear for the 

duration of the oral disclosure; 

(4) In communications made through 

interactive media, such as the internet, 

online services, and software, the 

required disclosures shall: 

(i) Be consistent with paragraphs (1) 

through (3) of this definition; 

(ii) Be made on, or immediately prior 

to, the page on which the consumer 

takes any action to incur any financial 

obligation; 

(iii) Be unavoidable, i.e., visible to 

consumers without requiring them to 

scroll down a Web page; and 

(iv) Appear in type at least the same 

size as the largest character of the 

advertisement; 

(5) In all instances, the required 

disclosures shall be presented in an 

understandable language and syntax, 

and with nothing contrary to, 

inconsistent with, or in mitigation of the 

disclosures used in any communication 

of them; and 

(6) For program-length television, 

radio, or internet-based multimedia 

commercial communications, the 

required disclosures shall be made at 

the beginning, near the middle, and at 

the end of the commercial 

communication. 

Client trust account means a separate 

account created by a licensed attorney 

for the purpose of holding client funds, 

which is: 

(1) Maintained in compliance with all 

applicable state laws and regulations, 

including licensing regulations; and 

(2) Located in the state where the 

attorney’s office is located, or elsewhere 

in the United States with the consent of 

the consumer on whose behalf the funds 

are held. 

Commercial communication means 

any written or oral statement, 

illustration, or depiction, whether in 

English or any other language, that is 

designed to effect a sale or create 

interest in purchasing any service, plan, 

or program, whether it appears on or in 

a label, package, package insert, radio, 

television, cable television, brochure, 

newspaper, magazine, pamphlet, leaflet, 

circular, mailer, book insert, free 

standing insert, letter, catalogue, poster, 

chart, billboard, public transit card, 

point of purchase display, film, slide, 

audio program transmitted over a 

telephone system, telemarketing script, 

onhold script, upsell script, training 

materials provided to telemarketing 

firms, program-length commercial 

(‘‘infomercial’’), the internet, cellular 

network, or any other medium. 

Promotional materials and items and 

Web pages are included in the term 

‘‘commercial communication.’’ 

(1) General Commercial 

Communication means a commercial 

communication that occurs prior to the 

consumer agreeing to permit the 

provider to seek offers of mortgage 

assistance relief on behalf of the 

consumer, or otherwise agreeing to use 

the mortgage assistance relief service, 

and that is not directed at a specific 

consumer. 

(2) Consumer-Specific Commercial 

Communication means a commercial 

communication that occurs prior to the 

consumer agreeing to permit the 

provider to seek offers of mortgage 

assistance relief on behalf of the 

consumer, or otherwise agreeing to use 

the mortgage assistance relief service, 

and that is directed at a specific 

consumer. 

Consumer means any natural person 

who is obligated under any loan secured 

by a dwelling. 

Dwelling means a residential structure 

containing four or fewer units, whether 

or not that structure is attached to real 

property, that is primarily for personal, 

family, or household purposes. The 

term includes any of the following if 

used as a residence: An individual 

condominium unit, cooperative unit, 

mobile home, manufactured home, or 

trailer. 

Dwelling loan means any loan secured 

by a dwelling, and any associated deed 

of trust or mortgage. 

Dwelling Loan Holder means any 

individual or entity who holds the 

dwelling loan that is the subject of the 

offer to provide mortgage assistance 

relief services. 

Material means likely to affect a 

consumer’s choice of, or conduct 

regarding, any mortgage assistance relief 

service. 

Mortgage Assistance Relief Service 

means any service, plan, or program, 

offered or provided to the consumer in 

exchange for consideration, that is 

represented, expressly or by 

implication, to assist or attempt to assist 

the consumer with any of the following: 

(1) Stopping, preventing, or 

postponing any mortgage or deed of 

trust foreclosure sale for the consumer’s 

dwelling, any repossession of the 

consumer’s dwelling, or otherwise 

saving the consumer’s dwelling from 

foreclosure or repossession; 

(2) Negotiating, obtaining, or 

arranging a modification of any term of 

a dwelling loan, including a reduction 

in the amount of interest, principal 

balance, monthly payments, or fees; 

(3) Obtaining any forbearance or 

modification in the timing of payments 


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from any dwelling loan holder or 

servicer on any dwelling loan; 

(4) Negotiating, obtaining, or 

arranging any extension of the period of 

time within which the consumer may: 

(i) Cure his or her default on a 

dwelling loan, 

(ii) Reinstate his or her dwelling loan, 

(iii) Redeem a dwelling, or 

(iv) Exercise any right to reinstate a 

dwelling loan or redeem a dwelling; 

(5) Obtaining any waiver of an 

acceleration clause or balloon payment 

contained in any promissory note or 

contract secured by any dwelling; or 

(6) Negotiating, obtaining or 

arranging: 

(i) A short sale of a dwelling, 

(ii) A deed-in-lieu of foreclosure, or 

(iii) Any other disposition of a 

dwelling other than a sale to a third 

party who is not the dwelling loan 

holder. 

Mortgage Assistance Relief Service 

Provider or Provider means any person 

that provides, offers to provide, or 

arranges for others to provide, any 

mortgage assistance relief service. This 

term does not include: 

(1) The dwelling loan holder, or any 

agent or contractor of such individual or 

entity. 

(2) The servicer of a dwelling loan, or 

any agent or contractor of such 

individual or entity. 

Person means any individual, group, 

unincorporated association, limited or 

general partnership, corporation, or 

other business entity, except to the 

extent that any person is specifically 

excluded from the Federal Trade 

Commission’s jurisdiction pursuant to 

15 U.S.C. 44 and 45(a)(2). 

Servicer means the individual or 

entity responsible for: 

(1) Receiving any scheduled periodic 

payments from a consumer pursuant to 

the terms of the dwelling loan that is the 

subject of the offer to provide mortgage 

assistance relief services, including 

amounts for escrow accounts under 

section 10 of the Real Estate Settlement 

Procedures Act (12 U.S.C. 2609); and 

(2) Making the payments of principal 

and interest and such other payments 

with respect to the amounts received 

from the consumer as may be required 

pursuant to the terms of the mortgage 

servicing loan documents or servicing 

contract. 

Telemarketing means a plan, program, 

or campaign which is conducted to 

induce the purchase of any service, by 

use of one or more telephones and 

which involves more than one interstate 

telephone call. 

§ 1015.3 Prohibited representations. 

It is a violation of this rule for any 

mortgage assistance relief service 

provider to engage in the following 

conduct: 

(a) Representing, expressly or by 

implication, in connection with the 

advertising, marketing, promotion, 

offering for sale, sale, or performance of 

any mortgage assistance relief service, 

that a consumer cannot or should not 

contact or communicate with his or her 

lender or servicer. 

(b) Misrepresenting, expressly or by 

implication, any material aspect of any 

mortgage assistance relief service, 

including but not limited to: 

(1) The likelihood of negotiating, 

obtaining, or arranging any represented 

service or result, such as those set forth 

in the definition of Mortgage Assistance 

Relief Service in § 1015.2; 

(2) The amount of time it will take the 

mortgage assistance relief service 

provider to accomplish any represented 

service or result, such as those set forth 

in the definition of Mortgage Assistance 

Relief Service in § 1015.2; 

(3) That a mortgage assistance relief 

service is affiliated with, endorsed or 

approved by, or otherwise associated 

with: 

(i) The United States government, 

(ii) Any governmental homeowner 

assistance plan, 

(iii) Any Federal, State, or local 

government agency, unit, or department, 

(iv) Any nonprofit housing counselor 

agency or program, 

(v) The maker, holder, or servicer of 

the consumer’s dwelling loan, or 

(vi) Any other individual, entity, or 

program; 

(4) The consumer’s obligation to make 

scheduled periodic payments or any 

other payments pursuant to the terms of 

the consumer’s dwelling loan; 

(5) The terms or conditions of the 

consumer’s dwelling loan, including but 

not limited to the amount of debt owed; 

(6) The terms or conditions of any 

refund, cancellation, exchange, or 

repurchase policy for a mortgage 

assistance relief service, including but 

not limited to the likelihood of 

obtaining a full or partial refund, or the 

circumstances in which a full or partial 

refund will be granted, for a mortgage 

assistance relief service; 

(7) That the mortgage assistance relief 

service provider has completed the 

represented services or has a right to 

claim, demand, charge, collect, or 

receive payment or other consideration; 

(8) That the consumer will receive 

legal representation; 

(9) The availability, performance, 

cost, or characteristics of any alternative 

to for-profit mortgage assistance relief 

services through which the consumer 

can obtain mortgage assistance relief, 

including negotiating directly with the 

dwelling loan holder or servicer, or 

using any nonprofit housing counselor 

agency or program; 

(10) The amount of money or the 

percentage of the debt amount that a 

consumer may save by using the 

mortgage assistance relief service; 

(11) The total cost to purchase the 

mortgage assistance relief service; or 

(12) The terms, conditions, or 

limitations of any offer of mortgage 

assistance relief the provider obtains 

from the consumer’s dwelling loan 

holder or servicer, including the time 

period in which the consumer must 

decide to accept the offer; 

(c) Making a representation, expressly 

or by implication, about the benefits, 

performance, or efficacy of any mortgage 

assistance relief service unless, at the 

time such representation is made, the 

provider possesses and relies upon 

competent and reliable evidence that 

substantiates that the representation is 

true. For the purposes of this paragraph, 

competent and reliable evidence means 

tests, analyses, research, studies, or 

other evidence based on the expertise of 

professionals in the relevant area, that 

have been conducted and evaluated in 

an objective manner by individuals 

qualified to do so, using procedures 

generally accepted in the profession to 

yield accurate and reliable results. 

§ 1015.4 Disclosures required in 

commercial communications. 

It is a violation of this rule for any 

mortgage assistance relief service 

provider to engage in the following 

conduct: 

(a) Disclosures in All General 

Commercial Communications—Failing 

to place the following statements in 

every general commercial 

communication for any mortgage 

assistance relief service: 

(1) ‘‘(Name of company) is not 

associated with the government, and our 

service is not approved by the 

government or your lender.’’ 

(2) In cases where the mortgage 

assistance relief service provider has 

represented, expressly or by 

implication, that consumers will receive 

any service or result set forth in 

paragraphs (2) through (6) of the 

definition of Mortgage Assistance Relief 

Service in § 1015.2, ‘‘Even if you accept 

this offer and use our service, your 

lender may not agree to change your 

loan.’’ 

(3) The disclosures required by this 

paragraph must be made in a clear and 

prominent manner, and— 

(i) In textual communications the 

disclosures must appear together and be 

preceded by the heading ‘‘IMPORTANT 

NOTICE,’’ which must be in bold face 


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font that is two point-type larger than 

the font size of the required disclosures; 

and 

(ii) In communications disseminated 

orally or through audible means, wholly 

or in part, the audio component of the 

required disclosures must be preceded 

by the statement ‘‘Before using this 

service, consider the following 

information.’’ 

(b) Disclosures in All ConsumerSpecific Commercial Communications— 

Failing to disclose the following 

information in every consumer-specific 

commercial communication for any 

mortgage assistance relief service: 

(1) ‘‘You may stop doing business 

with us at any time. You may accept or 

reject the offer of mortgage assistance 

we obtain from your lender [or servicer]. 

If you reject the offer, you do not have 

to pay us. If you accept the offer, you 

will have to pay us (insert amount or 

method for calculating the amount) for 

our services.’’ For the purposes of this 

paragraph (b)(1), the amount ‘‘you will 

have to pay’’ shall consist of the total 

amount the consumer must pay to 

purchase, receive, and use all of the 

mortgage assistance relief services that 

are the subject of the sales offer, 

including, but not limited to, all fees 

and charges. 

(2) ‘‘(Name of company) is not 

associated with the government, and our 

service is not approved by the 

government or your lender.’’ 

(3) In cases where the mortgage 

assistance relief service provider has 

represented, expressly or by 

implication, that consumers will receive 

any service or result set forth in 

paragraphs (2) through (6) of the 

definition of Mortgage Assistance Relief 

Service in § 1015.2, ‘‘Even if you accept 

this offer and use our service, your 

lender may not agree to change your 

loan.’’ 

(4) The disclosures required by this 

paragraph must be made in a clear and 

prominent manner, and— 

(i) In textual communications the 

disclosures must appear together and be 

preceded by the heading ‘‘IMPORTANT 

NOTICE,’’ which must be in bold face 

font that is two point-type larger than 

the font size of the required disclosures; 

and 

(ii) In communications disseminated 

orally or through audible means, wholly 

or in part, the audio component of the 

required disclosures must be preceded 

by the statement ‘‘Before using this 

service, consider the following 

information’’ and, in telephone 

communications, must be made at the 

beginning of the call. 

(c) Disclosures in All General 

Commercial Communications, 

Consumer-Specific Commercial 

Communications, and Other 

Communications—In cases where the 

mortgage assistance relief service 

provider has represented, expressly or 

by implication, in connection with the 

advertising, marketing, promotion, 

offering for sale, sale, or performance of 

any mortgage assistance relief service, 

that the consumer should temporarily or 

permanently discontinue payments, in 

whole or in part, on a dwelling loan, 

failing to disclose, clearly and 

prominently, and in close proximity to 

any such representation that ‘‘If you 

stop paying your mortgage, you could 

lose your home and damage your credit 

rating.’’ 

§ 1015.5 Prohibition on collection of 

advance payments and related disclosures. 

It is a violation of this rule for any 

mortgage assistance relief service 

provider to: 

(a) Request or receive payment of any 

fee or other consideration until the 

consumer has executed a written 

agreement between the consumer and 

the consumer’s dwelling loan holder or 

servicer incorporating the offer of 

mortgage assistance relief the provider 

obtained from the consumer’s dwelling 

loan holder or servicer; 

(b) Fail to disclose, at the time the 

mortgage assistance relief service 

provider furnishes the consumer with 

the written agreement specified in 

paragraph (a) of this section, the 

following information: ‘‘This is an offer 

of mortgage assistance we obtained from 

your lender [or servicer]. You may 

accept or reject the offer. If you reject 

the offer, you do not have to pay us. If 

you accept the offer, you will have to 

pay us [same amount as disclosed 

pursuant to § 1015.4(b)(1)] for our 

services.’’ The disclosure required by 

this paragraph must be made in a clear 

and prominent manner, on a separate 

written page, and preceded by the 

heading: ‘‘IMPORTANT NOTICE: Before 

buying this service, consider the 

following information.’’ The heading 

must be in bold face font that is two 

point-type larger than the font size of 

the required disclosure; or 

(c)(1) Fail to provide, at the time the 

mortgage assistance relief service 

provider furnishes the consumer with 

the written agreement specified in 

paragraph (a) of this section, a notice 

from the consumer’s dwelling loan 

holder or servicer that describes all 

material differences between the terms, 

conditions, and limitations associated 

with the consumer’s current mortgage 

loan and the terms, conditions, and 

limitations associated with the 

consumer’s mortgage loan if he or she 

accepts the dwelling loan holder’s or 

servicer’s offer, including but not 

limited to differences in the loan’s: 

(i) Principal balance; 

(ii) Contract interest rate, including 

the maximum rate and any adjustable 

rates, if applicable; 

(iii) Amount and number of the 

consumer’s scheduled periodic 

payments on the loan; 

(iv) Monthly amounts owed for 

principal, interest, taxes, and any 

mortgage insurance on the loan; 

(v) Amount of any delinquent 

payments owing or outstanding; 

(vi) Assessed fees or penalties; and 

(vii) Term. 

(2) The notice must be made in a clear 

and prominent manner, on a separate 

written page, and preceded by heading: 

‘‘IMPORTANT INFORMATION FROM 

YOUR [name of lender or servicer] 

ABOUT THIS OFFER.’’ The heading 

must be in bold face font that is twopoint-type larger than the font size of 

the required disclosure. 

(d) Fail to disclose in the notice 

specified in paragraph (c) of this 

section, in cases where the offer of 

mortgage assistance relief the provider 

obtained from the consumer’s dwelling 

loan holder or servicer is a trial 

mortgage loan modification, the terms, 

conditions, and limitations of this offer, 

including but not limited to: 

(1) The fact that the consumer may 

not qualify for a permanent mortgage 

loan modification; and 

(2) The likely amount of the 

scheduled periodic payments and any 

arrears, payments, or fees that the 

consumer would owe in failing to 

qualify. 

§ 1015.6 Assisting and facilitating. 

It is a violation of this rule for a 

person to provide substantial assistance 

or support to any mortgage assistance 

relief service provider when that person 

knows or consciously avoids knowing 

that the provider is engaged in any act 

or practice that violates this rule. 

§ 1015.7 Exemptions. 

(a) An attorney is exempt from this 

part, with the exception of § 1015.5, if 

the attorney: 

(1) Provides mortgage assistance relief 

services as part of the practice of law; 

(2) Is licensed to practice law in the 

state in which the consumer for whom 

the attorney is providing mortgage 

assistance relief services resides or in 

which the consumer’s dwelling is 

located; and 

(3) Complies with state laws and 

regulations that cover the same type of 

conduct the rule requires. 

(b) An attorney who is exempt 

pursuant to paragraph (a) of this section 


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is also exempt from § 1015.5 if the 

attorney: 

(1) Deposits any funds received from 

the consumer prior to performing legal 

services in a client trust account; and 

(2) Complies with all state laws and 

regulations, including licensing 

regulations, applicable to client trust 

accounts. 

§ 1015.8 Waiver not permitted. 

It is a violation of this rule for any 

person to obtain, or attempt to obtain, a 

waiver from any consumer of any 

protection provided by or any right of 

the consumer under this rule. 

§ 1015.9 Recordkeeping and compliance 

requirements. 

(a) Any mortgage assistance relief 

provider must keep, for a period of 

twenty-four (24) months from the date 

the record is created, the following 

records: 

(1) All contracts or other agreements 

between the provider and any consumer 

for any mortgage assistance relief 

service; 

(2) Copies of all written 

communications between the provider 

and any consumer occurring prior to the 

date on which the consumer entered 

into an agreement with the provider for 

any mortgage assistance relief service; 

(3) Copies of all documents or 

telephone recordings created in 

connection with compliance with 

paragraph (b) of this section; 

(4) All consumer files containing the 

names, phone numbers, dollar amounts 

paid, and descriptions of mortgage 

assistance relief services purchased, to 

the extent the mortgage assistance relief 

service provider keeps such information 

in the ordinary course of business; 

(5) Copies of all materially different 

sales scripts, training materials, 

commercial communications, or other 

marketing materials, including Web 

sites and weblogs, for any mortgage 

assistance relief service; and 

(6) Copies of the documentation 

provided to the consumer as specified 

in § 1015.5 of this rule; 

(b) A mortgage assistance relief 

service provider also must: 

(1) Take reasonable steps sufficient to 

monitor and ensure that all employees 

and independent contractors comply 

with this rule. Such steps shall include 

the monitoring of communications 

directed at specific consumers, and 

shall also include, at a minimum, the 

following: 

(i) If the mortgage assistance relief 

service provider is engaged in the 

telemarketing of mortgage assistance 

relief services, performing random, 

blind recording and testing of the oral 

representations made by individuals 

engaged in sales or other customer 

service functions; 

(ii) Establishing a procedure for 

receiving and responding to all 

consumer complaints; and 

(iii) Ascertaining the number and 

nature of consumer complaints 

regarding transactions in which all 

employees and independent contractors 

are involved; 

(2) Investigate promptly and fully 

each consumer complaint received; 

(3) Take corrective action with respect 

to any employee or contractor whom the 

mortgage assistance relief service 

provider determines is not complying 

with this rule, which may include 

training, disciplining, or terminating 

such individual; and 

(4) Maintain any information and 

material necessary to demonstrate its 

compliance with paragraphs (b)(1) 

through (3) of this section. 

(c) A mortgage assistance relief 

provider may keep the records required 

by paragraphs (a) and (b) of this section 

in any form, and in the same manner, 

format, or place as it keeps such records 

in the ordinary course of business. 

(d) It is a violation of this rule for a 

mortgage assistance relief service 

provider not to comply with this 

section. 

§ 1015.10 Actions by states. 

Any attorney general or other officer 

of a state authorized by the state to bring 

an action under this part may do so 

pursuant to section 626(b) of the 2009 

Omnibus Appropriations Act, Public 

Law 111–8, section 626, 123 Stat. 524 

(Mar. 11, 2009), as amended by Public 

Law 111–24, section 511, 123 Stat. 1734 

(May 22, 2009), and as amended by 

Public Law 111–203, section 1097, 124 

Stat. 2102 (July 21, 2010). 

§ 1015.11 Severability. 

The provisions of this rule are 

separate and severable from one 

another. If any provision is stayed or 

determined to be invalid, it is the 

Bureau of Consumer Financial 

Protection’s intention that the remaining 

provisions shall continue in effect. 

Dated: October 24, 2011. 

Alastair M. Fitzpayne, 

Deputy Chief of Staff and Executive Secretary, 

Department of the Treasury. 

[FR Doc. 2011–31731 Filed 12–15–11; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2011–1317; Directorate 

Identifier 2011–NM–193–AD; Amendment 

39–16893; AD 2011–26–03] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Model 777–200, –200LR, 

–300, and –300ER Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are superseding an 

existing airworthiness directive (AD) for 

certain Model 777–200, –300, and 

–300ER series airplanes. That AD 

currently requires installing Teflon 

sleeving under the clamps of certain 

wire bundles routed along the fuel tank 

boundary structure, and cap sealing 

certain penetrating fasteners of the main 

and center fuel tanks. This AD expands 

the applicability in the existing AD. 

This AD was prompted by fuel system 

reviews conducted by the manufacturer, 

which determined that electrical arcing 

on the fuel tank boundary structure or 

inside the fuel tanks could result in a 

fire or explosion. We are issuing this AD 

to correct the unsafe condition on these 

products. 

DATES: This AD is effective January 3, 

2012. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of January 20, 2011 (75 FR 78588, 

December 16, 2010). 

We must receive any comments on 

this AD by January 30, 2012. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Data & Services 


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