```

[Federal Register Volume 79, Number 7 (Friday, January 10, 2014)]
[Notices]
[Pages 1836-1837]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00272]

=======================================================================
-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

Notice of Availability of Certain Revised Consumer Information 
Publications

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice of availability.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Consumer Financial Protection (Bureau or CFPB) 
announces the availability of three revised consumer publications, 
including a consumer information brochure and two booklets required 
under the Real Estate Settlement Procedures Act (RESPA), Regulation X, 
the Truth in Lending Act (TILA), and Regulation Z. These publications 
are titled: What You Should Know About Home Equity Lines of Credit, the 
Consumer Handbook on Adjustable-Rate Mortgages, and the Shopping for 
Your Home Loan: Settlement Cost Booklet.

ADDRESSES: The revised consumer publications are available for download 
on the Bureau's Web site at www.consumerfinance.gov/learnmore and can 
also be found in the Catalog of U.S. Government Publications (http://catalog.gpo.gov), maintained by Superintendent of Documents, U.S. 
Government Printing Office, Washington, DC 20402.

FOR FURTHER INFORMATION CONTACT: Lea Mosena, Legal Division; Susan 
Haag, Office of Financial Education; and Richard Arculin, Office of 
Regulations, CFPB_reginquiries@cfpb.gov or (202) 435-7700.

SUPPLEMENTARY INFORMATION: Pursuant to the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Dodd-Frank Act), Public Law 111-
203, the CFPB is responsible for three consumer information 
publications related to mortgage and home equity line of credit 
transactions, titled: (1) What You Should Know About Home Equity Lines 
of Credit (HELOC Brochure); (2) Consumer Handbook on Adjustable-Rate 
Mortgages (CHARM Booklet); and (3) Shopping for Your Home Loan, 
Settlement Cost Booklet (Settlement Cost Booklet). The HELOC Brochure 
and CHARM booklet were formerly published by the Board of Governors of 
the Federal Reserve System (Board). The Settlement Cost Booklet was 
formerly published by the Department of Housing and Urban Development 
(HUD).
    The CFPB is making technical and conforming changes to each of the 
three publications in conjunction with the January 2014 effective dates 
for many provisions of the Bureau's rulemakings regulating practices in 
mortgage origination and servicing. A description of the changes in 
each publication follows.
    The Bureau views the publications as part of the Bureau's broader 
mission to educate consumers about consumer financial products. The 
Bureau intends to revise the publications and develop other educational 
materials that will be accessible on its public Web site. The Bureau 
therefore expects to consider further revisions to these publications 
in the future, in particular to reflect changes to disclosure 
requirements for mortgage credit transactions under TILA and for real 
estate settlements under RESPA, pursuant to the Bureau's Integrated 
Mortgage Disclosures under the Real Estate Settlement Procedures Act 
(Regulation X) and the Truth in Lending Act (Regulation Z) final rule 
issued on November 20, 2013.
    Those who provide these publications may, at their option, 
immediately begin using the revised HELOC Brochure, CHARM Booklet, or 
Settlement Cost Booklet, or suitable substitutes to comply with the 
requirements in Regulations X and Z. The Bureau understands, however, 
that some may wish to use their existing stock of publications. 
Therefore, those who provide these publications may use earlier 
versions of these publications until existing supplies are exhausted.

[[Page 1837]]

When reprinting these publications, the most recent version should be 
used.

HELOC Brochure

    The Home Equity Loan Consumer Protection Act of 1988, Public Law 
100-709, amended TILA to require creditors to give consumers, among 
other disclosures, an educational brochure on home-equity plans at the 
time an application is provided. Specifically, TILA section 127A 
requires that, in addition to certain other disclosures, when a 
consumer is applying to open an account under any open-end consumer 
credit plan secured by the consumer's principal dwelling, ``the 
creditor or other person providing such disclosures to the consumer 
shall provide (1) a pamphlet published by the Bureau pursuant to 
section 4 of the Home Equity Consumer Protection Act of 1988; or (2) 
any pamphlet which provides substantially similar information to the 
information described in such section, as determined by the Bureau.'' 
15 U.S.C. 1637a(e).
    Prior to the Dodd-Frank Act, the Board implemented this requirement 
in 12 CFR 226.5b(e) and developed and published the HELOC Brochure to 
consumers with basic information about the features of a home equity 
line of credit and what to look for and compare when shopping for 
credit. Under the Dodd-Frank Act, the responsibility for the HELOC 
Brochure transferred to the CFPB. Under the CFPB's Regulation Z, at the 
time an application for a HELOC is provided to the consumer, a creditor 
must provide certain disclosures and ``the home equity brochure 
entitled `What You Should Know About Home Equity Lines of Credit' or a 
suitable substitute.'' 12 CFR 1026.40(e).
    To reflect the transfer to the CFPB and ensure consistency with the 
Bureau's rulemakings regulating practices in mortgage origination and 
servicing, many of which take effect in January 2014, the CFPB has made 
technical and conforming changes to the HELOC Brochure. Specifically, 
the revised publication adds a reference to the requirement that 
lenders must provide borrowers with a list of housing counselors in 
their area, CFPB contact information, and updates to other Federal 
agency contact information. It also adds CFPB resources for consumers 
including information about how consumers can submit a complaint to the 
Bureau, a link to the Bureau's online ``Ask CFPB'' tool to find answers 
to questions about mortgages and other financial topics, and a link to 
an online tool to find local HUD-approved housing counseling agencies.

CHARM Booklet

    In 1987, the Board revised Regulation Z, to require special 
disclosures for closed-end ARMs secured by the borrower's principal 
dwelling with a term greater than one year. 52 FR 48665 (Dec. 24, 
1987). The Board and the Federal Home Loan Bank Board (predecessor to 
the former Office of Thrift Supervision (OTS)) developed the CHARM 
booklet in 1987 to fulfill that requirement and educate consumers about 
the features and risks associated with adjustable-rate mortgages. Under 
the Dodd-Frank Act, the responsibility for the CHARM Booklet 
transferred to the Bureau. Under 12 CFR 1026.19(b)(1), the ``booklet 
titled Consumer Handbook on Adjustable Rate Mortgages, or a suitable 
substitute'' must generally be given to consumers at the time an 
application for an adjustable-rate mortgage is provided or before the 
consumer pays a non-refundable fee, whichever is earlier.
    To reflect the transfer to the CFPB and ensure consistency with the 
Bureau's rulemakings regulating practices in mortgage origination and 
servicing that take effect in January 2014, the CFPB has made technical 
and conforming changes to the CHARM Booklet. The key revisions to the 
CHARM booklet include: (1) Removing references to certain fees and 
product types that are no longer permitted, such as prepayment 
penalties on adjustable-rate mortgages; (2) adding information about 
the lender's obligation to consider the borrower's ability to repay the 
loan, provide disclosure of interest rate adjustments, and ensure a 
borrower has received homeownership counseling before making a negative 
amortization loan; and (3) adding CFPB contact information and 
resources for consumers and updates to other federal agency contact 
information. The CFPB resources added include: information about how 
consumers can submit a complaint to the Bureau; a link to the Bureau's 
online ``Ask CFPB'' tool to find answers to questions about mortgages 
and other financial topics; and a link to an online tool to find local 
HUD-approved housing counseling agencies.

Settlement Cost Booklet/Special Information Booklet

    In its enactment in 1974, RESPA required the provision of ``special 
information booklets'' to help persons borrowing money to finance the 
purchase of residential real estate to understand better the nature and 
costs of real estate settlement services. Public Law 93-553. Since 
1976, HUD implemented this requirement by publishing the Settlement 
Cost Booklet.
    The Dodd-Frank Act amended RESPA, among other things, to transfer 
to the Bureau the responsibility for ``a booklet to help consumers 
applying for federally related mortgage loans to understand the nature 
and costs of real estate settlement services.'' 12 U.S.C. 2604. Under 
12 CFR 1024.6, lenders are directed to provide a copy of the special 
information booklet to each person who has submitted a written 
application for certain federally related mortgage loans within 3 
business days after receiving the application. To reflect the transfer 
to the CFPB and ensure consistency with the Bureau's rulemakings 
regulating practices in mortgage origination and servicing that take 
effect in January 2014, the CFPB has made technical and conforming 
changes to the Settlement Cost Booklet. Specifically, the CFPB has 
revised the booklet to add information about new servicing protections 
for consumers, including servicer obligations to (1) respond promptly 
to consumer requests for information and notices of errors, (2) provide 
mortgage payoff statements and monthly billing information, and (3) 
contact delinquent consumers regarding options to avoid foreclosure. As 
with the HELOC Brochure and CHARM Booklet, the revised Settlement Cost 
Booklet also adds CFPB contact information and resources for consumers, 
and updates other federal agency contact information. The CFPB 
resources added include: information about how consumers can submit a 
complaint to the Bureau; a link to the Bureau's online ``Ask CFPB'' 
tool to find answers to questions about mortgages and other financial 
topics; and a link to an online tool to find local HUD-approved housing 
counseling agencies. These changes obviate the relevance of the 
permissible chang.es stated in 12 CFR 1024.6(d)(1)(ii) and the last 
sentence of 12 CFR 1024.6(d)(2) for those using the revised Settlement 
Cost Booklet.
    The CFPB is hereby publishing this notice of availability regarding 
the revised HELOC Brochure, CHARM Booklet, and Settlement Cost Booklet 
to provide appropriate notice of the revisions.

    Dated: January 6, 2014.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2014-00272 Filed 1-9-14; 8:45 am]
BILLING CODE 4810-AM-P
```