4812 Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Proposed Rules 

ACTION: Notice of proposed rulemaking 

(NPRM); reopening of comment period. 

SUMMARY: This document announces the 

reopening of the comment period for the 

above-referenced NPRM, which 

proposed the adoption of a new 

airworthiness directive (AD) that 

applies to The Boeing Company Model 

747 airplanes equipped with a main 

deck side cargo door (MDSCD). The 

NPRM proposed to require revising the 

airplane flight manual to incorporate 

limitations for carrying certain 

payloads. This reopening of the 

comment period is necessary to ensure 

that all interested persons have ample 

opportunity to submit any written 

relevant data, views, or arguments 

regarding the proposed requirements of 

the NPRM. 

DATES: We must receive comments on 

this NPRM (79 FR 71037, December 1, 

2014) by March 2, 2015. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, 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: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2014– 

0780; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD action, the regulatory 

evaluation, any comments received, and 

other information. The street address for 

the Docket Office (phone: 800–647– 

5527) is in the ADDRESSES section. 

Comments will be available in the AD 

docket shortly after receipt. 

FOR FURTHER INFORMATION CONTACT: 

Steven C. Fox, Senior Aerospace 

Engineer, Airframe Branch, ANM–120S, 

FAA, Seattle Aircraft Certification 

Office (ACO), 1601 Lind Avenue SW., 

Renton, WA 98057–3356; phone: 425– 

917–6425; fax: 425–917–6590; email: 

steven.fox@faa.gov. 

SUPPLEMENTARY INFORMATION: We 

proposed to amend 14 CFR part 39 by 

adding a notice of proposed rulemaking 

(NPRM) that would apply to The Boeing 

Company Model 747 airplanes equipped 

with an MDSCD. The NPRM was 

published in the Federal Register on 

December 1, 2014 (79 FR 71037). The 

NPRM proposed to require revising the 

airplane flight manual to incorporate 

limitations for carrying certain 

payloads. The NPRM also invites 

comments on its overall regulatory, 

economic, environmental, and energy 

aspects. 

Events Leading to the Reopening of the 

Comment Period 

Since we issued the NPRM (79 FR 

71037, December 1, 2014), several 

commenters have requested that the 

comment period be extended/reopened 

to provide additional time to comment 

on the merits of the proposal. 

FAA’s Determination 

We found it appropriate to reopen the 

comment period to give all interested 

persons additional time to examine the 

proposed requirements of the NPRM (79 

FR 71037, December 1, 2014) and 

submit comments. We have determined 

that reopening the comment period for 

30 days will not compromise the safety 

of these airplanes. 

Extension of Comment Period 

The comment period for Docket No. 

FAA–2014–0780, Directorate Identifier 

2014–NM–168–AD, has been revised. 

The comment period now closes March 

2, 2015. 

No other part of the regulatory 

information has been changed; 

therefore, the NPRM (79 FR 71037, 

December 1, 2014) is not republished in 

the Federal Register. 

Issued in Renton, Washington, on January 

16, 2015. 

Jeffrey E. Duven, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2015–01577 Filed 1–28–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 36 

RIN 2900–AP25 

Loan Guaranty: Adjustable Rate 

Mortgage Notification Requirements 

and Look-Back Period 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: This document proposes to 

amend the Department of Veterans 

Affairs (VA) Loan Guaranty Service 

(LGY) regulations that govern adjustable 

rate mortgages made in conjunction 

with the Home Loan Guaranty program. 

These revisions would align VA’s 

disclosure and interest rate adjustment 

requirements with the implementing 

regulations of the Truth in Lending Act 

(TILA), as recently revised by the 

Consumer Financial Protection Bureau 

(CFPB). Specifically, the rule would 

amend the timing, content, and format 

requirements for the disclosures 

provided to borrowers prior to an 

interest-rate adjustment. The proposed 

regulation would also require that an 

interest-rate adjustment correspond 

with the interest rate index available 45 

days prior to the adjustment. This 

proposed rulemaking would ensure 

VA’s consistency with other applicable 

consumer finance and housing 

regulations governing adjustable rate 

mortgages. 

DATES: Comments must be received by 

VA on or before March 30, 2015. 

ADDRESSES: Written comments may be 

submitted through 

www.Regulations.gov; by mail or handdelivery to Director, Regulation Policy 

and Management (02REG), Department 

of Veterans Affairs, 810 Vermont Ave. 

NW., Room 1068, Washington, DC 

20420; or by fax to (202) 273–9026. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AP25, Loan Guaranty: Adjustable Rate 

Mortgage Notification Requirements and 

Look-Back Period.’’ Copies of comments 

received will be available for public 

inspection in the Office of Regulation 

Policy and Management, Room 1068, 

between the hours of 8:00 a.m. and 4:30 

p.m., Monday through Friday (except 

holidays). Please call (202) 461–4902 for 

an appointment. (This is not a toll-free 

number.) In addition, during the 

comment period, comments may be 

viewed online through the Federal 

Docket Management System at 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: John 

Bell III, Assistant Director for Loan 

Policy (262), Veterans Benefits 

Administration, Department of Veterans 

Affairs, 810 Vermont Ave. NW., 

Washington, DC 20420, (202) 632–8786. 

(This is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: VA’s 

regulations governing adjustable rate 

mortgages are set forth at 38 CFR 

36.4312(d). VA proposes two 

amendments in this rulemaking to 

ensure VA regulations remain aligned 

with TILA and the implementing 

regulations set forth by the CFPB. First, 

VA proposes amending 38 CFR 


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36.4312(d)(6) so that the requirements 

for the disclosures and notifications that 

must be provided to borrowers prior to 

an interest-rate adjustment are crossreferenced to those set forth in the TILA 

implementing regulations at 12 CFR 

1026.20(c) and (d). The requirements of 

§ 1026.20(d) govern an initial interestrate adjustment, while the requirements 

in § 1026.20(c) govern subsequent 

interest-rate adjustments. Second, in an 

effort to remain consistent with 

Department of Housing and Urban 

Development (HUD) regulations, VA 

would amend 38 CFR 36.4312(d)(2) to 

require that lenders adjust interest rates 

based on the most recent interest rate 

index figure available 45 days prior to 

the interest rate adjustment, instead of 

the interest rate index available 30 days 

prior to the interest rate adjustment, as 

is currently required in VA’s 

regulations. (In the mortgage industry, 

the period of time between an interest 

rate adjustment and the date the interest 

rate is selected is commonly called the 

‘‘look-back period.’’) 

2013 TILA Servicing Rule 

In addition to the laws and 

regulations administered by VA, lenders 

making VA-guaranteed adjustable rate 

mortgages must comply with TILA and 

the Real Estate Settlement Procedures 

Act (RESPA), both of which are 

administered by CFPB. The changes VA 

proposes in this rulemaking are 

necessary to align VA’s adjustable rate 

mortgage regulations with amendments 

to the regulations implementing TILA 

that were published in the Federal 

Register by the CFPB on February 14, 

2013 (78 FR 10902), titled ‘‘Mortgage 

Servicing Rules Under the Truth in 

Lending Act (Regulation Z),’’ hereinafter 

called the ‘‘2013 TILA servicing rule’’. 

The 2013 TILA servicing rule revised 

the requirements of 12 CFR 1026.20(c) 

and (d) relating to the disclosures and 

notices that must be provided to 

borrowers before an adjusted payment is 

due. Paragraph (c) of section 1026.20 

requires that borrowers be provided 

certain specific disclosures in 

connection with an adjustment in the 

interest rate at least 60 days, but not 

more than 120 days, before the first 

payment at the adjusted level is due. In 

publishing the 2013 TILA servicing rule, 

CFPB stated in the rule’s preamble that 

25 days was insufficient notice for 

borrowers with adjustable rate 

mortgages to react to increased mortgage 

payments. See 78 FR 10924. Requiring 

that lenders provide 60 days’ advance 

notice of a payment increase to 

borrowers will improve borrowers’ 

ability to better able to manage their 

finances following the interest rate 

adjustments. See id. CFPB explained 

that this longer notice period will 

ensure that borrowers may budget 

adequately for the increase or pursue 

loss-mitigation resources that lenders 

may offer to borrowers facing financial 

hardship, such as home sale, loan 

modification, forbearance, deed-in-lieu 

of foreclosure, or, in particular, 

refinancing. See 78 FR 10919, 10924. 

CFPB found that 60 days’ notice ‘‘more 

closely reflects the time needed for 

consumers to refinance a loan.’’ 78 FR 

at 10924. 

Additionally, 12 CFR 1026.20(c) 

governs the content and format of the 

disclosures that must be sent to 

borrowers prior to the periodic interest 

rate adjustments. Under the revised 12 

CFR 1026.20(c), such disclosures must 

include, amongst other information, the 

term of the borrower’s adjustable rate 

mortgage, an explanation that the 

interest rate and mortgage payment will 

change, and a table displaying relevant 

information about the borrowers’ 

current and future interest rates and 

payments. (For the full list of 

requirements, see 12 CFR 1026.20(c)(2) 

and (c)(3).) CFPB explained in the rule’s 

preamble that providing borrowers with 

this information would help them 

understand that their interest rates were 

subject to periodic changes and allow 

them to easily compare current and 

future payments. See 78 FR 10928–29. 

This would enable borrowers to better 

manage the changes to their mortgage 

payments. See 78 FR 10902, 10928–29. 

All of the required disclosures must be 

in a format substantially similar to the 

sample formats prescribed in the 2013 

TILA servicing rule, which includes 

sample forms and disclosures. See 78 

FR 11009–10. 

The 2013 TILA servicing rule also 

revised 12 CFR 1026.20(d), which 

provides separate disclosure 

requirements for the initial interest rate 

adjustment on an adjustable rate 

mortgages. This rule requires that the 

first time an adjustment in the interest 

rate will cause a change to the monthly 

payment on an adjustable rate mortgage, 

borrowers must be provided appropriate 

disclosures at least 210, but not more 

than 240, days before the first payment 

at the adjusted level is due. If the new 

interest rate (or new payment calculated 

from the new interest rate) is not known 

as of the date of the disclosure, 

§ 1026.20(d) provides that an estimate 

shall be disclosed and labeled as such. 

Section 1026.20(d) also contains the 

requirements for the content and format 

of the initial disclosures. These 

disclosures, the accompanying 

information, and any related tables must 

include details such as, but not limited 

to, an explanation of the terms of the 

borrower’s adjustable rate mortgage, the 

effective date of the interest rate 

adjustment and when additional future 

interest adjustments are scheduled to 

occur, and the telephone number of the 

lender for borrowers to call if they 

anticipate not being able to make their 

new payments. (For a full list of 

requirements, see 12 CFR 1026.20(d)(2).) 

All disclosures required under 12 CFR 

1026.20(d) must be made in a format 

substantially similar to that prescribed 

by the 2013 TILA servicing rule, which 

includes sample formats for such 

disclosures. See 78 FR 11011–12. 

Additionally, the preamble to the 

2013 TILA servicing rule explains that 

adjustable rate mortgages with look-back 

periods of less than 45 days would not 

be able to comply with the new 60 day 

minimum notice requirement for the 

disclosures regulated under 12 CFR 

1026.20(c). See 78 FR 10910. It noted 

that adjustable rate mortgages 

guaranteed by VA and insured by FHA 

had look-back periods of between 15 

and 30 days. See 78 FR 10926. In 

explaining why a 45-day look-back 

period would be necessary for 

compliance with the 1026.20(c) 

minimum 60-day notice requirement, 

the preamble stated that a look-back 

period of 45 days would allow lenders 

to prepare the required interest-rate 

adjustment documents for borrowers 45 

days in advance of the interest rate 

adjustments. The typical mortgage 

billing cycle is 30 days, which means 

that there would be 30 days between the 

first date the adjusted interest rate 

would take effect and the date the new 

payment is due. These combined 

timeframes would give lenders an 

estimated 75 days between the date the 

interest rate index figure is chosen and 

the date that the borrower’s first 

adjusted payment is due. 78 FR 10924. 

CFPB explained in the preamble that it 

had determined 75 days should be 

sufficient time to prepare the required 

disclosures and comply with the 

requirement that borrowers receive 

notice of the interest-rate adjustment no 

later than 60 days before their adjusted 

payments are due. See id. 

The preamble also explained that a 

revised look-back period of 45 days 

would be consistent with the business 

practices of the majority of adjustable 

rate mortgage loan servicers, as many 

utilized a 45 day look-back period even 

prior to the 2013 TILA servicing rule 

taking effect. See 78 FR 10924. Further, 

the preamble described CFPB research 

showing that changing the length of the 

look-back period from 30 to 45 days 

would not meaningfully affect the way 


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4814 Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Proposed Rules 

that adjustable rate mortgages are priced 

at the time of loan origination. See id. 

Most provisions of the 2013 TILA 

servicing rule became effective January 

10, 2014. However, CFPB delayed the 

effective date of the notification 

requirements for VA-guaranteed loans 

until January 10, 2015, to give VA time 

to amend its regulations to eliminate the 

conflicts between VA’s existing 

regulations and the updated TILA 

implementing regulations. 78 FR 10927. 

The delayed effective date means that 

VA adjustable rate mortgages with a 

note date before January 10, 2015, may 

comply with VA’s current requirements, 

but any VA-guaranteed loans with a 

note date on or after January 10, 2015, 

must comply with the requirements of 

the 2013 TILA servicing rule. 

HUD Notice and Look-Back Rule 

Loans insured by the Federal Housing 

Authority (FHA) in HUD must also 

comply with the 2013 TILA servicing 

rule as of January 10, 2015. HUD 

published a final rule on August 26, 

2014, at 79 FR 50838, entitled 

‘‘Adjustable Rate Mortgage Notification 

Requirements and Look-Back Period for 

FHA-Insured Single Family Mortgages,’’ 

hereinafter called the ‘‘HUD notice and 

look-back rule.’’ This rule made two 

changes to HUD’s regulations at 24 CFR 

203.49. First, the HUD notice and lookback rule amended 24 CFR 203.49(h) to 

cross-reference the timing, content, and 

format requirements of 12 CFR 

1026.20(c) and (d) for the disclosures 

provided to borrowers with adjustable 

rate mortgages. Second, the HUD notice 

and look-back rule amended 24 CFR 

203.49(d)(2) to implement a 45-day 

look-back period for all loans originated 

on or after January 10, 2015. The final 

rule adopted the proposed rule 

(published May 8, 2014, at 79 FR 26376) 

without change. 

In the preamble to its final rule, HUD 

explained that its proposed rule would 

revise the look-back period for FHAinsured adjustable rate mortgages from 

30 to 45 days, and require that 

mortgagees of an FHA-insured 

adjustable rate mortgage provide at least 

a 60 day, but no more than 120 day, 

advance notice of an adjustment to a 

mortgagor’s monthly payment. 78 FR 

50838. The preamble stated that these 

changes were made in response to the 

2013 TILA servicing rule. Id. It 

explained that that the 2013 TILA 

servicing rule set the adjustable rate 

notice requirement to a period of 

between 60 and 120 days before the 

newly adjusted payment is due and 

established 45 days as the minimum 

adjustable rate mortgage look-back 

period. Id. HUD noted that the preamble 

to the 2013 TILA servicing rule had 

stated that FHA’s 30 day look-back 

period did not provide sufficient time to 

notify the mortgagor of an interest rate 

and monthly payment adjustment. Id. In 

the preamble to the proposed HUD 

notice and look-back rule, HUD further 

explained that ‘‘[r]evising the current 

30-day look-back period to 45 days 

would enable FHA-approved 

mortgagees to meet the 60 to 120-day 

notification period prior to any 

adjustment to a mortgagor’s monthly 

payment that may occur, as required by 

the 2013 TILA Servicing Rule.’’ 79 FR 

26377. 

VA’s Proposed Rule 

To ensure consistency with other 

Federal housing agency regulations, VA 

is proposing two amendments to its 

regulations at 38 CFR 36.4312(d). 

Section 36.4312(d)(6) Disclosures. 

This rulemaking proposes to amend 

38 CFR 36.4312(d)(6), which addresses 

the disclosures and notifications that 

must be provided to a borrower prior to 

an interest-rate adjustment. This change 

would ensure that VA’s regulations are 

consistent with the disclosure and 

notification requirements published in 

the 2013 TILA servicing rule by crossreferencing to the timing, content, and 

format requirements of the CFPB 

regulations at 12 CFR 1026.20(c) and 

(d). This cross-reference follows the 

example of the HUD notice and lookback rule, as set forth at 24 CFR 

203.49(h) and explained above. 

Specifically, VA proposes changing 

the title of paragraph (d)(6) from Annual 

disclosure to Disclosures. This change 

reflects that, in cross-referencing to the 

timing, content, and format 

requirements of 12 CFR 1026.20(c) and 

(d), VA is regulating both the 

disclosures provided to borrowers prior 

to the initial interest-rate adjustment 

and prior to all subsequent interest-rate 

adjustments. VA would remove the 25- 

day notice period and the list of VAspecific disclosures that must be 

provided to a borrower in current 

§ 36.4312(d)(6). VA would replace this 

text with a cross-reference to the 2013 

TILA servicing rule requirements 

published at 12 CFR 1026.20(c) and (d) 

so that proposed § 36.4312(d)(6) would 

state ‘‘[t]he lender must provide the 

borrower with disclosures in accordance 

with the timing, content, and format 

required by the regulations 

implementing the Truth in Lending Act 

(15 U.S.C. 1601 et seq.) at 12 CFR 

1026.20(c) and (d). A copy of these 

disclosures will be made a part of the 

lender’s permanent record on the loan.’’ 

Cross-referencing to the requirements 

of 12 CFR 1026.20(c) and (d) would lead 

to more detailed disclosures than VA 

currently requires. The first time a 

change to an interest rate would adjust 

a monthly payment on a VA-guaranteed 

adjustable rate mortgage, the lender 

would be required to provide 

appropriate disclosures to the borrower 

at least 210, but not more than 240, days 

before the first payment at the adjusted 

level is due. For subsequent changes to 

interest rates, the lender would need to 

provide the borrower certain specific 

disclosures at least 60 days, but not 

more than 120 days, before the first 

payment at the adjusted level is due. 

The content and format requirements for 

the disclosures can also be found at 12 

CFR 1026.20(c) and (d). 

By cross-referencing to the timing, 

content, and format requirements of 12 

CFR 1026.20(c) and (d), VA would 

eliminate any discrepancies in the 

disclosures required by VA’s regulations 

and the TILA implementing regulations 

published by CFPB, both of which are 

applicable to VA-guaranteed mortgages. 

Additionally, the cross-reference to the 

TILA requirements would ensure that 

VA’s regulations remain current in the 

event that CFPB revises 12 CFR 

1026.20(c) or (d), without VA having to 

amend its rule. Further, the crossreference to 12 CFR 1026.20(c) and (d) 

would ensure consistency with the HUD 

notice and look-back rule, which 

revised 24 CFR 203.49(h) to specifically 

cross-reference to the disclosure timing, 

content, and format requirements under 

12 CFR 1026.20(c) and (d). This 

alignment should ensure certainty and 

simplify any process or system updates 

required by private industry in response 

to the 2013 TILA servicing rule. 

Section 36.4312(d)(2) Frequency of 

Interest Rate Changes 

VA would amend 38 CFR 

36.4312(d)(2), Frequency of interest rate 

changes. VA is proposing to remove the 

last sentence of current § 36.4312(d)(2), 

which sets a look-back period of 30 

days. VA would remove the sentence 

that states: ‘‘[t]he current index figure 

shall be the most recent index figure 

available 30 days before the date of each 

interest rate adjustment.’’ VA would add 

two sentences to the end of paragraph 

(d)(2). The first sentence would clarify 

that loans with a note date before 

January 10, 2015, would retain the 30 

day look-back period. The next sentence 

would explain that loans with a note 

date on or after January 10, 2015, would 

have a look-back period of 45 days. 

The proposed regulation text added to 

paragraph (d)(2) would state that for 

loans where the date of the note is 


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Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Proposed Rules 4815 

before January 10, 2015, the current 

index figure will be the most recent 

index figure available 30 days before the 

date of each interest rate adjustment. It 

would also state that for loans where the 

date of the note is on or after January 10, 

2015, the current index figure will be 

the most recent index figure available 45 

days before the date of each interest rate 

adjustment. 

VA is proposing to use the term ‘‘date 

of the note’’ instead of referring to the 

date of mortgage loan origination 

because the date of the note is the legal 

date on which the obligations between 

the borrower and lender are established. 

This is a precise date for lenders to 

track. Accordingly, VA is also proposing 

to revise the sentence in (d)(2) that 

currently states ‘‘[t]he initial index 

figure shall be the most recent figure 

available before the date of mortgage 

loan origination.’’ Under the proposed 

rule, VA would remove the phrase 

‘‘mortgage loan origination’’ and replace 

it with ‘‘the note.’’ The revised sentence 

would read: ‘‘[t]he initial index figure 

shall be the most recent figure available 

before the date of the note.’’ This change 

in language is not intended to be 

substantive, but rather is meant to 

provide further certainty for lenders 

determining the regulatory requirements 

applicable to VA-guaranteed adjustable 

rate mortgages. 

This proposed change to the lookback period would help ensure lender 

compliance with the 2013 TILA 

servicing rule 60 day minimum notice 

requirement before the first adjusted 

payment is due. This change would also 

ensure VA regulations remain consistent 

with other Federal housing agency 

regulations, thereby adding certainty 

and clarity for program participants that 

originate and service VA and FHAbacked adjustable rate mortgages. 

As explained above under the heading 

TILA 2013 Servicing Rule, the 2013 

TILA servicing rule has been effective 

for a large portion of the mortgage 

market since January 10, 2014. CFPB 

explained in the preamble to the 2013 

TILA servicing rule, however, that it 

would ‘‘grandfather’’ FHA and VA 

adjustable rate mortgages with look-back 

periods of less than 45 days originated 

prior to one year after the effective date 

of the final rule. 78 FR 10927. 

Accordingly, the final rule provides 

until January 10, 2015, for VAguaranteed adjustable rate mortgages to 

satisfy the notice and disclosure 

requirements of the 2013 TILA servicing 

rule. See id. Since VA is merely 

conforming its look-back period to 

accord with TILA, VA is proposing to 

use the date that is one year after the 

effective date of the 2013 TILA servicing 

rule to determine which look-back 

period should apply to a given loan. For 

loans where the note is dated before 

January 10, 2015, the current 30-day 

period would apply. For loans where 

the note is dated on or after January 10, 

2015 the 45-day look-back period would 

apply. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

12866 (Regulatory Planning and 

Review) defines a ‘‘significant 

regulatory action’’ requiring review by 

the Office of Management and Budget 

(OMB), unless OMB waives such 

review, as ‘‘any regulatory action that is 

likely to result in a rule that may: (1) 

Have an annual effect on the economy 

of $100 million or more or adversely 

affect in a material way the economy, a 

sector of the economy, productivity, 

competition, jobs, the environment, 

public health or safety, or State, local, 

or tribal governments or communities; 

(2) Create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency; (3) 

Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) Raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in this Executive 

Order.’’ 

The economic, interagency, 

budgetary, legal, and policy 

implications of this regulatory action 

have been examined, and it has been 

determined not to be a significant 

regulatory action under Executive Order 

12866. VA’s impact analysis can be 

found as a supporting document at 

http://www.regulations.gov, usually 

within 48 hours after the rulemaking 

document is published. Additionally, a 

copy of the rulemaking and its impact 

analysis are available on VA’s Web site 

at http://www.va.gov/orpm/, by 

following the link for VA Regulations 

Published from FY 2004 to FYTD. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This proposed rule would 

have no such effect on State, local, and 

tribal governments, or on the private 

sector. 

Paperwork Reduction Act 

Although this document contains a 

provision constituting a collection of 

information at 38 CFR 36.4312(d)(6), 

under the Paperwork Reduction Act of 

1995 (44 U.S.C. 3501–3521), no new or 

proposed revised collections of 

information are associated with this 

proposed rule. The information 

collection provisions for this proposed 

rule are currently approved by OMB and 

have been assigned OMB control 

number 3170–0015. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed rule would not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act (5 U.S.C. 601–612). 

This proposed rule aligns the 

disclosure and look-back requirements 

for adjustable rate mortgages to the 

revised requirements in the 2013 TILA 

servicing rule. VA does not have 

discretion not to align these 

requirements with the new TILA 

requirements established by CFPB and 

implemented by CFPB in the 2013 TILA 

servicing rule. The revised disclosure 

and look-back requirements would 

apply to VA adjustable rate mortgages in 

January 2015, whether or not VA takes 

action. VA has initiated this rulemaking 

because it is important for VA 

regulations to be consistent with TILA. 

In this rule, VA would adopt the 

minimum 45 day look-back period to 

clarify that lenders must meet the TILA 

minimum requirements governing 

notification to borrowers. As discussed 

in this preamble, CFPB noted in its 

rulemaking that the majority of 

adjustable rate mortgages in the 

conventional market have look-back 

periods of 45 days or longer. With the 

2013 TILA servicing rule having taken 

effect on January 10, 2014, any lenders 

making adjustable rate mortgages in the 

conventional market have adjusted to 

the new TILA requirements. 

Additionally, the revisions to the 


tkelley on DSK3SPTVN1PROD with PROPOSALS
4816 Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Proposed Rules 

disclosure requirements simply conform 

VA requirements to the 2013 TILA 

servicing rule and the procedures 

currently followed in the conventional 

mortgage lending market. 

Accordingly, the Secretary certifies 

that the adoption of this proposed rule 

would not have a significant economic 

impact on a substantial number of small 

entities as they are defined in the 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612. Therefore, under 5 U.S.C. 605(b), 

this rulemaking is exempt from the 

initial and final regulatory flexibility 

analysis requirements of sections 603 

and 604. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance number and title for the 

program affected by this document are 

64.114, Veterans Housing—Guaranteed 

and Insured Loans. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, approved this document and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. Jose 

D. Riojas, Chief of Staff, Department of 

Veterans Affairs, approved this 

document on January 23, 2015, for 

publication 

List of Subjects in 38 CFR Part 36 

Condominiums, Flood insurance, 

Housing, Indians, Individuals with 

disabilities, Loan programs-housing and 

community development, Loan 

programs—Indians, Loan programs— 

veterans, Manufactured homes, 

Mortgage insurance, Reporting and 

recordkeeping requirements, Veterans. 

Dated: January 26, 2015. 

William F. Russo, 

Acting Director, Office of Regulation Policy 

& Management, Office of the General Counsel, 

U.S. Department of Veterans Affairs. 

For the reasons set out in the 

preamble, VA proposes to amend 38 

CFR part 36 as follows: 

PART 36—LOAN GUARANTY 

■ 1. The authority citation for part 36 

continues to read as follows: 

Authority: 38 U.S.C. 501 and as otherwise 

noted. 

■ 2. Revise § 36.4312(d)(2) and (d)(6) to 

read as follows: 

§ 36.4312 Interest rates. 

* * * * * 

(d) * * * 

(2) Frequency of interest rate changes. 

Interest rate adjustments must occur on 

an annual basis, except that the first 

adjustment may occur no sooner than 36 

months from the date of the borrower’s 

first mortgage payment. The adjusted 

rate will become effective the first day 

of the month following the adjustment 

date; the first monthly payment at the 

new rate will be due on the first day of 

the following month. To set the new 

interest rate, the lender will determine 

the change between the initial (i.e., base) 

index figure and the current index 

figure. The initial index figure shall be 

the most recent figure available before 

the date of the note. For loans where the 

date of the note is before January 10, 

2015, the current index figure shall be 

the most recent index figure available 30 

days before the date of each interest rate 

adjustment. For loans where the date of 

the note is on or after January 10, 2015, 

the current index figure shall be the 

most recent index figure available 45 

days before the date of each interest rate 

adjustment. 

* * * * * 

(6) Disclosures. The lender must 

provide the borrower with disclosures 

in accordance with the timing, content, 

and format required by the regulations 

implementing the Truth in Lending Act 

(15 U.S.C. 1601 et seq.) at 12 CFR 

1026.20(c) and (d). A copy of these 

disclosures will be made a part of the 

lender’s permanent record on the loan. 

* * * * * 

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 3170–0015.) 

[FR Doc. 2015–01681 Filed 1–28–15; 8:45 am] 

BILLING CODE 8320–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 1, 27 and 73 

[AU Docket No. 14–252; GN Docket No. 12– 

268; FCC 14–191; DA 15–24; DA 15–60] 

Comment Sought on Competitive 

Bidding Procedures for Broadcast 

Incentive Auction 1000, Including 1001 

and 1002 

AGENCY: Federal Communications 

Commission. 

ACTION: Proposed rule; proposed auction 

procedures. 

SUMMARY: The Auction 1000 Request for 

Comment initiates the pre-auction 

process by which the Federal 

Communications Commission will 

develop detailed procedures for the 

broadcast television spectrum incentive 

auction, taking into account public 

comment received in response to its 

proposals. The Auction 1000 Request for 

Comment includes specific proposals, 

including on determination of the initial 

broadcast television spectrum clearing 

target, opening bid prices, benchmarks 

for the final stage rule, and the final 

television channel assignment process, 

and seeks comment on those proposed 

procedures. 

DATES: Comments are due on or before 

February 13, 2015, and reply comments 

are due on or before March 13, 2015. 

Written comments on the Paperwork 

Reduction Act proposed information 

collection requirements must be 

submitted by the public, Office of 

Management and Budget (OMB), and 

other interested parties on or before 

March 30, 2015. 

ADDRESSES: All filings in response to 

this notice must refer to AU Docket No. 

14–252 and GN Docket No. 12–268. The 

Federal Communications Commission 

strongly encourages interested parties to 

file comments electronically, and 

requests that an additional copy of all 

comments and reply comments be 

submitted electronically to the 

following address: auction1000@fcc.gov. 

Comments may be submitted by any of 

the following methods: 

D Federal eRulemaking Portal: 

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

instructions for submitting comments. 

D Federal Communications 

Commission’s Web site: http://

fjallfoss.fcc.gov/ecfs2/. Follow the 

instructions for submitting comments. 

D Paper Filers: Parties who choose to 

file by paper must file an original and 

one copy of each filing. Filings can be 

sent by hand or messenger delivery, by 

commercial overnight courier, or by 

first-class or overnight U.S. Postal 

Service mail. All filings must be 

addressed to the Commission’s 

Secretary, Attn: WTB/ASAD, Office of 

the Secretary, Federal Communications 

Commission. All hand-delivered or 

messenger-delivered paper filings for 

the Commission’s Secretary must be 

delivered to FCC Headquarters at 445 

12th Street SW., Room TW–A325, 

Washington, DC 20554. All hand 

deliveries must be held together with 

rubber bands or fasteners. Any 

envelopes must be disposed of before 

entering the building. Commercial 

overnight mail (other than U.S. Postal 

Service Express Mail and Priority Mail) 

must be sent to 9300 East Hampton 

Drive, Capitol Heights, MD 20743. U.S. 

Postal Service first-class, Express, and 

Priority mail must be addressed to 445 

12th Street SW., Washington, DC 20554. 

People with Disabilities: Contact the 

FCC to request reasonable 


tkelley on DSK3SPTVN1PROD with PROPOSALS