Source: https://www.law.cornell.edu/cfr/text/12/1026.31
Timestamp: 2017-01-23 21:21:18
Document Index: 441208317

Matched Legal Cases: ['art 1026', 'art 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', 'art 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 2601', '§ 2603', '§ 2604', '§ 2605', '§ 2607', '§ 2609', '§ 2617', '§ 5511', '§ 5512', '§ 5532', '§ 5581', 'art 1026', 'arts 1024', 'art 1026', 'art 34', 'art 226', 'art 1026', '§\u20091026', 'arts 1026', 'art 1026', 'art 1026', 'art 1026', 'art 1026', 'arts 1024', 'art 1026', 'art 1026']

12 CFR 1026.31 - General rules. | US Law | LII / Legal Information Institute
CFR › Title 12 › Chapter X › Part 1026 › Subpart E › Section 1026.31 12 CFR 1026.31 - General rules.
There are 14 Updates appearing in the Federal Register for 12 CFR Part 1026. View below or at eCFR (GPOAccess)
§ 1026.31 General rules.
(a)Relation to other subparts in this part. The requirements and limitations of this subpart are in addition to and not in lieu of those contained in other subparts of this part.
(b)Form of disclosures. The creditor shall make the disclosures required by this subpart clearly and conspicuously in writing, in a form that the consumer may keep. The disclosures required by this subpart may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001et seq.).
(c)Timing of disclosure - (1)Disclosures for high-cost mortgages. The creditor shall furnish the disclosures required by § 1026.32 at least three business days prior to consummation or account opening of a high-cost mortgage as defined in § 1026.32(a).
(i)Change in terms. After complying with this paragraph (c)(1) and prior to consummation or account opening, if the creditor changes any term that makes the disclosures inaccurate, new disclosures shall be provided in accordance with the requirements of this subpart.
(ii)Telephone disclosures. A creditor may provide new disclosures required by paragraph (c)(1)(i) of this section by telephone if the consumer initiates the change and if, prior to or at consummation or account opening:
(B) The consumer and creditor sign a statement that the new disclosures were provided by telephone at least three days prior to consummation or account opening, as applicable.
(iii)Consumer's waiver of waiting period before consummation or account opening. The consumer may, after receiving the disclosures required by this paragraph (c)(1), modify or waive the three-day waiting period between delivery of those disclosures and consummation or account opening if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency. To modify or waive the right, the consumer shall give the creditor a dated written statement that describes the emergency, specifically modifies or waives the waiting period, and bears the signature of all the consumers entitled to the waiting period. Printed forms for this purpose are prohibited, except when creditors are permitted to use printed forms pursuant to § 1026.23(e)(2).
(2)Disclosures for reverse mortgages. The creditor shall furnish the disclosures required by § 1026.33 at least three business days prior to:
(d)Basis of disclosures and use of estimates - (1)Legal Obligation. Disclosures shall reflect the terms of the legal obligation between the parties.
(2)Estimates. If any information necessary for an accurate disclosure is unknown to the creditor, the creditor shall make the disclosure based on the best information reasonably available at the time the disclosure is provided, and shall state clearly that the disclosure is an estimate.
(3)Per-diem interest. For a transaction in which a portion of the interest is determined on a per-diem basis and collected at consummation, any disclosure affected by the per-diem interest shall be considered accurate if the disclosure is based on the information known to the creditor at the time that the disclosure documents are prepared.
(e)Multiple creditors; multiple consumers. If a transaction involves more than one creditor, only one set of disclosures shall be given and the creditors shall agree among themselves which creditor must comply with the requirements that this part imposes on any or all of them. If there is more than one consumer, the disclosures may be made to any consumer who is primarily liable on the obligation. If the transaction is rescindable under § 1026.15 or § 1026.23, however, the disclosures shall be made to each consumer who has the right to rescind.
(f)Effect of subsequent events. If a disclosure becomes inaccurate because of an event that occurs after the creditor delivers the required disclosures, the inaccuracy is not a violation of Regulation Z (12 CFR part 1026), although new disclosures may be required for mortgages covered by § 1026.32 under paragraph (c) of this section, § 1026.9(c), § 1026.19, or § 1026.20.
(g)Accuracy of annual percentage rate. For purposes of section 1026.32, the annual percentage rate shall be considered accurate, and may be used in determining whether a transaction is covered by section 1026.32, if it is accurate according to the requirements and within the tolerances under section 1026.22 for closed-end credit transactions or 1026.6(a) for open-end credit plans. The finance charge tolerances for rescission under section 1026.23(g) or (h) shall not apply for this purpose.
(h)Corrections and unintentional violations. A creditor or assignee in a high-cost mortgage, as defined in § 1026.32(a), who, when acting in good faith, failed to comply with any requirement under section 129 of the Act will not be deemed to have violated such requirement if the creditor or assignee satisfies either of the following sets of conditions:
(i) Within 30 days of consummation or account opening and prior to the institution of any action, the consumer is notified of or discovers the violation;
(ii) Appropriate restitution is made within a reasonable time; and
(iii) Within a reasonable time, whatever adjustments are necessary are made to the loan or credit plan to either, at the choice of the consumer:
(A) Make the loan or credit plan satisfy the requirements of 15 U.S.C. 1631-1651; or
(B) Change the terms of the loan or credit plan in a manner beneficial to the consumer so that the loan or credit plan will no longer be a high-cost mortgage.
(i) Within 60 days of the creditor's discovery or receipt of notification of an unintentional violation or bona fide error and prior to the institution of any action, the consumer is notified of the compliance failure;
(B) Change the terms of the loan or credit plan in a manner beneficial to the consumer so that the loan or credit plan will no longer be a high-cost mortgage. [76 FR 79772, Dec. 22, 2011, as amended at 78 FR 6962, Jan. 31, 2013; 78 FR 60440, Oct. 1, 2013] This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 12 - BANKS AND BANKING§ 2601 - Congressional findings and purpose§ 2603 - Uniform settlement statement§ 2604 - Home buying information booklets§ 2605 - Servicing of mortgage loans and administration of escrow accounts§ 2607 - Prohibition against kickbacks and unearned fees§ 2609 - Limitation on requirement of advance deposits in escrow accounts§ 2617 - Authority of Bureau§ 5511 - Purpose, objectives, and functions§ 5512 - Rulemaking authority§ 5532 - Disclosures§ 5581 - Transfer of consumer financial protection functions
Title 12 published on 2015-12-05The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR Part 1026 after this date.2016-12-21; vol. 81 # 245 - Wednesday, December 21, 201681 FR 93581 - Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold
2016-11-22; vol. 81 # 225 - Tuesday, November 22, 201681 FR 83934 - Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth In Lending Act (Regulation Z)
2016-10-19; vol. 81 # 202 - Wednesday, October 19, 201681 FR 72160 - Amendments to the 2013 Mortgage Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)
typeregulations.gov FR Doc.2016-18901 RIN3170-AA49 Docket No.CFPB-2014-0033 BUREAU OF CONSUMER FINANCIAL PROTECTION Final rule. This final rule is effective on October 19, 2017, except that the following amendments are effective on April 19, 2018: Amendatory instructions 5, 6.b, 7, 8, 9, 11.b, 17.a.ii, 17.b.ii, 17.c, 17.d.ii, 17.f.i, 17.i.i, 17.k, 19, 20, 22, 23.c, 25.a, 25.b, 25.c.ii, and 25.d.ii. For additional discussion regarding the effective date of the rule, see part VI of the SUPPLEMENTARY INFORMATION below. 12 CFR Parts 1024 and 1026 SummaryThe Bureau of Consumer Financial Protection (Bureau) is amending certain mortgage servicing rules issued by the Bureau in 2013. This final rule clarifies, revises, or amends provisions regarding force-placed insurance notices, policies and procedures, early intervention, and loss mitigation requirements under Regulation X&apos;s servicing provisions; and prompt crediting and periodic statement requirements under Regulation Z&apos;s servicing provisions. The final rule also addresses proper compliance regarding certain servicing requirements when a person is a potential or confirmed successor in interest, is a debtor in bankruptcy, or sends a cease communication request under the Fair Debt Collection Practices Act. The final rule also makes technical corrections to several provisions of Regulations X and Z. The Bureau is issuing concurrently with this final rule an interpretive rule under the Fair Debt Collection Practices Act relating to servicers&apos; compliance with certain mortgage servicing rules.
2016-08-15; vol. 81 # 157 - Monday, August 15, 201681 FR 54318 - Amendments to Federal Mortgage Disclosure Requirements Under the Truth in Lending Act (Regulation Z)
typeregulations.gov FR Doc.2016-18426 RIN3170-AA61 Docket No.CFPB-2016-0038 BUREAU OF CONSUMER FINANCIAL PROTECTION Proposed rule with request for public comment. Comments must be received on or before October 18, 2016. 12 CFR Part 1026 SummaryThe Bureau of Consumer Financial Protection (Bureau) is proposing various amendments to Federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Regulation Z. The proposed amendments memorialize the Bureau&apos;s informal guidance on various issues and include clarifications and technical amendments. The Bureau is also proposing tolerance provisions for the total of payments, an adjustment to a partial exemption mainly affecting housing finance agencies and nonprofits, extension of coverage of the integrated disclosure requirements to all cooperative units, and guidance on sharing the disclosures with various parties involved in the mortgage origination process.
2016-08-04; vol. 81 # 150 - Thursday, August 4, 201681 FR 51394 - Appraisals for Higher-Priced Mortgage Loans Exemption Threshold
typeregulations.gov FR Doc.2016-18058 RIN1557-AD99 Docket No.R-1443 Docket No.OCC-2015-0021 Docket No.CFPB-2016-0035 DEPARTMENT OF THE TREASURY, FEDERAL RESERVE SYSTEM, BUREAU OF CONSUMER FINANCIAL PROTECTION, Office of the Comptroller of the Currency Proposed rule; request for public comment. Comments must be received on or before September 6, 2016. 12 CFR Part 34 SummaryThe OCC, the Board and the Bureau are publishing proposed rules amending the official interpretations for their regulations that implement section 129H of the Truth in Lending Act (TILA). Section 129H of TILA establishes special appraisal requirements for “higher-risk mortgages,” termed “higher-priced mortgage loans” or “HPMLs” in the agencies&apos; regulations. The OCC, the Board, the Bureau, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Federal Housing Finance Agency (FHFA) (collectively, the Agencies) issued joint final rules implementing these requirements, effective January 18, 2014. The Agencies&apos; rules exempted, among other loan types, transactions of $25,000 or less, and required that this loan amount be adjusted annually based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the OCC, the Board and the Bureau will not adjust this exemption threshold from the prior year. The proposal would memorialize this as well as the agencies&apos; calculation method for determining the adjustment in years following a year in which there is no annual percentage increase in the CPI-W.
81 FR 51404 - Truth in Lending (Regulation Z)
typeregulations.gov FR Doc.2016-18062 RIN7100 AE57 Docket No.R-1546 Docket No.CFPB-2016-0037 FEDERAL RESERVE SYSTEM, BUREAU OF CONSUMER FINANCIAL PROTECTION Proposed rule; official interpretations. Comments must be received on or before September 6, 2016. 12 CFR Part 226 SummaryThe Board and the Bureau are proposing to amend the official interpretations and commentary for the agencies&apos; regulations that implement the Truth in Lending Act (TILA). The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended TILA by requiring that the dollar threshold for exempt consumer credit transactions be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the Board and Bureau will not adjust this exemption threshold from the prior year. The proposal would memorialize this as well as the agencies&apos; calculation method for determining the adjustment in years following a year in which there is no annual percentage increase in the CPI-W. Because the Dodd-Frank Act also requires similar adjustments in the Consumer Leasing Act&apos;s threshold for exempt consumer leases, the Board and the Bureau are proposing similar amendments to the commentaries to each of their respective regulations implementing the Consumer Leasing Act elsewhere in the Federal Register .
2016-07-29; vol. 81 # 146 - Friday, July 29, 201681 FR 49869 - Truth in Lending (Regulation Z)
typeregulations.gov FR Doc.2016-18050 RIN BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 Summary
2016-06-27; vol. 81 # 123 - Monday, June 27, 201681 FR 41418 - Truth in Lending (Regulation Z) Annual Threshold Adjustments (CARD Act, HOEPA and ATR/QM)
typeregulations.gov FR Doc.2016-14782 RIN BUREAU OF CONSUMER FINANCIAL PROTECTION Final rule; official interpretation. This final rule is effective January 1, 2017, except for the amendment to § 1026.52(b)(1)(ii)(B) which is effective on June 27, 2016. 12 CFR Parts 1026 SummaryThe Bureau of Consumer Financial Protection (Bureau) is issuing this final rule amending the regulatory text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). In addition to adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index in effect on June 1, 2016, the Bureau is correcting a calculation error pertaining to the 2016 subsequent violation penalty safe harbor fee.
2016-04-28; vol. 81 # 82 - Thursday, April 28, 201681 FR 25323 - Finalization of Interim Final Rules (Subject to Any Intervening Amendments) Under Consumer Financial Protection Laws
2016-04-26; vol. 81 # 80 - Tuesday, April 26, 201681 FR 24519 - Amendments to the 2013 Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)
typeregulations.gov FR Doc.2016-09695 RIN3170-AA49 Docket No.CFPB-2016-0016 BUREAU OF CONSUMER FINANCIAL PROTECTION Reopening of comment period with request for public comment. The comment period for the proposed rule published on December 15, 2014 (79 FR 74176) is reopened. Comments must be received on or before May 26, 2016. 12 CFR Part 1026 SummaryThe Bureau of Consumer Financial Protection (Bureau) is reopening the comment period for a specific aspect of the proposed rule published by the Bureau in the Federal Register on December 15, 2014 (79 FR 74176). On December 15, 2014, the Bureau published for notice and comment proposed amendments to certain mortgage servicing provisions in Regulation X and Regulation Z. Among other things, the proposed rule: Addressed requiring servicers to provide modified periodic statements under Regulation Z to consumers who have filed for bankruptcy, subject to certain exceptions; included related proposed sample periodic statement forms; and indicated that the Bureau intended to conduct consumer testing of the proposed sample forms and would publish and seek comment on a report summarizing the methods and results of such testing prior to finalizing any sample forms. The original comment period to the proposed rule closed on March 16, 2015. The Bureau conducted consumer testing of sample periodic statement forms for consumers in bankruptcy after the close of the original comment period. The Bureau now reopens the comment period until May 26, 2016 to seek comment specifically on the report summarizing consumer testing of sample periodic statement forms for consumers in bankruptcy.
2016-04-05; vol. 81 # 65 - Tuesday, April 5, 201681 FR 19467 - Submission of Credit Card Agreements Under the Truth in Lending Act (Regulation Z)
typeregulations.gov FR Doc.2016-07815 RIN BUREAU OF CONSUMER FINANCIAL PROTECTION Notice of expiration of suspension. Credit card issuers are required to submit to the Bureau the agreements they offered to the public as of March 31, 2016, on or before May 2, 2016. 12 CFR Part 1026 SummaryThe Truth in Lending Act (TILA) and Regulation Z require credit card issuers to submit their currently-offered credit card agreements to the Bureau of Consumer Financial Protection (Bureau), to be posted on the Bureau&apos;s Web site. In April 2015, the Bureau suspended that submission obligation for a period of one year. That suspension has expired, and the next submission is due on the first business day on or after April 30, 2016 ( i.e., May 2, 2016). Credit card issuers should visit the Bureau&apos;s Web site for instructions on submitting credit card agreements.
2016-03-25; vol. 81 # 58 - Friday, March 25, 201681 FR 16074 - Operations in Rural Areas Under the Truth in Lending Act (Regulation Z); Interim Final Rule
typeregulations.gov FR Doc.2016-06834 RIN3170-AA59 Docket No.CFPB-2016-0013 BUREAU OF CONSUMER FINANCIAL PROTECTION Interim final rule with request for public comment. This final rule is effective on March 31, 2016. Comments may be submitted on or before April 25, 2016. 12 CFR Part 1026 SummaryThis interim final rule amends certain provisions of Regulation Z in light of title LXXXIX of the Fixing America&apos;s Surface Transportation Act, entitled the Helping Expand Lending Practices in Rural Communities Act, Public Law 114-94. The amendments to Regulation Z concern two matters: The eligibility of certain small creditors that operate in rural or underserved areas for special provisions that permit the origination of balloon-payment qualified mortgages and balloon-payment high cost mortgages and for an exemption from the requirement to establish an escrow account for higher-priced mortgage loans and the determination of whether an area is rural for the purposes of Regulation Z.
2016-03-03; vol. 81 # 42 - Thursday, March 3, 201681 FR 11099 - Application Process for Designation of Rural Area under Federal Consumer Financial Law; Procedural Rule
typeregulations.gov FR Doc.2016-04643 RIN3170-AA58 BUREAU OF CONSUMER FINANCIAL PROTECTION Final rule. This final rule is effective March 3, 2016. The Bureau will begin accepting applications submitted according to the procedure established herein on March 31, 2016. 12 CFR Part 1026 SummaryThe Bureau of Consumer Financial Protection (Bureau) is adopting a procedural rule establishing an application process under which a person may identify an area that has not been designated by the Bureau as a rural area for purposes of a Federal consumer financial law and apply for such area to be so designated. Currently the Bureau designates rural areas for purposes of certain Federal consumer financial laws relating to mortgage lending.
2016-02-10; vol. 81 # 27 - Wednesday, February 10, 201681 FR 7032 - 2013 Integrated Mortgage Disclosures Rule Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z); Correction of Supplementary Information
typeregulations.gov FR Doc.2016-02630 RIN3170-AA19 BUREAU OF CONSUMER FINANCIAL PROTECTION Correction of supplementary information. This correction is effective on February 10, 2016. 12 CFR Parts 1024 and 1026 SummaryIn 2013, the Consumer Financial Protection Bureau (Bureau) issued the “Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)” final rule (TILA-RESPA Final Rule). 1 The Supplementary Information to the TILA-RESPA Final Rule contained a typographical error, which this document corrects, regarding the application of tolerances to property insurance premiums, property taxes, homeowner&apos;s association dues, condominium fees, and cooperative fees. 1 78 FR 79730 (Dec. 31, 2013).
2015-12-24; vol. 80 # 247 - Thursday, December 24, 201580 FR 80228 - 2013 Integrated Mortgage Disclosures Rule Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z); Correction
typeregulations.gov FR Doc.2015-32463 RIN3170-AA19 BUREAU OF CONSUMER FINANCIAL PROTECTION Final rule; Official interpretations; Correction. These corrections are effective on December 24, 2015. 12 CFR Part 1026 SummaryThe Consumer Financial Protection Bureau (Bureau) is making technical corrections to Regulation Z (Truth in Lending) and the Official Interpretations of Regulation Z. These corrections republish certain provisions of Regulation Z and the Official Interpretations that were inadvertently removed from or not incorporated into the Code of Federal Regulations by the “Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)” final rule (TILA-RESPA Final Rule).
2015-12-23; vol. 80 # 246 - Wednesday, December 23, 201580 FR 79674 - Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold
typeregulations.gov FR Doc.2015-32293 RIN BUREAU OF CONSUMER FINANCIAL PROTECTION Final rule; official interpretation. This final rule is effective January 1, 2016. 12 CFR Part 1026 SummaryThe Bureau is amending the official commentary that interprets the requirements of the Bureau&apos;s Regulation Z (Truth in Lending) to reflect a change in the asset size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12-month period ending in November. The exemption threshold is adjusted to decrease to $2.052 billion from $2.060 billion. The adjustment is based on the 0.4 percent decrease in the average of the CPI-W for the 12-month period ending in November 2015. Therefore, creditors with assets of less than $2.052 billion (including assets of certain affiliates) as of December 31, 2015, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2016. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2017. The adjustment to the escrows exemption asset-size threshold will also decrease a similar threshold for small-creditor portfolio and balloon-payment qualified mortgages. Balloon-payment qualified mortgages that satisfy all applicable criteria, including being made by creditors that have (together with certain affiliates) total assets below the threshold, are also excepted from the prohibition on balloon payments for high-cost mortgages.
7 CFR 3555.109 — Qualified Mortgage.
12 CFR 1026.2 — Definitions and Rules of Construction.
Title 12 published on 2015-12-05.The following are only the Rules published in the Federal Register after the published date of Title 12.For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.2016-12-21; vol. 81 # 245 - Wednesday, December 21, 201681 FR 93581 - Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold