On December 16, the Office of the Comptroller of the Currency (OCC) issued a new Truth in Lending Act (TILA) booklet of the Comptroller’s Handbook.
Replacing guidance from December 2010, this booklet provides updated guidance and procedures to examiners in connection with recent changes made to Regulation Z (12 CFR 1026), primarily with regard to mortgage lending. This booklet’s examination procedures apply to all national banks and federal savings associations that offer consumer credit products covered by TILA. The examination worksheets in the TILA booklet may assist community banks in understanding their obligations under Regulation Z.
Significant revisions made to this booklet reflect:
- The transfer of rulemaking authority for TILA to CFPB from the Board of Governors of the Federal Reserve System as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank).
- Dodd-Frank’s amendments to TILA that:
- prohibit certain practices and loan terms; and
- expand protections or establish requirements for the following:
- high-cost mortgage loans (defined in 12 CFR 1026.32),
- appraisal-related requirements,
- loan originator compensation and qualifications,
- higher-priced mortgage loans (defined in 12 CFR 1026.35),
- determination of the consumer’s ability to repay,
- adjustable rate mortgage disclosures,
- mortgage servicing, and
- pre-loan counseling.
With the issuance of this booklet, the following guidance has been rescinded by the OCC:
- OCC Bulletin 2010-14, “Truth in Lending Act: Guidance” (March 25, 2010)
- OCC Bulletin 2010-44, “Truth in Lending Act – Regulation Z: Updated Examination Procedures” (December 16, 2010)
- “Interagency TILA/Regulation Z Examination Manual Narrative” and “Interagency TILA/Regulation Z Examination Procedures,” contained in OCC Bulletin 2014-7, “Interagency Examination Procedures for Consumer Compliance” (March 14, 2014)
You can follow the Consumer Financial Services Law Monitor for updates on this and other news related to the CFPB and mortgage lenders and servicers.