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Consumer Banking and Payments Law: 36(c) Cancellation

1. Scheduled remittance transfer. Section 1005.36(c) applies when a remittance transfer is scheduled by the sender at least three business days before the date of the transfer, whether the sender schedules a preauthorized remittance transfer or a one-time transfer. A remittance transfer is scheduled if it will require no further action by the sender to send the transfer after the sender requests the transfer.

Consumer Banking and Payments Law: 36(d) Date of Transfer for Subsequent Preauthorized Remittance Transfers

1. General. Section 1005.36(d)(2)(i) permits remittance transfer providers some flexibility in determining how and when the disclosures required by § 1005.36(d)(1) may be provided to senders. The disclosure described in § 1005.36(d)(1) may be provided as a separate disclosure, or on or with any other disclosure required by this subpart B related to the same series of preauthorized remittance transfers, provided that the disclosure and timing requirements in § 1005.36(d)(2) and other applicable provisions in subpart B are satisfied.

Consumer Banking and Payments Law: Appendix A Model Disclosure Clauses and Forms

1. Review of forms. The Bureau will not review or approve disclosure forms or statements for financial institutions. However, the Bureau has issued model clauses for institutions to use in designing their disclosures. If an institution uses these clauses accurately to reflect its service, the institution is protected from liability for failure to make disclosures in proper form.

Consumer Banking and Payments Law: Amendment History

[77 Fed. Reg. 6297 (Feb. 7, 2012); 77 Fed. Reg. 50,285 (Aug. 20, 2012); 78 Fed. Reg. 6025 (Jan. 29, 2013); 78 Fed. Reg. 18,224 (Mar. 26, 2013); 78 Fed. Reg. 30,662, 30,714 (May 22, 2013); 78 Fed. Reg. 49,366 (Aug. 14, 2013); 78 Fed. Reg. 69,753 (Nov. 21, 2013); 79 Fed. Reg. 55,993 (Sept. 18, 2014); 81 Fed. Reg. 70,320 (Oct. 12, 2016); 81 Fed. Reg. 84,345 (Nov. 22, 2016); 82 Fed. Reg. 18,975, 18,980 (Apr. 25, 2017); 83 Fed. Reg. 6364, 6420 (Feb. 13, 2018); 85 Fed. Reg. 34,905 (June 5, 2020)]

Truth in Lending: Editor’s Note

12 C.F.R. pt. 1026, amended through 88 Fed. Reg. 30,598 (May 11, 2023).

This appendix reproduces the Official Interpretations of Regulation Z, including amendments enacted through May 11, 2023. Footnotes indicating the provisions with recent effective dates have been added where appropriate. Citations to Federal Register notices, beginning in 2000, are added at the end of specific provisions, noting amendments to that provision. The full text of the Federal Register notices are reprinted at this treatise’s digital version under “Primary Sources.”

Consumer Banking and Payments Law: Introductory Materials

15 U.S.C. §§ 7001—7031. The public law section number from the original enactment of the Electronic Signatures in Global and National Commerce Act (E-Sign Act), Pub. L. No. 106-229, 114 Stat. 464 (2000), is found in brackets at the end of the title of each codified section.

Title 15. Commerce and Trade

Chapter 96. Electronic Signatures in Global and National Commerce

Subchapter I—Electronic Records and Signatures in Commerce

Consumer Banking and Payments Law: 15 U.S.C. § 7001. General rule of validity

(a) In general

Notwithstanding any statute, regulation, or other rule of law (other than this subchapter and subchapter II of this chapter), with respect to any transaction in or affecting interstate or foreign commerce—

(1) a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form; and

Consumer Banking and Payments Law: 15 U.S.C. § 7003. Specific exceptions

(a) Excepted requirements

The provisions of section 7001 of this title shall not apply to a contract or other record to the extent it is governed by—

(1) a statute, regulation, or other rule of law governing the creation and execution of wills, codicils, or testamentary trusts;

(2) a State statute, regulation, or other rule of law governing adoption, divorce, or other matters of family law; or

Consumer Banking and Payments Law: 15 U.S.C. § 7004. Applicability to Federal and State Governments

(a) Filing and access requirements

Subject to subsection (c)(2) of this section, nothing in this subchapter limits or supersedes any requirement by a Federal regulatory agency, self-regulatory organization, or State regulatory agency that records be filed with such agency or organization in accordance with specified standards or formats.

(b) Preservation of existing rulemaking authority

(1) Use of authority to interpret

Consumer Banking and Payments Law: 15 U.S.C. § 7005. Studies

(a) Delivery

Within 12 months after June 30, 2000, the Secretary of Commerce shall conduct an inquiry regarding the effectiveness of the delivery of electronic records to consumers using electronic mail as compared with delivery of written records via the United States Postal Service and private express mail services. The Secretary shall submit a report to the Congress regarding the results of such inquiry by the conclusion of such 12-month period.

Consumer Banking and Payments Law: 15 U.S.C. § 7006. Definitions

For purposes of this subchapter:

(1) Consumer

The term “consumer” means an individual who obtains, through a transaction, products or services which are used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

(2) Electronic

Consumer Banking and Payments Law: 15 U.S.C. § 7021. Transferable records

(a) Definitions—

For purposes of this section:

(1) Transferable record

The term “transferable record” means an electronic record that—

(A) would be a note under Article 3 of the Uniform Commercial Code if the electronic record were in writing;

(B) the issuer of the electronic record expressly has agreed is a transferable record; and

Mortgage Lending: 1.5.8 Appraisers and Appraisal Management Companies

Most lenders require an appraisal to determine whether a property will be adequate security for a mortgage loan. Lenders, or sometimes mortgage brokers, hire appraisers or appraisal management companies to determine the value of the property. Appraisers are individuals; appraisal firms are businesses or partnerships, like law firms. And appraisal management companies (AMCs) are essentially brokers for appraisal services. They administer panels of independent appraisers to perform appraisals and frequently act as middlemen between the lender and appraiser.

Mortgage Lending: 1.6.1 Overview

Securitization is the process of bundling loans and selling, in the form of securities, the right to receive a portion of the future income stream coming from the debtors’ payments on the loans.432 Mortgages have been securitized through a variety of means for over a century.433 The modern securitization of residential mortgages, however, has its roots in the 1970s, when the Ginnie Mae guaranteed the first residential mortgage-backed securities (RMBS) by pooling Veterans Administration and Feder

Mortgage Lending: 1.3.5.5 The Impact on Post-Crisis Origination Practices

Aside from the number of foreclosures, credit rationing was one of the most obvious effects of the crisis on the housing market. Consumer credit for new mortgages soon became hard to find.206 At the peak of the last mortgage boom, in 2005, lenders originated over seven million purchase-money mortgages for the year.207 By 2008 that number had dropped to about three million, and it settled to a low of about two and a half million in 2011.208

Truth in Lending: 55(a) General Rule.

1. Increase in rate, fee, or charge. Section 1026.55(a) prohibits card issuers from increasing an annual percentage rate or any fee or charge required to be disclosed under § 1026.6(b)(2)(ii), (b)(2)(iii), or (b)(2)(xii) on a credit card account unless specifically permitted by one of the exceptions in § 1026.55(b). Except as specifically provided in § 1026.55(b), this prohibition applies even if the circumstances under which an increase will occur are disclosed in advance. The following examples illustrate the general application of § 1026.55(a) and (b).

Truth in Lending: 55b-1 through 55b-5

1. Exceptions not mutually exclusive. A card issuer generally may increase an annual percentage rate or a fee or charge required to be disclosed under § 1026.6(b)(2)(ii), (b)(2)(iii), or (b)(2)(xii) pursuant to an exception set forth in § 1026.55(b) even if that increase would not be permitted under a different exception.