Truth in Lending
February 19, 1998
Circular No. 11028

Additional Comments Requested by March 9 on Legislative Recommendations

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has requested additional comment on possible streamlining and reform of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) for home-secured loans.

Comments are requested by March 9.

The Economic Growth and Regulatory Paperwork Reduction Act of 1996 directed the Board and the Department of Housing and Urban Development to submit legislative recommendations to the Congress on how to simplify and improve consumer disclosures under TILA and RESPA, if the disclosures could not be simplified by regulation.

In March 1997, the Board determined that regulatory changes alone would be inadequate to achieve the goals of the Congress and invited public comment on legislative changes to harmonize the two Acts.

The Board is now reopening the comment period to obtain additional views on matters such as the timing, content, and reliability of disclosures by inviting certain individuals to participate in focus groups. Comment from other interested parties is also welcomed.

The Board's reopened request, as published in the Federal Register of February 6 is available as file (pdf - 12kb). (The Board had originally requested comment on this matter in April 1997 (see our Circular No. 10943).) Comments should be submitted to the Board by March 9, as specified in the notice.