Notice2022-27324
Notice of Availability of Revised Consumer Information Publication
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 16, 2022
Issuing agencies
Consumer Financial Protection Bureau
Abstract
The Consumer Financial Protection Bureau (Bureau or CFPB) announces the availability of an updated consumer publication, "What You Should Know about Home Equity Lines of Credit," also known as the HELOC booklet, required by the Truth in Lending Act (TILA), as implemented by Regulation Z. This version of the HELOC booklet is updated to align with the Bureau's educational efforts, to be more concise, and to improve readability and usability.
Full Text
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<title>Federal Register, Volume 87 Issue 241 (Friday, December 16, 2022)</title>
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[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Page 77078]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27324]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
Notice of Availability of Revised Consumer Information
Publication
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice of availability.
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SUMMARY: The Consumer Financial Protection Bureau (Bureau or CFPB)
announces the availability of an updated consumer publication, ``What
You Should Know about Home Equity Lines of Credit,'' also known as the
HELOC booklet, required by the Truth in Lending Act (TILA), as
implemented by Regulation Z. This version of the HELOC booklet is
updated to align with the Bureau's educational efforts, to be more
concise, and to improve readability and usability.
ADDRESSES: The updated consumer publication is available for download
on the Bureau's website at <a href="https://www.consumerfinance.gov/learnmore">https://www.consumerfinance.gov/learnmore</a>
and can also be found in the Catalog of U.S. Government Publications
(<a href="https://catalog.gpo.gov">https://catalog.gpo.gov</a>), maintained by Superintendent of Documents,
U.S. Government Printing Office, Washington, DC 20402.
FOR FURTHER INFORMATION CONTACT: Davida Farrar, Supervisory Attorney
Advisor, Consumer Education and External Affairs Division; Laura
Schlachtmeyer, Senior Financial Education Content Specialist, Office of
Financial Education; <a href="/cdn-cgi/l/email-protection#6e2d283e2c311c0b0907001f1b071c070b1d2e0d081e0c40090118"><span class="__cf_email__" data-cfemail="91d2d7c1d3cee3f4f6f8ffe0e4f8e3f8f4e2d1f2f7e1f3bff6fee7">[email protected]</span></a> or (202) 435-7700. If
you require this document in an alternative electronic format, please
contact <a href="/cdn-cgi/l/email-protection#8bc8cddbc9d4cae8e8eef8f8e2e9e2e7e2fff2cbe8edfbe9a5ece4fd"><span class="__cf_email__" data-cfemail="7d3e3b2d3f223c1e1e180e0e141f14111409043d1e1b0d1f531a120b">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Bureau is hereby publishing this notice
of availability to inform the public of the existence of an updated
version of the booklet entitled, ``What You Should Know about Home
Equity Lines of Credit.''
Background on the HELOC Booklet
The Truth in Lending Act (TILA) \1\ was enacted in part to ensure
consumers have clear, accurate information about credit terms and
conditions to assist them in comparison shopping. TILA provisions
include requirements that lenders give consumers certain disclosures
related to a number of credit transactions. The Home Equity Loan
Consumer Protection Act of 1988 expanded TILA to require additional
disclosures for ``open end consumer credit plans . . . secured by the
consumer's principal dwelling.'' \2\ The amendments included? a
provision for the Board of Governors of the Federal Reserve System to
develop consumer pamphlets that provide ``a general description of open
end consumer credit plans secured by the consumer's principal dwelling
and the terms and conditions under which such loans are generally
extended'' and ``a discussion of the potential advantages and
disadvantages of such plans, including how to compare among home equity
plans and between home equity and closed end credit plans.'' \3\
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\1\ Truth in Lending Act, Public Law 90-321, 82 Stat. 146, 15
U.S.C. 1601 et seq. (1968).
\2\ Home Equity Loan Consumer Protection Act, Public Law 100-
709, 102 Stat. 4725, 15 U.S.C. 1637a (1988).
\3\ Id. section 4 at 4733.
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Prior to the Dodd-Frank Act, the Board implemented this requirement
in 12 CFR 226.5b(e) and developed and published the HELOC Brochure to
consumers with basic information about the features of a home equity
line of credit and what to look for and compare when shopping for
credit. Under the Dodd-Frank Act, the responsibility for the HELOC
Brochure transferred to the CFPB. Under the CFPB's Regulation Z, at the
time an application for a HELOC is provided to the consumer, a creditor
must provide certain disclosures and ``the home equity brochure
entitled `What You Should Know About Home Equity Lines of Credit' or a
suitable substitute. . . .'' \4\
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\4\ 12 CFR 1026.40(e). Under certain circumstances, the
disclosures and the brochure may be delivered or placed in the mail
not later than three business days following receipt of a consumer's
application. See 12 CFR 1026.40(b).
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Contents of the Updated Version of the HELOC Booklet
The Bureau is updating the HELOC booklet so that it aligns with the
Bureau's educational efforts, to be more concise, and to improve
readability and usability. New features include clear instructions on
how consumers can use the pamphlet to explore their options, and a
comparison table with examples of loans that utilize home equity and
other sources of financing consumer might consider, including closed-
end credit. To encourage consumers to understand the terms of their
HELOC and to shop for the most advantageous offer, the booklet expands
the tables for consumers to compare three estimates. The design of the
HELOC booklet has a look and feel similar to ``Your Home Loan Toolkit:
A Step-By-Step Guide,'' and the ``Consumer Handbook on Adjustable-Rate
Mortgages,'' other consumer disclosures that the Bureau is responsible
for producing.
In January 2021, CFPB released a statement encouraging financial
institutions to make financial products and services available to
consumers with limited English proficiency. One of the tenets of that
statement is that financial institutions provide consumers with clear
disclosures in languages other than English.\5\ To further this goal of
inclusion, the HELOC booklet is also available in Spanish. The Bureau
encourages financial institutions to disseminate these booklets to
consumers to expand the availability and understanding of products and
services to all consumers.
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\5\ See Statement Regarding the Provision of Financial Products
and Services to Consumers With Limited English Proficiency, 86 FR
6306 (Jan. 1, 2021), available at <a href="https://www.federalregister.gov/documents/2021/01/21/2021-01116/statement-regarding-the-provision-of-financial-products-and-services-to-consumers-with-limited">https://www.federalregister.gov/documents/2021/01/21/2021-01116/statement-regarding-the-provision-of-financial-products-and-services-to-consumers-with-limited</a>.
Rohit Chopra,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2022-27324 Filed 12-15-22; 8:45 am]
BILLING CODE 4810-AM-P
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