District Circular Letters

November 17, 1999

REGULATION Z:
OFFICIAL STAFF COMMENTARY UPDATE; ADJUSTMENT TO DOLLAR AMOUNT FOR CERTAIN MORTGAGES; AND REQUEST FOR COMMENT ON BOARD'S PUBLISHING ACTIVITIES

To All Depository Institutions in the Twelfth Federal Reserve District

Regulation Z: Request for Comment on Proposed Revisions to Official Staff Commentary (R-1050)

The Federal Reserve Board has proposed revisions to the official staff commentary that applies and interprets the requirements of Regulation Z, Truth in Lending. The proposed revisions would clarify that short-term cash advances, commonly called "payday loans," are a form of credit and are thus subject to Truth in Lending requirements.

Comment is requested by January 10, 2000.

Regulation Z: Annual Adjustment for Mortgage Loans (R-1051)

The Federal Reserve Board has adjusted the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear fees above a certain amount. The dollar amount has been adjusted from $441 for 1999 to $451 for 2000, based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 1999.

The adjustment is effective January 1, 2000.

The Home Ownership and Equity Protection Act of 1994 bars credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed $400 (to be adjusted annually) or 8 percent of the total loan amount, whichever is larger.

The Federal Reserve Board is conducting a review of its publication activities (R-1049).

As part of this effort, the Board is asking the public to comment on how the Board's publications are individually and collectively meeting their information needs and to offer suggestions for improving, possibly eliminating some publications, or adding new ones. A listing of the Federal Reserve Board's publications is attached.

Comment is requested by December 17, 1999. Please send comments to the address on the first page of the attachment.

Copies

Copies of the Board's notice (Docket R-1049, Docket R-1050 and Docket R-1051) are available from our Corporate Services Department. To request copies to be sent via mail, please call (415) 974-2748. To request copies to be sent via fax, please call (415) 974-3333, and specify, for Docket R-1049, document number 4165; Docket R-1050, document number 4163; and for Docket R-1051, document number 4168. Board notices are also available via the Federal Reserve Bank of San Francisco's Internet site.

Additional Information

For additional information regarding these matters, please contact our Banking Supervision and Regulation Department, at (415) 974-2967.

FEDERAL RESERVE BANK OF SAN FRANCISCO

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