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B-333828 Dec 16, 2021 1 (2021-12-16)

handle is hein.gao/gaomny0001 and id is 1 raw text is: `1O o U.S. GOVERNMENT ACCOUNTABILITY OFFICE A Century of Non-Partisan Fact-Based Work 441 G St. N.W. Washington, DC 20548 B-333828 December 16, 2021 The Honorable Sherrod Brown Chairman The Honorable Patrick J. Toomey Ranking Member Committee on Banking, Housing, and Urban Affairs United States Senate The Honorable Maxine Waters Chairwoman The Honorable Patrick McHenry Ranking Member Committee on Financial Services House of Representatives Subject: Bureau of Consumer Financial Protection: Facilitating the LIBOR Transition (Regulation Z) Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Bureau of Consumer Financial Protection (Bureau) entitled Facilitating the LIBOR Transition (Regulation Z) (RIN: 3170-AB01). We received the rule on December 8, 2021. It was published in the Federal Register as a final rule on December 8, 2021. 86 Fed. Reg. 69716. The effective date is April 1, 2022. According to the Bureau, it is amending Regulation Z, which implements the Truth in Lending Act (TILA), generally to address the anticipated sunset of the London Interbank Offered Rate (LIBOR), which is expected to be discontinued for most U.S. Dollar (USD) tenors in June 2023. See generally 15 U.S.C. 1601 et seq. (TILA); 12 C.F.R. part 1026 (Regulation Z). The Bureau stated that some creditors currently use USD LIBOR as an index for calculating rates for open- end and closed-end products. The Bureau also stated that it is amending the open-end and closed-end provisions to provide examples of replacement indices for LIBOR indices that meet certain Regulation Z standards. The Bureau stated further that it is amending Regulation Z to permit creditors for home equity lines of credit (HELOCs) and card issuers for credit card accounts to transition existing accounts that use a LIBOR index to a replacement index on or after April 1, 2022, if certain conditions are met. The Bureau noted that this final rule also addresses change-in-terms notice provisions for HELOCs and credit card accounts and how they apply to accounts transitioning away from using a LIBOR index. The Bureau also noted that it is amending Regulation Z to address how the rate reevaluation provisions applicable to credit card accounts apply to the transition from using a LIBOR index to a replacement index. Lastly, the Bureau stated that it is reserving judgment about whether to include references to a 1-year USD LIBOR index and its replacement index in various comments; the Bureau stated that it will consider whether to finalize comments proposed on that issue in a supplemental final rule once it obtains additional information.

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