WASHINGTON—The CFPB has published a final rule revising dollar amounts for certain regulations falling under Regulation Z that implement the CARD Act, HOEPA and the ability-to-repay/qualified mortgage provisions of the Dodd-Frank Act.
All adjustments will be effective Jan. 1, 2018.
The CFPB is required to annually adjust certain threshold amounts within various rules based on the percentage change in the consumer price index. Specifically, for open-end consumer credit plans under the Truth in Lending Act, the threshold that triggers requirements to disclose minimum interest charges will stay the same at $1 in 2018, NAFCU noted.
NAFCU outlined the CFPB’s adjustments:
CARD Act penalty fee safe harbor
For open-end consumer credit plans under the Credit Card Accountability Responsibility and Disclosure (CARD) Act amendments to TILA, credit unions should note that the penalty fees remain unchanged for 2018: $27 for the safe harbor for a first violation penalty fee and $38 for the safe harbor for a subsequent violation penalty fee.
HOEPA adjustments
For Home Ownership and Equity Protection Act (HOEPA) loans, the adjusted total loan amount threshold for high-cost mortgages in 2018 will be $21,032, up from last year's $20,579. The adjusted points and fees dollar trigger is also increasing from the current $1,029 to $1,052.
Ability-to-repay and QM adjustments
For purposes of determining whether a covered transaction is a QM, the total points and fees charged may not exceed the threshold set for the size of the loan under the rule:
- For a loan amount of $105,158 or more, 3% of the total loan amount
- For a loan amount of greater than or equal to $63,095 but less than $105,158, $3,155
- For a loan amount of greater than or equal to $21,032 but less than $63,095, 5% of the total loan
- For a loan amount of greater than or equal to $13,145 but less than $21,032, $1,052
- For a loan amount of less than $13,145, 8% of the total loan amount