WASHINGTON—The CFPB and the Federal Reserve have issued joint final rules to increase exemption thresholds for appraisals for higher-priced mortgage loans and Regulations Z and M in 2020.
The revised thresholds reflect the annual percentage increase in the consumer price index (CPI) as of this June 1. The thresholds are adjusted annually by the annual percentage increase in the CPI for Urban Wage Earners and Clerical Workers.
One of the rules increases the Regulation Z threshold affecting appraisal requirements for higher-priced mortgage loans to $27,200 in 2020 from $26,700 in 2019, NAFCU explained.
The threshold for transactions exempt from Regulations Z and M, which implement the Truth in Lending Act and Consumer Leasing Act, respectively, will rise from $57,200 to $58,300. The threshold applies to most consumer credit transactions and consumer leases. Private education loans and loans secured by real property, such as mortgages, are subject to Reg Z, however, regardless of the amount of the loan, NAFCU explained.
These threshold increases all go into effect Jan. 1.