WASHINGTON (8/18/14)--The Consumer Financial Protection Bureau (CFPB) has issued a final rule regarding Regulation Z, which implements the Truth in Lending Act (TILA). The final rule reviews the dollar amounts for several provisions in the regulation, as required annually, based on the annual percentage change reflected in the Consumer Price Index in effect June 1.
The amounts for 2015 are:
Effective Jan. 1, 2015, a covered transaction is not a qualified mortgage unless the transaction's total points and fees do not exceed:
- Penalty fees safe harbor: $27 for a first late payment and $38 for each subsequent violation within the following six months;
- Home Ownership and Equity Protection Act (HOEPA) loans: $20,391, effective Jan. 1, 2015;
- Adjusted statutory fee trigger for HOPEA loans: $1,020, also effective Jan. 1, 2015;
The minimum interest charge disclosure thresholds will remain unchanged in 2015.
The final rule reviews the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009, the Home Ownership and Equity Protection Act of 1994 and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- 3% of the total loan amount for a loan greater than or equal to $101,953;
- $3,059 for a loan amount greater than or equal to $61,172 but less than $101,953;
- 5% of the total loan amount for a loan greater than or equal to $20,391 but less than $61,172;
- $1,020 for a loan amount greater than or equal to $12,744 but less than $20,391; and
- 8% of the total loan amount for a loan amount less than $12,744.