Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
New Reg Z trigger CUNA analysis
WASHINGTON (9/16/08)—Starting Jan. 1, the dollar amount that triggers additional disclosures and prohibitions under the Truth in Lending Act (TILA) for certain mortgage loans will increase, reminds the Credit Union National Association (CUNA) in a final rule analysis. TILA requires creditors to disclose credit terms and the cost of consumer credit as an annual percentage rate. The act, implemented by the Fed’s Regulation Z, requires additional disclosures for loans secured by a consumer’s home, and permits consumers to cancel certain transactions that involve their principal dwelling. The recent adjustment to the trigger, which is tied to the Consumer Price Index, is required under the Home Ownership and Equity Protection Act of 1994. Under the Fed’s new trigger, the disclosures and prohibitions will now apply when total points and fees on a loan exceed $583 or 8% of the loan an amount, whichever is greater. The trigger for 2008 was $561. The adjustment does not affect the new mortgage lending rules adopted by the Fed in July 2008 for "higher-priced mortgage loans," the CUNA analysis notes. Coverage of mortgage loans under those rules is determined using a different rate-based threshold. Use the resource link below to read the Fed’s Regulation Z rule.
Other Resources

RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
10 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
11 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
13 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
15 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
15 hours ago