Compliance Center: CFPB Releases Updated Regulation Z Thresholds

The Consumer Financial Protection Bureau (CFPB) has released the annual thresholds for several provisions within Regulation Z. These updated thresholds will become effective on January 1, 2016.

The amounts are adjusted every year based on changes to the Consumer Price Index (CPI). The changes are:

  • CARD Act penalty fees safe harbor amount in section 1026.52(b)(1)(ii)(A): $27, the same as the previous year;
  • CARD Act penalty fees safe harbor amount in section 1026.52(b)(1)(ii)(B): $37, $1 less than the previous year;
  • HOEPA total loan amount threshold: $20,350. This amount determines whether a transaction is a high cost mortgage; and
  • HOEPA total points and fees dollar trigger amount: $1,017.

The final rule also covers Ability-to-Repay and Qualified Mortgage thresholds, which dictate that a covered transaction is not a qualified mortgage unless the transaction’s total points and fees do not exceed:

  • 3% of the total loan amount for a loan amount greater than or equal to $101,749;
  • $3,052 for a loan amount greater than or equal to $61,050 but less than $101,749;
  • 5% of the total loan amount for loans greater than or equal to $20,350 but less than $61,050;
  • $1,017 for a loan amount greater than or equal to $12,719 but less than $20,350; and
  • 8% of the total loan amount for loans less than $12,719.

Compliance Question of the Week

Under the new TILA/RESPA Integrated Disclosure rule, are there any dwelling-secured loans that are exempt from the Combined Disclosures rule?

Yes, HELOCs, reverse mortgages, and dwellings not attached to real property are exempt from the combined disclosure requirements (but you must still follow the TILA disclosure requirements laid out for these types of loans).

Related Links:

TILA/RESPA Integrated Disclosures Rule

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA is previewing its new public facing website, inviting feedback on the design, functionality, and navigation.

The NCUA announced that it will be hosting a webinar on Thursday, October 15, 2015 on 2015 Interagency Fair Lending Hot Topics. Credit unions that are interested in the webinar can register here.

Consumer Financial Protection Bureau (CFPB)

The CFPB released a blog article on the Loan Estimate and encouraged consumers to shop around for a mortgage.

The September issue of the CFPB’s Monthly Complaint Report highlights mortgage complaints received from consumers. The largest complaint that the CFPB received in relation to mortgages dealt with issues that borrowers faced when they were unable to pay their mortgage.

The CFPB announced that it has finalized a rule to facilitate access to credit union rural and underserved areas. The final rule will take effect on January 1, 2016.

The CFPB announced that it will hold its Credit Union Advisory Council on Thursday, October 8, 2015.  A recording of the event will be available after the event.

Federal Reserve Board (FRB)

THE FRB updated its G.20 Finance Companies report which includes data from July 2015.

FRB Chair Janet Yellen delivered a speech at the Philip Gamble Memorial Lecture at the University of Massachusetts. During the speech, Chair Yellen shared a historical review of inflation, the cost of inflation, monetary policy action since the financial crisis, inflation dynamics, and policy implications.

The FRB announced that it has approved the enhancements to the same-day automated clearing house (ACH) service. The enhancements will become effective on September 23, 2016.

The FRB released a draft of the 2014 HMDA Data.

The FRB issued Consumer Affairs Letter CA 15-6 which revises the interagency examination procedures for Reg Z and RESPA in relation to the TILA/RESPA integrated disclosure rule.

The Record of Meeting for the September 3, 2015 of the Federal Advisory Council and Board of Governors have been published.

Federal Deposit Insurance Corporation (FDIC)

The FDIC released a letter to financial institutions detailing proposed changes to the Call Report issued by the FFIEC. The comment period for the proposed changes will be open until November 17, 2015.

U.S. Department of the Treasury (Treasury)

The Treasury released its National Catastrophe Report which discusses the current state of the market for natural catastrophe insurance in the U.S.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of September 17, 2015. The last update prior to this was September 10, 2015.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.