BCFP Annual Reg Z Threshold Adjustments are Effective Jan. 1


As a reminder, the annual threshold adjustments the Bureau of Consumer Financial Protection (BCFP) makes to Regulation Z will become effective on Jan. 1, 2019.

The BCFP is required to annually review the calculations for several threshold provisions in Regulation Z.  These reviews include provisions from the Credit Card Act of 2009, Home Ownership and Equity Protection Act of 1994, and the Dodd-Frank Act of 2010. Here are the new threshold limits from the BCFP:

  • Safe harbor for credit card penalty fees in 1026.52 increases for the first time the fee is assessed to $28 for violating the terms or other requirements of a credit card, and $39 if the card issuer previously imposed a fee for the same type of violation within the previous 6 months.
  • HOEPA points and fee coverage test, the total loan amount threshold is $21,549, and the adjusted points-and-fees dollar trigger under 1026.32 is $1,077.
  • A covered transaction is not a qualified mortgage, if under 1026.43, the transaction’s total points and fees exceed 3 percent of the total loan among for a loan amount greater than or equal to $107,747; $3,232 for a loan amount greater than or equal to $64,648 but less hand $107,747; 5 percent of the total loan amount for loans greater than or equal to $21,549 but less than $64,648; $1,077 for a loan amount greater than or equal to $13,468 but less than $21,549; or 8 percent of the total loan amount for loans less than $13,468.

Question of the Week

If we have a business that is opening an account that is exempt from paying taxes, do we still have to require that they certify their TIN on the W-9 form?

Yes. The W-9 (or W-8BEN) should be filled out regardless of the tax status of the business/individual.

The W-9 requires the individual or business to certify that the tax identification number provided is correct and allows the business to claim an exemption if necessary. 

Related Links:

W-9 Instructions

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA released its Board Action Bulletin detailing its most recent board meeting. During the meeting, the NCUA board approved a supplemental final rule that amends its 2015 risk-based capital rule to delay the effective date until January 1, 2020 and raises the asset threshold for a complex credit union from $100 million to $500 million. The board also proposed a rule to clarify, update, and simplify federal credit union bylaws.

Bureau of Consumer Financial Protection (BCFP)

The BCFP announced the release of its Fall 2018 rulemaking agenda.

The BCFP published a blog article that contains FAQs regarding debt collection practices.

Federal Reserve Board (FRB)

The FRB released the minutes from the September 25-26 Federal Open Market Committee, FOMC statement, and economic projections.

The FRB, FDIC, and OCC issued FAQs in response to the interagency appraisal and evaluation guidelines.

The FRB released the results from its study on U.S. Payments Fraud from 2012 to 2016.

Federal Trade Commission (FTC)

The FTC announced that it will be released its consumer complaint data on a quarterly basis   and introduced its first Consumer Protection Data Spotlight.

Federal Deposit Insurance Corporation (FDIC)

The FDIC issued letter FIL-63-2018 on the FDIC’s Cybersecurity Preparedness Resource.

Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of October 18, 2018. The last update prior to this was October 17, 2018.

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

Posted in Compliance News.