Rule2024-23277
Appraisals for Higher-Priced Mortgage Loans Exemption Threshold
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 15, 2024
Effective
January 1, 2025
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemConsumer Financial Protection Bureau
Abstract
The OCC, the Board, and the CFPB are finalizing amendments to the official interpretations for their regulations that implement section 129H of the Truth in Lending Act (TILA). Section 129H of TILA establishes special appraisal requirements for "higher-risk mortgages," termed "higher-priced mortgage loans" or "HPMLs" in the agencies' regulations. A December 2013 rulemaking exempted transactions of $25,000 or less and required that this loan amount be adjusted annually based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI- W). Based on the CPI-W in effect as of June 1, 2024, the exemption threshold will increase from $32,400 to $33,500, effective January 1, 2025.
Full Text
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<title>Federal Register, Volume 89 Issue 199 (Tuesday, October 15, 2024)</title>
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[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Rules and Regulations]
[Pages 82931-82934]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23277]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 /
Rules and Regulations
[[Page 82931]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
[Docket No. OCC-2024-0013]
RIN 1557-AF28
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Docket No. R-1841]
RIN 7100-AG82
CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Part 1026
Appraisals for Higher-Priced Mortgage Loans Exemption Threshold
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); and Consumer
Financial Protection Bureau (CFPB).
ACTION: Final rules and official interpretations.
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SUMMARY: The OCC, the Board, and the CFPB are finalizing amendments to
the official interpretations for their regulations that implement
section 129H of the Truth in Lending Act (TILA). Section 129H of TILA
establishes special appraisal requirements for ``higher-risk
mortgages,'' termed ``higher-priced mortgage loans'' or ``HPMLs'' in
the agencies' regulations. A December 2013 rulemaking exempted
transactions of $25,000 or less and required that this loan amount be
adjusted annually based on any annual percentage increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W). Based on the CPI-W in effect as of June 1, 2024, the exemption
threshold will increase from $32,400 to $33,500, effective January 1,
2025.
DATES: This final rule is effective January 1, 2025.
FOR FURTHER INFORMATION CONTACT: OCC: MaryAnn Nash, Counsel, Chief
Counsel's Office, at (202) 649-6287. If you are deaf, hard of hearing,
or have a speech disability, please dial 7-1-1 to access
telecommunications relay services.
Board: Lorna M. Neill, Senior Counsel, Division of Consumer and
Community Affairs, Board of Governors of the Federal Reserve System, at
(202) 452-3667. For users of TTY-TRS, please call 711 from any
telephone, anywhere in the United States.
CFPB: George Karithanom, Regulatory Implementation & Guidance
Program Analyst, Office of Regulations, at 202-435-7700 or at: <a href="https://reginquiries.consumerfinance.gov/">https://reginquiries.consumerfinance.gov/</a>. If you require this document in an
alternative electronic format, please contact
<a href="/cdn-cgi/l/email-protection#02414452405d4361616771716b606b6e6b767b42616472602c656d74"><span class="__cf_email__" data-cfemail="e3a0a5b3a1bca280808690908a818a8f8a979aa380859381cd848c95">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010 (Dodd-Frank Act) amended TILA to add special appraisal
requirements for ``higher-risk mortgages.'' \1\ In January 2013, the
OCC, the Board, the CFPB, the Federal Deposit Insurance Corporation
(FDIC), the National Credit Union Administration (NCUA), and the
Federal Housing Finance Agency (FHFA) (collectively, Agencies) jointly
issued a final rule implementing these requirements and adopted the
term ``higher-priced mortgage loan'' (HPML) instead of ``higher-risk
mortgage'' (January 2013 Final Rule).\2\ In July 2013, the Agencies
proposed additional exemptions from the January 2013 Final Rule.\3\ In
December 2013, the Agencies issued a supplemental final rule with
additional exemptions from the January 2013 Final Rule (December 2013
Supplemental Final Rule).\4\ Among other exemptions, the Agencies
adopted an exemption from the new HPML appraisal rules for transactions
of $25,000 or less, to be adjusted annually for inflation.
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\1\ Public Law 111-203, sec. 1471, 124 Stat. 1376, 2185-87
(2010), codified at TILA sec. 129H, 15 U.S.C. 1639h.
\2\ 78 FR 10368 (Feb. 13, 2013).
\3\ 78 FR 48548 (Aug. 8, 2013).
\4\ 78 FR 78520 (Dec. 26, 2013).
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The OCC's, Board's, and CFPB's versions of the January 2013 Final
Rule and December 2013 Supplemental Final Rule and corresponding
official interpretations are substantively identical. The FDIC, NCUA,
and FHFA adopted the CFPB's version of the regulations under the
January 2013 Final Rule and December 2013 Supplemental Final Rule.\5\
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\5\ See NCUA: 12 CFR 722.3; FHFA: 12 CFR part 1222. Although the
FDIC adopted the CFPB's version of the regulation, the FDIC did not
issue its own regulation containing a cross-reference to the CFPB's
version. See 78 FR 10368, 10370 (Feb. 13, 2013).
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The OCC's, Board's, and CFPB's regulations,\6\ and their
accompanying official interpretations,\7\ provide that the exemption
threshold for smaller loans will be adjusted effective January 1 of
each year based on any annual percentage increase in the CPI-W that was
in effect on the preceding June 1. Any increase in the threshold amount
will be rounded to the nearest $100 increment. For example, if the
annual percentage increase in the CPI-W would result in a $950 increase
in the threshold amount, the threshold amount will be increased by
$1,000. However, if the annual percentage increase in the CPI-W would
result in a $949 increase in the threshold amount, the threshold amount
will be increased by $900. If there is no annual percentage increase in
the CPI-W, the OCC, the Board, and the CFPB will not adjust the
threshold amounts from the prior year.\8\
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\6\ 12 CFR 34.203(b)(2) (OCC); 12 CFR 226.43(b)(2) (Board); and
12 CFR 1026.35(c)(2)(ii) (CFPB).
\7\ 12 CFR part 34, appendix C to subpart G, comment 203(b)(2)-1
(OCC); 12 CFR part 226, supplement I, comment 43(b)(2)-1 (Board);
and 12 CFR part 1026, supplement I, comment 35(c)(2)(ii)-1 (CFPB).
\8\ See 12 CFR part 34, appendix C to subpart G, comment
203(b)(2)-1 and -2 (OCC); 12 CFR part 226, supplement I, comment
43(b)(2)-1 and -2 (Board); and 12 CFR part 1026, supplement I,
comment 35(c)(2)(ii)-1 and -2 (CFPB).
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On November 30, 2016, the OCC, the Board, and the CFPB published a
final rule in the Federal Register to memorialize the calculation
method used by the OCC, the Board, and the CFPB each year to adjust the
exemption threshold to ensure that the values for the exemption
threshold keep pace with the CPI-W (HPML Small Dollar Adjustment
Calculation Rule).\9\ The HPML Small Dollar Adjustment Calculation Rule
memorialized the policy that, if there is no annual
[[Page 82932]]
percentage increase in the CPI-W, the OCC, Board, and CFPB will not
adjust the exemption threshold from the prior year. The HPML Small
Dollar Adjustment Calculation Rule also provided that, in years
following a year in which the exemption threshold was not adjusted
because there was a decrease in the CPI-W from the previous year, the
threshold is calculated by applying the annual percentage change in the
CPI-W to the dollar amount that would have resulted, after rounding, if
the decreases and any subsequent increases in the CPI-W had been taken
into account. If the resulting amount calculated, after rounding, is
greater than the current threshold, then the threshold effective
January 1 the following year will increase accordingly. If the
resulting amount calculated, after rounding, is equal to or less than
the current threshold, then the threshold effective January 1 the
following year will not change, but future increases will be calculated
based on the amount that would have resulted, after rounding.
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\9\ See 81 FR 86250 (Nov. 30, 2016).
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II. 2025 Adjustment and Official Interpretations Revision
Effective January 1, 2025, the exemption threshold amount is
increased from $32,400 to $33,500. This amount is based on the CPI-W in
effect on June 1, 2024, which was reported on May 15, 2024 (based on
April 2024 data).\10\ The CPI-W is a subset of the CPI-U index (based
on all urban consumers) and represents approximately 30 percent of the
U.S. population. The CPI-W reported on May 15, 2024, reflects a 3.4
percent increase in the CPI-W from April 2023 to April 2024.
Accordingly, the 3.4 percent increase in the CPI-W from April 2023 to
April 2024 results in an exemption threshold amount of $33,500, after
rounding. The OCC, the Board, and the CFPB are revising the official
interpretations to their respective regulations to add new comments as
follows:
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\10\ The Bureau of Labor Statistics calculates consumer-based
indices for each month but does not report those indices until the
middle of the following month. As such, the most recently reported
indices as of June 1, 2024, were reported on May 15, 2024, and
reflect economic conditions in April 2024.
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<bullet> Comment 203(b)(2)-3.xii to 12 CFR part 34, appendix C to
subpart G (OCC);
<bullet> Comment 43(b)(2)-3.xii to supplement I of 12 CFR part 226
(Board); and
<bullet> Comment 35(c)(2)(ii)-3.xii to supplement I of 12 CFR part
1026 (CFPB).
These new comments state that, from January 1, 2025, through
December 31, 2025, the threshold amount is $33,500. These revisions are
effective January 1, 2025.
III. Regulatory Analysis
Administrative Procedure Act
Under the Administrative Procedure Act, notice and opportunity for
public comment are not required if the agency finds that notice and
public comment are impracticable, unnecessary, or contrary to the
public interest.\11\ The amendments in this rule are technical and
apply the method previously memorialized in the December 2013
Supplemental Final Rule and the HPML Small Dollar Adjustment
Calculation Rule. For these reasons, the OCC, the Board, and the CFPB
have determined that publishing a notice of proposed rulemaking and
providing opportunity for public comment are unnecessary. Therefore,
the amendments are adopted in final form.
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\11\ 5 U.S.C. 553(b)(B).
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Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a general notice of proposed rulemaking is not required.\12\ The
OCC, the Board, and the CFPB have determined that it is unnecessary to
publish a general notice of proposed rulemaking for this final rule.
Accordingly, the RFA's requirements relating to an initial and final
regulatory flexibility analysis do not apply.
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\12\ 5 U.S.C. 603(a), 604(a).
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Paperwork Reduction Act
The OCC, the Board, and the CFPB reviewed this final rule in
accordance with the Paperwork Reduction Act of 1995.\13\ The OCC, the
Board, and the CFPB have determined that this rule does not create any
new information collections or substantially revise any existing
collections.
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\13\ 44 U.S.C. 3506; 5 CFR part 1320.
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Unfunded Mandates Reform Act
The OCC analyzes proposed rules for the factors listed in section
202 of the Unfunded Mandates Reform Act of 1995 before promulgating a
final rule for which a general notice of proposed rulemaking was
published.\14\ As discussed above, the OCC has determined that the
publication of a general notice of proposed rulemaking is unnecessary.
---------------------------------------------------------------------------
\14\ 2 U.S.C. 1532.
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CFPB Congressional Review Act Statement
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the CFPB will submit a report containing this rule and other required
information to the U.S. Senate, the U.S. House of Representatives, and
the Comptroller General of the United States prior to the rule taking
effect. The Office of Information and Regulatory Affairs has designated
this rule as not a ``major rule'' as defined by 5 U.S.C. 804(2).
List of Subjects
12 CFR Part 34
Accounting, Banks, banking, Consumer protection, Credit, Mortgages,
National banks, Reporting and recordkeeping requirements, Savings
associations, Truth-in-lending.
12 CFR Part 226
Advertising, Appraisal, Appraiser, Consumer protection, Credit,
Federal Reserve System, Reporting and recordkeeping requirements,
Truth-in-lending.
12 CFR Part 1026
Advertising, Banks, banking, Consumer protection, Credit, Credit
unions, Mortgages, National banks, Reporting and recordkeeping
requirements, Savings associations, Truth-in-lending.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Authority and Issuance
For the reasons set forth in the preamble, the OCC amends 12 CFR
part 34 as set forth below:
PART 34--REAL ESTATE LENDING AND APPRAISALS
0
1. The authority citation for part 34 continues to read as follows:
Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, 371, 1462a, 1463,
1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq.,
5412(b)(2)(B) and 15 U.S.C. 1639h.
0
2. In appendix C to subpart G, under Section 34.203--Appraisals for
Higher-Priced Mortgage Loans, paragraph 34.203(b)(2) is revised to read
as follows:
Appendix C to Subpart G--OCC Interpretations
* * * * *
Section 34.203--Appraisals for Higher-Priced Mortgage Loans
* * * * *
[[Page 82933]]
Paragraph 34.203(b)(2)
1. Threshold amount. For purposes of Sec. 34.203(b)(2), the
threshold amount in effect during a particular period is the amount
stated in comment 203(b)(2)-3 for that period. The threshold amount
is adjusted effective January 1 of each year by any annual
percentage increase in the Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W) that was in effect on the
preceding June 1. Comment 203(b)(2)-3 will be amended to provide the
threshold amount for the upcoming year after the annual percentage
change in the CPI-W that was in effect on June 1 becomes available.
Any increase in the threshold amount will be rounded to the nearest
$100 increment. For example, if the annual percentage increase in
the CPI-W would result in a $950 increase in the threshold amount,
the threshold amount will be increased by $1,000. However, if the
annual percentage increase in the CPI-W would result in a $949
increase in the threshold amount, the threshold amount will be
increased by $900.
2. No increase in the CPI-W. If the CPI-W in effect on June 1
does not increase from the CPI-W in effect on June 1 of the previous
year, the threshold amount effective the following January 1 through
December 31 will not change from the previous year. When this
occurs, for the years that follow, the threshold is calculated based
on the annual percentage change in the CPI-W applied to the dollar
amount that would have resulted, after rounding, if decreases and
any subsequent increases in the CPI-W had been taken into account.
i. Net increases. If the resulting amount calculated, after
rounding, is greater than the current threshold, then the threshold
effective January 1 the following year will increase accordingly.
ii. Net decreases. If the resulting amount calculated, after
rounding, is equal to or less than the current threshold, then the
threshold effective January 1 the following year will not change,
but future increases will be calculated based on the amount that
would have resulted.
3. Threshold. For purposes of Sec. 34.203(b)(2), the threshold
amount in effect during a particular period is the amount stated in
the following for that period.
i. From January 18, 2014, through December 31, 2014, the
threshold amount is $25,000.
ii. From January 1, 2015, through December 31, 2015, the
threshold amount is $25,500.
iii. From January 1, 2016, through December 31, 2016, the
threshold amount is $25,500.
iv. From January 1, 2017, through December 31, 2017, the
threshold amount is $25,500.
v. From January 1, 2018, through December 31, 2018, the
threshold amount is $26,000.
vi. From January 1, 2019, through December 31, 2019, the
threshold amount is $26,700.
vii. From January 1, 2020, through December 31, 2020, the
threshold amount is $27,200.
viii. From January 1, 2021, through December 31, 2021, the
threshold amount is $27,200.
ix. From January 1, 2022, through December 31, 2022, the
threshold amount is $28,500.
x. From January 1, 2023, through December 31, 2023, the
threshold amount is $31,000.
xi. From January 1, 2024, through December 31, 2024, the
threshold amount is $32,400.
xii. From January 1, 2025, through December 31, 2025, the
threshold amount is $33,500.
4. Qualifying for exemption--in general. A transaction is exempt
under Sec. 34.203(b)(2) if the creditor makes an extension of
credit at consummation that is equal to or below the threshold
amount in effect at the time of consummation.
5. Qualifying for exemption--subsequent changes. A transaction
does not meet the condition for an exemption under Sec.
34.203(b)(2) merely because it is used to satisfy and replace an
existing exempt loan unless the amount of the new extension of
credit is equal to or less than the applicable threshold amount. For
example, assume a closed-end loan that qualified for a Sec.
34.203(b)(2) exemption at consummation in year one is refinanced in
year ten and that the new loan amount is greater than the threshold
amount in effect in year ten. In these circumstances, the creditor
must comply with all of the applicable requirements of Sec. 34.203
with respect to the year ten transaction if the original loan is
satisfied and replaced by the new loan unless another exemption from
the requirements of Sec. 34.203 applies. See Sec. 34.203(b) and
(d)(7).
* * * * *
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Authority and Issuance
For the reasons set forth in the preamble, the Board amends
Regulation Z, 12 CFR part 226, as set forth below:
PART 226--TRUTH IN LENDING (REGULATION Z)
0
3. The authority citation for part 226 continues to read as follows:
Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, 1637(c)(5), 1639(l),
and 1639h; Pub. L. 111-24, section 2, 123 Stat. 1734; Pub. L. 111-
203, 124 Stat. 1376.
0
4. In supplement I to part 226, under Section 226.43--Appraisals for
Higher-Risk Mortgage Loans, paragraph 43(b)(2) is revised to read as
follows:
Supplement I to Part 226--Official Staff Interpretations
* * * * *
Section 226.43--Appraisals for Higher-Risk Mortgage Loans
* * * * *
Paragraph 43(b)(2)
1. Threshold amount. For purposes of Sec. 226.43(b)(2), the
threshold amount in effect during a particular period is the amount
stated in comment 43(b)(2)-3 for that period. The threshold amount
is adjusted effective January 1 of each year by any annual
percentage increase in the Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W) that was in effect on the
preceding June 1. Comment 43(b)(2)-3 will be amended to provide the
threshold amount for the upcoming year after the annual percentage
change in the CPI-W that was in effect on June 1 becomes available.
Any increase in the threshold amount will be rounded to the nearest
$100 increment. For example, if the annual percentage increase in
the CPI-W would result in a $950 increase in the threshold amount,
the threshold amount will be increased by $1,000. However, if the
annual percentage increase in the CPI-W would result in a $949
increase in the threshold amount, the threshold amount will be
increased by $900.
2. No increase in the CPI-W. If the CPI-W in effect on June 1
does not increase from the CPI-W in effect on June 1 of the previous
year, the threshold amount effective the following January 1 through
December 31 will not change from the previous year. When this
occurs, for the years that follow, the threshold is calculated based
on the annual percentage change in the CPI-W applied to the dollar
amount that would have resulted, after rounding, if decreases and
any subsequent increases in the CPI-W had been taken into account.
i. Net increases. If the resulting amount calculated, after
rounding, is greater than the current threshold, then the threshold
effective January 1 the following year will increase accordingly.
ii. Net decreases. If the resulting amount calculated, after
rounding, is equal to or less than the current threshold, then the
threshold effective January 1 the following year will not change,
but future increases will be calculated based on the amount that
would have resulted.
3. Threshold. For purposes of Sec. 226.43(b)(2), the threshold
amount in effect during a particular period is the amount stated in
the following for that period.
i. From January 18, 2014, through December 31, 2014, the
threshold amount is $25,000.
ii. From January 1, 2015, through December 31, 2015, the
threshold amount is $25,500.
iii. From January 1, 2016, through December 31, 2016, the
threshold amount is $25,500.
iv. From January 1, 2017, through December 31, 2017, the
threshold amount is $25,500.
v. From January 1, 2018, through December 31, 2018, the
threshold amount is $26,000.
vi. From January 1, 2019, through December 31, 2019, the
threshold amount is $26,700.
vii. From January 1, 2020, through December 31, 2020, the
threshold amount is $27,200.
viii. From January 1, 2021, through December 31, 2021, the
threshold amount is $27,200.
ix. From January 1, 2022, through December 31, 2022, the
threshold amount is $28,500.
x. From January 1, 2023, through December 31, 2023, the
threshold amount is $31,000.
[[Page 82934]]
xi. From January 1, 2024, through December 31, 2024, the
threshold amount is $32,400.
xii. From January 1, 2025, through December 31, 2025, the
threshold amount is $33,500.
4. Qualifying for exemption--in general. A transaction is exempt
under Sec. 226.43(b)(2) if the creditor makes an extension of
credit at consummation that is equal to or below the threshold
amount in effect at the time of consummation.
5. Qualifying for exemption--subsequent changes. A transaction
does not meet the condition for an exemption under Sec.
226.43(b)(2) merely because it is used to satisfy and replace an
existing exempt loan unless the amount of the new extension of
credit is equal to or less than the applicable threshold amount. For
example, assume a closed-end loan that qualified for a Sec.
226.43(b)(2) exemption at consummation in year one is refinanced in
year ten and that the new loan amount is greater than the threshold
amount in effect in year ten. In these circumstances, the creditor
must comply with all of the applicable requirements of Sec. 226.43
with respect to the year ten transaction if the original loan is
satisfied and replaced by the new loan unless another exemption from
the requirements of Sec. 226.43 applies. See Sec. 226.43(b) and
(d)(7).
* * * * *
CONSUMER FINANCIAL PROTECTION BUREAU
Authority and Issuance
For the reasons set forth in the preamble, the CFPB amends
Regulation Z, 12 CFR part 1026, as set forth below:
PART 1026--TRUTH IN LENDING (REGULATION Z)
0
5. The authority citation for part 1026 continues to read as follows:
Authority: 12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 3353,
5511, 5512, 5532, 5581; 15 U.S.C. 1601 et seq.
0
6. In supplement I to part 1026, under Section 1026.35--Requirements
for Higher-Priced Mortgage Loans, paragraph 35(c)(2)(ii) is revised to
read as follows:
Supplement I to Part 1026--Official Interpretations
* * * * *
Section 1026.35--Requirements for Higher-Priced Mortgage Loans
* * * * *
Paragraph 35(c)(2)(ii)
1. Threshold amount. For purposes of Sec. 1026.35(c)(2)(ii),
the threshold amount in effect during a particular period is the
amount stated in comment 35(c)(2)(ii)-3 for that period. The
threshold amount is adjusted effective January 1 of each year by any
annual percentage increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers (CPI-W) that was in effect on the
preceding June 1. Comment 35(c)(2)(ii)-3 will be amended to provide
the threshold amount for the upcoming year after the annual
percentage change in the CPI-W that was in effect on June 1 becomes
available. Any increase in the threshold amount will be rounded to
the nearest $100 increment. For example, if the annual percentage
increase in the CPI-W would result in a $950 increase in the
threshold amount, the threshold amount will be increased by $1,000.
However, if the annual percentage increase in the CPI-W would result
in a $949 increase in the threshold amount, the threshold amount
will be increased by $900.
2. No increase in the CPI-W. If the CPI-W in effect on June 1
does not increase from the CPI-W in effect on June 1 of the previous
year, the threshold amount effective the following January 1 through
December 31 will not change from the previous year. When this
occurs, for the years that follow, the threshold is calculated based
on the annual percentage change in the CPI-W applied to the dollar
amount that would have resulted, after rounding, if decreases and
any subsequent increases in the CPI-W had been taken into account.
i. Net increases. If the resulting amount calculated, after
rounding, is greater than the current threshold, then the threshold
effective January 1 the following year will increase accordingly.
ii. Net decreases. If the resulting amount calculated, after
rounding, is equal to or less than the current threshold, then the
threshold effective January 1 the following year will not change,
but future increases will be calculated based on the amount that
would have resulted.
3. Threshold. For purposes of Sec. 1026.35(c)(2)(ii), the
threshold amount in effect during a particular period is the amount
stated in the following for that period.
i. From January 18, 2014, through December 31, 2014, the
threshold amount is $25,000.
ii. From January 1, 2015, through December 31, 2015, the
threshold amount is $25,500.
iii. From January 1, 2016, through December 31, 2016, the
threshold amount is $25,500.
iv. From January 1, 2017, through December 31, 2017, the
threshold amount is $25,500.
v. From January 1, 2018, through December 31, 2018, the
threshold amount is $26,000.
vi. From January 1, 2019, through December 31, 2019, the
threshold amount is $26,700.
vii. From January 1, 2020, through December 31, 2020, the
threshold amount is $27,200.
viii. From January 1, 2021, through December 31, 2021, the
threshold amount is $27,200.
ix. From January 1, 2022, through December 31, 2022, the
threshold amount is $28,500.
x. From January 1, 2023, through December 31, 2023, the
threshold amount is $31,000.
xi. From January 1, 2024, through December 31, 2024, the
threshold amount is $32,400.
xii. From January 1, 2025, through December 31, 2025, the
threshold amount is $33,500.
4. Qualifying for exemption--in general. A transaction is exempt
under Sec. 1026.35(c)(2)(ii) if the creditor makes an extension of
credit at consummation that is equal to or below the threshold
amount in effect at the time of consummation.
5. Qualifying for exemption--subsequent changes. A transaction
does not meet the condition for an exemption under Sec.
1026.35(c)(2)(ii) merely because it is used to satisfy and replace
an existing exempt loan unless the amount of the new extension of
credit is equal to or less than the applicable threshold amount. For
example, assume a closed-end loan that qualified for a Sec.
1026.35(c)(2)(ii) exemption at consummation in year one is
refinanced in year ten and that the new loan amount is greater than
the threshold amount in effect in year ten. In these circumstances,
the creditor must comply with all of the applicable requirements of
Sec. 1026.35(c) with respect to the year ten transaction if the
original loan is satisfied and replaced by the new loan unless
another exemption from the requirements of Sec. 1026.35(c) applies.
See Sec. 1026.35(c)(2) and (c)(4)(vii).
* * * * *
Michael J. Hsu,
Acting Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority.
Benjamin W. McDonough,
Deputy Secretary of the Board.
Brian Shearer,
Assistant Director, Office of Policy Planning and Strategy, Consumer
Financial Protection Bureau.
[FR Doc. 2024-23277 Filed 10-11-24; 8:45 am]
BILLING CODE 6210-01-P; 4810-33-P; 4810-AM-P
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</html>Indexed from Federal Register on October 15, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.