Rule2025-22875
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
December 16, 2025
Effective
January 1, 2026
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemConsumer Financial Protection Bureau
Abstract
The OCC, the Board, and the Bureau 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, 2025, the exemption threshold will increase from $33,500 to $34,200, effective January 1, 2026.
Full Text
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<title>Federal Register, Volume 90 Issue 239 (Tuesday, December 16, 2025)</title>
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[Federal Register Volume 90, Number 239 (Tuesday, December 16, 2025)]
[Rules and Regulations]
[Pages 58141-58145]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22875]
========================================================================
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. 90, No. 239 / Tuesday, December 16, 2025 /
Rules and Regulations
[[Page 58141]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
[Docket No. OCC-2025-0306]
RIN 1557-AF39
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Docket No. R-1878]
RIN 7100-AH12
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 (Bureau).
ACTION: Final rules and official interpretations.
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SUMMARY: The OCC, the Board, and the Bureau 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, 2025, the exemption
threshold will increase from $33,500 to $34,200, effective January 1,
2026.
DATES: This final rule is effective January 1, 2026.
FOR FURTHER INFORMATION CONTACT:
OCC: Maria Riegger, Counsel, Chief Counsel's Office, at (202) 649-
5490. If you are deaf, hard of hearing, or have a speech disability,
please dial 711 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 text telephone systems (TTY) or any TTY-
based Telecommunications Relay Services, please call 711 from any
telephone, anywhere in the United States.
Bureau: Dave Gettler, Paralegal Specialist, 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#e2a1a4b2a0bda381818791918b808b8e8b969ba281849280cc858d94"><span class="__cf_email__" data-cfemail="387b7e687a67795b5b5d4b4b515a5154514c41785b5e485a165f574e">[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 Bureau, the Federal Deposit Insurance Corporation
(FDIC), the National Credit Union Administration (NCUA), and the
Federal Housing Finance Agency (FHFA) (collectively, the 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 Bureau'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 Bureau'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 Bureau's version of the regulation, the FDIC did
not issue its own regulation containing a cross-reference to the
Bureau's version. See 78 FR 10368 at 10370.
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The OCC's, Board's, and Bureau'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 Bureau 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) (Bureau).
\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 (Bureau).
\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 (Bureau).
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On November 30, 2016, the OCC, the Board, and the Bureau published
a final rule in the Federal Register to memorialize the calculation
method used by the OCC, the Board, and the Bureau 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
[[Page 58142]]
policy that, if there is no annual percentage increase in the CPI-W,
the OCC, Board, and Bureau 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. 2026 Adjustment and Official Interpretations Revision
Effective January 1, 2026, the exemption threshold amount is
increased from $33,500 to $34,200. This amount is based on the CPI-W in
effect on June 1, 2025, which was reported on May 13, 2025 (based on
April 2025 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 13, 2025, reflects a 2.1
percent increase in the CPI-W from April 2024 to April 2025.
Accordingly, the 2.1 percent increase in the CPI-W from April 2024 to
April 2025 results in an exemption threshold amount of $34,200, after
rounding. The OCC, the Board, and the Bureau 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, 2025, were reported on May 13, 2025, and
reflect economic conditions in April 2025.
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<bullet> Comment 203(b)(2)-3.xiii to 12 CFR part 34, appendix C to
subpart G (OCC);
<bullet> Comment 43(b)(2)-3.xiii to supplement I of 12 CFR part 226
(Board); and
<bullet> Comment 35(c)(2)(ii)-3.xiii to supplement I of 12 CFR part
1026 (Bureau).
These new comments state that, from January 1, 2026, through
December 31, 2026, the threshold amount is $34,200. These revisions are
effective January 1, 2026.
III. Regulatory Analysis
Administrative Procedure Act
Under the Administrative Procedure Act (APA), 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 Bureau
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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Section 553(d) of the APA generally requires publication of a final
rule not less than 30 days before its effective date, except in the
case of (1) a substantive rule which grants or recognizes an exemption
or relieves a restriction; (2) interpretive rules and statements of
policy; or (3) as otherwise provided by the agency for good cause found
and published with the rule.\12\ At a minimum, the OCC, the Board, and
the Bureau have determined that the amendments fall under the third
exception to section 553(d). The OCC, the Board, and the Bureau find
that there is good cause to make the amendments effective on January 1,
2026. The amendments in this final rule are technical and non-
discretionary, and apply the method previously established in the
regulations for determining adjustments to the threshold.
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\12\ 5 U.S.C. 553(d).
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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.\13\ As
noted previously, the OCC, the Board, and the Bureau 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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\13\ 5 U.S.C. 603(a), 604(a).
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Paperwork Reduction Act
The OCC, the Board, and the Bureau reviewed this final rule in
accordance with the Paperwork Reduction Act of 1995.\14\ The OCC, the
Board, and the Bureau have determined that this rule does not create
any new information collections or substantially revise any existing
collections.
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\14\ 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.\15\ As discussed above, the OCC has determined that the
publication of a general notice of proposed rulemaking is unnecessary.
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\15\ 2 U.S.C. 1532.
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Executive Order 12866
The Office of Information and Regulatory Affairs within the Office
of Management and Budget (OMB) has determined that this action is not a
``significant regulatory action'' under Executive Order 12866, as
amended.
Bureau Congressional Review Act Statement
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Bureau 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.
[[Page 58143]]
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 is revised 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
* * * * *
Paragraph 34.203(b)(2).
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.
xiii. From January 1, 2026, through December 31, 2026, the
threshold amount is $34,200.
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
[[Page 58144]]
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.
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.
xiii. From January 1, 2026, through December 31, 2026, the
threshold amount is $34,200.
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 Bureau 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 is revised 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.
xiii. From January 1, 2026, through December 31, 2026, the
threshold amount is $34,200.
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
[[Page 58145]]
requirements of Sec. 1026.35(c) applies. See Sec. 1026.35(c)(2)
and (c)(4)(vii).
* * * * *
Jonathan V. Gould,
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.
Russell Vought,
Acting Director, Consumer Financial Protection Bureau.
[FR Doc. 2025-22875 Filed 12-15-25; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 4810-AM-P
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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.