CFPB Annual Dollar Amount Adjustments for 2016
 

The federal banking regulators have issued several final rules to update regulatory dollar thresholds for 2016. The adjustments are effective January 1, 2016.

Home Mortgage Disclosure Act (HMDA)

• The asset size threshold for an exemption from HMDA reporting will remain at $44 million (12 CFR 1003.2).

 Regulation Z and Regulation M Exemption Threshold

• The exemption threshold for both Regulation Z and Regulation M will remain at $54,600 (12 CFR 1026.3(b)). Consumer credit and leases over the threshold amount are exempt, but consumer mortgage loans and private education loans are not covered by the exemption.

 Regulation Z Mortgage Servicing Rules

• The asset size threshold for an exemption from the escrow account requirement for higher-priced mortgage loans will be decreased to $2.060 billion (12 CFR 1026.35(b)(2)(iii)(C)). Institutions with asset sizes under the threshold amount also may originate small creditor and balloon payment qualified mortgages (12 CFR 1026.43(e)(5)(i)(D) and 12 CFR 1026.43(f)(1)(vi)).

 Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act)

• The minimum interest charge disclosure thresholds will remain at $1.00. (12 CFR 1026.6(b)(2)(iii) and 1026.60(b)(3)).

• The penalty fees safe harbor did not change with respect to a first late payment and was decreased from $38 to $37 for subsequent violations within the following six months (12 CFR 1026.52(b)(1)(ii)(A) and (B)).

Home Ownership and Equity Protection Act of 1994 (HOEPA)

• For HOEPA loans, the adjusted total loan amount threshold was decreased from $20,391 to $20,350, and the statutory fee trigger was decreased from $1,020 to $1,017 (12 CFR 1026.32(a)(1)(ii)(A) and (B)).

Dodd-Frank Wall Street Reform and Consumer Protection Act

• The threshold for higher price-mortgage loan (HPML) will remain at $25,500. Loans of $25,500 or less are exempt from the HPML appraisal rules (Official Interpretations, 12 CFR 1026, Paragraph 35(c)(2)(ii), Comment 1i).

• The CFPB modified the points and fees thresholds for determining whether a covered transaction is a qualified mortgage under the Ability-to-Repay (APR) rule. (Official Interpretations, 12 CFR 1026, Paragraph 43(e)(3)(ii), Comment 1). For qualified mortgage (QM) treatment, a transaction’s total points and fees cannot exceed:

• 3% of the total loan amount for a loan 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 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
• 8% of the total loan amount for loans less than $12,719