All but one of the regulatory thresholds on what fees are allowed and which loans get special protections under the Truth in Lending Act (TILA), Credit Card Accountability Responsibility and Disclosure Act (CARD Act) and Home Ownership and Equity Protection Act (HOEPA) are rising in 2019 as a result of action by the Bureau of Consumer Financial Protection (BCFP).
The Jan. 1, 2019, thresholds, revised where necessary based on review of the consumer price index (CPI), are detailed in a notice slated for publication Monday in the Federal Register. Here they are:
Open-end consumer credit plans under TILA
The threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.
Open-end consumer credit plans under the CARD Act
The adjusted dollar amount for the safe harbor for a first violation penalty fee will increase by $1 to $28; the adjusted dollar amount for the safe harbor for a subsequent violation penalty fee will increase by $1 to $39.
HOEPA loans
The adjusted total loan amount threshold for high-cost mortgages will be $21,549. The adjusted points-and-fees dollar trigger for high-cost mortgages will be $1,077.
Qualified mortgages
These loans receive certain protections from liability under the TILA ability-to-repay rule. Maximum thresholds for total points and fees in 2019 are revised to:
- 3% of the total loan amount for a loan greater than or equal to $107,747;
- $3,232 for a loan amount greater than or equal to $64,648 but less than $107,747;
- 5% of the total loan amount for a loan 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; and
- 8% of the total loan amount for a loan amount less than $13,468.
Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages) – Effective Jan. 1, 2019