Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold

Title: Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold
Subject: Reg Z
Agency: CFPB
Status: Final rule; official interpretation
The Bureau of Consumer Financial Protection (Bureau) is amending the official commentary that interprets the requirements of the Bureau’s Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the 2.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2018, the exemption threshold is adjusted to increase to $2.167 billion from $2.112 billion. Therefore, creditors with assets of less than $2.167 billion (including assets of certain affiliates) as of December 31, 2018, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2019. The adjustment to the escrows asset-size exemption threshold will also increase the threshold for small-creditor portfolio and balloon-payment qualified mortgages under Regulation Z.
FR Doc: 2018-28374
Date proposed:
Comments due date:
Final rule effective date: February 4, 2019 (Applicable on January 1, 2019, consistent with relevant statutory or regulatory provisions.)
Rule compliance date:
Agency release:
Related Reg Report item(s):

Thresholds for mortgage disclosures data collection, TILA escrow requirements raised