Bureau adjusts annual thresholds for TILA provisions on credit cards, mortgages

Dollar amounts for provisions in truth-in-lending regulations for credit cards and mortgages have been adjusted for consumer prices as of the beginning of this summer, the federal consumer financial protection agency said Monday.

More specifically, under the new dollar amounts for Truth in Lending Act (TILA) compliance released by the Consumer Financial Protection Bureau (CPFB):

  • For open-end consumer credit plans, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1 in 2021.
  • For open-end consumer credit plans under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the adjusted dollar amount in 2021 for the safe harbor for a first violation penalty fee will remain unchanged at $29 and the adjusted dollar amount for the safe harbor for a subsequent violation penalty fee will also remain unchanged at $40.
  • For Home Ownership and Equity Protection Act of 1994 (HOEPA) loans, the adjusted total loan amount threshold for high-cost mortgages in 2021 will be $22,052. The adjusted points-and-fees dollar trigger for high-cost mortgages in 2021 will be $1,103.
  • For qualified mortgages, which provide creditors with certain protections from liability under the Ability-to-Repay Rule, the maximum thresholds for total points and fees in 2021 will be 3% of the total loan amount for a loan greater than or equal to $110,260; $3,308 for a loan amount greater than or equal to $66,156 but less than $110,260; 5% of the total loan amount for a loan greater than or equal to $22,052 but less than $66,156; $1,103 for a loan amount greater than or equal to $13,783 but less than $22,052; and 8% of the total loan amount for a loan amount less than $13,783.

The bureau said it is adjusting the amounts based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2020.

Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages)

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