The Consumer Financial Protection Bureau made its annual threshold adjustments as required under Regulation Z, the implementing regulation for the Truth in Lending Act (TILA).
The calculation of dollar amounts for several provisions in Regulation Z is based on the annual percentage change reflected in the consumer price index as published by the Bureau of Labor Statistics and in effect on June 1. The thresholds announced here will be effective Jan. 1, 2024.
For open-end consumer credit plans under TILA, the threshold to trigger requirements to disclose minimum interest charges will remain at $1. For loans governed by the Homeownership and Equity Protection Act of 1994 (HOEPA), the adjusted total loan amount threshold for high-cost mortgages will be $26,092. The adjusted points-and-fees dollar trigger for high-cost mortgages will be $1,305.
For qualified mortgages (QMs), the thresholds for the spread between the annual percentage rate and the average prime offer rate will be:
“For all categories of QMs, the thresholds for total points and fees in 2024 will be 3 percent of the total loan amount for a loan greater than or equal to $130,461; $3,914 for a loan amount greater than or equal to $78,277 but less than $130,461; 5 percent of the total loan amount for a loan greater than or equal to $26,092 but less than $78,277; $1,305 for a loan amount greater than or equal to $16,308 but less than $26,092; and 8 percent of the total loan amount for a loan amount less than $16,308,” the final rule stated.
Cover Story: