The Consumer Financial Protection Bureau (CFPB) announced the asset-size thresholds for certain creditors to qualify for an exemption from requirements under the Truth in Lending Act (TILA).
“These changes reflect updates to the exemption from the escrow requirement in the Truth in Lending Act (TILA) for creditors that, together with their affiliates that regularly extended covered transactions secured by first liens, had total assets of less than $2 billion (adjusted annually for inflation). They also reflect updates to the exemption the CFPB added, by implementing section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation),” the CFPB stated in the final rule.
These thresholds are annually adjusted based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index is a subset of the Consumer Price Index for All Urban Consumers and represents around 30 percent of the population.
The CPI-W in effect as of November showed a 4.1 percent increase over 12 months. Based on this increase, the exemption threshold for creditors and their affiliates that regularly extended covered transactions secured by first liens is adjusted to $2.64 billion from $2.537 billion. The exemption threshold for certain insured depository institutions and insured credit unions with assets of $10 billion or less is adjusted to $11.83 billion from $11.37 billion. The new thresholds will be effective Jan. 1, 2024.
Cover Story: