On October 25, 2021, the Consumer Financial Protection Bureau (CFPB) published a final rule amending Regulation Z and its Official Interpretations. The final rule revises the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2021. The final rule is effective January 1, 2022.
Credit Card Annual Adjustments
- Minimum Interest Charge Disclosure Thresholds—§§ 1026.6(b)(2)(iii) and 1026.60(b)(3)
The minimum interest charge amounts for §§ 1026.6(b)(2)(iii) and 1026.60(b)(3) will remain unchanged at $1.00 for the year 2022. Accordingly, the Bureau is not amending these sections of Regulation Z.
- Safe Harbor Penalty Fees—§ 1026.52(b)(1)(ii)(A) and (B)
Effective January 1, 2022, the permissible fee threshold amounts increased from the amounts for 2021 to $30 for § 1026.52(b)(1)(ii)(A) and to $41 for § 1026.52(b)(1)(ii)(B). Accordingly, the Bureau is amending § 1026.52(b)(1)(ii)(A) and (B). The Bureau is amending comment 52(b)(1)(ii)-2.i to preserve a list of the historical thresholds for this provision.
HOEPA Annual Threshold Adjustment—Comments 32(a)(1)(ii)-1 and -3
- Effective January 1, 2022, for purposes of determining under § 1026.32(a)(1)(ii) the points-and-fees coverage test under HOEPA to which a transaction is subject, the total loan amount threshold is $22,969, and the adjusted points-and-fees dollar trigger under § 1026.32(a)(1)(ii)(B) is $1,148.
- If the total loan amount for a transaction is $22,969 or more, and the points-and-fees amount exceeds 5 percent of the total loan amount, the transaction is a high-cost mortgage.
- If the total loan amount for a transaction is less than $22,969, and the points-and-fees amount exceeds the lesser of the adjusted points-and-fees dollar trigger of $1,148 or 8 percent of the total loan amount, the transaction is a high-cost mortgage.
Qualified Mortgages Annual Threshold Adjustments
- Effective January 1, 2022, to satisfy § 1026.43(e)(2)(vi) under the General QM loan definition, the APR may not exceed the average prime offer rate for a comparable transaction as of the date the interest rate is set by the following amounts:
- 25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $114,847;
- 5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $68,908 but less than $114,847;
- 5 or more percentage points for a first-lien covered transaction with a loan amount less than $68,908;
- 5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $114,847;
- 5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $68,908; or
- 5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $68,908.
- Effective January 1, 2022, a covered transaction is not a qualified mortgage if, pursuant to § 1026.43(e)(3), the transaction’s total points and fees exceed
- 3 percent of the total loan amount for a loan amount greater than or equal to $114,847;
- $3,445 for a loan amount greater than or equal to $68,908 but less than $114,847;
- 5 percent of the total loan amount for loans greater than or equal to $22,969 but less than $68,908;
- $1,148 for a loan amount greater than or equal to $14,356 but less than $22,969; or
- 8 percent of the total loan amount for loans less than $14,356.