Newsroom
July 22, 2016
Proposals out on Reg Z and M thresholds, appraisals
The Federal Reserve and CFPB issued a joint proposal Friday relating to the annual adjustment of thresholds for consumer loans and leases exempt from Regulation Z and Regulation M.
The Fed, CFPB and the Office of the Comptroller of the Currency also issued a joint proposal relating to higher-priced mortgage loans under Reg Z.
The first proposal affects consumer leasing requirements under Reg M, which implements the Consumer Leasing Act, as well as consumer credit requirements under Reg Z, which implements the Truth in Lending Act. The second proposal affects appraisal requirements for higher-priced mortgage loans under Reg Z.
The HPML requirements for creditors will affect loans for more than $25,000 – an amount that will be adjusted annually to account for increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.
The calculation methods proposed for the exemption thresholds for consumer leasing and credit transaction requirements will also be adjusted annually based on the CPI-W.
The Fed, CFPB and the Office of the Comptroller of the Currency also issued a joint proposal relating to higher-priced mortgage loans under Reg Z.
The first proposal affects consumer leasing requirements under Reg M, which implements the Consumer Leasing Act, as well as consumer credit requirements under Reg Z, which implements the Truth in Lending Act. The second proposal affects appraisal requirements for higher-priced mortgage loans under Reg Z.
The HPML requirements for creditors will affect loans for more than $25,000 – an amount that will be adjusted annually to account for increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.
The calculation methods proposed for the exemption thresholds for consumer leasing and credit transaction requirements will also be adjusted annually based on the CPI-W.
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