This story appeared in Bank Digest.
The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency are finalizing amendments to the official interpretations for their regulations that implement Section 129H of the Truth in Lending Act, which establishes special appraisal requirements for “higher-risk mortgages,” termed “higher-priced mortgage loans” or “HPMLs” in the agencies’ regulations.
These agencies, along with the Federal Deposit Insurance Corporation, National Credit Union Administration, and Federal Housing Finance Agency, issued joint final rules implementing these requirements, effective Jan. 18, 2014. These rules exempted, among other loan types, transactions of $25,000 or less and required that this loan amount be adjusted annually based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Based on the CPI-W in effect as of June 1, 2019, the exemption threshold will increase from $26,700 to $27,200, effective Jan. 1, 2020.