Subject: |
Truth in Lending Act
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Description:
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Annual Dollar Trigger for
Certain Home Mortgage Loans Bearing Fees Above a Certain Amount
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Date: August 20, 2008 |
TO: |
Chief Executive Officers and Compliance Officers of All National Banks and
National Bank Operating Subsidiaries, Department and Division Heads, and All
Examining Personnel |
The Board of Governors of the Federal Reserve System published in the August 8,
2008, Federal Register, its annual amendment to its Regulation Z
Commentary related to the dollar amount that triggers requirements for certain
home mortgage loans subject to 12 CFR 226.32. The Home Ownership and Equity
Protection Act of 1994 established rules for home-secured loans in which the
total points and fees payable by the consumer at or before loan closing exceed
the greater of $400 or 8 percent of the total loan amount. The $400 amount is
adjusted annually based on the annual percentage change in the Consumer Price
Index that is in effect on June 1. The adjusted dollar amount for 2009 is $583.
Effective January 1, 2009, the 12 CFR 226.32 points and fees trigger is the
greater of $583 or 8 percent of the total loan amount. This change can be found
in the Regulation Z Commentary at 226.32(a)(1)(ii) – 2, which lists the annual
adjustments.
Questions regarding this change may be directed to your supervisory office or the Compliance Policy Department at (202) 874-4428.
/signed/
Ann F. Jaedicke
Deputy Comptroller for Compliance Policy
Attachment:
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Final Rule
[http://www.occ.treas.gov/fr/fedregister/73fr46190.pdf]
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