OCC 2006-38
OCC Bulletin

    Subject:  Truth in Lending Act
Description:  Annual Dollar Trigger for Certain Home 
              Mortgage Loans Bearing Fees Above a Certain
              Amount

       Date:  August 24, 2006

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 Federal Reserve Board published, in the August 9, 
2006, 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 as of 
June 1.  The adjusted dollar amount for 2007 is $547.

Effective January 1, 2007, the 12 CFR 226.32 points and
fees trigger is the greater of $547 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.



Ann F. Jaedicke
Deputy Comptroller for Compliance Policy


Attachment: 71 FR 46388
  [http://www.occ.treas.gov/fr/fedregister/71fr46388.pdf]