WASHINGTON, D.C. – The Consumer Financial Protection Bureau, the Federal Reserve Board, and the
Effective January 1, 2024, the exemption threshold amount is increased from $66,400 to $69,500. This amount is based on the CPI–W in effect on June 1, 2023, which was reported on Start Printed Page 83324 May 10, 2023 (based on April 2023 data).
The CFPB is amending Regulation C, which implements the Home Mortgage Disclosure Act of 1975 (HMDA) asset thresholds, to establish the asset-sized exemption threshold for depository financial institution for 2024. The asset threshold will be $56 million for 2024.
Effective January 1, 2024, 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 $130,461; $3,914 for a loan amount greater than or equal to $78,277 but less than ...
In the 2021 Escrows Rule, the CFPB established an asset-size threshold of $10 billion or less in § 1026.35(b)(2)(vi)(A), which will adjust automatically each year, based on the year-to-year change in the average of the CPI–W, not seasonally adjusted, for each 12-month period ending in November, with rounding to the ...
The Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule) requires a creditor to make a reasonable, good faith determination of a consumer's ability to repay a residential mortgage loan according to its terms.
The CFPB proposes to prohibit covered financial institutions from charging nonsufficient funds (NSF) fees on payment transactions that are instantaneously declined because such fees would constitute an abusive practice.
Mandatory product feature requirements for all QMs
Points and fees are less than or equal to 3% of the loan amount (for loan amounts less than $100k, higher percentage thresholds are allowed);
To qualify for the safe harbor, which is a conclusive presumption of compliance with the ability to repay rule, the APR could not exceed the APOR for a comparable transaction by (1) 1.5 percentage points or more for a first lien transaction or (2) 3.5 percentage points or more for a junior lien transaction.
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The asset threshold is subject to annual adjustment based on inflation. The asset threshold for calendar year 2023 HMDA data collection and reporting is $54 million.
Beginning on January 1, 2022, a financial institution originating 200 or more open-end lines of credit must collect, record, and report HMDA data for open-end lines of credit.
Institutions reporting fewer than 100,000 loans or applications on the HMDA LAR should be required to correct and resubmit HMDA data when 10 percent or more of the HMDA LAR sample entries contain errors. This threshold is set forth in column C of the HMDA Resubmission Schedule, Appendix B below.
But there are exemptions. The following loans aren't subject to Regulation Z laws: Federal student loans. Credit for business, commercial, agricultural or organizational use.
Specifically, based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), Regulation Z and Regulation M generally will apply to consumer credit transactions and consumer leases of $69,500 or less, in 2024, compared to $66,400 in 2023.
Coverage Considerations under Regulation Z
Regulation Z does not apply, except for the rules of issuance of and unauthorized use liability for credit cards. (Exempt credit includes loans with a business or agricultural purpose, and certain student loans.
One category of QMs is the General QM category. For General QMs, the ratio of the consumer's total monthly debt to total monthly income (DTI or DTI ratio) must not exceed 43 percent.
The election allows you to automatically expense any item under $2,500 on your invoice. If you have an applicable financial statement (AFS), you may use this safe harbor to deduct amounts paid for tangible property up to $5,000 per invoice or item (as substantiated by invoice).
The de minimis safe harbor is simply an administrative convenience that generally allows you to elect to deduct small-dollar expenditures for the acquisition or production of property that otherwise must be capitalized under the general rules.
The General QM Final Rule
It was published in the Federal Register on December 29, 2020. The General QM Final Rule amended Regulation Z to remove the General QM loan definition's DTI limit (and appendix Q) and replace it with limits based on the loan's pricing.
Also, for all types of QMs, the points and fees may not exceed the rule's specified points-and-fees caps. What Are the Different Types of QMs? There are four types of QMs – General, Temporary, Small Creditor, and Balloon-Payment.
For QM loans, the standard is applied using a federal formula based on the Average Prime Offered Rate (APOR) for a mortgage, plus 1.5 percentage points. Below this threshold, a loan is considered to provide the lender a "safe harbor".
In November 2023, the CFPB issued a proposed rule to supervise nonbank companies that qualify as larger participants in a market for “general-use digital consumer payment applications.” It would cover providers of consumer financial products and services that are commonly referred to as “digital wallets,” “payment apps ...
The debt collector is presumed to violate the law if they place a telephone call to you about a particular debt: More than seven times within a seven-day period, or. Within seven days after engaging in a telephone conversation with you about the particular debt.
Disclosures by telephone must be furnished at least three business days prior to consummation or account opening, as applicable, calculated in accordance with the timing rules under § 1026.31(c)(1).