82 FR 41158 - Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and ATR/QM)
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 82, Issue 167 (August 30, 2017)
Federal Register Volume 82, Issue 167 (August 30, 2017)
| Page Range | 41158-41160 | |
| FR Document | 2017-18003 |
[Federal Register Volume 82, Number 167 (Wednesday, August 30, 2017)] [Rules and Regulations] [Pages 41158-41160] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-18003] ======================================================================= ----------------------------------------------------------------------- BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and ATR/QM) AGENCY: Bureau of Consumer Financial Protection. ACTION: Final rule; official interpretation. ----------------------------------------------------------------------- SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule amending the official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Bureau is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2017. DATES: This final rule is effective January 1, 2018. FOR FURTHER INFORMATION CONTACT: Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552 at (202) 435-7700. SUPPLEMENTARY INFORMATION: The Bureau is amending the official interpretations for Regulation Z, which implements TILA, to update the dollar amounts of various thresholds that are adjusted annually based on the annual percentage change in the CPI as published by the Bureau of Labor Statistics (BLS). Specifically, for open-end consumer credit plans under TILA, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.00 in 2018. For open-end consumer credit plans under the CARD Act amendments to TILA, the adjusted dollar amount for the safe harbor for a first violation penalty fee will remain unchanged at $27 in 2018 and the adjusted dollar amount for the safe harbor for a subsequent violation penalty fee will remain unchanged at $38 in 2018. For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages in 2018 will be $21,032. The adjusted points and fees dollar trigger for high-cost mortgages in 2018 will be $1,052. For the general rule to determine consumers' ability to repay mortgage loans, the maximum thresholds for total points and fees for qualified mortgages in 2018 will be 3 percent of the total loan amount for a loan greater than or equal to $105,158; $3,155 for a loan amount greater than or equal to $63,095 but less than $105,158; 5 percent of the total loan amount for a loan greater than or equal to $21,032 but less than $63,095; $1,052 for a loan amount greater than or equal to $13,145 but less than $21,032; and 8 percent of the total loan amount for a loan amount less than $13,145. I. Background A. Credit Card Annual Adjustments Minimum Interest Charge Disclosure Thresholds Sections 1026.6(b)(2)(iii) and 1026.60(b)(3) of the Bureau's Regulation Z implement sections 127(a)(3) and 127(c)(1)(A)(ii)(II) of TILA. Sections 1026.6(b)(2)(iii) and 1026.60(b)(3) require the disclosure of any minimum interest charge exceeding $1.00 that could be imposed during a billing cycle and provide that, for open-end consumer credit plans, the minimum interest charge thresholds will be re- calculated annually using the CPI that was in effect on the preceding June 1; the Bureau uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for this adjustment. When the cumulative change in the adjusted minimum value derived from applying the annual CPI-W level to the current amounts in Sec. Sec. 1026.6(b)(2)(iii) and 1026.60(b)(3) has risen by a whole dollar, the minimum interest charge amounts set forth in the regulation will be increased by $1.00. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of the month. This adjustment analysis is based on the CPI-W index in effect on June 1, 2017, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The CPI-W is a subset of the Consumer Price Index for All Urban Consumers (CPI-U) index and represents approximately 28 percent of the U.S. population. The adjustment analysis accounts for a 2.1 percent increase in the CPI-W from April 2016 to April 2017. This increase in the CPI-W when applied to the current amounts in Sec. Sec. 1026.6(b)(2)(iii) and 1026.60(b)(3) did not trigger an increase in the minimum interest charge threshold of at least $1.00, and the Bureau is therefore not amending Sec. Sec. 1026.6(b)(2)(iii) and 1026.60(b)(3). Safe Harbor Penalty Fees Section 1026.52(b)(1)(ii)(A) and (B) of the Bureau's Regulation Z implements section 149(e) of TILA, established by the CARD Act.\1\ Section 1026.52(b)(1)(ii)(D) provides that the safe harbor provision, which establishes the permissible penalty fee thresholds in Sec. 1026.52(b)(1)(ii)(A) and (B), will be re-calculated annually using the CPI that was in effect on the preceding June 1; the Bureau uses the CPI-W for this adjustment. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of the month. The CPI-W is a subset of the CPI-U index and represents approximately 28 percent of the U.S. population. When the cumulative change in the adjusted value derived [[Page 41159]] from applying the annual CPI-W level to the current amounts in Sec. 1026.52(b)(1)(ii)(A) and (B) has risen by a whole dollar, those amounts will be increased by $1.00. Similarly, when the cumulative change in the adjusted value derived from applying the annual CPI-W level to the current amounts in Sec. 1026.52(b)(1)(ii)(A) and (B) has decreased by a whole dollar, those amounts will be decreased by $1.00. See comment 52(b)(1)(ii)-2. The 2018 adjustment analysis is based on the CPI-W index in effect on June 1, 2017, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The 2.1 percent increase in the CPI-W from April 2016 to April 2017 did not trigger an increase in the first violation safe harbor penalty fee of $27 or the subsequent violation safe harbor penalty fee of $38, and the Bureau is therefore not amending Sec. 1026.52(b)(1)(ii)(A) and (B) for the 2018 calendar year. --------------------------------------------------------------------------- \1\ Credit Card Accountability Responsibility and Disclosure Act of 2009, Public Law 111-24, 123 Stat. 1734 (2009). --------------------------------------------------------------------------- B. HOEPA Annual Threshold Adjustments Section 1026.32(a)(1)(ii) of the Bureau's Regulation Z implements section 1431 of the Dodd-Frank Act,\2\ which amended the HOEPA points and fees coverage test. Under Sec. 1026.32(a)(1)(ii)(A) and (B), when determining whether a transaction is a high-cost mortgage, the determination of the applicable points and fees coverage test is based upon whether the total loan amount is for $20,000 or more, or for less than $20,000. Section 1026.32(a)(1)(ii) provides that this threshold amount be recalculated annually using the CPI index in effect on June 1; the Bureau uses the CPI-U for this adjustment. The CPI-U is based on all urban consumers and represents approximately 88 percent of the U.S. population. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of each month. The 2018 adjustment is based on the CPI-U index in effect on June 1, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The adjustment to the $20,000 figure being adopted here reflects a 2.2 percent increase in the CPI-U index for this period and is rounded to whole dollars for ease of compliance. --------------------------------------------------------------------------- \2\ Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 (2010). --------------------------------------------------------------------------- Under Sec. 1026.32(a)(1)(ii)(B) the HOEPA points and fees dollar trigger is $1,000. Section 1026.32(a)(1)(ii)(B) provides that this threshold amount will be recalculated annually using the CPI index in effect on June 1; the Bureau uses the CPI-U for this adjustment. The 2018 adjustment is based on the CPI-U index in effect on June 1, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The adjustment to the $1,000 figure being adopted here reflects a 2.2 percent increase in the CPI-U index for this period and is rounded to whole dollars for ease of compliance. C. Ability To Repay and Qualified Mortgages Annual Threshold Adjustments The Bureau's Regulation Z implements sections 1411 and 1412 of the Dodd-Frank Act, which generally require creditors to make a reasonable, good faith determination of a consumer's ability to repay any consumer credit transaction secured by a dwelling, and establishes certain protections from liability under this requirement for qualified mortgages. Under Sec. 1026.43(e)(3)(i), a covered transaction is not a qualified mortgage if the transaction's points and fees exceed: 3 Percent of the total loan amount for a loan amount greater than or equal to $100,000; $3,000 for a loan amount greater than or equal to $60,000 but less than $100,000; 5 percent of the total loan amount for loans greater than or equal to $20,000 but less than $60,000; $1,000 for a loan amount greater than or equal to $12,500 but less than $20,000; or 8 percent of the total loan amount for loans less than $12,500. Section 1026.43(e)(3)(ii) provides that the limits and loan amounts in Sec. 1026.43(e)(3)(i) are recalculated annually for inflation using the CPI-U index in effect on June 1. The CPI-U is based on all urban consumers and represents approximately 88 percent of the U.S. population. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of each month. The 2018 adjustment is based on the CPI-U index in effect on June 1, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The adjustment to the 2017 figures being adopted here reflects a 2.2 percent increase in the CPI-U index for this period and is rounded to whole dollars for ease of compliance. II. Adjustment and Commentary Revision A. Credit Card Annual Adjustments Minimum Interest Charge Disclosure Thresholds--Sec. Sec. 1026.6(b)(2)(iii) and 1026.60(b)(3) The minimum interest charge amounts for Sec. Sec. 1026.6(b)(2)(iii) and 1026.60(b)(3) will remain unchanged at $1.00 for the year 2018. Accordingly, the Bureau is not amending these sections of Regulation Z. Safe Harbor Penalty Fees--Sec. 1026.52(b)(1)(ii)(A) and (B) The safe harbor penalty fee amounts remain unchanged at $27 for Sec. 1026.52(b)(1)(ii)(A) (first violation safe harbor penalty fee) and $38 for Sec. 1026.52(b)(1)(ii)(B) (subsequent violation safe harbor penalty fee) for the year 2018. Accordingly, the Bureau is not amending these sections of Regulation Z. The Bureau is amending comment 52(b)(1)(ii)-2.i to preserve a list of the historical thresholds for this provision. B. HOEPA Annual Threshold Adjustment--Comments 32(a)(1)(ii)-1 and -3 Effective January 1, 2018, for purposes of determining under Sec. 1026.32(a)(1)(ii) the points and fees coverage test under HOEPA to which a transaction is subject, the total loan amount threshold is $21,032, and the adjusted points and fees dollar trigger under Sec. 1026.32(a)(1)(ii)(B) is $1,052. When the total loan amount for a transaction is $21,032 or more, and the points and fees amount exceeds 5 percent of the total loan amount, the transaction is a high-cost mortgage. When the total loan amount for a transaction is less than $21,032, and the points and fees amount exceeds the lesser of the adjusted points and fees dollar trigger of $1,052 or 8 percent of the total loan amount, the transaction is a high-cost mortgage. The Bureau is amending comments 32(a)(1)(ii)-1 and -3, which list the adjustments for each year, to reflect for 2018 the new loan amount dollar threshold and the new points and fees dollar trigger, respectively. C. Ability To Repay and Qualified Mortgages Annual Threshold Adjustments Effective January 1, 2018, for purposes of determining whether a covered transaction is a qualified mortgage under Sec. 1026.43(e), a covered transaction is not a qualified mortgage if, pursuant to Sec. 1026.43(e)(3), the transaction's total points and fees exceed 3 percent of the total loan [[Page 41160]] amount for a loan amount greater than or equal to $105,158; $3,155 for a loan amount greater than or equal to $63,095 but less than $105,158; 5 percent of the total loan amount for loans greater than or equal to $21,032 but less than $63,095; $1,052 for a loan amount greater than or equal to $13,145 but less than $21,032; or 8 percent of the total loan amount for loans less than $13,145. The Bureau is amending comment 43(e)(3)(ii)-1, which lists the adjustments for each year, to reflect the new dollar threshold amounts for 2018. III. Procedural Requirements A. Administrative Procedure Act Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the Bureau finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B). Pursuant to this final rule, in Regulation Z, comments 32(a)(1)(ii)-1.iv and -3.iv, 43(e)(3)(ii)-1.iv, and 52(b)(1)(ii)-2.i.E in supplement I are added to update the exemption thresholds. The amendments in this final rule are technical and non-discretionary, as they merely apply the method previously established in Regulation Z for determining adjustments to the thresholds. For these reasons, the Bureau has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. The amendments therefore are adopted in final form. B. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a). C. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3506; 5 CFR part 1320), the Bureau reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. List of Subjects in 12 CFR Part 1026 Advertising, Consumer protection, Credit, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth in lending. Authority and Issuance For the reasons set forth in the preamble, the Bureau amends Regulation Z, 12 CFR part 1026, as set forth below: PART 1026--TRUTH IN LENDING (REGULATION Z) 0 1. The authority citation for part 1026 continues to read as follows: Authority: 12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 3353, 5511, 5512, 5532, 5581; 15 U.S.C. 1601 et seq. 0 2. In Supplement I to part 1026--Official Interpretations: 0 a. Under Section 1026.32--Requirements for High-Cost Mortgages, under 32(a) Coverage, under Paragraph 32(a)(1)(ii), paragraphs 1.iv and 3.iv are added. 0 b. Under Section 1026.43--Minimum Standards for Transactions Secured by a Dwelling, under 43(e) Qualified mortgages, under Paragraph 43(e)(3)(ii), paragraph 1.iv is added. 0 c. Under Section 1026.52--Limitations on Fees, under 52(b) Limitations on Penalty Fees, under 52(b)(1)(ii) Safe harbors, paragraph 2.i.E is added. The additions read as follows: Supplement I to Part 1026--Official Interpretations * * * * * Subpart E--Special Rules for Certain Home Mortgage Transactions * * * * * Section 1026.32--Requirements for Certain Closed-End Home Mortgages 32(a) Coverage * * * * * Paragraph 32(a)(1)(ii). 1. * * * iv. For 2018, $1,052, reflecting a 2.2 percent increase in the CPI- U from June 2016 to June 2017, rounded to the nearest whole dollar. * * * * * 3. * * * iv. For 2018, $21,032, reflecting a 2.2 percent increase in the CPI-U from June 2016 to June 2017, rounded to the nearest whole dollar. * * * * * Section 1026.43--Minimum Standards for Transactions Secured by a Dwelling * * * * * 43(e) Qualified mortgages. * * * * * Paragraph 43(e)(3)(ii). 1. * * * iv. For 2018, reflecting a 2.2 percent increase in the CPI-U that was reported on the preceding June 1, a covered transaction is not a qualified mortgage unless the transaction's total points and fees do not exceed: A. For a loan amount greater than or equal to $105,158: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $63,095 but less than $105,158: $3,155; C. For a loan amount greater than or equal to $21,032 but less than $63,095: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $13,145 but less than $21,032: $1,052; E. For a loan amount less than $13,145: 8 percent of the total loan amount. * * * * * Subpart G--Special Rules Applicable to Credit Card Accounts and Open-End Credit Offered to College Students * * * * * Section 1026.52--Limitations on Fees * * * * * 52(b) Limitations on Penalty Fees * * * * * 52(b)(1)(ii) Safe harbors * * * * * 2. * * * i. * * * E. Card issuers were permitted to impose a fee for violating the terms of an agreement if the fee did not exceed $27 under Sec. 1026.52(b)(1)(ii)(A) and $38 under Sec. 1026.52(b)(1)(ii)(B), through December 31, 2017. * * * * * Dated: July 25, 2017. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2017-18003 Filed 8-29-17; 8:45 am] BILLING CODE 4810-AM-P
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implementing regulations to restrict Frank Wall Street Reform and Consumer 1026.6(b)(2)(iii) and 1026.60(b)(3)
DOE’s ability to allocate the Transaction Protection Act (Dodd-Frank Act). The require the disclosure of any minimum
Advisory Costs or other Category II Bureau is adjusting these amounts, interest charge exceeding $1.00 that
Costs associated with a particular where appropriate, based on the annual could be imposed during a billing cycle
application to the relevant applicant. percentage change reflected in the and provide that, for open-end
Based on its interpretation of the Consumer Price Index (CPI) in effect on consumer credit plans, the minimum
statute as explained in this rule, June 1, 2017. interest charge thresholds will be re-
applicants for ATVM loans can bear all DATES: This final rule is effective calculated annually using the CPI that
Transaction Advisory Costs associated January 1, 2018. was in effect on the preceding June 1;
with their respective applications. FOR FURTHER INFORMATION CONTACT: the Bureau uses the Consumer Price
Applicants would pay Transaction Jaclyn Maier, Counsel, Office of Index for Urban Wage Earners and
Advisory Costs pursuant to direct Regulations, Consumer Financial Clerical Workers (CPI–W) for this
agreements executed by and between Protection Bureau, 1700 G Street NW., adjustment. When the cumulative
the applicant and each relevant outside Washington, DC 20552 at (202) 435– change in the adjusted minimum value
transaction advisor, in a form acceptable 7700. derived from applying the annual CPI–
to DOE and each such transaction W level to the current amounts in
SUPPLEMENTARY INFORMATION: The
advisor, no later than the date §§ 1026.6(b)(2)(iii) and 1026.60(b)(3) has
Bureau is amending the official risen by a whole dollar, the minimum
determined by DOE in its discretion
interpretations for Regulation Z, which interest charge amounts set forth in the
with respect to such pending
implements TILA, to update the dollar regulation will be increased by $1.00.
application.
amounts of various thresholds that are The BLS publishes consumer-based
II. Approval of the Office of the adjusted annually based on the annual indices monthly but does not report a
Secretary percentage change in the CPI as CPI change on June 1; adjustments are
The Secretary of Energy has approved published by the Bureau of Labor reported in the middle of the month.
publication of this interpretive rule. Statistics (BLS). Specifically, for open- This adjustment analysis is based on the
end consumer credit plans under TILA, CPI–W index in effect on June 1, 2017,
List of Subjects in 10 CFR Part 611 the threshold that triggers requirements which was reported by BLS on May 12,
Administrative practice and to disclose minimum interest charges 2017, and reflects the percentage change
procedure, Loan programs—energy, will remain unchanged at $1.00 in 2018. from April 2016 to April 2017. The CPI–
Reporting and recordkeeping For open-end consumer credit plans W is a subset of the Consumer Price
requirements. under the CARD Act amendments to Index for All Urban Consumers (CPI–U)
TILA, the adjusted dollar amount for the index and represents approximately 28
Issued in Washington, DC, on August 24,
2017. safe harbor for a first violation penalty percent of the U.S. population. The
fee will remain unchanged at $27 in adjustment analysis accounts for a 2.1
John Sneed,
2018 and the adjusted dollar amount for percent increase in the CPI–W from
Executive Director, Loan Programs Office.
the safe harbor for a subsequent April 2016 to April 2017. This increase
[FR Doc. 2017–18400 Filed 8–29–17; 8:45 am] violation penalty fee will remain
BILLING CODE 6450–01–P
in the CPI–W when applied to the
unchanged at $38 in 2018. For HOEPA current amounts in §§ 1026.6(b)(2)(iii)
loans, the adjusted total loan amount and 1026.60(b)(3) did not trigger an
threshold for high-cost mortgages in increase in the minimum interest charge
BUREAU OF CONSUMER FINANCIAL 2018 will be $21,032. The adjusted
PROTECTION threshold of at least $1.00, and the
points and fees dollar trigger for high- Bureau is therefore not amending
cost mortgages in 2018 will be $1,052. §§ 1026.6(b)(2)(iii) and 1026.60(b)(3).
12 CFR Part 1026 For the general rule to determine
consumers’ ability to repay mortgage Safe Harbor Penalty Fees
Truth in Lending (Regulation Z) Annual
Threshold Adjustments (Credit Cards, loans, the maximum thresholds for total Section 1026.52(b)(1)(ii)(A) and (B) of
HOEPA, and ATR/QM) points and fees for qualified mortgages the Bureau’s Regulation Z implements
in 2018 will be 3 percent of the total section 149(e) of TILA, established by
AGENCY: Bureau of Consumer Financial loan amount for a loan greater than or the CARD Act.1 Section
Protection. equal to $105,158; $3,155 for a loan 1026.52(b)(1)(ii)(D) provides that the
ACTION: Final rule; official amount greater than or equal to $63,095 safe harbor provision, which establishes
interpretation. but less than $105,158; 5 percent of the the permissible penalty fee thresholds
total loan amount for a loan greater than in § 1026.52(b)(1)(ii)(A) and (B), will be
SUMMARY: The Bureau of Consumer or equal to $21,032 but less than re-calculated annually using the CPI
Financial Protection (Bureau) is issuing $63,095; $1,052 for a loan amount that was in effect on the preceding June
this final rule amending the official greater than or equal to $13,145 but less 1; the Bureau uses the CPI–W for this
interpretations for Regulation Z, which than $21,032; and 8 percent of the total adjustment. The BLS publishes
implements the Truth in Lending Act loan amount for a loan amount less than consumer-based indices monthly but
(TILA). The Bureau is required to $13,145. does not report a CPI change on June 1;
calculate annually the dollar amounts adjustments are reported in the middle
for several provisions in Regulation Z; I. Background
of the month. The CPI–W is a subset of
this final rule revises, as applicable, the A. Credit Card Annual Adjustments the CPI–U index and represents
dollar amounts for provisions approximately 28 percent of the U.S.
implementing TILA and amendments to Minimum Interest Charge Disclosure
Thresholds population. When the cumulative
TILA, including under the Credit Card change in the adjusted value derived
Accountability Responsibility and Sections 1026.6(b)(2)(iii) and
Disclosure Act of 2009 (CARD Act), the 1026.60(b)(3) of the Bureau’s Regulation 1 Credit Card Accountability Responsibility and
Home Ownership and Equity Protection Z implement sections 127(a)(3) and Disclosure Act of 2009, Public Law 111–24, 123
Act of 1994 (HOEPA), and the Dodd- 127(c)(1)(A)(ii)(II) of TILA. Sections Stat. 1734 (2009).
VerDate Sep<11>2014 13:47 Aug 29, 2017 Jkt 241001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\30AUR1.SGM 30AUR1](https://thefederalregister.org/doc/82_FR_41325/page/1.svg)
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amount for a loan amount greater than PART 1026—TRUTH IN LENDING A. For a loan amount greater than or
or equal to $105,158; $3,155 for a loan (REGULATION Z) equal to $105,158: 3 percent of the total
amount greater than or equal to $63,095 loan amount;
but less than $105,158; 5 percent of the ■ 1. The authority citation for part 1026 B. For a loan amount greater than or
total loan amount for loans greater than continues to read as follows: equal to $63,095 but less than $105,158:
or equal to $21,032 but less than Authority: 12 U.S.C. 2601, 2603–2605, $3,155;
$63,095; $1,052 for a loan amount 2607, 2609, 2617, 3353, 5511, 5512, 5532, C. For a loan amount greater than or
greater than or equal to $13,145 but less 5581; 15 U.S.C. 1601 et seq. equal to $21,032 but less than $63,095:
than $21,032; or 8 percent of the total ■ 2. In Supplement I to part 1026— 5 percent of the total loan amount;
loan amount for loans less than $13,145. Official Interpretations: D. For a loan amount greater than or
The Bureau is amending comment equal to $13,145 but less than $21,032:
■ a. Under Section 1026.32—
43(e)(3)(ii)–1, which lists the $1,052;
Requirements for High-Cost Mortgages,
adjustments for each year, to reflect the E. For a loan amount less than
under 32(a) Coverage, under Paragraph
new dollar threshold amounts for 2018. $13,145: 8 percent of the total loan
32(a)(1)(ii), paragraphs 1.iv and 3.iv are
III. Procedural Requirements added. amount.
■ b. Under Section 1026.43—Minimum * * * * *
A. Administrative Procedure Act
Standards for Transactions Secured by
Under the Administrative Procedure a Dwelling, under 43(e) Qualified Subpart G—Special Rules Applicable
Act, notice and opportunity for public mortgages, under Paragraph 43(e)(3)(ii), to Credit Card Accounts and Open-End
comment are not required if the Bureau paragraph 1.iv is added. Credit Offered to College Students
finds that notice and public comment ■ c. Under Section 1026.52— * * * * *
are impracticable, unnecessary, or Limitations on Fees, under 52(b)
contrary to the public interest. 5 U.S.C. Limitations on Penalty Fees, under Section 1026.52—Limitations on Fees
553(b)(B). Pursuant to this final rule, in 52(b)(1)(ii) Safe harbors, paragraph 2.i.E * * * * *
Regulation Z, comments 32(a)(1)(ii)–1.iv is added.
and –3.iv, 43(e)(3)(ii)–1.iv, and 52(b) Limitations on Penalty Fees
The additions read as follows:
52(b)(1)(ii)–2.i.E in supplement I are * * * * *
added to update the exemption Supplement I to Part 1026—Official
thresholds. The amendments in this Interpretations 52(b)(1)(ii) Safe harbors
final rule are technical and non- * * * * * * * * * *
discretionary, as they merely apply the 2. * * *
method previously established in Subpart E—Special Rules for Certain i. * * *
Regulation Z for determining Home Mortgage Transactions E. Card issuers were permitted to
adjustments to the thresholds. For these impose a fee for violating the terms of
reasons, the Bureau has determined that * * * * *
an agreement if the fee did not exceed
publishing a notice of proposed Section 1026.32—Requirements for $27 under § 1026.52(b)(1)(ii)(A) and $38
rulemaking and providing opportunity Certain Closed-End Home Mortgages under § 1026.52(b)(1)(ii)(B), through
for public comment are unnecessary. December 31, 2017.
The amendments therefore are adopted 32(a) Coverage
* * * * *
in final form. * * * * *
Dated: July 25, 2017.
B. Regulatory Flexibility Act Paragraph 32(a)(1)(ii).
Richard Cordray,
1. * * *
Because no notice of proposed Director, Bureau of Consumer Financial
rulemaking is required, the Regulatory iv. For 2018, $1,052, reflecting a 2.2
Protection.
Flexibility Act does not require an percent increase in the CPI–U from June
[FR Doc. 2017–18003 Filed 8–29–17; 8:45 am]
initial or final regulatory flexibility 2016 to June 2017, rounded to the
BILLING CODE 4810–AM–P
analysis. 5 U.S.C. 603(a), 604(a). nearest whole dollar.
* * * * *
C. Paperwork Reduction Act 3. * * *
In accordance with the Paperwork DEPARTMENT OF TRANSPORTATION
iv. For 2018, $21,032, reflecting a 2.2
Reduction Act of 1995 (44 U.S.C. 3506; percent increase in the CPI–U from June Federal Aviation Administration
5 CFR part 1320), the Bureau reviewed 2016 to June 2017, rounded to the
this final rule. No collections of nearest whole dollar. 14 CFR Part 39
information pursuant to the Paperwork * * * * *
Reduction Act are contained in the final [Docket No. FAA–2017–0503; Product
rule. Section 1026.43—Minimum Standards Identifier 2017–NM–032–AD; Amendment
for Transactions Secured by a Dwelling 39–19009; AD 2017–17–19]
List of Subjects in 12 CFR Part 1026
* * * * * RIN 2120–AA64
Advertising, Consumer protection,
43(e) Qualified mortgages.
Credit, Credit unions, Mortgages, Airworthiness Directives; The Boeing
National banks, Reporting and * * * * *
Paragraph 43(e)(3)(ii). Company Airplanes
recordkeeping requirements, Savings
associations, Truth in lending. 1. * * * AGENCY: Federal Aviation
iv. For 2018, reflecting a 2.2 percent Administration (FAA), DOT.
Authority and Issuance increase in the CPI–U that was reported ACTION: Final rule.
For the reasons set forth in the on the preceding June 1, a covered
preamble, the Bureau amends transaction is not a qualified mortgage SUMMARY: We are adopting a new
Regulation Z, 12 CFR part 1026, as set unless the transaction’s total points and airworthiness directive (AD) for all The
forth below: fees do not exceed: Boeing Company Model DC–9–81 (MD–
VerDate Sep<11>2014 13:47 Aug 29, 2017 Jkt 241001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\30AUR1.SGM 30AUR1](https://thefederalregister.org/doc/82_FR_41325/page/3.svg)
Document Created: 2017-08-30 04:08:26
Document Modified: 2017-08-30 04:08:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule; official interpretation. | |
| Dates | This final rule is effective January 1, 2018. | |
| Contact | Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552 at (202) 435-7700. | |
| FR Citation | 82 FR 41158 | |
| CFR Associated | Advertising; Consumer Protection; Credit; Credit Unions; Mortgages; National Banks; Reporting and Recordkeeping Requirements; Savings Associations and Truth in Lending |
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