82 FR 51973 - Appraisals for Higher-Priced Mortgage Loans Exemption Threshold
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 82, Issue 216 (November 9, 2017)
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
BUREAU OF CONSUMER FINANCIAL PROTECTION
Federal Register Volume 82, Issue 216 (November 9, 2017)
| Page Range | 51973-51975 | |
| FR Document | 2017-24443 |
[Federal Register Volume 82, Number 216 (Thursday, November 9, 2017)] [Rules and Regulations] [Pages 51973-51975] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-24443] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. ======================================================================== Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations [[Page 51973]] DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 34 [Docket No. OCC-2017-0016] RIN 1557-AE25 FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Docket No. R-1580] RIN 7100 AE-87 BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 [Docket No. CFPB-2017-0029] Appraisals for Higher-Priced Mortgage Loans Exemption Threshold AGENCY: Board of Governors of the Federal Reserve System (Board); Bureau of Consumer Financial Protection (Bureau); and Office of the Comptroller of the Currency, Treasury (OCC). ACTION: Final rules, official interpretations and commentary. ----------------------------------------------------------------------- SUMMARY: The OCC, the Board, and the Bureau are finalizing amendments to the official interpretations for their regulations that implement section 129H of the Truth in Lending Act (TILA). Section 129H of TILA establishes special appraisal requirements for ``higher-risk mortgages,'' termed ``higher-priced mortgage loans'' or ``HPMLs'' in the agencies' regulations. The OCC, the Board, the Bureau, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Federal Housing Finance Agency (FHFA) (collectively, the Agencies) issued joint final rules implementing these requirements, effective January 18, 2014. The Agencies' 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). If there is no annual percentage increase in the CPI-W, the OCC, the Board, and the Bureau will not adjust this exemption threshold from the prior year. However, in years following a year in which the exemption threshold was not adjusted, the threshold is calculated by applying the annual percentage increase in the CPI-W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI-W had been taken into account. Based on the CPI-W in effect as of June 1, 2017, the exemption threshold will increase from $25,500 to $26,000 effective January 1, 2018. DATES: This final rule is effective January 1, 2018. FOR FURTHER INFORMATION CONTACT: OCC: MaryAnn Nash, Counsel, Legislative and Regulatory Activities Division, (202) 649-6287; for persons who are deaf and hard of hearing TTY, (202) 649-5597. Board: Lorna M. Neill, Senior Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452-3667; for users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263-4869. Bureau: Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Background The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) amended the Truth in Lending Act (TILA) to add special appraisal requirements for ``higher-risk mortgages.'' \1\ In January 2013, the Agencies issued a joint final rule implementing these requirements and adopted the term ``higher-priced mortgage loan'' (HPML) instead of ``higher-risk mortgage'' (the January 2013 Final Rule).\2\ In July 2013, the Agencies proposed additional exemptions from the January 2013 Final Rule (the 2013 Supplemental Proposed Rule).\3\ In December 2013, the Agencies issued a supplemental final rule with additional exemptions from the January 2013 Final Rule (the December 2013 Supplemental Final Rule).\4\ Among other exemptions, the Agencies adopted an exemption from the new HPML appraisal rules for transactions of $25,000 or less, to be adjusted annually for inflation. --------------------------------------------------------------------------- \1\ Public Law 111-203, section 1471, 124 Stat. 1376, 2185-87 (2010), codified at TILA section 129H, 15 U.S.C. 1639h. \2\ 78 FR 10368 (Feb. 13, 2013). \3\ 78 FR 48548 (Aug. 8, 2013). \4\ 78 FR 78520 (Dec. 26, 2013). --------------------------------------------------------------------------- The OCC's, the Board's, and the Bureau's versions of the January 2013 Final Rule and December 2013 Supplemental Final Rule and corresponding official interpretations are substantively identical. The FDIC, NCUA, and FHFA adopted the Bureau's version of the regulations under the January 2013 Final Rule and December 2013 Supplemental Final Rule.\5\ --------------------------------------------------------------------------- \5\ See NCUA: 12 CFR 722.3; FHFA: 12 CFR part 1222. Although the FDIC adopted the Bureau's version of the regulation, the FDIC did not issue its own regulation containing a cross-reference to the Bureau's version. See 78 FR 10368, 10370 (Feb. 13, 2013). --------------------------------------------------------------------------- The OCC's, Board's, and Bureau's regulations,\6\ and their accompanying interpretations,\7\ provide that the exemption threshold for smaller loans will be adjusted effective January 1 of each year based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) that was in effect on the preceding June 1. Any increase in the threshold amount will be rounded to the nearest $100 increment. For example, if the annual percentage increase in the CPI-W would result in a $950 increase in the threshold amount, the threshold amount will be increased by $1,000. However, if the annual percentage increase in the CPI-W would result in a $949 increase in the threshold amount, the threshold amount will be increased by $900. If there is no annual percentage increase in the CPI-W, the OCC, the Board, and the Bureau will not adjust the threshold amounts from the prior year.\8\ --------------------------------------------------------------------------- \6\ 12 CFR 34.203(b)(2) (OCC); 12 CFR 226.43(b)(2) (Board); and 12 CFR 1026.35(c)(2)(ii) (Bureau). \7\ See 12 CFR part 34, appendix C to subpart G, comment 203(b)(2)-1 (OCC); 12 CFR part 226, supplement I, comment 43(b)(2)-1 (Board); and 12 CFR part 1026, supplement I, comment 35(c)(2)(ii)-1 (Bureau). \8\ See 78 FR 48548, 48565 (Aug. 8, 2013) (``Thus, under the proposal, if the CPI-W decreases in an annual period, the percentage increase would be zero, and the dollar amount threshold for the exemption would not change.''). --------------------------------------------------------------------------- [[Page 51974]] On November 30, 2016, the OCC, the Board, and the Bureau published a final rule in the Federal Register to memorialize the calculation method used by the agencies each year to adjust the exemption threshold to ensure that the values for the exemption threshold keep pace with the CPI-W as contemplated in the December 2013 Supplemental Final Rule (HPML Small Dollar Adjustment Calculation Rule).\9\ The HPML Small Dollar Adjustment Calculation Rule memorialized the policy that if there is no annual percentage increase in the CPI-W, the OCC, the Board, and Bureau will not adjust the exemption threshold from the prior year. The HPML Small Dollar Adjustment Calculation Rule also provided that in years following a year in which the exemption threshold was not adjusted because there was a decrease in the CPI-W from the previous year, the threshold is calculated by applying the annual percentage change in the CPI-W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI-W had been taken into account. If the resulting amount calculated, after rounding, is greater than the current threshold, then the threshold effective January 1 the following year will increase accordingly; if the resulting amount calculated, after rounding, is equal to or less than the current threshold, then the threshold effective January 1 the following year will not change, but future increases will be calculated based on the amount that would have resulted, after rounding. --------------------------------------------------------------------------- \9\ See 81 FR 86250 (Nov. 30, 2016). --------------------------------------------------------------------------- II. 2018 Adjustment and Commentary Revision Effective January 1, 2018, the exemption threshold amount is increased from $25,500 to $26,000. This is based on the CPI-W in effect on June 1, 2017, which was reported on May 12, 2017. The Bureau of Labor Statistics publishes consumer-based indices monthly, but does not report a CPI change on June 1; adjustments are reported in the middle of the prior month. The CPI-W is a subset of the CPI-U index (based on all urban consumers) and represents approximately 28 percent of the U.S. population. The CPI-W reported on May 12, 2017, reflects a 2.1 percent increase in the CPI-W from April 2016 to April 2017. Accordingly, the 2.1 percent increase in the CPI-W from April 2016 to April 2017 results in an exemption threshold amount of $26,000. The OCC, the Board, and the Bureau are revising the commentaries to their respective regulations to add new comments as follows:Comment 203(b)(2)-3.v to 12 CFR part 34, appendix C to subpart G (OCC); Comment 43(b)(2)-3.v to supplement I of 12 CFR part 226 (Board); and Comment 35(c)(2)(ii)-3.v to supplement I of 12 CFR part 1026 (Bureau). These new comments state that, from January 1, 2018, through December 31, 2018, the threshold amount is $26,000. These revisions are effective January 1, 2018. III. Regulatory Analysis Administrative Procedure Act Under the Administrative Procedure Act, notice and opportunity for public comment are not required if an agency finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest.\10\ The amendments in this rule are technical and apply the method previously set forth in the 2013 Supplemental Proposed Rule \11\ and the HPML Small Dollar Adjustment Calculation Rule. For these reasons, the OCC, the Board and the Bureau have determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendments are adopted in final form. --------------------------------------------------------------------------- \10\ 5 U.S.C. 553(b)(B). \11\ See 78 FR 48548, 48565 (Aug. 8, 2013) (``Thus, under the proposal, if the CPI-W decreases in an annual period, the percentage increase would be zero, and the dollar amount threshold for the exemption would not change.''). --------------------------------------------------------------------------- Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.\12\ As noted previously, the agencies have determined that it is unnecessary to publish a general notice of proposed rulemaking for this joint final rule. Accordingly, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply. --------------------------------------------------------------------------- \12\ 5 U.S.C. 603 and 604. --------------------------------------------------------------------------- Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,\13\ the agencies reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. --------------------------------------------------------------------------- \13\ 44 U.S.C. 3506; 5 CFR part 1320. --------------------------------------------------------------------------- Unfunded Mandates Reform Act The OCC analyzes proposed rules for the factors listed in Section 202 of the Unfunded Mandates Reform Act of 1995, before promulgating a final rule for which a general notice of proposed rulemaking was published.\14\ As discussed above, the OCC has determined that the publication of a general notice of proposed rulemaking is unnecessary. --------------------------------------------------------------------------- \14\ 2 U.S.C. 1532. --------------------------------------------------------------------------- List of Subjects 12 CFR Part 34 Appraisal, Appraiser, Banks, Banking, Consumer protection, Credit, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth in lending. 12 CFR Part 226 Advertising, Appraisal, Appraiser, Consumer protection, Credit, Federal Reserve System, Mortgages, Reporting and recordkeeping requirements, Truth in lending. 12 CFR Part 1026 Advertising, Appraisal, Appraiser, Banking, Banks, Consumer protection, Credit, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth in lending. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Authority and Issuance For the reasons set forth in the preamble, the OCC amends 12 CFR part 34 as set forth below: PART 34--REAL ESTATE LENDING AND APPRAISALS 0 1. The authority citation for part 34 continues to read as follows: Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, 371, 1463, 1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., 5412(b)(2)(B) and 15 U.S.C. 1639h. Subpart G--Appraisals for Higher-Priced Mortgage Loans 0 2. In appendix C to subpart G, under Section 34.203--Appraisals for Higher-Priced Mortgage Loans, under Paragraph 34.203(b)(2), paragraph 3.v is added to read as follows: [[Page 51975]] Appendix C to Subpart G--OCC Interpretations * * * * * Section 34.203--Appraisals for Higher-Priced Mortgage Loans * * * * * 34.203(b) Exemptions. * * * * * Paragraph 34.203(b)(2) * * * * * 3. * * * v. From January 1, 2018, through December 31, 2018, the threshold amount is $26,000. * * * * * BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Authority and Issuance For the reasons set forth in the preamble, the Board amends Regulation Z, 12 CFR part 226, as set forth below: PART 226--TRUTH IN LENDING (REGULATION Z) 0 3. The authority citation for part 226 continues to read as follows: Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, 1637(c)(5), 1639(l), and 1639h; Pub. L. 111-24, section 2, 123 Stat. 1734; Pub. L. 111- 203, 124 Stat. 1376. 0 4. In supplement I to part 226, under Section 226.43--Appraisals for Higher-Risk Mortgage Loans, under Paragraph 43(b)(2), paragraph 3.v is added to read as follows: Supplement I to Part 226--Official Staff Interpretations * * * * * Subpart E--Special Rules for Certain Home Mortgage Transactions * * * * * Section 226.43--Appraisals for Higher-Risk Mortgage Loans * * * * * 43(b) Exemptions. * * * * * Paragraph 43(b)(2) * * * * * 3. * * * v. From January 1, 2018, through December 31, 2018, the threshold amount is $26,000. * * * * * BUREAU OF CONSUMER FINANCIAL PROTECTION 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 5. 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 6. In supplement I to part 1026, under Section 1026.35--Requirements for Higher-Priced Mortgage Loans, under Paragraph 35(c)(2)(ii), paragraph 3.v is added to read as follows: Supplement I to Part 1026--Official Interpretations * * * * * Subpart E--Special Rules for Certain Home Mortgage Transactions * * * * * Section 1026.35--Requirements for Higher-Priced Mortgage Loans * * * * * 35(c)--Appraisals * * * * * 35(c)(2) Exemptions * * * * * Paragraph 35(c)(2)(ii) * * * * * 3. * * * v. From January 1, 2018, through December 31, 2018, the threshold amount is $26,000. * * * * * Dated: September 26, 2017. Keith A. Noreika, Acting Comptroller of the Currency. By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority, November 2, 2017. Ann E. Misback, Secretary of the Board. Dated: September 7, 2017. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2017-24443 Filed 11-8-17; 8:45 am] BILLING CODE 4810-33-P 6210-01-P 4810-AM-P
![51973
Rules and Regulations Federal Register
Vol. 82, No. 216
Thursday, November 9, 2017
This section of the FEDERAL REGISTER Agencies’ rules exempted, among other Rule (the 2013 Supplemental Proposed
contains regulatory documents having general loan types, transactions of $25,000 or Rule).3 In December 2013, the Agencies
applicability and legal effect, most of which less, and required that this loan amount issued a supplemental final rule with
are keyed to and codified in the Code of be adjusted annually based on any additional exemptions from the January
Federal Regulations, which is published under annual percentage increase in the 2013 Final Rule (the December 2013
50 titles pursuant to 44 U.S.C. 1510.
Consumer Price Index for Urban Wage Supplemental Final Rule).4 Among
The Code of Federal Regulations is sold by Earners and Clerical Workers (CPI–W). other exemptions, the Agencies adopted
the Superintendent of Documents. If there is no annual percentage increase an exemption from the new HPML
in the CPI–W, the OCC, the Board, and appraisal rules for transactions of
the Bureau will not adjust this $25,000 or less, to be adjusted annually
DEPARTMENT OF THE TREASURY exemption threshold from the prior for inflation.
year. However, in years following a year The OCC’s, the Board’s, and the
Office of the Comptroller of the in which the exemption threshold was Bureau’s versions of the January 2013
Currency not adjusted, the threshold is calculated Final Rule and December 2013
by applying the annual percentage Supplemental Final Rule and
12 CFR Part 34 increase in the CPI–W to the dollar corresponding official interpretations
[Docket No. OCC–2017–0016] amount that would have resulted, after are substantively identical. The FDIC,
rounding, if the decreases and any NCUA, and FHFA adopted the Bureau’s
RIN 1557–AE25 subsequent increases in the CPI–W had version of the regulations under the
been taken into account. Based on the January 2013 Final Rule and December
FEDERAL RESERVE SYSTEM CPI–W in effect as of June 1, 2017, the 2013 Supplemental Final Rule.5
exemption threshold will increase from The OCC’s, Board’s, and Bureau’s
12 CFR Part 226 $25,500 to $26,000 effective January 1, regulations,6 and their accompanying
[Docket No. R–1580] 2018. interpretations,7 provide that the
DATES: This final rule is effective exemption threshold for smaller loans
RIN 7100 AE–87
January 1, 2018. will be adjusted effective January 1 of
BUREAU OF CONSUMER FINANCIAL FOR FURTHER INFORMATION CONTACT: each year based on any annual
PROTECTION OCC: MaryAnn Nash, Counsel, percentage increase in the Consumer
Legislative and Regulatory Activities Price Index for Urban Wage Earners and
12 CFR Part 1026 Division, (202) 649–6287; for persons Clerical Workers (CPI–W) that was in
who are deaf and hard of hearing TTY, effect on the preceding June 1. Any
[Docket No. CFPB–2017–0029] (202) 649–5597. Board: Lorna M. Neill, increase in the threshold amount will be
Senior Counsel, Division of Consumer rounded to the nearest $100 increment.
Appraisals for Higher-Priced Mortgage
and Community Affairs, Board of For example, if the annual percentage
Loans Exemption Threshold
Governors of the Federal Reserve increase in the CPI–W would result in
AGENCY: Board of Governors of the System, at (202) 452–3667; for users of a $950 increase in the threshold
Federal Reserve System (Board); Bureau Telecommunications Device for the Deaf amount, the threshold amount will be
of Consumer Financial Protection (TDD) only, contact (202) 263–4869. increased by $1,000. However, if the
(Bureau); and Office of the Comptroller Bureau: Jaclyn Maier, Counsel, Office of annual percentage increase in the CPI–
of the Currency, Treasury (OCC). Regulations, Consumer Financial W would result in a $949 increase in the
ACTION: Final rules, official
Protection Bureau, at (202) 435–7700. threshold amount, the threshold amount
interpretations and commentary. SUPPLEMENTARY INFORMATION: will be increased by $900. If there is no
annual percentage increase in the CPI–
I. Background
SUMMARY: The OCC, the Board, and the W, the OCC, the Board, and the Bureau
Bureau are finalizing amendments to the The Dodd-Frank Wall Street Reform will not adjust the threshold amounts
official interpretations for their and Consumer Protection Act of 2010 from the prior year.8
regulations that implement section (Dodd-Frank Act) amended the Truth in
129H of the Truth in Lending Act Lending Act (TILA) to add special 3 78 FR 48548 (Aug. 8, 2013).
(TILA). Section 129H of TILA appraisal requirements for ‘‘higher-risk 4 78 FR 78520 (Dec. 26, 2013).
establishes special appraisal mortgages.’’ 1 In January 2013, the 5 See NCUA: 12 CFR 722.3; FHFA: 12 CFR part
Agencies issued a joint final rule 1222. Although the FDIC adopted the Bureau’s
requirements for ‘‘higher-risk version of the regulation, the FDIC did not issue its
mortgages,’’ termed ‘‘higher-priced implementing these requirements and own regulation containing a cross-reference to the
mortgage loans’’ or ‘‘HPMLs’’ in the adopted the term ‘‘higher-priced Bureau’s version. See 78 FR 10368, 10370 (Feb. 13,
agencies’ regulations. The OCC, the mortgage loan’’ (HPML) instead of 2013).
Board, the Bureau, the Federal Deposit ‘‘higher-risk mortgage’’ (the January 6 12 CFR 34.203(b)(2) (OCC); 12 CFR 226.43(b)(2)
2013 Final Rule).2 In July 2013, the (Board); and 12 CFR 1026.35(c)(2)(ii) (Bureau).
nshattuck on DSK9F9SC42PROD with RULES
Insurance Corporation (FDIC), the 7 See 12 CFR part 34, appendix C to subpart G,
National Credit Union Administration Agencies proposed additional comment 203(b)(2)–1 (OCC); 12 CFR part 226,
(NCUA) and the Federal Housing exemptions from the January 2013 Final supplement I, comment 43(b)(2)–1 (Board); and 12
Finance Agency (FHFA) (collectively, CFR part 1026, supplement I, comment 35(c)(2)(ii)–
1 Public Law 111–203, section 1471, 124 Stat. 1 (Bureau).
the Agencies) issued joint final rules 1376, 2185–87 (2010), codified at TILA section 8 See 78 FR 48548, 48565 (Aug. 8, 2013) (‘‘Thus,
implementing these requirements, 129H, 15 U.S.C. 1639h. under the proposal, if the CPI–W decreases in an
effective January 18, 2014. The 2 78 FR 10368 (Feb. 13, 2013). Continued
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![Federal Register / Vol. 82, No. 216 / Thursday, November 9, 2017 / Rules and Regulations 51975
Appendix C to Subpart G—OCC PART 1026—TRUTH IN LENDING FEDERAL RESERVE SYSTEM
Interpretations (REGULATION Z)
12 CFR Part 213
* * * * *
■ 5. The authority citation for part 1026 [Docket No. R–1579]
Section 34.203—Appraisals for Higher-Priced
continues to read as follows:
Mortgage Loans RIN 7100 AE–86
* * * * * Authority: 12 U.S.C. 2601, 2603–2605,
2607, 2609, 2617, 3353, 5511, 5512, 5532, BUREAU OF CONSUMER FINANCIAL
34.203(b) Exemptions. 5581; 15 U.S.C. 1601 et seq. PROTECTION
* * * * *
Paragraph 34.203(b)(2) ■ 6. In supplement I to part 1026, under
12 CFR Part 1013
Section 1026.35—Requirements for
* * * * *
Higher-Priced Mortgage Loans, under [Docket No. CFPB–2017–0026]
3. * * *
v. From January 1, 2018, through December Paragraph 35(c)(2)(ii), paragraph 3.v is
added to read as follows: Consumer Leasing (Regulation M)
31, 2018, the threshold amount is $26,000.
* * * * * Supplement I to Part 1026—Official AGENCY: Board of Governors of the
Interpretations Federal Reserve System (Board); and
BOARD OF GOVERNORS OF THE Bureau of Consumer Financial
FEDERAL RESERVE SYSTEM * * * * * Protection (Bureau).
Authority and Issuance Subpart E—Special Rules for Certain Home ACTION: Final rules, official
Mortgage Transactions interpretations and commentary.
For the reasons set forth in the
preamble, the Board amends Regulation * * * * *
SUMMARY: The Board and the Bureau are
Z, 12 CFR part 226, as set forth below: Section 1026.35—Requirements for Higher- finalizing amendments to the official
Priced Mortgage Loans interpretations and commentary for the
PART 226—TRUTH IN LENDING agencies’ regulations that implement the
* * * * *
(REGULATION Z) Consumer Leasing Act (CLA). The
35(c)—Appraisals
Dodd-Frank Wall Street Reform and
■ 3. The authority citation for part 226 * * * * * Consumer Protection Act (Dodd-Frank
continues to read as follows: 35(c)(2) Exemptions Act) amended the CLA by requiring that
Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, * * * * * the dollar threshold for exempt
1637(c)(5), 1639(l), and 1639h; Pub. L. 111– consumer leases be adjusted annually
Paragraph 35(c)(2)(ii) by the annual percentage increase in the
24, section 2, 123 Stat. 1734; Pub. L. 111–
203, 124 Stat. 1376. * * * * * Consumer Price Index for Urban Wage
3. * * * Earners and Clerical Workers (CPI–W).
■ 4. In supplement I to part 226, under v. From January 1, 2018, through December If there is no annual percentage increase
Section 226.43—Appraisals for Higher- 31, 2018, the threshold amount is $26,000. in the CPI–W, the Board and the Bureau
Risk Mortgage Loans, under Paragraph * * * * * will not adjust this exemption threshold
43(b)(2), paragraph 3.v is added to read from the prior year. However, in years
as follows: Dated: September 26, 2017.
following a year in which the exemption
Keith A. Noreika, threshold was not adjusted, the
Supplement I to Part 226—Official Staff
Interpretations Acting Comptroller of the Currency. threshold is calculated by applying the
By order of the Board of Governors of the annual percentage change in the CPI–W
* * * * * Federal Reserve System, acting through the to the dollar amount that would have
Subpart E—Special Rules for Certain Home Secretary of the Board under delegated resulted, after rounding, if the decreases
Mortgage Transactions authority, November 2, 2017. and any subsequent increases in the
* * * * * Ann E. Misback, CPI–W had been taken into account.
Secretary of the Board. Based on the annual percentage increase
Section 226.43—Appraisals for Higher-Risk in the CPI–W as of June 1, 2017, the
Mortgage Loans Dated: September 7, 2017.
exemption threshold will increase from
* * * * * Richard Cordray, $54,600 to $55,800 effective January 1,
43(b) Exemptions. Director, Bureau of Consumer Financial 2018. Because the Dodd-Frank Act also
Protection. requires similar adjustments in the
* * * * *
[FR Doc. 2017–24443 Filed 11–8–17; 8:45 am] Truth in Lending Act’s threshold for
Paragraph 43(b)(2)
BILLING CODE 4810–33–P 6210–01–P 4810–AM–P exempt consumer credit transactions,
* * * * * the Board and the Bureau are making
3. * * * similar amendments to each of their
v. From January 1, 2018, through December
respective regulations implementing the
31, 2018, the threshold amount is $26,000.
Truth in Lending Act elsewhere in this
* * * * * issue of the Federal Register.
BUREAU OF CONSUMER FINANCIAL DATES: This final rule is effective
nshattuck on DSK9F9SC42PROD with RULES
PROTECTION January 1, 2018.
Authority and Issuance FOR FURTHER INFORMATION CONTACT:
Board: Vivian W. Wong, Senior
For the reasons set forth in the Counsel, Division of Consumer and
preamble, the Bureau amends Community Affairs, Board of Governors
Regulation Z, 12 CFR part 1026, as set of the Federal Reserve System, at (202)
forth below: 452–3667; for users of
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Document Created: 2018-10-25 10:28:27
Document Modified: 2018-10-25 10:28:27
| 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 rules, official interpretations and commentary. | |
| Dates | This final rule is effective January 1, 2018. | |
| Contact | OCC: MaryAnn Nash, Counsel, Legislative and Regulatory Activities Division, (202) 649-6287; for persons who are deaf and hard of hearing TTY, (202) 649-5597. Board: Lorna M. Neill, Senior Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452-3667; for users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263-4869. Bureau: Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, at (202) 435-7700. | |
| FR Citation | 82 FR 51973 | |
| RIN Number | 1557-AE25 and 7100 AE87 | |
| CFR Citation | 12
CFR
1026 12 CFR 226 12 CFR 34 | |
| CFR Associated | Credit Unions; Advertising; Federal Reserve System; Appraisal; Appraiser; Banks; Banking; Consumer Protection; Credit; Mortgages; National Banks; Reporting and Recordkeeping Requirements; Savings Associations and Truth in Lending |
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