83 FR 59272 - 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 83, Issue 226 (November 23, 2018)
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
BUREAU OF CONSUMER FINANCIAL PROTECTION
Federal Register Volume 83, Issue 226 (November 23, 2018)
| Page Range | 59272-59274 | |
| FR Document | 2018-25400 |
[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)] [Rules and Regulations] [Pages 59272-59274] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-25400] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 34 [Docket No. OCC-2018-0031] RIN 1557-AE53 FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Docket No. R-1634] RIN 7100-AF26 BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 RIN 3170-AA91 Appraisals for Higher-Priced Mortgage Loans Exemption Threshold AGENCY: Office of the Comptroller of the Currency, Treasury (OCC), Board of Governors of the Federal Reserve System (Board); and Bureau of Consumer Financial Protection (Bureau). 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, 2018, the exemption threshold will increase from $26,000 to $26,700, effective January 1, 2019. DATES: This final rule is effective January 1, 2019. FOR FURTHER INFORMATION CONTACT: OCC: MaryAnn Nash, Counsel, Chief Counsel's Office, (202) 649-6287; for persons who are deaf or 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: Shelley Thompson, Counsel, Office of Regulations, Bureau of Consumer Financial Protection, 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 [[Page 59273]] 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\ 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.''). --------------------------------------------------------------------------- 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, as contemplated in the December 2013 Supplemental Final Rule (HPML Small Dollar Adjustment Calculation Rule), the values for the exemption threshold keep pace with the CPI-W.\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. 2019 Adjustment and Commentary Revision Effective January 1, 2019, the exemption threshold amount is increased from $26,000 to $26,700. This is based on the CPI-W in effect on June 1, 2018, which was reported on May 10, 2018. 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 29 percent of the U.S. population. The CPI-W reported on May 10, 2018, reflects a 2.6 percent increase in the CPI-W from April 2017 to April 2018. Accordingly, the 2.6 percent increase in the CPI-W from April 2017 to April 2018 results in an exemption threshold amount of $26,700. 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.vi to 12 CFR part 34, Appendix C to Subpart G (OCC); Comment 43(b)(2)-3.vi to Supplement I of 12 CFR part 226 (Board); and Comment 35(c)(2)(ii)-3.vi to Supplement I of 12 CFR part 1026 (Bureau). These new comments state that, from January 1, 2019, through December 31, 2019, the threshold amount is $26,700. These revisions are effective January 1, 2019. 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. --------------------------------------------------------------------------- Bureau Congressional Review Act Statement Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Bureau will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to the rule taking effect. The Office of Information and Regulatory Affairs (OIRA) has designated this rule as not a ``major rule'' as defined by 5 U.S.C. 804(2). [[Page 59274]] 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, 1462a, 1463, 1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., 5412(b)(2)(B) and 15 U.S.C. 1639h. 0 2. In Appendix C to Subpart G, under Section 34.203--Appraisals for Higher-Priced Mortgage Loans, paragraph 34.203(b)(2), paragraph 3.vi is added to read as follows: Appendix C to Subpart G--OCC Interpretations * * * * * Section 34.203--Appraisals for Higher-Priced Mortgage Loans * * * * * Paragraph 34.203(b)(2) * * * * * 3. * * * vi. From January 1, 2019, through December 31, 2019, the threshold amount is $26,700. * * * * * 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, paragraph 43(b)(2), paragraph 3.vi is added to read as follows: Supplement I to Part 226--Official Staff Interpretations * * * * * Section 226.43--Appraisals for Higher-Risk Mortgage Loans * * * * * Paragraph 43(b)(2) * * * * * 3. * * * vi. From January 1, 2019, through December 31, 2019, the threshold amount is $26,700. * * * * * 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, paragraph 35(c)(2)(ii), paragraph 3.vi is added to read as follows: Supplement I to Part 1026--Official Interpretations * * * * * Section 1026.35--Requirements for Higher-Priced Mortgage Loans * * * * * Paragraph 35(c)(2)(ii) * * * * * 3. * * * vi. From January 1, 2019, through December 31, 2019, the threshold amount is $26,700. * * * * * Dated: November 6, 2018. Joseph M. Otting, Comptroller of the Currency. By order of the Board of Governors of the Federal Reserve System under delegated authority, November 13, 2018. Ann E. Misback, Secretary of the Board. Dated: November 9, 2018. Mick Mulvaney, Acting Director, Bureau of Consumer Financial Protection. [FR Doc. 2018-25400 Filed 11-21-18; 8:45 am] BILLING CODE 4810-33-P; 6210-01-P; 4810-AM-P
![59272 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Rules and Regulations
§ 1970.11 Timing of the environmental DEPARTMENT OF THE TREASURY increase in the CPI–W to the dollar
review process. amount that would have resulted, after
* * * * * Office of the Comptroller of the rounding, if the decreases and any
Currency subsequent increases in the CPI–W had
(b) The environmental review process
been taken into account. Based on the
must be concluded before the obligation 12 CFR Part 34 CPI–W in effect as of June 1, 2018, the
of funds; except for infrastructure exemption threshold will increase from
projects where the assurance that funds [Docket No. OCC–2018–0031]
$26,000 to $26,700, effective January 1,
will be available for community health, RIN 1557–AE53 2019.
safety, or economic development has DATES: This final rule is effective
been determined as necessary by the FEDERAL RESERVE SYSTEM January 1, 2019.
Agency Administrator. At the discretion FOR FURTHER INFORMATION CONTACT:
of the Agency Administrator, funds may 12 CFR Part 226
OCC: MaryAnn Nash, Counsel, Chief
be obligated contingent upon the [Docket No. R–1634] Counsel’s Office, (202) 649–6287; for
conclusion of the environmental review persons who are deaf or hard of hearing
process prior to any action that would RIN 7100–AF26
TTY, (202) 649–5597. Board: Lorna M.
have an adverse effect on the Neill, Senior Counsel, Division of
BUREAU OF CONSUMER FINANCIAL
environment or limit the choices of any PROTECTION Consumer and Community Affairs,
reasonable alternatives. Funds so Board of Governors of the Federal
obligated shall be rescinded if the 12 CFR Part 1026 Reserve System, at (202) 452–3667; for
Agency cannot conclude the users of Telecommunications Device for
environmental review process before the RIN 3170–AA91 the Deaf (TDD) only, contact (202) 263–
end of the fiscal year after the year in 4869. Bureau: Shelley Thompson,
Appraisals for Higher-Priced Mortgage Counsel, Office of Regulations, Bureau
which the funds were obligated, or if the
Loans Exemption Threshold of Consumer Financial Protection, at
Agency determines that it cannot
proceed with approval based on AGENCY: Office of the Comptroller of the (202) 435–7700.
findings in the environmental review Currency, Treasury (OCC), Board of SUPPLEMENTARY INFORMATION:
process. For the purposes of this Governors of the Federal Reserve I. Background
section, infrastructure projects shall System (Board); and Bureau of
include projects such as broadband, Consumer Financial Protection The Dodd-Frank Wall Street Reform
(Bureau). and Consumer Protection Act of 2010
telecommunications, electric, energy
ACTION: Final rules, official
(Dodd-Frank Act) amended the Truth in
efficiency, smart grid, water, sewer,
interpretations and commentary. Lending Act (TILA) to add special
transportation, and energy capital
appraisal requirements for ‘‘higher-risk
investments in physical plant and mortgages.’’ 1 In January 2013, the
SUMMARY: The OCC, the Board, and the
equipment, but not investments Agencies issued a joint final rule
Bureau are finalizing amendments to the
authorized in the Housing Act of 1949. implementing these requirements and
official interpretations for their
* * * * * regulations that implement section adopted the term ‘‘higher-priced
Dated: November 9, 2018. 129H of the Truth in Lending Act mortgage loan’’ (HPML) instead of
(TILA). Section 129H of TILA ‘‘higher-risk mortgage’’ (the January
Anne C. Hazlett,
establishes special appraisal 2013 Final Rule).2 In July 2013, the
Assistant to the Secretary, Rural Agencies proposed additional
Development.
requirements for ‘‘higher-risk
mortgages,’’ termed ‘‘higher-priced exemptions from the January 2013 Final
Bill Northey, mortgage loans’’ or ‘‘HPMLs’’ in the Rule (the 2013 Supplemental Proposed
Under Secretary, Farm Production and agencies’ regulations. The OCC, the Rule).3 In December 2013, the Agencies
Conservation. Board, the Bureau, the Federal Deposit issued a supplemental final rule with
[FR Doc. 2018–25523 Filed 11–21–18; 8:45 am] Insurance Corporation (FDIC), the additional exemptions from the January
BILLING CODE P National Credit Union Administration 2013 Final Rule (the December 2013
(NCUA), and the Federal Housing Supplemental Final Rule).4 Among
Finance Agency (FHFA) (collectively, other exemptions, the Agencies adopted
the Agencies) issued joint final rules an exemption from the new HPML
implementing these requirements, appraisal rules for transactions of
effective January 18, 2014. The $25,000 or less, to be adjusted annually
Agencies’ rules exempted, among other for inflation.
loan types, transactions of $25,000 or The OCC’s, the Board’s, and the
less, and required that this loan amount Bureau’s versions of the January 2013
be adjusted annually based on any Final Rule and December 2013
annual percentage increase in the Supplemental Final Rule and
Consumer Price Index for Urban Wage corresponding official interpretations
Earners and Clerical Workers (CPI–W). are substantively identical. The FDIC,
If there is no annual percentage increase NCUA, and FHFA adopted the Bureau’s
in the CPI–W, the OCC, the Board, and version of the regulations under the
amozie on DSK3GDR082PROD with RULES
the Bureau will not adjust this
1 Public Law 111–203, section 1471, 124 Stat.
exemption threshold from the prior
1376, 2185–87 (2010), codified at TILA section
year. However, in years following a year 129H, 15 U.S.C. 1639h.
in which the exemption threshold was 2 78 FR 10368 (Feb. 13, 2013).
not adjusted, the threshold is calculated 3 78 FR 48548 (Aug. 8, 2013).
by applying the annual percentage 4 78 FR 78520 (Dec. 26, 2013).
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![59274 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Rules and Regulations
List of Subjects PART 226—TRUTH IN LENDING Dated: November 6, 2018.
(REGULATION Z) Joseph M. Otting,
12 CFR Part 34
Comptroller of the Currency.
Appraisal, Appraiser, Banks, Banking, ■ 3. The authority citation for part 226 By order of the Board of Governors of the
Consumer protection, Credit, Mortgages, continues to read as follows: Federal Reserve System under delegated
National banks, Reporting and authority, November 13, 2018.
recordkeeping requirements, Savings Authority: 12 U.S.C. 3806; 15 U.S.C. 1604,
1637(c)(5), 1639(l), and 1639h; Pub. L. 111– Ann E. Misback,
associations, Truth in lending. Secretary of the Board.
24, section 2, 123 Stat. 1734; Pub. L. 111–
12 CFR Part 226 203, 124 Stat. 1376. Dated: November 9, 2018.
Advertising, Appraisal, Appraiser, Mick Mulvaney,
■ 4. In Supplement I to part 226, under Acting Director, Bureau of Consumer
Consumer protection, Credit, Federal Section 226.43—Appraisals for Higher-
Reserve System, Mortgages, Reporting Financial Protection.
Risk Mortgage Loans, paragraph [FR Doc. 2018–25400 Filed 11–21–18; 8:45 am]
and recordkeeping requirements, Truth 43(b)(2), paragraph 3.vi is added to read
in lending. as follows:
BILLING CODE 4810–33–P; 6210–01–P; 4810–AM–P
12 CFR Part 1026 Supplement I to Part 226—Official Staff
Advertising, Appraisal, Appraiser, Interpretations FEDERAL RESERVE SYSTEM
Banking, Banks, Consumer protection,
* * * * * 12 CFR Part 213
Credit, Credit unions, Mortgages,
Section 226.43—Appraisals for Higher-Risk
National banks, Reporting and Mortgage Loans [Docket No. R–1632]
recordkeeping requirements, Savings
associations, Truth in lending. * * * * * RIN 7100–AF24
Paragraph 43(b)(2)
DEPARTMENT OF THE TREASURY BUREAU OF CONSUMER FINANCIAL
* * * * * PROTECTION
Office of the Comptroller of the 3. * * *
Currency vi. From January 1, 2019, through
December 31, 2019, the threshold amount is
12 CFR Part 1013
Authority and Issuance
$26,700. RIN 3170–AA89
For the reasons set forth in the
preamble, the OCC amends 12 CFR part * * * * *
Consumer Leasing (Regulation M)
34 as set forth below: Bureau of Consumer Financial
Protection AGENCY: Board of Governors of the
PART 34—REAL ESTATE LENDING Federal Reserve System (Board); and
AND APPRAISALS Authority and Issuance Bureau of Consumer Financial
For the reasons set forth in the Protection (Bureau).
■ 1. The authority citation for part 34
continues to read as follows: preamble, the Bureau amends ACTION: Final rules, official
Regulation Z, 12 CFR part 1026, as set interpretations and commentary.
Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a,
371, 1462a, 1463, 1464, 1465, 1701j–3,
forth below:
SUMMARY: The Board and the Bureau are
1828(o), 3331 et seq., 5101 et seq., finalizing amendments to the official
5412(b)(2)(B) and 15 U.S.C. 1639h. PART 1026—TRUTH IN LENDING
(REGULATION Z) interpretations and commentary for the
■ 2. In Appendix C to Subpart G, under agencies’ regulations that implement the
Section 34.203—Appraisals for Higher- ■ 5. The authority citation for part 1026 Consumer Leasing Act (CLA). The
Priced Mortgage Loans, paragraph continues to read as follows: Dodd-Frank Wall Street Reform and
34.203(b)(2), paragraph 3.vi is added to Consumer Protection Act (Dodd-Frank
read as follows: Authority: 12 U.S.C. 2601, 2603–2605, Act) amended the CLA by requiring that
2607, 2609, 2617, 3353, 5511, 5512, 5532, the dollar threshold for exempt
Appendix C to Subpart G—OCC 5581; 15 U.S.C. 1601 et seq.
Interpretations consumer leases be adjusted annually
■ 6. In Supplement I to part 1026, under by the annual percentage increase in the
* * * * * Section 1026.35—Requirements for Consumer Price Index for Urban Wage
Section 34.203—Appraisals for Higher-Priced Higher-Priced Mortgage Loans, Earners and Clerical Workers (CPI–W).
Mortgage Loans paragraph 35(c)(2)(ii), paragraph 3.vi is If there is no annual percentage increase
* * * * * added to read as follows: in the CPI–W, the Board and the Bureau
will not adjust this exemption threshold
Paragraph 34.203(b)(2) Supplement I to Part 1026—Official from the prior year. However, in years
* * * * * Interpretations following a year in which the exemption
3. * * * * * * * * threshold was not adjusted, the
vi. From January 1, 2019, through threshold is calculated by applying the
December 31, 2019, the threshold amount is Section 1026.35—Requirements for Higher-
Priced Mortgage Loans annual percentage change in the CPI–W
$26,700.
to the dollar amount that would have
* * * * * * * * * * resulted, after rounding, if the decreases
Paragraph 35(c)(2)(ii) and any subsequent increases in the
amozie on DSK3GDR082PROD with RULES
Board of Governors of the Federal
Reserve System * * * * * CPI–W had been taken into account.
3. * * * Based on the annual percentage increase
Authority and Issuance vi. From January 1, 2019, through in the CPI–W as of June 1, 2018, the
For the reasons set forth in the December 31, 2019, the threshold amount is exemption threshold will increase from
preamble, the Board amends Regulation $26,700. $55,800 to $57,200 effective January 1,
Z, 12 CFR part 226, as set forth below: * * * * * 2019.
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Document Created: 2018-11-27 12:58:32
Document Modified: 2018-11-27 12:58:32
| 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, 2019. | |
| Contact | OCC: MaryAnn Nash, Counsel, Chief Counsel's Office, (202) 649-6287; for persons who are deaf or 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: Shelley Thompson, Counsel, Office of Regulations, Bureau of Consumer Financial Protection, at (202) 435-7700. | |
| FR Citation | 83 FR 59272 | |
| RIN Number | 1557-AE53, 7100-AF26 and 3170-AA91 | |
| 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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