Fed announces HOEPA points and fees for 2005MortgagePress.comHOEPA,Fees,Federal Reserve Board
The Federal Reserve Board is publishing a final rule amending
the staff commentary that interprets the requirements of Regulation
Z of the Truth-in-Lending Act. The Board is required to annually
adjust the dollar amount that triggers requirements for certain
home mortgage loans bearing fees above a certain amount. The Home
Ownership and Equity Protection Act of 1994 sets forth rules for
home-secured loans in which the total points and fees payable by
the consumer at or before loan consummation exceed the greater of
$400 or eight percent of the total loan amount. In keeping with the
statute, the Board has annually adjusted the $400 amount based on
the annual percentage change reflected in the Consumer Price Index
that went into effect on June 1. The adjusted dollar amount for
2005 is $510, effective Sunday, Jan. 1.
For more information, visit www.federalreserve.gov.