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.