Annual adjustment in trigger amount for additional mortgage loan disclosures. (Announcements).The Federal Reserve Board published on November November: see month. 14, 2001, its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act The Truth in Lending Act is contained in Title I of the Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq.). The CCPA is designed to assure that every customer who needs Consumer Credit is given meaningful information concerning the cost of such credit. for mortgage loans that bear rates or fees above a certain amount. Under the revision to the Board's staff commentary to Regulation Z, the dollar amount of the fee-based trigger has been adjusted from $465 for 2001 to $480 for 2002 based on the annual percent change reflected in the consumer price index that was in effect on June 1, 2001. The adjustment is effective January 1, 2002. The Home Ownership and Equity Protection Act of 1994 bars credit terms Credit Terms The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period. such as balloon payments The final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest that is owed on it, is divided into installments due at and requires additional disclosures when total points and fees payable by the consumer exceed the fee-based trigger, initially set at $400 and adjusted annually, or 8 percent of the total loan amount, whichever is larger. |
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