Final rule--amendment to Regulation Z. (Legal Developments).The Board of Governors is amending 12 C.F.R. Part 226, its Regulation Z (Truth in Lending). The Board is required to adjust annually the dollar amount that triggers requirements for certain mortgages bearing fees above a certain amount. The Home Ownership and Equity Protection Act of 1994 (HOEPA HOEPA Home Ownership and Equity Protection Act ) sets forth rules for home-secured loans in which the total points and fees payable by the consumer at or before loan consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. exceed the greater of $400 or 8 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 is in effect on June June: see month. 1. The adjusted dollar amount for 2003 is $488. Effective January 1, 2003, 12 C.F.R. Part 226 is amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. as follows: Part 226--Truth in Lending (Regulation Z) 1. The authority citation Citation (foaled 1945) U.S. Thoroughbred racehorse. In four seasons he won 32 of 45 races, finished second in ten, and third in two. He won the 1948 Triple Crown, and became the first horse to win $1 million. He set a world record in 1950 by running a mile in 1:33 3/5. for Part 226 continues to read as follows: Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5). 2. In Supplement I to Part 226, under Section 226.32--Requirements for Certain Closed-End Home Mortgages, under Paragraph 32(a)(1)(ii), paragraph 2.viii. is added. Supplement I to Part 226--Official Staff Interpretations Subpart E--Special Rules for Certain Home Mortgage Transactions Section 226.32--Requirements for Certain Closed-End Home Mortgages 32(a) Coverage Paragraph 32(a)(1)(ii) 2. Annual adjustment of $400 amount. viii. For 2003, $488, reflecting a 1.64 percent increase in the CPI-U CPI-U Consumer Price Index for All Urban Consumer from June 2001 to June 2002, rounded to the nearest whole dollar. |
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