Printer Friendly

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 final rule amends the staff commentary that interprets the requirements of Regulation Z. 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) 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 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 1. The adjusted dollar amount for 2002 is $480.

Effective January 1, 2002, 12 C.F.R. Part 226 is amended as follows:

Part 226--Truth in Lending (Regulation Z)

1. The authority citation 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.vii. 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.

vii. For 2002, $480, reflecting a 3.27 percent increase in the CPI-U from June 2000 to June 2001, rounded to the nearest whole dollar.
COPYRIGHT 2002 Board of Governors of the Federal Reserve System
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Truth in Lending
Publication:Federal Reserve Bulletin
Article Type:Brief Article
Geographic Code:1USA
Date:Jan 1, 2002
Previous Article:Final rule-amendment to Regulation A. (Legal Developments).
Next Article:Joint final rule--amendment to risk-based capital guidelines, capital adequacy guidelines, and capital maintenance. (Legal Developments).

Related Articles
Statements to Congress.
Final rule--amendment to regulation A. (Legal Developments).
Final rule-amendment to regulation A. (Legal Developments).
Final amendment to Regulation Z regarding HOEPA and predatory lending. (Announcements).
Final rule--amendment to Regulation A. (Legal Developments).
Final rule--amendment to Regulation C. (Legal Developments).
Final rule--correction to amendment to Regulations H and Y. (Legal Developments).
Final rule--amendment to regulation Z. (Legal Developments).

Terms of use | Copyright © 2015 Farlex, Inc. | Feedback | For webmasters