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REGULATION Z: ADJUSTMENT TO THE DOLLAR AMOUNT THAT TRIGGERS ADDITIONAL DISCLOSURE REQUIREMENTS.

The Federal Reserve Board published on November 21, 2000, its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act (Regulation Z) 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 $451 for 2000 to $465 for 2001 based on the annual percentage change reported in the Consumer Price Index as of June 1, 2000. The adjustment is effective January 1, 2001.

The Home Ownership and Equity Protection Act of 1994 bars credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed $400 (to be adjusted annually) or 8 percent of the total loan amount, whichever is larger.
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Publication:Federal Reserve Bulletin
Article Type:Brief Article
Geographic Code:1USA
Date:Jan 1, 2001
Words:140
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Next Article:REGULATION C: REQUEST FOR COMMENT ON PROPOSED REVISIONS.
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