Many of the dollar amounts that serve as thresholds for Truth-in-Lending Act (TILA) requirements, implemented by Regulation Z, on open-end credit and mortgages are set to rise as of Jan. 1, 2022, according to a notice soon to be published in the Federal Register.
The coming adjustments, implemented by the Consumer Financial Protection Bureau (CFPB), include no change in the $1 threshold triggering minimum interest charge disclosure requirements on open-end consumer credit plans. For open-end credit plans under the CARD Act, there are increases to $30 in the adjusted dollar amount for safe harbor for a first violation penalty fee and to $41 in the threshold for a subsequent violation penalty fee. For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages in 2022 will be $22,969, the agency said; the adjusted points-and-fees dollar trigger will be $1,148.
For qualified mortgages (QMs) under the General QM loan definition, the thresholds for the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) in 2022 will be:
- 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $114,847;
- 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $68,908 but less than $114,847;
- 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $68,908;
- 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $114,847;
- 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $68,908;
- or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $68,908.
For all categories of QMs, the reported thresholds for total points and fees in 2022 will be:
- 3% of the total loan amount for a loan greater than or equal to $114,847;
- $3,445 for a loan amount greater than or equal to $68,908 but less than $114,847;
- 5% of the total loan amount for a loan greater than or equal to $22,969 but less than $68,908;
- $1,148 for a loan amount greater than or equal to $14,356 but less than $22,969; and
- 8% of the total loan amount for a loan amount less than $14,356.