CFPB Issues Correction to Final Rule Commentary Regarding Annual Threshold Adjustments for 2020 HOEPA Loans

The CFPB recently issued a technical correction, effective January 1, 2020, to a final rule that was published in the Federal Register on August 1, 2019, regarding, among other things, annual adjustments related to HOEPA loans.  This technical correction amends an official interpretation of Regulation Z, the CFPB’s regulation implementing TILA, to correct the inadvertent error.

The original final rule satisfied the requirement for the CFPB to annually calculate the dollar amounts for several Regulation Z provisions.  For example, the original final rule adjusted the points-and-fees dollar trigger for HOEPA loans from $1,000 to $1,099 (and also adjusted the related total loan amount threshold for a HOEPA loan to $21,980) for 2020.  However, in the related official interpretations, the CFPB inadvertently used the $21,980 figure, not the $1,099 figure, when identifying and describing how they arrived at the adjusted points-and-fees dollar trigger through use of the Consumer Price Index from June 2018 to June 2019.  Thus, the correction changes the 2020 dollar figure reference to $1,099.

WBK’s article on the original final rule adjusting the annual threshold amounts can be found here.