CFPB Issues TILA (Regulation Z) Annual Threshold Adjustments for 2022

The CFPB recently amended TILA’s implementing Regulation Z by updating the dollar amounts of various thresholds for several provisions that are adjusted annually. The new threshold adjustments will go into effect on January 1, 2022.

For open-end consumer credit plans under TILA, the threshold triggering disclosure of minimum interest charges will remain unchanged at $1.00.

For open-end consumer credit plans under the CARD Act amendments to TILA, the adjusted dollar amount for the safe harbors for both a first violation penalty fee and a subsequent violation penalty fee will increase by $1, to $30 and $41, respectively.

For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages will increase from $22,052 to $22,969. And the adjusted points-and-fees dollar trigger for high-costs mortgages will increase from $1,103 to $1,148.

The thresholds to meet the general qualified mortgage loan definition will also increase.  Specifically, to satisfy the general qualified mortgage loan definition, the APR may not exceed the average prime offer rate (APOR) for a comparable transaction as of the date the interest rate is set by the following amounts:

• 2.25 or more percentage points for a first-lien loan with a loan amount greater than or equal to $114,847;
• 3.5 or more percentage points for a first-lien loan 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 loan with a loan amount less than $68,908;
• 6.5 or more percentage points for a first-lien loan secured by a manufactured home with a loan amount less than $114,847;
• 3.5 or more percentage points for a subordinate-lien loan with a loan amount greater than or equal to $68,908; and
• 6.5 or more percentage points for a subordinate-lien loan with a loan amount less than $68,908.

For all categories of qualified mortgages, the maximum thresholds for total points and fees will increase as follows:

• 3 percent 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 percent 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 percent of the total loan amount for a loan amount less than $14,356.