The CFPB announced 2016 changes in dollar thresholds for several Regulation Z provisions governed by the CARD Act, the Home Ownership and Equity Protection Act and the Dodd-Frank Act. The thresholds, which are based on changes in the Consumer Price Index, edged down or remained unchanged due to low inflation.
For credit cards, the penalty fees safe harbor will remain at $27 for a first late payment and drop $1 to $37 for each subsequent late payment within six months. The minimum interest charge disclosure threshold will remain unchanged. The HOEPA loan threshold will slip to $20,350 and the HOEPA fee trigger will be $1,017, effective Jan. 1.
For Qualified Mortgages, points and fees cannot exceed 3% of loans of $101,749 or more; $3,052 for loans between $61,050 and $101,749; 5% of loans between $20,350 and $61,050; $1,017 for loans between $12,719 and $20,350; and %8 of loans of less than $12,719.