The Consumer Financial Protection Bureau set its 2018 thresholds for high-cost mortgages regulated under the Home Ownership and Equity Protection Act.
The HOEPA loan threshold rose slightly to $21,032, from $20,579. The adjusted points and fees dollar trigger for high-cost mortgages in 2018 will be $1,052, up from $1,029, according to a final rule filed in the Federal Register this week.
The changes take effect Jan. 1, 2018.
The agency also slightly increased the maximum points and fees allowed in order for loans to receive the Qualified Mortgage safe harbor:
— 3% of the total loan amount for a loan greater than or equal to $105,158
— $3,155 for a loan amount greater than or equal to $63,095 but less than $105,158
— 5% of the total loan amount for a loan greater than or equal to $21,032 but less than $63,095
— $1,052 for a loan amount greater than or equal to $13,145 but less than $21,032
— 8% of the total loan amount for a loan amount less than $13,145
The agency sets the annual thresholds based on the Bureau of Labor Statistics' Consumer Price Index as of June 1, 2017.
The annual adjustment process also covers open-end consumer credit accounts regulated by the Credit Card Accountability Responsibility and Disclosure Act of 2009.
However, the CFPB did not adjust the $1 threshold that triggers requirements to disclose minimum interest charges. It also did not adjust the penalty fees safe harbor of $27 for a consumer's first late payment and $38 for subsequent late payments.