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2019 Thresholds under Regulation Z’s CARD Act, HOEPA and QM Sections

Based on the Consumer Price Index in effect on June 1, 2018, which increased 2.5%, the Consumer Financial Protection Bureau (CFPB) released a number of new threshold amounts which go into effect on January 1, 2019. They include: 

  • The minimum interest charge disclosure threshold of $1.00 under the CARD Act will remain unchanged in 2019. (1026.6(b)(2)(iii) and 1026.60(b)(3))
  • The adjusted dollar amount for the penalty fees safe harbor under the CARD Act in 2019 is $28 for a first late payment (a $1.00 change from 2018) and $39 for each subsequent violation within the following six months (a $1.00 change from 2018). (1026.52(b)(1)(ii))

Additionally, these changes affected the HOEPA threshold amounts found under 1026.32.

  • For HOEPA loans, the adjusted total loan amount threshold is $21,549, effective January 1, 2019. (1026.32(a)(1)(ii)(A))
  • The adjusted statutory fee trigger for HOPEA loans is $1,077, effective January 1, 2019. (1026.32(a)(1)(ii)(B))

Also, the new Qualified Mortgage rules get revised thresholds as well. For the purpose of a creditor’s determination of a consumer’s ability to repay a transaction secured by a dwelling, a covered transaction is not a qualified mortgage unless the transaction’s total points and fees do not exceed:

  • 3 percent of the total loan amount for a loan greater than or equal to $107,747,
  • $3,232 for a loan amount greater than or equal to $64,648 but less than $107,747,
  • 5 percent of the total loan amount for a loan greater than or equal to $21,549 but less than $64,648,
  • $1,077 for a loan amount greater than or equal to $13,468 but less than $21,549, and
  • 8 percent of the total loan amount for a loan amount less than $13,468.

The QM thresholds above from 1026.43(e)(3) are effective January 1, 2019.

TCA is your source for regulatory information and A Better Way. Contact us at [email protected] or at (800) 934‐7347 if you have any questions!

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