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
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.
