Compliance: 2020 thresholds for higher-priced mortgages, Regs Z, M
The Consumer Financial Protection Bureau and other federal agencies have announced thresholds for certain regulations for 2020. This includes for higher-priced mortgage loans made during calendar year 2020 and Regulations Z and M for consumer credit and lease transactions.
The threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2020 will increase to $27,200 in 2020, up from $26,700, effective Jan. 1. This is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2019.
The CPI-W also determines the dollar thresholds for determine exempt consumer credit and lease transactions under Regulation Z (which regulates the Truth in Lending Act) and Regulation M (which regulates the Consumer Leasing Act).
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