New January 2021
Truth in Lending: Regulation Z – The Bureau of Consumer Financial Protection (Bureau) amended the official commentary that interprets the requirements of the Bureau’s Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the 1.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2019, the exemption threshold is adjusted to $2.202 billion from $2.167 billion. Therefore, creditors with assets of less than $2.202 billion (including assets of certain affiliates) as of December 31, 2019, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2020.
Effective date: January 1, 2021
Section affected:
Official Staff Interpretation
Section 1026.35(b)(2)(iii)
Fair Credit Reporting Act: Regulation V -The Bureau of Consumer Financial Protection (Bureau) issued a final rule amending an appendix for Regulation V, which implements the Fair Credit Reporting Act (FCRA). The Bureau is required to calculate annually the dollar amount of the maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to FCRA section 609; this final rule establishes the maximum allowable charge for the 2021 calendar year. For calendar year 2021, the maximum allowable disclosure charge is $13.00.
Effective date: January 1, 2021
Section affected:
Appendix O
Home Mortgage Disclosure Act: Regulation C - The Bureau of Consumer Financial Protection amended the official commentary that interprets the requirements of Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Based on the 1.3 percent increase in the average of the CPI–W for the 12-month period ending in November 2020, the exemption threshold is adjusted to $48 million from $47 million. Therefore, banks, savings associations, and credit unions with assets of $48 million or less as of December 31, 2020, are exempt from collecting data in 2021.
Effective Date: January 1, 2021
Section Affected:
Official Staff Interpretation
Section 1003.2 - Definitions
Community Reinvestment Act: Regulation BB - The Federal Reserve and the FDIC amended their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define ‘‘small bank’’ or ‘‘small savings association’’ and ‘‘intermediate small bank’’ or ‘‘intermediate small savings association.’’ As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W).
Effective date: January 1, 2021
Sections affected:
FED - Definitions: 228.12
FDIC - Definitions 345.12