The Federal Reserve Board of Governors today raised the dollar amount of mortgage fees that triggers mortgage disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act of 1994 (HOEPA). The Fed raised the trigger 2% to $592, from the current $579, beginning in January 2011. The trigger amount is now 48% higher than the $400 originally set by HOPEA in 1994. HOEPA restricts credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed the fee-based trigger (initially set at $400 in 1994 and adjusted annually) or 8% of the total loan amount, whichever is larger. Beginning in 2011, if a borrower is charged more than $592 in mortgage points and fees, the lender is required to disclosed credit terms. Every year the Fed adjusts the dollar amount that triggers disclosure requirements. This “trigger,” which aims to increase transparency of fees charged to mortgage borrowers, is based on the annual percentage change reflected in the Consumer Price Index. Write to Christine Ricciardi.

Most Popular Articles

Here's where the real housing affordability crisis exists

Some housing pundits report the demand for housing is strong, while these same pundits, on another day say that we are in a housing affordability crisis. Can the two narratives be accurate at the same time? If not, which is one is true? HousingWire Columnist Logan Mohtashami takes a deeper dive.

Feb 17, 2020 By

Latest Articles

Cost of renting continues to steadily rise

While rent prices are going up, the latest 3% year-over-year increase marks the slowest pace in 18 months, according to a new report from RentCafe.

Feb 19, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please