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.
Fed Hikes Mortgage Fee Disclosure Trigger 2% in 2011
Most Popular Articles
Latest Articles
Spring housing market gets more inventory
We’ve now had back-to-back weeks of healthy housing inventory growth, making spring 2024 much healthier than spring 2023.
-
The best real estate podcasts for agents and brokers in 2024
-
Home sellers saw their profits shrink in the first quarter: Attom
-
If reelected, Trump could seek greater control over Federal Reserve
-
Acra CEO Keith Lind on staying the course amid choppy waters in non-QM
-
HUD walks back some proposed changes to HECM for Purchase program