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Informational Memorandum
Subject:Regulation Z - Notice of Adjustment of Dollar Amount for Disclosures on Certain Home Mortgage Transactions
Date of Memorandum:09/21/2005
Expiration Date:
Signed By:McKenzie, Thomas
FCA Contact Person:Stephens, David
Contact Phone:703-883-4412
List of Attachments:Federal Reserve Board Notice 70 FR 46066


September 21, 2005

To: The Chief Executive Officer
All Farm Credit System Institutions

From: Thomas G. McKenzie, Director
Office of Examination

Subject: Regulation Z – Notice of Adjustment of Dollar Amount For Disclosures on Certain Home Mortgage Transactions

The Board of Governors of the Federal Reserve System (Federal Reserve Board) recently published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for home mortgage loans that bear rates or fees above a certain amount. The dollar amount of the fee-based trigger has been adjusted to $528 for 2006 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 2005. The adjustment is effective January 1, 2006. A copy of the Federal Reserve Board's notice, published in the Federal Register at 70 FR 46066 (August 9, 2005), is attached.

The Home Ownership and Equity Protection Act of 1994 requires additional disclosures when total points and fees payable by the consumer exceed the fee-based trigger (initially set at $400 and adjusted annually) or 8 percent of the total loan amount, whichever is larger.

If you have any questions about this memorandum, please contact Dave Stephens, Director, Examination Policy Division, at (703) 883-4412 (e-mail address stephensd

FR 46066.pdf