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Informational Memorandum
Subject:Official Staff Commentary to Regulation Z,Truth in Lending
Date of Memorandum:06/08/1999
Expiration Date:
Signed By:Smith, Roland
FCA Contact Person:Holland, Tom
Contact Phone:703-883-4484
List of Attachments:Federal Reserve System 12 CFR Part 226


June 8, 1999

To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, Director /s/
Office of Examination

Subject: Official Staff Commentary to Regulation Z, Truth in Lending

The Farm Credit Administration (FCA) is distributing revisions published by the Board of Governors of the Federal Reserve System to the official staff commentary to Regulation Z, Truth in Lending (12 CFR Part 226). The revisions provide guidance on the content of disclosures on closed-end credit. Additionally, the revisions include the annual adjustment to the dollar amount that triggers additional disclosure for certain home mortgage transactions. The Home Ownership and Equity Protection Act of 1994 sets forth rules for creditors offering home-secured loans with total points and fees payable by the consumer at or before loan consummation that exceed the greater of $400 or 8 percent of the total loan amount. This amount is adjusted annually based on the percentage change in the Consumer Price Index as reported on June 1. This amount is adjusted to $441 for 1999. While this rule was effective March 31, 1999, compliance is optional until March 31, 2000.

If you have any questions regarding this document, please call Thomas J. Holland, Director, Special Examination and Supervision Division, Office of Examination, at (703) 883-4483, or correspond on the Internet at e-mail address