FCA Info Memo - Regulation Z - Notice of Adjustment of Dollar Amount For Disclosures on Certain Home Mortgage Transactions

Informational Memorandum
Subject:	Regulation Z - Notice of Adjustment of Dollar Amount For Disclosures on Certain Home Mortgage Transactions
Date of Memorandum:	09/02/2004
Expiration Date:
Office:	OE
Signed By:	McKenzie, Thomas
FCA Contact Person:	Clark, Donald
Contact Phone:	703-883-4201
List of Attachments:	Federal Reserve System 12 CFR Part 226

INFORMATIONAL MEMORANDUM

September 2, 2004

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 $510 for 2005 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 2004. The adjustment is effective January 1, 2005. A copy of the Federal Reserve Board's notice, published in the Federal Register at 69 FR 50298 (August 16, 2004), 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 Don Clark, Assistant Director, Office of Examination, at (703) 883-4201 (e-mail address clarkd@fca.gov).

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