|Subject:||Regulation Z-Notice of Adjustment of Dollar Amount|
|Date of Memorandum:||06/07/2000|
|Expiration Date:|| |
|Signed By:||Smith, Roland|
|FCA Contact Person:||Holland, Tom|
|List of Attachments:||Revision to Regulation Z|
June 7, 2000
To: The Chief Executive Officer
All Farm Credit System Institutions
From: Roland E. Smith, Director /s/
Office of Examination
Subject: Regulation Z – Notice of Adjustment of Dollar Amount
Attached is a revision to Regulation Z, Truth in Lending (12 CFR Part 226), issued by the Board of Governors of the Federal Reserve System. The revision addresses the annual adjustment to the dollar amount that triggers added disclosure for certain home mortgage transactions (Section 226.32(a)(1)(ii)). 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. The Federal Reserve adjusts this amount annually based on the percentage change in the Consumer Price Index as reported on June 1. The amount was adjusted for calendar year 2000 to $451.
If you have any questions about this memorandum, please call Thomas J. Holland, Director, Special Examination and Supervision Division, Office of Examination, at (703) 883-4483, or write on the Internet at e-mail address firstname.lastname@example.org.