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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:11/13/2003
Expiration Date:
Office:OE
Signed By:Smith, Roland
FCA Contact Person:Holland, Tom
Contact Phone:703-883-4484
List of Attachments:


INFORMATIONAL MEMORANDUM


November 13, 2003


To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, 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 published a final rule amending the staff commentary that interprets the requirements of Regulation Z, Truth in Lending (12 CFR Part 226, Supplement I). The rule 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 Board of Governors of the Federal Reserve System adjusts this amount annually based on the annual percentage change reflected in the Consumer Price Index that is in effect on June 1. The amount was adjusted for calendar year 2004 to $499. This rule is effective January 1, 2004.

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 to him on the Internet at e-mail address hollandt@fca.gov.