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Happy New Year – 2024 Brings Adjusted Regulatory Thresholds

Posted January 5, 2024 —

Happy New Year! As we step into 2024, there are several thresholds which have been adjusted by both state and federal regulators which go into effect now that the new year has arrived. Below is a collection of thresholds effective January 1, 2024, including links to pull each publication for reference.

FIPCO released the 2024 Truth-in-Lending and HOEPA threshold changes in the year-end December release in preparation for these compliance changes.

Regulation Z, TILA

  • The exemption threshold for Regulation Z (Truth in Lending Act) will increase to $69,500, up from $66,400. https://www.govinfo.gov/content/pkg/FR-2023-11-29/pdf/2023-25048.pdf
  • The exemption threshold under Regulation Z for HPML appraisals will increase to $32,400, up from $31,000.  https://www.govinfo.gov/content/pkg/FR-2023-11-29/pdf/2023-25047.pdf
  • The asset-size threshold under Regulation Z which exempts creditors from the requirement to establish an escrow account for HPMLs will be:
    • For creditors and their affiliates that regularly extended covered transactions secured by first liens, the asset-size threshold is adjusted to $2.640 billion, up from $2.537 billion; and
    • The exemption threshold for certain insured depository institutions with assets of $10 billion or less is adjusted to $11.835 billion, up from $11.374 billion. https://www.govinfo.gov/content/pkg/FR-2023-12-21/pdf/2023-28076.pdf
  • The dollar amount thresholds under Regulation Z for HOEPA and QM-related loans have been adjusted as follows:
    • For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages will be $26,092.
    • The adjusted points-and-fees dollar trigger for high-cost mortgages will be $1,305.
    • For QMs under the General QM loan definition in § 1026.43(e)(2), the thresholds for the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) will be:
      • 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $130,461; 
      • 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $78,277 but less than $130,461;
      • 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $78,277;
      • 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $130,461;
      • 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $78,277; or
      • 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $78,277.
    • For all categories of QMs, the thresholds for total points and fees will be:
      • 3 percent of the total loan amount for a loan greater than or equal to $130,461;
      • $3,914 for a loan amount greater than or equal to $78,277 but less than $130,461;
      • 5 percent of the total loan amount for a loan greater than or equal to $26,092 but less than $78,277;
      • $1,305 for a loan amount greater than or equal to $16,308 but less than $26,092; and
      • 8 percent of the total loan amount for a loan amount less than $16,308.
    • For open-end consumer credit plans under TILA, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.00. 

      https://www.govinfo.gov/content/pkg/FR-2023-09-21/pdf/2023-20476.pdf

Regulation C, HMDA

The asset-size threshold to be exempt from collecting HMDA data in 2023 is adjusted to $56 million, up from $54 million. https://www.govinfo.gov/content/pkg/FR-2023-12-21/pdf/2023-28079.pdf

Community Reinvestment Act (CRA)

  • The Board of Governors of the Federal Reserve System (FRB) and Federal Deposit Insurance Corporation (FDIC) CRA regulations have adjusted the asset-size thresholds used to define “small bank” and “intermediate small bank” to be:
    • Small bank means a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1.564 billion; and
    • Intermediate small bank means a small bank with assets of at least $391 million as of December 31 of both of the prior two calendar years and less than $1.564 billion as of December 31 of either of the prior two calendar years. https://www.govinfo.gov/content/pkg/FR-2023-12-20/pdf/2023-27934.pdf
  • The Office of the Comptroller of the Currency (OCC) made the identical adjustments to the asset-size thresholds used to define “small bank or savings association” and “intermediate small bank or savings association.” https://www.occ.gov/news-issuances/bulletins/2023/bulletin-2023-40.html

Required Escrow Rate under Wisconsin Law

Other Regulatory Thresholds and Limits