Regulation Z – Truth in Lending
December 31, 1998
Circular No. 11125

Annual Adjustment Affecting Disclosure

To All Depository Institutions, and Others Concerned, in the Second Federal Reserve District:

The following is from a statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has published its annual adjustment of the dollar amount that triggers additional disclosure requirements under Truth in Lending for mortgage loans that bear fees above a certain amount. The Home Ownership and Equity Protection Act of 1994 bars credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed $400 (to be adjusted annually) or 8 percent of the total loan amount, whichever is larger.

The Board has adjusted the dollar amount from $435 for 1998 to $441 for 1999 based on the annual percentage change reflected in the Consumer Price Index that is in effect on June 1.

The Board's notice, as published in the Federal Register of December 8, is available as a file (pdf - 13kb). Questions on this matter may be directed, at this Bank, to Janice A. Oser, Examining Officer, Compliance Examinations Department.