Regulation Z - Truth in Lending
Annual Adjustment Affecting Disclosure
November 10, 1999
Circular No. 11201

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 the Truth in Lending Act for mortgage loans that bear fees above a certain amount.

The Board has adjusted the dollar amount from $441 for 1999 to $451 for 2000 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 1999. The adjustment is effective January 1, 2000.

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's notice, in the Federal Register of November 5, is available as a PDF file (pdf - 13kb). Questions on this matter may be directed, at this Bank, to Janice A. Oser, Examining Officer, Compliance Examinations Department.