Escrow Exemption Threshold for 2023

Adam Witmer
Regulatory Update, Regulation Z

On December 27, 2022, the CFPB announced the annual adjustment to the asset size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan under Regulation Z. These changes reflect updates to the exemption from TILA’s escrow requirement of creditors that, together with affiliates that regularly extended covered transactions secured by first liens, had total assets of less than $2 billion (adjusted annually for inflation) and the exemption the Bureau added, by implementing section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation).

2023 HMDA Exemption Threshold

Adam Witmer
Regulatory Update, HMDA

On December 27, 2022, the CFPB adjusted the HMDA exemption threshold from $50 million to $54 million. The adjustment is based on the 8.6percent increase in the average of the CPI-W for the 12-month period ending in November 2022 (up from 1.3 in 2020 and 4.7 in 2021). Therefore, banks, savings associations, and credit unions with assets of $54 million or less as of Dec. 31, 2022, are exempt from collecting data in 2023.

HUD Requests Information on Disaster Recovery Funds Allocation

Adam Witmer
Regulatory Update

On December 20, 2022, the HUD released two new Requests for Information (RFIs) on how to simplify, modernize, and more equitably distribute critical disaster recovery funds: Community Development Block Grant Disaster Recovery (CDBG-DR) and Mitigation (CDBG-MIT). The requests for public feedback is part of HUD’s Climate Action Plan, which emphasizes both equity and resilience in disaster recovery, as well as the Biden-Harris Administration’s commitment to strengthening low- and moderate-income communities.

Agencies Extend Their Statement Regarding Extensions of Credit to Certain Investment Funds

Adam Witmer
Regulatory Update, Regulation O

On December 22, 2022, the OCC, FRB, and FDIC issued a revised interagency statement to extend the “Extension of the Revised Statement Regarding Status of Certain Investment Funds and their Portfolio Investments for Purposes of Regulation O and Reporting Requirements under Part 363 of FDIC Regulations.” The prior interagency statement, which was issued on December 17, 2021, was set to expire on January 1, 2023.

CFPB Issues Annual Reg Z Threshold Adjustments for 2023

Adam Witmer
Regulatory Update, Regulation Z

On December 23, 2022, the CFPB published a final rule to implement the annual adjustment requirements of Regulation Z. Specifically, the CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z, and the final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2022.

CFPB Discusses Mortgage Financing Alternatives

Adam Witmer
Regulatory Update

On December 21, 2022, the CFPB published an article describing how interest rates have risen over the past two years. Data from Freddie Mac Primary Mortgage Market Survey shows that interest rates for 30-year fixed-rate mortgages increased to as high as 7% in 2022 from a historical low of 2.90 in 2020. According to recent CFPB analysis of quarterly HMDA data, these higher rates have already led to increased monthly payments and higher debt-to-income ratios for mortgage borrowers.

Load More