In the August 30, 2017, issue of the Federal Register (82 FR 41158, click here), the Consumer Financial Protection Bureau established the following 2018 thresholds for high-cost and qualified mortgages under §§1026.32 and 1026.43, respectively. HOEPA (High-cost Mortgages) 2018 Threshold Adjustments • Effective January 1, 2018, a consumer loan secured by the consumer’s principal dwelling and not otherwise exempt is a high-cost mortgage based on the total points and fees payable by the consumer under §1026.32(a)(1)(ii) if the points and fees exceed: (A) 5 percent of the total loan amount for a loan with a loan amount of $21,032 or more, or (B) the lesser of 8 percent of the total loan amount or $1,052 for a loan with a loan amount of less than $21,032. Comment 32(a)(1)(ii)-1.iv is added to reflect the new $1,052 threshold amount for 2018. Comment 32(a)(1)(ii)-3.iv is added to reflect the new $21,032 threshold loan amount for 2018. Qualified Mortgages 2018 Threshold Adjustments • Effective January 1, 2018, for purposes of determining whether a covered transaction is a qualified mortgage under §1026.43(e), a covered transaction is not a qualified mortgage unless the transaction’s total points and fees in §1026.43(e)(3)(i) do not exceed: (A) 3 percent of the total loan amount for a loan amount greater than or equal to $105,158; (B) $3,155 for a loan amount greater than or equal to $63,095 but less than $105,158; (C) 5 percent of the total loan amount for a loan amount greater than or equal to $21,032 but less than $63,095; (D) $1,052 for a loan amount greater than or equal to $13,145 but less than $21,032; and (E) 8 percent of the total loan amount for a loan amount less than $13,145. Comment 43(e)(3)(ii)-1.iii is added to reflect the new threshold amounts for 2018. The above threshold adjustments are effective January 1, 2018, and will require updates to your software calculations for high-cost and qualified mortgages closing on and after the effective date.
