Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages)

Published date02 November 2021
Citation86 FR 60357
Record Number2021-23478
SectionRules and Regulations
CourtConsumer Financial Protection Bureau
This section of the FEDERAL REGISTER
contains regulatory documents having general
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are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
60357
Vol. 86, No. 209
Tuesday, November 2, 2021
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 890
RIN 3206–AO18
Access to Federal Employees Health
Benefits (FEHB) for Employees of
Certain Tribally Controlled Schools;
Extension of Comment Period
AGENCY
: Office of Personnel
Management.
ACTION
: Interim final rule; extension of
comment period.
SUMMARY
: The Office of Personnel
Management (OPM) is extending the
comment period to ensure that
stakeholders have sufficient opportunity
to submit comments on the interim final
rule expanding access to FEHB for
employees of certain tribally controlled
schools.
DATES
: The comment period for the
interim final rule published on
September 3, 2021, at 86 FR 49461, is
extended. Written reply comments must
be submitted no later than November
20, 2021.
ADDRESSES
: You may submit comments,
identified by docket number and/or
Regulatory Information Number (RIN)
and title, by the following method:
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FOR FURTHER INFORMATION CONTACT
: Julia
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SUPPLEMENTARY INFORMATION
: OPM
published an interim final rule, Access
to Federal Employees Health Benefits
(FEHB) for Employees of Certain
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Office of Personnel Management.
Alexys Stanley,
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[FR Doc. 2021–23739 Filed 11–1–21; 8:45 am]
BILLING CODE 6325–64–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1026
Truth in Lending (Regulation Z) Annual
Threshold Adjustments (Credit Cards,
HOEPA, and Qualified Mortgages)
AGENCY
: Bureau of Consumer Financial
Protection.
ACTION
: Final rule; official
interpretation.
SUMMARY
: The Bureau of Consumer
Financial Protection (Bureau) is issuing
this final rule amending the regulation
text and official interpretations for
Regulation Z, which implements the
Truth in Lending Act (TILA). The
Bureau is required to calculate annually
the dollar amounts for several
provisions in Regulation Z; this 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
Bureau is adjusting these amounts,
where appropriate, based on the annual
percentage change reflected in the
Consumer Price Index (CPI) in effect on
June 1, 2021.
DATES
: This final rule is effective
January 1, 2022.
FOR FURTHER INFORMATION CONTACT
:
Willie Williams, Paralegal Specialist; or
Lanique Eubanks, Senior Counsel,
Office of Regulations, at (202) 435–7700.
If you require this document in an
alternative electronic format, please
contact CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION
: The
Bureau is amending the regulation text
and official interpretations for
Regulation Z, which implements TILA,
to update the dollar amounts of various
thresholds that are adjusted annually
based on the annual percentage change
in the CPI as published by the Bureau
of Labor Statistics (BLS). Specifically,
for open-end consumer credit plans
under TILA, the threshold that triggers
requirements to disclose minimum
interest charges will remain unchanged
at $1.00 in 2022. For open-end
consumer credit plans under the CARD
Act amendments to TILA, the adjusted
dollar amount in 2022 for the safe
harbor for a first violation penalty fee
will increase to $30 and the adjusted
dollar amount for the safe harbor for a
subsequent violation penalty fee will
increase to $41. For HOEPA loans, the
adjusted total loan amount threshold for
high-cost mortgages in 2022 will be
$22,969. The adjusted points-and-fees
dollar trigger for high-cost mortgages in
2022 will be $1,148. For qualified
mortgages (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) in 2022
will be: 2.25 or more percentage points
for a first-lien covered transaction with
a loan amount greater than or equal to
$114,847; 3.5 or more percentage points
for a first-lien covered transaction with
a loan amount greater than or equal to
$68,908 but less than $114,847; 6.5 or
more percentage points for a first-lien
covered transaction with a loan amount
less than $68,908; 6.5 or more
percentage points for a first-lien covered
transaction secured by a manufactured
home with a loan amount less than
$114,847; 3.5 or more percentage points
for a subordinate-lien covered
transaction with a loan amount greater
than or equal to $68,908; or 6.5 or more
percentage points for a subordinate-lien
covered transaction with a loan amount
less than $68,908. For all categories of
QMs, the thresholds for total points and
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The QM categories in Regulation Z are as
follows: 12 CFR 1026.43(e)(2), (4), (5), and (6)
applies only to covered transactions for which the
application was received before April 1, 2016; and
(e)(7).
2
The CPI–W is a subset of the Consumer Price
Index for All Urban Consumers (CPI–U) index and
represents approximately 29 percent of the U.S.
population.
3
BLS publishes Consumer Price Indices monthly,
usually in the middle of each calendar month.
Thus, the CPI–W reported on May 12, 2021, was the
most current as of June 1, 2021.
4
Credit Card Accountability Responsibility and
Disclosure Act of 2009, Public Law 111–24, 123
Stat. 1734 (2009).
5
Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010).
6
The CPI–U is based on all urban consumers and
represents approximately 93 percent of the U.S.
population.
7
85 FR 86308 (Dec. 29, 2020). This final rule was
initially effective on March 1, 2021, with a
mandatory compliance date of July 1, 2021. On
April 27, 2021, the Bureau issued a final rule
effective June 30, 2021, which extended the
mandatory compliance date of the final rule
published on December 29, 2020, at 85 FR 86308,
until October 1, 2022. 86 FR 22844 (Apr. 30, 2021).
fees in 2022 will be 3 percent of the
total loan amount for a loan greater than
or equal to $114,847; $3,445 for a loan
amount greater than or equal to $68,908
but less than $114,847; 5 percent of the
total loan amount for a loan greater than
or equal to $22,969 but less than
$68,908; $1,148 for a loan amount
greater than or equal to $14,356 but less
than $22,969; and 8 percent of the total
loan amount for a loan amount less than
$14,356.
1
I. Background
A. Credit Card Annual Adjustments
Minimum Interest Charge Disclosure
Thresholds
Sections 1026.6(b)(2)(iii) and
1026.60(b)(3) of Regulation Z implement
sections 127(a)(3) and 127(c)(1)(A)(ii)(II)
of TILA. Sections 1026.6(b)(2)(iii) and
1026.60(b)(3) require creditors to
disclose any minimum interest charge
exceeding $1.00 that could be imposed
during a billing cycle. These provisions
also state that, for open-end consumer
credit plans, the minimum interest
charge thresholds will be re-calculated
annually using the CPI that was in effect
on the preceding June 1; the Bureau
uses the Consumer Price Index for
Urban Wage Earners and Clerical
Workers (CPI–W) for this adjustment.
2
If
the cumulative change in the adjusted
minimum value derived from applying
the annual CPI–W level to the current
amounts in §§ 1026.6(b)(2)(iii) and
1026.60(b)(3) has risen by a whole
dollar, the minimum interest charge
amounts set forth in the regulation will
be increased by $1.00. This adjustment
analysis is based on the CPI–W index in
effect on June 1, 2021, which was
reported by BLS on May 12, 2021,
3
and
reflects the percentage change from
April 2020 to April 2021. The
adjustment analysis accounts for a 4.7
percent increase in the CPI–W from
April 2020 to April 2021. This increase
in the CPI–W when applied to the
current amounts in §§ 1026.6(b)(2)(iii)
and 1026.60(b)(3) does not trigger an
increase in the minimum interest charge
threshold of at least $1.00, and the
Bureau is therefore not amending
§§ 1026.6(b)(2)(iii) and 1026.60(b)(3).
Safe Harbor Penalty Fees
Section 1026.52(b)(1)(ii)(A) and (B) of
Regulation Z implements section 149(e)
of TILA, which was added to TILA by
the CARD Act.
4
Section
1026.52(b)(1)(ii)(D) provides that the
safe harbor provision, which establishes
the permissible penalty fee thresholds
in § 1026.52(b)(1)(ii)(A) and (B), will be
re-calculated annually using the CPI
that was in effect on the preceding June
1; the Bureau uses the CPI–W for this
adjustment. If the cumulative change in
the adjusted value derived from
applying the annual CPI–W level to the
current amounts in § 1026.52(b)(1)(ii)(A)
and (B) has risen by a whole dollar,
those amounts will be increased by
$1.00. Similarly, if the cumulative
change in the adjusted value derived
from applying the annual CPI–W level
to the current amounts in
§ 1026.52(b)(1)(ii)(A) and (B) has
decreased by a whole dollar, those
amounts will be decreased by $1.00. See
comment 52(b)(1)(ii)–2. The 2022
adjustment analysis is based on the
CPI–W index in effect on June 1, 2021,
which was reported by BLS on May 12,
2021, and reflects the percentage change
from April 2020 to April 2021. The
permissible fee thresholds increased to
$30 for a first violation penalty fee and
$41 for a subsequent violation reflect a
4.7 percent increase in the CPI–W from
April 2020 to April 2021 with the
resulting thresholds rounded to the
nearest $1 increment.
B. HOEPA Annual Threshold
Adjustments
Section 1026.32(a)(1)(ii) of Regulation
Z implements section 1431 of the Dodd-
Frank Act,
5
which amended the HOEPA
points-and-fees coverage test. Under
§ 1026.32(a)(1)(ii)(A) and (B), in
assessing whether a transaction is a
high-cost mortgage due to points and
fees the creditor is charging, the
applicable points-and-fees coverage test
depends on whether the total loan
amount is for $20,000 or more, or for
less than $20,000. Section
1026.32(a)(1)(ii) provides that this
threshold amount be recalculated
annually using the CPI index in effect
on the preceding June 1; the Bureau
uses the CPI–U for this adjustment.
6
The
2022 adjustment is based on the CPI–U
index in effect on June 1, which was
reported by BLS on May 12, 2021, and
reflects the percentage change from
April 2020 to April 2021. The
adjustment to $22,969 here reflects a 4.2
percent increase in the CPI–U index
from April 2020 to April 2021 and is
rounded to the nearest whole dollar
amount for ease of compliance.
Under § 1026.32(a)(1)(ii)(B) the
HOEPA points-and-fees threshold is
$1,000. Section 1026.32(a)(1)(ii)(B)
provides that this threshold amount will
be recalculated annually using the CPI
index in effect on the preceding June 1;
the Bureau uses the CPI–U for this
adjustment. The 2022 adjustment is
based on the CPI–U index in effect on
June 1, 2021, which was reported by
BLS on May 12, 2021, and reflects the
percentage change from April 2020 to
April 2021. The adjustment to $1,148
here reflects a 4.2 percent increase in
the CPI–U index from April 2020 to
April 2021 and is rounded to the nearest
whole dollar amount for ease of
compliance.
C. QM Annual Threshold Adjustments
The Bureau’s Regulation Z
implements sections 1411 and 1412 of
the Dodd-Frank Act, which generally
require creditors to make a reasonable,
good-faith determination of a
consumer’s ability to repay any
consumer credit transaction secured by
a dwelling and establishes certain
protections from liability under this
requirement for QMs.
On December 10, 2020, the Bureau
issued a final rule amending the General
QM loan definition in § 1026.43(e)(2).
7
The final rule established pricing
thresholds in § 1026.43(e)(2)(vi)(A)
through (F) based on the spread of a
loan’s APR compared to the APOR for
a comparable transaction as of the date
the interest rate is set. To satisfy the
General QM loan definition, a loan’s
APR must be below the applicable
pricing threshold and satisfy other
requirements in § 1026.43(e)(2).
Specifically, under § 1026.43(e)(2)(vi), a
covered transaction is a QM if the APR
does not exceed the APOR for a
comparable transaction as of the date
the interest rate is set by: 2.25 or more
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The loan amounts in the regulatory text reflect
the CPI–U in effect on June 1, 2020.
9
See comment 43(e)(2)(vi)–3.
10
For 2022, a covered transaction is a qualified
mortgage if the APR does not exceed the APOR for
a comparable transaction as of the date the interest
rate is set by: 2.25 or more percentage points for a
first-lien covered transaction with a loan amount
greater than or equal to $114,847; 3.5 or more
percentage points for a first-lien covered transaction
with a loan amount greater than or equal to $68,908
but less than $114,847; 6.5 or more percentage
points for a first-lien covered transaction with a
loan amount less than $68,908; 6.5 or more
percentage points for a first-lien covered transaction
secured by a manufactured home with a loan
amount less than $114,847; 3.5 or more percentage
points for a subordinate-lien covered transaction
with a loan amount greater than or equal to $68,908;
or 6.5 or more percentage points for a subordinate-
lien covered transaction with a loan amount less
than $68,908. Additionally, a covered transaction is
not a qualified mortgage if the transaction’s total
points and fees exceed 3 percent of the total loan
amount for a loan amount greater than or equal to
$114,847; $3,445 for a loan amount greater than or
equal to $68,908 but less than $114,847; 5 percent
of the total loan amount for loans greater than or
equal to $22,969 but less than $68,908; $1,148 for
a loan amount greater than or equal to $14,356 but
less than $22,969; or 8 percent of the total loan
amount for loans less than $14,356.
percentage points for a first-lien covered
transaction with a loan amount greater
than or equal to $110,260 (indexed for
inflation); 3.5 or more percentage points
for a first-lien covered transaction with
a loan amount greater than or equal to
$66,156 (indexed for inflation) but less
than $110,260 (indexed for inflation);
6.5 or more percentage points for a first-
lien covered transaction with a loan
amount less than $66,156 (indexed for
inflation); 6.5 or more percentage points
for a first-lien covered transaction
secured by a manufactured home with
a loan amount less than $110,260
(indexed for inflation); 3.5 or more
percentage points for a subordinate-lien
covered transaction with a loan amount
greater than or equal to $66,156
(indexed for inflation); or 6.5 or more
percentage points for a subordinate-lien
covered transaction with a loan amount
less than $66,156 (indexed for
inflation).
8
The rule states that the loan
amounts in § 1026.43(e)(2)(vi) will be
adjusted annually on January 1 by the
annual percentage change in the CPI–U
that was in effect on the preceding June
1.
9
Section 1026.43(e)(2)(vi) of
Regulation Z is also amended to add a
cross-reference to the official
commentary of Regulation Z where
historical threshold dollar amounts for
§ 1026.43(e)(2)(vi)(A) through (F) can be
located. This change to the regulatory
text will assist creditors in locating the
applicable threshold adjustments.
Regulation Z also contains points and
fees limits applicable to all categories of
QMs. Under § 1026.43(e)(3)(i), a covered
transaction is not a QM if the
transaction’s total points and fees
exceed: 3 percent of the total loan
amount for a loan amount greater than
or equal to $100,000; $3,000 for a loan
amount greater than or equal to $60,000
but less than $100,000; 5 percent of the
total loan amount for loans greater than
or equal to $20,000 but less than
$60,000; $1,000 for a loan amount
greater than or equal to $12,500 but less
than $20,000; or 8 percent of the total
loan amount for loans less than $12,500.
Section 1026.43(e)(3)(ii) provides that
the limits and loan amounts in
§ 1026.43(e)(3)(i) will be recalculated
annually for inflation using the CPI–U
index in effect on the preceding June 1.
The 2022 adjustment to the loan
amounts applicable to the pricing
thresholds for the General QM loan
definition and the points and fees limits
for all categories of QM is based on the
CPI–U index in effect on June 1, 2021,
which was reported by BLS on May 12,
2021, and reflects the percentage change
from April 2020 to April 2021. The
adjustment to the 2021 figures
10
being
adopted here reflects a 4.2 percent
increase in the CPI–U index for this
period and is rounded to whole dollars
for ease of compliance.
II. Adjustment and Commentary
Revision
A. Credit Card Annual Adjustments
Minimum Interest Charge Disclosure
Thresholds—§§ 1026.6(b)(2)(iii) and
1026.60(b)(3)
The minimum interest charge
amounts for §§ 1026.6(b)(2)(iii) and
1026.60(b)(3) will remain unchanged at
$1.00 for the year 2022. Accordingly,
the Bureau is not amending these
sections of Regulation Z.
Safe Harbor Penalty Fees—
§ 1026.52(b)(1)(ii)(A) and (B)
Effective January 1, 2022, the
permissible fee threshold amounts
increased from the amounts for 2021 to
$30 for § 1026.52(b)(1)(ii)(A) and to $41
for § 1026.52(b)(1)(ii)(B). Accordingly,
the Bureau is amending
§ 1026.52(b)(1)(ii)(A) and (B). The
Bureau is amending comment
52(b)(1)(ii)–2.i to preserve a list of the
historical thresholds for this provision.
B. HOEPA Annual Threshold
Adjustment—Comments 32(a)(1)(ii)–1
and –3
Effective January 1, 2022, for purposes
of determining under § 1026.32(a)(1)(ii)
the points-and-fees coverage test under
HOEPA to which a transaction is
subject, the total loan amount threshold
is $22,969, and the adjusted points-and-
fees dollar trigger under
§ 1026.32(a)(1)(ii)(B) is $1,148. If the
total loan amount for a transaction is
$22,969 or more, and the points-and-
fees amount exceeds 5 percent of the
total loan amount, the transaction is a
high-cost mortgage. If the total loan
amount for a transaction is less than
$22,969, and the points-and-fees
amount exceeds the lesser of the
adjusted points-and-fees dollar trigger of
$1,148 or 8 percent of the total loan
amount, the transaction is a high-cost
mortgage. The Bureau is amending
comments 32(a)(1)(ii)–1 and –3, which
list the adjustments for each year, to
reflect for 2022 the new points-and-fees
dollar trigger and the new loan amount
dollar threshold, respectively.
C. Qualified Mortgages Annual
Threshold Adjustments
Effective January 1, 2022, to satisfy
§ 1026.43(e)(2)(vi) under the General
QM loan definition, the APR may not
exceed the average prime offer rate for
a comparable transaction as of the date
the interest rate is set by the following
amounts: 2.25 or more percentage points
for a first-lien covered transaction with
a loan amount greater than or equal to
$114,847; 3.5 or more percentage points
for a first-lien covered transaction with
a loan amount greater than or equal to
$68,908 but less than $114,847; 6.5 or
more percentage points for a first-lien
covered transaction with a loan amount
less than $68,908; 6.5 or more
percentage points for a first-lien covered
transaction secured by a manufactured
home with a loan amount less than
$114,847; 3.5 or more percentage points
for a subordinate-lien covered
transaction with a loan amount greater
than or equal to $68,908; or 6.5 or more
percentage points for a subordinate-lien
covered transaction with a loan amount
less than $68,908. Accordingly, the
Bureau is amending comment
43(e)(2)(vi)–3, which lists the
adjustments for each year, to reflect the
new dollar threshold amounts for
§ 1026.43(e)(2)(vi)(A) through (F).
Effective January 1, 2022, a covered
transaction is not a qualified mortgage
if, pursuant to § 1026.43(e)(3), the
transaction’s total points and fees
exceed 3 percent of the total loan
amount for a loan amount greater than
or equal to $114,847; $3,445 for a loan
amount greater than or equal to $68,908
but less than $114,847; 5 percent of the
total loan amount for loans greater than
or equal to $22,969 but less than
$68,908; $1,148 for a loan amount
greater than or equal to $14,356 but less
than $22,969; or 8 percent of the total
loan amount for loans less than $14,356.
The Bureau is amending comment
43(e)(3)(ii)–1, which lists the
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5 U.S.C. 553(b)(B).
12
5 U.S.C. 603(a), 604(a).
13
44 U.S.C. 3506; 5 CFR part 1320.
adjustments for each year, to reflect the
new dollar threshold amounts for 2022.
III. Procedural Requirements
A. Administrative Procedure Act
Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the Bureau
finds that notice and public comment
are impracticable, unnecessary, or
contrary to the public interest.
11
Pursuant to this final rule, in Regulation
Z, § 1026.52(b)(1)(ii)(A) and (B) in
subpart G is amended and comments
32(a)(1)(ii)–1.vii and –3.vii, 43(e)(3)(ii)–
1.vii, and 52(b)(1)(ii)–2.i.H in
Supplement I are added to update the
exemption thresholds. The amendments
in this final rule are technical and non-
discretionary, as they merely apply the
method previously established in
Regulation Z for determining
adjustments to the thresholds. Section
1026.43(e)(2)(vi) of Regulation Z is also
amended to add a cross-reference to the
official commentary of Regulation Z
where historical threshold dollar
amounts for § 1026.43(e)(2)(vi)(A)
through (F) can be located. This
amendment is technical and for
informational purposes only, as it
merely provides a cross-reference to
existing commentary that will list
current and past threshold adjustments
already required by Regulation Z. For
these reasons, the Bureau has
determined that publishing a notice of
proposed rulemaking and providing
opportunity for public comment are
unnecessary. The amendments therefore
are adopted in final form.
B. Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis.
12
C. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995,
13
the Bureau
reviewed this final rule. No collections
of information pursuant to the
Paperwork Reduction Act are contained
in the final rule.
D. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Bureau
will submit a report containing this rule
and other required information to the
United States Senate, the United States
House of Representatives, and the
Comptroller General of the United
States prior to the rule taking effect. The
Office of Information and Regulatory
Affairs (OIRA) has designated this rule
as not a ‘‘major rule’’ as defined by 5
U.S.C. 804(2).
E. Signing Authority
The Associate Director of Research,
Markets, and Regulations, Janis K.
Pappalardo, having reviewed and
approved this document, is delegating
the authority to electronically sign this
document to Laura Galban, Bureau
Federal Register Liaison, for purposes
of publication in the Federal Register.
List of Subjects in 12 CFR Part 1026
Advertising, Banks, Banking,
Consumer protection, Credit, Credit
unions, Mortgages, National banks,
Reporting and recordkeeping
requirements, Savings associations,
Truth-in-lending.
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation Z, 12 CFR part 1026, as set
forth below:
PART 1026—TRUTH IN LENDING
(REGULATION Z)
1. The authority citation for part 1026
continues to read as follows:
Authority: 12 U.S.C. 2601, 2603–2605,
2607, 2609, 2617, 3353, 5511, 5512, 5532,
5581; 15 U.S.C. 1601 et seq.
Subpart E—Special Rules for Certain
Home Mortgage Transactions
2. Amend § 1026.43 by revising
paragraph (e)(2)(vi) introductory text to
read as follows:
§ 1026.43 Minimum standards for
transactions secured by a dwelling.
* * * * *
(e) * * *
(2) * * *
(vi) For which the annual percentage
rate does not exceed the average prime
offer rate for a comparable transaction as
of the date the interest rate is set by the
amounts specified in paragraphs
(e)(2)(vi)(A) through (F) of this section.
The amounts specified here shall be
adjusted annually on January 1 by the
annual percentage change in the
Consumer Price Index for All Urban
Consumers (CPI–U) that was reported
on the preceding June 1. For purposes
of this paragraph (e)(2)(vi), the creditor
must determine the annual percentage
rate for a loan for which the interest rate
may or will change within the first five
years after the date on which the first
regular periodic payment will be due by
treating the maximum interest rate that
may apply during that five-year period
as the interest rate for the full term of
the loan. See the official commentary to
this paragraph (e)(2)(vi) for the current
dollar amounts.
* * * * *
Subpart G—Special Rules Applicable
to Credit Card Accounts and Open-End
Credit Offered to College Students
3. Amend § 1026.52 by revising
paragraphs (b)(1)(ii)(A) and (B) to read
as follows:
§ 1026.52 Limitations on fees.
* * * * *
(b) * * *
(1) * * *
(ii) * * *
(A) $30;
(B) $41 if the card issuer previously
imposed a fee pursuant to paragraph
(b)(1)(ii)(A) of this section for a violation
of the same type that occurred during
the same billing cycle or one of the next
six billing cycles; or
* * * * *
4. In Supplement I to part 1026:
a. Under Section 1026.32—
Requirements for High-Cost Mortgages,
Paragraph 32(a)(1)(ii) is revised.
b. Under Section 1026.43—Minimum
Standards for Transactions Secured by
a Dwelling, Paragraphs 43(e)(2)(vi) and
43(e)(3)(ii) are revised.
c. Under Section 1026.52—
Limitations on Fees, 52(b)(1)(ii) Safe
harbors is revised.
The revisions read as follows:
Supplement I to Part 1026—Official
Interpretations
* * * * *
Section 1026.32—Requirements for High-Cost
Mortgages
* * * * *
Paragraph 32(a)(1)(ii).
1. Annual adjustment of $1,000 amount.
The $1,000 figure in § 1026.32(a)(1)(ii)(B) is
adjusted annually on January 1 by the annual
percentage change in the CPI that was in
effect on the preceding June 1. The Bureau
will publish adjustments after the June
figures become available each year.
i. For 2015, $1,020, reflecting a 2 percent
increase in the CPI–U from June 2013 to June
2014, rounded to the nearest whole dollar.
ii. For 2016, $1,017, reflecting a 0.2 percent
decrease in the CPI–U from June 2014 to June
2015, rounded to the nearest whole dollar.
iii. For 2017, $1,029, reflecting a 1.1
percent increase in the CPI–U from June 2015
to June 2016, rounded to the nearest whole
dollar.
iv. For 2018, $1,052, reflecting a 2.2
percent increase in the CPI–U from June 2016
to June 2017, rounded to the nearest whole
dollar.
v. For 2019, $1,077, reflecting a 2.5 percent
increase in the CPI–U from June 2017 to June
2018, rounded to the nearest whole dollar.
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vi. For 2020, $1,099, reflecting a 2 percent
increase in the CPI–U from June 2018 to June
2019, rounded to the nearest whole dollar.
vii. For 2021, $1,103, reflecting a 0.3
percent increase in the CPI–U from June 2019
to June 2020, rounded to the nearest whole
dollar.
viii. For 2022, $1,148, reflecting a 4.2
percent increase in the CPI–U from June 2020
to June 2021, rounded to the nearest whole
dollar.
2. Historical adjustment of $400 amount.
Prior to January 10, 2014, a mortgage loan
was covered by § 1026.32 if the total points
and fees payable by the consumer at or before
loan consummation exceeded the greater of
$400 or 8 percent of the total loan amount.
The $400 figure was adjusted annually on
January 1 by the annual percentage change in
the CPI that was in effect on the preceding
June 1, as follows:
i. For 1996, $412, reflecting a 3 percent
increase in the CPI–U from June 1994 to June
1995, rounded to the nearest whole dollar.
ii. For 1997, $424, reflecting a 2.9 percent
increase in the CPI–U from June 1995 to June
1996, rounded to the nearest whole dollar.
iii. For 1998, $435, reflecting a 2.5 percent
increase in the CPI–U from June 1996 to June
1997, rounded to the nearest whole dollar.
iv. For 1999, $441, reflecting a 1.4 percent
increase in the CPI–U from June 1997 to June
1998, rounded to the nearest whole dollar.
v. For 2000, $451, reflecting a 2.3 percent
increase in the CPI–U from June 1998 to June
1999, rounded to the nearest whole dollar.
vi. For 2001, $465, reflecting a 3.1 percent
increase in the CPI–U from June 1999 to June
2000, rounded to the nearest whole dollar.
vii. For 2002, $480, reflecting a 3.27
percent increase in the CPI–U from June 2000
to June 2001, rounded to the nearest whole
dollar.
viii. For 2003, $488, reflecting a 1.64
percent increase in the CPI–U from June 2001
to June 2002, rounded to the nearest whole
dollar.
ix. For 2004, $499, reflecting a 2.22 percent
increase in the CPI–U from June 2002 to June
2003, rounded to the nearest whole dollar.
x. For 2005, $510, reflecting a 2.29 percent
increase in the CPI–U from June 2003 to June
2004, rounded to the nearest whole dollar.
xi. For 2006, $528, reflecting a 3.51 percent
increase in the CPI–U from June 2004 to June
2005, rounded to the nearest whole dollar.
xii. For 2007, $547, reflecting a 3.55
percent increase in the CPI–U from June 2005
to June 2006, rounded to the nearest whole
dollar.
xiii. For 2008, $561, reflecting a 2.56
percent increase in the CPI–U from June 2006
to June 2007, rounded to the nearest whole
dollar.
xiv. For 2009, $583, reflecting a 3.94
percent increase in the CPI–U from June 2007
to June 2008, rounded to the nearest whole
dollar.
xv. For 2010, $579, reflecting a 0.74
percent decrease in the CPI–U from June
2008 to June 2009, rounded to the nearest
whole dollar.
xvi. For 2011, $592, reflecting a 2.2 percent
increase in the CPI–U from June 2009 to June
2010, rounded to the nearest whole dollar.
xvii. For 2012, $611, reflecting a 3.2
percent increase in the CPI–U from June 2010
to June 2011, rounded to the nearest whole
dollar.
xviii. For 2013, $625, reflecting a 2.3
percent increase in the CPI–U from June 2011
to June 2012, rounded to the nearest whole
dollar.
xix. For 2014, $632, reflecting a 1.1 percent
increase in the CPI–U from June 2012 to June
2013, rounded to the nearest whole dollar.
3. Applicable threshold. For purposes of
§ 1026.32(a)(1)(ii), a creditor must determine
the applicable points and fees threshold
based on the face amount of the note (or, in
the case of an open-end credit plan, the
credit limit for the plan when the account is
opened). However, the creditor must apply
the allowable points and fees percentage to
the ‘‘total loan amount,’’ as defined in
§ 1026.32(b)(4). For closed-end credit
transactions, the total loan amount may be
different than the face amount of the note.
The $20,000 amount in § 1026.32(a)(1)(ii)(A)
and (B) is adjusted annually on January 1 by
the annual percentage change in the CPI that
was in effect on the preceding June 1.
i. For 2015, $20,391, reflecting a 2 percent
increase in the CPI–U from June 2013 to June
2014, rounded to the nearest whole dollar.
ii. For 2016, $20,350, reflecting a .2 percent
decrease in the CPI–U from June 2014 to June
2015, rounded to the nearest whole dollar.
iii. For 2017, $20,579, reflecting a 1.1
percent increase in the CPI–U from June 2015
to June 2016, rounded to the nearest whole
dollar.
iv. For 2018, $21,032, reflecting a 2.2
percent increase in the CPI–U from June 2016
to June 2017, rounded to the nearest whole
dollar.
v. For 2019, $21,549, reflecting a 2.5
percent increase in the CPI–U from June 2017
to June 2018, rounded to the nearest whole
dollar.
vi. For 2020, $21,980, reflecting a 2 percent
increase in the CPI–U from June 2018 to June
2019, rounded to the nearest whole dollar.
vii. For 2021, $22,052 reflecting a 0.3
percent increase in the CPI–U from June 2019
to June 2020, rounded to the nearest whole
dollar.
viii. For 2022, $22,969 reflecting a 4.2
percent increase in the CPI–U from June 2020
to June 2021, rounded to the nearest whole
dollar.
* * * * *
Section 1026.43—Minimum Standards for
Transactions Secured by a Dwelling
* * * * *
Paragraph 43(e)(2)(vi).
1. Determining the average prime offer rate
for a comparable transaction as of the date
the interest rate is set. For guidance on
determining the average prime offer rate for
a comparable transaction as of the date the
interest rate is set, see comments 43(b)(4)–1
through –3.
2. Determination of applicable threshold. A
creditor must determine the applicable
threshold by determining which category the
loan falls into based on the face amount of
the note (the ‘‘loan amount’’ as defined in
§ 1026.43(b)(5)). For example, for a first-lien
covered transaction with a loan amount of
$75,000, the loan would fall into the tier for
loans greater than or equal to $66,156
(indexed for inflation) but less than $110,260
(indexed for inflation), for which the
applicable threshold is 3.5 or more
percentage points.
3. Annual adjustment for inflation. The
dollar amounts in § 1026.43(e)(2)(vi) will be
adjusted annually on January 1 by the annual
percentage change in the CPI–U that was in
effect on the preceding June 1. The Bureau
will publish adjustments after the June
figures become available each year.
i. For 2022, reflecting a 4.2 percent
increase in the CPI–U that was reported on
the preceding June 1, to satisfy
§ 1026.43(e)(2)(vi), the annual percentage rate
may not exceed the average prime offer rate
for a comparable transaction as of the date
the interest rate is set by the following
amounts:
A. For a first-lien covered transaction with
a loan amount greater than or equal to
$114,847, 2.25 or more percentage points;
B. For a first-lien covered transaction with
a loan amount greater than or equal to
$68,908 but less than $114,847, 3.5 or more
percentage points;
C. For a first-lien covered transaction with
a loan amount less than $68,908, 6.5 or more
percentage points;
D. For a first-lien covered transaction
secured by a manufactured home with a loan
amount less than $114,847, 6.5 or more
percentage points;
E. For a subordinate-lien covered
transaction with a loan amount greater than
or equal to $68,908, 3.5 or more percentage
points;
F. For a subordinate-lien covered
transaction with a loan amount less than
$68,908, 6.5 or more percentage points.
4. Determining the annual percentage rate
for certain loans for which the interest rate
may or will change.
i. In general. The commentary to
§ 1026.17(c)(1) and other provisions in
subpart C of this part address how to
determine the annual percentage rate
disclosures for closed-end credit
transactions. Provisions in § 1026.32(a)(3)
address how to determine the annual
percentage rate to determine coverage under
§ 1026.32(a)(1)(i). Section 1026.43(e)(2)(vi)
requires, for the purposes of
§ 1026.43(e)(2)(vi), a different determination
of the annual percentage rate for a qualified
mortgage under § 1026.43(e)(2) for which the
interest rate may or will change within the
first five years after the date on which the
first regular periodic payment will be due.
An identical special rule for determining the
annual percentage rate for such a loan also
applies for purposes of § 1026.43(b)(4).
ii. Loans for which the interest rate may or
will change. Section 1026.43(e)(2)(vi)
includes a special rule for determining the
annual percentage rate for a loan for which
the interest rate may or will change within
the first five years after the date on which the
first regular periodic payment will be due.
This rule applies to adjustable-rate mortgages
that have a fixed-rate period of five years or
less and to step-rate mortgages for which the
interest rate changes within that five-year
period.
iii. Maximum interest rate during the first
five years. For a loan for which the interest
rate may or will change within the first five
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years after the date on which the first regular
periodic payment will be due, a creditor
must treat the maximum interest rate that
could apply at any time during that five-year
period as the interest rate for the full term of
the loan to determine the annual percentage
rate for purposes of § 1026.43(e)(2)(vi),
regardless of whether the maximum interest
rate is reached at the first or subsequent
adjustment during the five-year period. For
additional instruction on how to determine
the maximum interest rate during the first
five years after the date on which the first
regular periodic payment will be due, see
comments 43(e)(2)(iv)–3 and –4.
iv. Treatment of the maximum interest rate
in determining the annual percentage rate.
For a loan for which the interest rate may or
will change within the first five years after
the date on which the first regular periodic
payment will be due, the creditor must
determine the annual percentage rate for
purposes of § 1026.43(e)(2)(vi) by treating the
maximum interest rate that may apply within
the first five years as the interest rate for the
full term of the loan. For example, assume an
adjustable-rate mortgage with a loan term of
30 years and an initial discounted rate of 5.0
percent that is fixed for the first three years.
Assume that the maximum interest rate
during the first five years after the date on
which the first regular periodic payment will
be due is 7.0 percent. Pursuant to
§ 1026.43(e)(2)(vi), the creditor must
determine the annual percentage rate based
on an interest rate of 7.0 percent applied for
the full 30-year loan term.
5. Meaning of a manufactured home. For
purposes of § 1026.43(e)(2)(vi)(D),
manufactured home means any residential
structure as defined under regulations of the
U.S. Department of Housing and Urban
Development (HUD) establishing
manufactured home construction and safety
standards (24 CFR 3280.2). Modular or other
factory-built homes that do not meet the HUD
code standards are not manufactured homes
for purposes of § 1026.43(e)(2)(vi)(D).
6. Scope of threshold for transactions
secured by a manufactured home. The
threshold in § 1026.43(e)(2)(vi)(D) applies to
first-lien covered transactions less than
$110,260 (indexed for inflation) that are
secured by a manufactured home and land,
or by a manufactured home only.
* * * * *
Paragraph 43(e)(3)(ii).
1. Annual adjustment for inflation. The
dollar amounts, including the loan amounts,
in § 1026.43(e)(3)(i) will be adjusted annually
on January 1 by the annual percentage
change in the CPI–U that was in effect on the
preceding June 1. The Bureau will publish
adjustments after the June figures become
available each year.
i. For 2015, reflecting a 2 percent increase
in the CPI–U that was reported on the
preceding June 1, a covered transaction is not
a qualified mortgage unless the transactions
total points and fees do not exceed;
A. For a loan amount greater than or equal
to $101,953: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $61,172 but less than $101,953: $3,059;
C. For a loan amount greater than or equal
to $20,391 but less than $61,172: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $12,744 but less than $20,391; $1,020;
E. For a loan amount less than $12,744: 8
percent of the total loan amount.
ii. For 2016, reflecting a 0.2 percent
decrease in the CPI–U that was reported on
the preceding June 1, a covered transaction
is not a qualified mortgage unless the
transactions total points and fees do not
exceed;
A. For a loan amount greater than or equal
to $101,749: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $61,050 but less than $101,749: $3,052;
C. For a loan amount greater than or equal
to $20,350 but less than $61,050: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $12,719 but less than $20,350; $1,017;
E. For a loan amount less than $12,719: 8
percent of the total loan amount.
iii. For 2017, reflecting a 1.1 percent
increase in the CPI–U that was reported on
the preceding June 1, a covered transaction
is not a qualified mortgage unless the
transactions total points and fees do not
exceed:
A. For a loan amount greater than or equal
to $102,894: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $61,737 but less than $102,894: $3,087;
C. For a loan amount greater than or equal
to $20,579 but less than $61,737: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $12,862 but less than $20,579: $1,029;
E. For a loan amount less than $12,862: 8
percent of the total loan amount.
iv. For 2018, reflecting a 2.2 percent
increase in the CPI–U that was reported on
the preceding June 1, a covered transaction
is not a qualified mortgage unless the
transaction’s total points and fees do not
exceed:
A. For a loan amount greater than or equal
to $105,158: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $63,095 but less than $105,158: $3,155;
C. For a loan amount greater than or equal
to $21,032 but less than $63,095: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $13,145 but less than $21,032: $1,052;
E. For a loan amount less than $13,145: 8
percent of the total loan amount.
v. For 2019, reflecting a 2.5 percent
increase in the CPI–U that was reported on
the preceding June 1, a covered transaction
is not a qualified mortgage unless the
transaction’s total points and fees do not
exceed:
A. For a loan amount greater than or equal
to $107,747: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $64,648 but less than $107,747: $3,232;
C. For a loan amount greater than or equal
to $21,549 but less than $64,648: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $13,468 but less than $21,549: $1,077;
E. For a loan amount less than $13,468: 8
percent of the total loan amount.
vi. For 2020, reflecting a 2 percent increase
in the CPI–U that was reported on the
preceding June 1, a covered transaction is not
a qualified mortgage unless the transaction’s
total points and fees do not exceed:
A. For a loan amount greater than or equal
to $109,898: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $65,939 but less than $109,898: $3,297;
C. For a loan amount greater than or equal
to $21,980 but less than $65,939: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $13,737 but less than $21,980: $1,099;
E. For a loan amount less than $13,737: 8
percent of the total loan amount.
vii. For 2021, reflecting a 0.3 percent
increase in the CPI–U that was reported on
the preceding June 1, a covered transaction
is not a qualified mortgage unless the
transaction’s total points and fees do not
exceed:
A. For a loan amount greater than or equal
to $110,260: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $66,156 but less than $110,260: $3,308;
C. For a loan amount greater than or equal
to $22,052 but less than $66,156: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $13,783 but less than $22,052: $1,103;
E. For a loan amount less than $13,783: 8
percent of the total loan amount.
viii. For 2022, reflecting a 4.2 percent
increase in the CPI–U that was reported on
the preceding June 1, a covered transaction
is not a qualified mortgage unless the
transaction’s total points and fees do not
exceed:
A. For a loan amount greater than or equal
to $114,847: 3 percent of the total loan
amount;
B. For a loan amount greater than or equal
to $68,908 but less than $114,847: $3,445;
C. For a loan amount greater than or equal
to $22,969 but less than $68,908: 5 percent
of the total loan amount;
D. For a loan amount greater than or equal
to $14,356 but less than $22,969: $1,148;
E. For a loan amount less than $14,356: 8
percent of the total loan amount.
* * * * *
Section 1026.52—Limitations on Fees
* * * * *
52(b)(1)(ii) Safe Harbors
1. Multiple violations of same type. i. Same
billing cycle or next six billing cycles. A card
issuer cannot impose a fee for a violation
pursuant to § 1026.52(b)(1)(ii)(B) unless a fee
has previously been imposed for the same
type of violation pursuant to
§ 1026.52(b)(1)(ii)(A). Once a fee has been
imposed for a violation pursuant to
§ 1026.52(b)(1)(ii)(A), the card issuer may
impose a fee pursuant to § 1026.52(b)(1)(ii)(B)
for any subsequent violation of the same type
until that type of violation has not occurred
for a period of six consecutive complete
billing cycles. A fee has been imposed for
purposes of § 1026.52(b)(1)(ii) even if the
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card issuer waives or rebates all or part of the
fee.
A. Late payments. For purposes of
§ 1026.52(b)(1)(ii), a late payment occurs
during the billing cycle in which the
payment may first be treated as late
consistent with the requirements of this part
and the terms or other requirements of the
account.
B. Returned payments. For purposes of
§ 1026.52(b)(1)(ii), a returned payment occurs
during the billing cycle in which the
payment is returned to the card issuer.
C. Transactions that exceed the credit
limit. For purposes of § 1026.52(b)(1)(ii), a
transaction that exceeds the credit limit for
an account occurs during the billing cycle in
which the transaction occurs or is authorized
by the card issuer.
D. Declined access checks. For purposes of
§ 1026.52(b)(1)(ii), a check that accesses a
credit card account is declined during the
billing cycle in which the card issuer
declines payment on the check.
ii. Relationship to §§ 1026.52(b)(2)(ii) and
1026.56(j)(1). If multiple violations are based
on the same event or transaction such that
§ 1026.52(b)(2)(ii) prohibits the card issuer
from imposing more than one fee, the event
or transaction constitutes a single violation
for purposes of § 1026.52(b)(1)(ii).
Furthermore, consistent with
§ 1026.56(j)(1)(i), no more than one violation
for exceeding an account’s credit limit can
occur during a single billing cycle for
purposes of § 1026.52(b)(1)(ii). However,
§ 1026.52(b)(2)(ii) does not prohibit a card
issuer from imposing fees for exceeding the
credit limit in consecutive billing cycles
based on the same over-the-limit transaction
to the extent permitted by § 1026.56(j)(1). In
these circumstances, the second and third
over-the-limit fees permitted by
§ 1026.56(j)(1) may be imposed pursuant to
§ 1026.52(b)(1)(ii)(B). See comment
52(b)(2)(ii)–1.
iii. Examples. The following examples
illustrate the application of
§ 1026.52(b)(1)(ii)(A) and (b)(1)(ii)(B) with
respect to credit card accounts under an
open-end (not home-secured) consumer
credit plan that are not charge card accounts.
For purposes of these examples, assume that
the billing cycles for the account begin on the
first day of the month and end on the last day
of the month and that the payment due date
for the account is the twenty-fifth day of the
month.
A. Violations of same type (late payments).
A required minimum periodic payment of
$50 is due on March 25. On March 26, a late
payment has occurred because no payment
has been received. Accordingly, consistent
with § 1026.52(b)(1)(ii)(A), the card issuer
imposes a $25 late payment fee on March 26.
In order for the card issuer to impose a $35
late payment fee pursuant to
§ 1026.52(b)(1)(ii)(B), a second late payment
must occur during the April, May, June, July,
August, or September billing cycles.
1. The card issuer does not receive any
payment during the March billing cycle. A
required minimum periodic payment of $100
is due on April 25. On April 20, the card
issuer receives a $50 payment. No further
payment is received during the April billing
cycle. Accordingly, consistent with
§ 1026.52(b)(1)(ii)(B), the card issuer may
impose a $35 late payment fee on April 26.
Furthermore, the card issuer may impose a
$35 late payment fee for any late payment
that occurs during the May, June, July,
August, September, or October billing cycles.
2. Same facts as in paragraph A above. On
March 30, the card issuer receives a $50
payment and the required minimum periodic
payments for the April, May, June, July,
August, and September billing cycles are
received on or before the payment due date.
A required minimum periodic payment of
$60 is due on October 25. On October 26, a
late payment has occurred because the
required minimum periodic payment due on
October 25 has not been received. However,
because this late payment did not occur
during the six billing cycles following the
March billing cycle, § 1026.52(b)(1)(ii) only
permits the card issuer to impose a late
payment fee of $25.
B. Violations of different types (late
payment and over the credit limit). The credit
limit for an account is $1,000. Consistent
with § 1026.56, the consumer has
affirmatively consented to the payment of
transactions that exceed the credit limit. A
required minimum periodic payment of $30
is due on August 25. On August 26, a late
payment has occurred because no payment
has been received. Accordingly, consistent
with § 1026.52(b)(1)(ii)(A), the card issuer
imposes a $25 late payment fee on August 26.
On August 30, the card issuer receives a $30
payment. On September 10, a transaction
causes the account balance to increase to
$1,150, which exceeds the account’s $1,000
credit limit. On September 11, a second
transaction increases the account balance to
$1,350. On September 23, the card issuer
receives the $50 required minimum periodic
payment due on September 25, which
reduces the account balance to $1,300. On
September 30, the card issuer imposes a $25
over-the-limit fee, consistent with
§ 1026.52(b)(1)(ii)(A). On October 26, a late
payment has occurred because the $60
required minimum periodic payment due on
October 25 has not been received.
Accordingly, consistent with
§ 1026.52(b)(1)(ii)(B), the card issuer imposes
a $35 late payment fee on October 26.
C. Violations of different types (late
payment and returned payment). A required
minimum periodic payment of $50 is due on
July 25. On July 26, a late payment has
occurred because no payment has been
received. Accordingly, consistent with
§ 1026.52(b)(1)(ii)(A), the card issuer imposes
a $25 late payment fee on July 26. On July
30, the card issuer receives a $50 payment.
A required minimum periodic payment of
$50 is due on August 25. On August 24, a
$50 payment is received. On August 27, the
$50 payment is returned to the card issuer for
insufficient funds. In these circumstances,
§ 1026.52(b)(2)(ii) permits the card issuer to
impose either a late payment fee or a
returned payment fee but not both because
the late payment and the returned payment
result from the same event or transaction.
Accordingly, for purposes of
§ 1026.52(b)(1)(ii), the event or transaction
constitutes a single violation. However, if the
card issuer imposes a late payment fee,
§ 1026.52(b)(1)(ii)(B) permits the issuer to
impose a fee of $35 because the late payment
occurred during the six billing cycles
following the July billing cycle. In contrast,
if the card issuer imposes a returned payment
fee, the amount of the fee may be no more
than $25 pursuant to § 1026.52(b)(1)(ii)(A).
2. Adjustments based on Consumer Price
Index. For purposes of § 1026.52(b)(1)(ii)(A)
and (b)(1)(ii)(B), the Bureau shall calculate
each year price level adjusted amounts using
the Consumer Price Index in effect on June
1 of that year. When the cumulative change
in the adjusted minimum value derived from
applying the annual Consumer Price level to
the current amounts in § 1026.52(b)(1)(ii)(A)
and (b)(1)(ii)(B) has risen by a whole dollar,
those amounts will be increased by $1.00.
Similarly, when the cumulative change in the
adjusted minimum value derived from
applying the annual Consumer Price level to
the current amounts in § 1026.52(b)(1)(ii)(A)
and (b)(1)(ii)(B) has decreased by a whole
dollar, those amounts will be decreased by
$1.00. The Bureau will publish adjustments
to the amounts in § 1026.52(b)(1)(ii)(A) and
(b)(1)(ii)(B).
i. Historical thresholds.
A. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $25 under
§ 1026.52(b)(1)(ii)(A) and $35 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2013.
B. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $26 under
§ 1026.52(b)(1)(ii)(A) and $37 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2014.
C. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $27 under
§ 1026.52(b)(1)(ii)(A) and $38 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2015.
D. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $27 under
§ 1026.52(b)(1)(ii)(A), through December 31,
2016. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $37 under
§ 1026.52(b)(1)(ii)(B), through June 26, 2016,
and $38 under § 1026.52(b)(1)(ii)(B) from
June 27, 2016 through December 31, 2016.
E. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $27 under
§ 1026.52(b)(1)(ii)(A) and $38 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2017.
F. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $27 under
§ 1026.52(b)(1)(ii)(A) and $38 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2018.
G. Card issuers were permitted to impose
a fee for violating the terms of an agreement
if the fee did not exceed $28 under
§ 1026.52(b)(1)(ii)(A) and $39 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2019.
H. Card issuers were permitted to impose
a fee for violating the terms of an agreement
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Federal Register / Vol. 86, No. 209 / Tuesday, November 2, 2021 / Rules and Regulations
if the fee did not exceed $29 under
§ 1026.52(b)(1)(ii)(A) and $40 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2020.
I. Card issuers were permitted to impose a
fee for violating the terms of an agreement if
the fee did not exceed $29 under
§ 1026.52(b)(1)(ii)(A) and $40 under
§ 1026.52(b)(1)(ii)(B), through December 31,
2021.
3. Delinquent balance for charge card
accounts. Section 1026.52(b)(1)(ii)(C)
provides that, when a charge card issuer that
requires payment of outstanding balances in
full at the end of each billing cycle has not
received the required payment for two or
more consecutive billing cycles, the card
issuer may impose a late payment fee that
does not exceed three percent of the
delinquent balance. For purposes of
§ 1026.52(b)(1)(ii)(C), the delinquent balance
is any previously billed amount that remains
unpaid at the time the late payment fee is
imposed pursuant to § 1026.52(b)(1)(ii)(C).
Consistent with § 1026.52(b)(2)(ii), a charge
card issuer that imposes a fee pursuant to
§ 1026.52(b)(1)(ii)(C) with respect to a late
payment may not impose a fee pursuant to
§ 1026.52(b)(1)(ii)(B) with respect to the same
late payment. The following examples
illustrate the application of
§ 1026.52(b)(1)(ii)(C):
i. Assume that a charge card issuer requires
payment of outstanding balances in full at
the end of each billing cycle and that the
billing cycles for the account begin on the
first day of the month and end on the last day
of the month. At the end of the June billing
cycle, the account has a balance of $1,000.
On July 5, the card issuer provides a periodic
statement disclosing the $1,000 balance
consistent with § 1026.7. During the July
billing cycle, the account is used for $300 in
transactions, increasing the balance to
$1,300. At the end of the July billing cycle,
no payment has been received and the card
issuer imposes a $25 late payment fee
consistent with § 1026.52(b)(1)(ii)(A). On
August 5, the card issuer provides a periodic
statement disclosing the $1,325 balance
consistent with § 1026.7. During the August
billing cycle, the account is used for $200 in
transactions, increasing the balance to
$1,525. At the end of the August billing
cycle, no payment has been received.
Consistent with § 1026.52(b)(1)(ii)(C), the
card issuer may impose a late payment fee of
$40, which is 3% of the $1,325 balance that
was due at the end of the August billing
cycle. Section 1026.52(b)(1)(ii)(C) does not
permit the card issuer to include the $200 in
transactions that occurred during the August
billing cycle.
ii. Same facts as above except that, on
August 25, a $100 payment is received.
Consistent with § 1026.52(b)(1)(ii)(C), the
card issuer may impose a late payment fee of
$37, which is 3% of the unpaid portion of
the $1,325 balance that was due at the end
of the August billing cycle ($1,225).
iii. Same facts as in paragraph A above
except that, on August 25, a $200 payment
is received. Consistent with
§ 1026.52(b)(1)(ii)(C), the card issuer may
impose a late payment fee of $34, which is
3% of the unpaid portion of the $1,325
balance that was due at the end of the August
billing cycle ($1,125). In the alternative, the
card issuer may impose a late payment fee of
$35 consistent with § 1026.52(b)(1)(ii)(B).
However, § 1026.52(b)(2)(ii) prohibits the
card issuer from imposing both fees.
* * * * *
Dated: October 25, 2021.
Laura Galban,
Federal Register Liaison, Bureau of Consumer
Financial Protection.
[FR Doc. 2021–23478 Filed 11–1–21; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2021–0885; Project
Identifier MCAI–2021–00966–R; Amendment
39–21786; AD 2021–22–13]
RIN 2120–AA64
Airworthiness Directives; Leonardo
S.p.a. Helicopters
AGENCY
: Federal Aviation
Administration (FAA), DOT.
ACTION
: Final rule; request for
comments.
SUMMARY
: The FAA is adopting a new
airworthiness directive (AD) for certain
Leonardo S.p.a. Model AB139 and
AW139 helicopters. This AD was
prompted by the determination that the
requirement to accomplish a rated load
check (RTC) on certain hoist assemblies
may have been inadvertently left out of
some aircraft maintenance publications
(AMPs). This AD requires performing an
RTC on certain part-numbered hoist
assemblies with certain part-numbered
hoist cables installed and corrective
actions if any discrepancies are found as
specified in a European Union Aviation
Safety Agency (EASA) AD, which is
incorporated by reference. The FAA is
issuing this AD to address the unsafe
condition on these products.
DATES
: This AD becomes effective
November 17, 2021.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of November 17, 2021.
The FAA must receive comments on
this AD by December 17, 2021.
ADDRESSES
: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
Fax: (202) 493–2251.
Mail: U.S. Department of
Transportation, Docket Operations,
M–30, West Building Ground Floor,
Room W12–140, 1200 New Jersey
Avenue SE, Washington, DC 20590.
Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
For EASA material incorporated by
reference (IBR) in this AD, contact the
EASA, Konrad-Adenauer-Ufer 3, 50668
Cologne, Germany; telephone +49 221
8999 000; email ADs@easa.europa.eu;
internet www.easa.europa.eu. You may
find this IBR material on the EASA
website at https://ad.easa.europa.eu.
For Leonardo S.p.a. service information
identified in this AD, contact Leonardo
S.p.A. Helicopters, Emanuele Bufano,
Head of Airworthiness, Viale G.Agusta
520, 21017 C.Costa di Samarate (Va)
Italy; telephone +39–0331–225074; fax
+39–0331–229046; or at https://
customerportal.leonardocompany.com/
en-US/. You may view this material at
the FAA, Office of the Regional Counsel,
Southwest Region, 10101 Hillwood
Pkwy., Room 6N–321, Fort Worth, TX
76177. For information on the
availability of this material at the FAA,
call (817) 222–5110. Service information
is also available at https://
www.regulations.gov by searching for
and locating Docket FAA–2021–0885.
Examining the AD Docket
You may examine the AD docket at
https://www.regulations.gov by
searching for and locating Docket No.
FAA–2021–0885; or in person at Docket
Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
holidays. The AD docket contains this
AD, the EASA AD, any comments
received, and other information. The
street address for Docket Operations is
listed above.
FOR FURTHER INFORMATION CONTACT
:
Darren Gassetto, Aerospace Engineer,
COS Program Management Section,
Operational Safety Branch, Compliance
& Airworthiness Division, FAA, 1600
Stewart Ave., Suite 410, Westbury, NY
11590; telephone (516) 228–7323; email
Darren.Gassetto@faa.gov.
SUPPLEMENTARY INFORMATION
:
Background
EASA, which is the Technical Agent
for the Member States of the European
Union, has issued EASA AD 2021–
0186R1, dated August 18, 2021 and
corrected August 23, 2021 (EASA AD
2021–0186R1), to correct an unsafe
condition for Leonardo S.p.A.
Helicopters, formerly Finmeccanica
S.p.A, AgustaWestland S.p.A., Agusta
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