This compliance bulletin replaces the CFPB Bulletin 2013-01 (Mortgage Servicing Transfers) that was released in February 2013. The updated bulletin includes adjustments to the ability to repay/QM provisions of the Dodd-Frank Act, and to the dollar amount thresholds in Regulation Z regarding the CARD Act and HOEPA.
The CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z, based on the annual percentage change reflected in the Consumer Price Index.
“[F]or the purpose of a creditor’s determination of a consumer’s ability to repay a transaction secured by a dwelling, a covered transaction is not a qualified mortgage unless the transaction’s total points and fees do not exceed:
- 3 percent of the total loan amount for a loan greater than or equal to $101,953;
- $3,059 for a loan amount greater than or equal to $61,172 but less than $101,953;
- 5 percent of the total loan amount for a loan greater than or equal to $20,391 but less than $61,172;
- $1,020 for a loan amount greater than or equal to $12,744 but less than $20,391; and
- 8 percent of the total loan amount for a loan amount less than $12,744.”
For HOEPA loans, “the adjusted total loan amount threshold is $20,391, effective January 1, 2015. The adjusted statutory fee trigger for HOPEA loans is $1,020 . . . .”