To: All Member Banks and Others Concerned in the Third Federal Reserve District
Attention: Compliance Officer
Subject: REGULATION Z - DOLLAR ADJUSTMENT FOR HIGH-FEE MORTGAGES
Summary:
The Federal Reserve Board on September 27 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 of the fee-based trigger from $480 for 2002 to $488 for 2003 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 2002.
Effective Date: The adjustment is effective January 1, 2003.
Additional Information: The text of the Board's
notice is attached (14 KB, 3 pages). For additional information, contact
the Regulations Assistance Unit at this Reserve Bank
at (215) 574-6568 or Minh-Duc T. Le, Staff
Attorney, Division of Consumer and Community Affairs,
Board of Governors of the Federal
Reserve System, at (202) 452-3667.