[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Rules and Regulations]
[Pages 82931-82934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23277]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which 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. 

========================================================================


Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / 
Rules and Regulations

[[Page 82931]]



DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 34

[Docket No. OCC-2024-0013]
RIN 1557-AF28

FEDERAL RESERVE SYSTEM

12 CFR Part 226

[Docket No. R-1841]
RIN 7100-AG82

CONSUMER FINANCIAL PROTECTION BUREAU

12 CFR Part 1026


Appraisals for Higher-Priced Mortgage Loans Exemption Threshold

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); and Consumer 
Financial Protection Bureau (CFPB).

ACTION: Final rules and official interpretations.

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SUMMARY: The OCC, the Board, and the CFPB are finalizing amendments to 
the official interpretations for their regulations that implement 
section 129H of the Truth in Lending Act (TILA). Section 129H of TILA 
establishes special appraisal requirements for ``higher-risk 
mortgages,'' termed ``higher-priced mortgage loans'' or ``HPMLs'' in 
the agencies' regulations. A December 2013 rulemaking exempted 
transactions of $25,000 or less and required that this loan amount be 
adjusted annually based on any annual percentage increase in the 
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W). Based on the CPI-W in effect as of June 1, 2024, the exemption 
threshold will increase from $32,400 to $33,500, effective January 1, 
2025.

DATES: This final rule is effective January 1, 2025.

FOR FURTHER INFORMATION CONTACT: OCC: MaryAnn Nash, Counsel, Chief 
Counsel's Office, at (202) 649-6287. If you are deaf, hard of hearing, 
or have a speech disability, please dial 7-1-1 to access 
telecommunications relay services.
    Board: Lorna M. Neill, Senior Counsel, Division of Consumer and 
Community Affairs, Board of Governors of the Federal Reserve System, at 
(202) 452-3667. For users of TTY-TRS, please call 711 from any 
telephone, anywhere in the United States.
    CFPB: George Karithanom, Regulatory Implementation & Guidance 
Program Analyst, Office of Regulations, at 202-435-7700 or at: https://reginquiries.consumerfinance.gov/. If you require this document in an 
alternative electronic format, please contact 
<a href="/cdn-cgi/l/email-protection#02414452405d4361616771716b606b6e6b767b42616472602c656d74"><span class="__cf_email__" data-cfemail="e3a0a5b3a1bca280808690908a818a8f8a979aa380859381cd848c95">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

    The Dodd-Frank Wall Street Reform and Consumer Protection Act of 
2010 (Dodd-Frank Act) amended TILA to add special appraisal 
requirements for ``higher-risk mortgages.'' \1\ In January 2013, the 
OCC, the Board, the CFPB, the Federal Deposit Insurance Corporation 
(FDIC), the National Credit Union Administration (NCUA), and the 
Federal Housing Finance Agency (FHFA) (collectively, Agencies) jointly 
issued a final rule implementing these requirements and adopted the 
term ``higher-priced mortgage loan'' (HPML) instead of ``higher-risk 
mortgage'' (January 2013 Final Rule).\2\ In July 2013, the Agencies 
proposed additional exemptions from the January 2013 Final Rule.\3\ In 
December 2013, the Agencies issued a supplemental final rule with 
additional exemptions from the January 2013 Final Rule (December 2013 
Supplemental Final Rule).\4\ Among other exemptions, the Agencies 
adopted an exemption from the new HPML appraisal rules for transactions 
of $25,000 or less, to be adjusted annually for inflation.
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    \1\ Public Law 111-203, sec. 1471, 124 Stat. 1376, 2185-87 
(2010), codified at TILA sec. 129H, 15 U.S.C. 1639h.
    \2\ 78 FR 10368 (Feb. 13, 2013).
    \3\ 78 FR 48548 (Aug. 8, 2013).
    \4\ 78 FR 78520 (Dec. 26, 2013).
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    The OCC's, Board's, and CFPB's versions of the January 2013 Final 
Rule and December 2013 Supplemental Final Rule and corresponding 
official interpretations are substantively identical. The FDIC, NCUA, 
and FHFA adopted the CFPB's version of the regulations under the 
January 2013 Final Rule and December 2013 Supplemental Final Rule.\5\
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    \5\ See NCUA: 12 CFR 722.3; FHFA: 12 CFR part 1222. Although the 
FDIC adopted the CFPB's version of the regulation, the FDIC did not 
issue its own regulation containing a cross-reference to the CFPB's 
version. See 78 FR 10368, 10370 (Feb. 13, 2013).
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    The OCC's, Board's, and CFPB's regulations,\6\ and their 
accompanying official interpretations,\7\ provide that the exemption 
threshold for smaller loans will be adjusted effective January 1 of 
each year based on any annual percentage increase in the CPI-W that was 
in effect on the preceding June 1. Any increase in the threshold amount 
will be rounded to the nearest $100 increment. For example, if the 
annual percentage increase in the CPI-W would result in a $950 increase 
in the threshold amount, the threshold amount will be increased by 
$1,000. However, if the annual percentage increase in the CPI-W would 
result in a $949 increase in the threshold amount, the threshold amount 
will be increased by $900. If there is no annual percentage increase in 
the CPI-W, the OCC, the Board, and the CFPB will not adjust the 
threshold amounts from the prior year.\8\
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    \6\ 12 CFR 34.203(b)(2) (OCC); 12 CFR 226.43(b)(2) (Board); and 
12 CFR 1026.35(c)(2)(ii) (CFPB).
    \7\ 12 CFR part 34, appendix C to subpart G, comment 203(b)(2)-1 
(OCC); 12 CFR part 226, supplement I, comment 43(b)(2)-1 (Board); 
and 12 CFR part 1026, supplement I, comment 35(c)(2)(ii)-1 (CFPB).
    \8\ See 12 CFR part 34, appendix C to subpart G, comment 
203(b)(2)-1 and -2 (OCC); 12 CFR part 226, supplement I, comment 
43(b)(2)-1 and -2 (Board); and 12 CFR part 1026, supplement I, 
comment 35(c)(2)(ii)-1 and -2 (CFPB).
---------------------------------------------------------------------------

    On November 30, 2016, the OCC, the Board, and the CFPB published a 
final rule in the Federal Register to memorialize the calculation 
method used by the OCC, the Board, and the CFPB each year to adjust the 
exemption threshold to ensure that the values for the exemption 
threshold keep pace with the CPI-W (HPML Small Dollar Adjustment 
Calculation Rule).\9\ The HPML Small Dollar Adjustment Calculation Rule 
memorialized the policy that, if there is no annual

[[Page 82932]]

percentage increase in the CPI-W, the OCC, Board, and CFPB will not 
adjust the exemption threshold from the prior year. The HPML Small 
Dollar Adjustment Calculation Rule also provided that, in years 
following a year in which the exemption threshold was not adjusted 
because there was a decrease in the CPI-W from the previous year, the 
threshold is calculated by applying the annual percentage change in the 
CPI-W to the dollar amount that would have resulted, after rounding, if 
the decreases and any subsequent increases in the CPI-W had been taken 
into account. If the resulting amount calculated, after rounding, is 
greater than the current threshold, then the threshold effective 
January 1 the following year will increase accordingly. If the 
resulting amount calculated, after rounding, is equal to or less than 
the current threshold, then the threshold effective January 1 the 
following year will not change, but future increases will be calculated 
based on the amount that would have resulted, after rounding.
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    \9\ See 81 FR 86250 (Nov. 30, 2016).
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II. 2025 Adjustment and Official Interpretations Revision

    Effective January 1, 2025, the exemption threshold amount is 
increased from $32,400 to $33,500. This amount is based on the CPI-W in 
effect on June 1, 2024, which was reported on May 15, 2024 (based on 
April 2024 data).\10\ The CPI-W is a subset of the CPI-U index (based 
on all urban consumers) and represents approximately 30 percent of the 
U.S. population. The CPI-W reported on May 15, 2024, reflects a 3.4 
percent increase in the CPI-W from April 2023 to April 2024. 
Accordingly, the 3.4 percent increase in the CPI-W from April 2023 to 
April 2024 results in an exemption threshold amount of $33,500, after 
rounding. The OCC, the Board, and the CFPB are revising the official 
interpretations to their respective regulations to add new comments as 
follows:
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    \10\ The Bureau of Labor Statistics calculates consumer-based 
indices for each month but does not report those indices until the 
middle of the following month. As such, the most recently reported 
indices as of June 1, 2024, were reported on May 15, 2024, and 
reflect economic conditions in April 2024.
---------------------------------------------------------------------------

    <bullet> Comment 203(b)(2)-3.xii to 12 CFR part 34, appendix C to 
subpart G (OCC);
    <bullet> Comment 43(b)(2)-3.xii to supplement I of 12 CFR part 226 
(Board); and
    <bullet> Comment 35(c)(2)(ii)-3.xii to supplement I of 12 CFR part 
1026 (CFPB).
    These new comments state that, from January 1, 2025, through 
December 31, 2025, the threshold amount is $33,500. These revisions are 
effective January 1, 2025.

III. Regulatory Analysis

Administrative Procedure Act

    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the agency finds that notice and 
public comment are impracticable, unnecessary, or contrary to the 
public interest.\11\ The amendments in this rule are technical and 
apply the method previously memorialized in the December 2013 
Supplemental Final Rule and the HPML Small Dollar Adjustment 
Calculation Rule. For these reasons, the OCC, the Board, and the CFPB 
have determined that publishing a notice of proposed rulemaking and 
providing opportunity for public comment are unnecessary. Therefore, 
the amendments are adopted in final form.
---------------------------------------------------------------------------

    \11\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where a general notice of proposed rulemaking is not required.\12\ The 
OCC, the Board, and the CFPB have determined that it is unnecessary to 
publish a general notice of proposed rulemaking for this final rule. 
Accordingly, the RFA's requirements relating to an initial and final 
regulatory flexibility analysis do not apply.
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    \12\ 5 U.S.C. 603(a), 604(a).
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Paperwork Reduction Act

    The OCC, the Board, and the CFPB reviewed this final rule in 
accordance with the Paperwork Reduction Act of 1995.\13\ The OCC, the 
Board, and the CFPB have determined that this rule does not create any 
new information collections or substantially revise any existing 
collections.
---------------------------------------------------------------------------

    \13\ 44 U.S.C. 3506; 5 CFR part 1320.
---------------------------------------------------------------------------

Unfunded Mandates Reform Act

    The OCC analyzes proposed rules for the factors listed in section 
202 of the Unfunded Mandates Reform Act of 1995 before promulgating a 
final rule for which a general notice of proposed rulemaking was 
published.\14\ As discussed above, the OCC has determined that the 
publication of a general notice of proposed rulemaking is unnecessary.
---------------------------------------------------------------------------

    \14\ 2 U.S.C. 1532.
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CFPB Congressional Review Act Statement

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the CFPB will submit a report containing this rule and other required 
information to the U.S. Senate, the U.S. House of Representatives, and 
the Comptroller General of the United States prior to the rule taking 
effect. The Office of Information and Regulatory Affairs has designated 
this rule as not a ``major rule'' as defined by 5 U.S.C. 804(2).

List of Subjects

12 CFR Part 34

    Accounting, Banks, banking, Consumer protection, Credit, Mortgages, 
National banks, Reporting and recordkeeping requirements, Savings 
associations, Truth-in-lending.

12 CFR Part 226

    Advertising, Appraisal, Appraiser, Consumer protection, Credit, 
Federal Reserve System, Reporting and recordkeeping requirements, 
Truth-in-lending.

12 CFR Part 1026

    Advertising, Banks, banking, Consumer protection, Credit, Credit 
unions, Mortgages, National banks, Reporting and recordkeeping 
requirements, Savings associations, Truth-in-lending.

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

Authority and Issuance

    For the reasons set forth in the preamble, the OCC amends 12 CFR 
part 34 as set forth below:

PART 34--REAL ESTATE LENDING AND APPRAISALS


0
1. The authority citation for part 34 continues to read as follows:

    Authority:  12 U.S.C. 1 et seq., 25b, 29, 93a, 371, 1462a, 1463, 
1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., 
5412(b)(2)(B) and 15 U.S.C. 1639h.


0
2. In appendix C to subpart G, under Section 34.203--Appraisals for 
Higher-Priced Mortgage Loans, paragraph 34.203(b)(2) is revised to read 
as follows:

Appendix C to Subpart G--OCC Interpretations

* * * * *
    Section 34.203--Appraisals for Higher-Priced Mortgage Loans
* * * * *

[[Page 82933]]

Paragraph 34.203(b)(2)

    1. Threshold amount. For purposes of Sec.  34.203(b)(2), the 
threshold amount in effect during a particular period is the amount 
stated in comment 203(b)(2)-3 for that period. The threshold amount 
is adjusted effective January 1 of each year by any annual 
percentage increase in the Consumer Price Index for Urban Wage 
Earners and Clerical Workers (CPI-W) that was in effect on the 
preceding June 1. Comment 203(b)(2)-3 will be amended to provide the 
threshold amount for the upcoming year after the annual percentage 
change in the CPI-W that was in effect on June 1 becomes available. 
Any increase in the threshold amount will be rounded to the nearest 
$100 increment. For example, if the annual percentage increase in 
the CPI-W would result in a $950 increase in the threshold amount, 
the threshold amount will be increased by $1,000. However, if the 
annual percentage increase in the CPI-W would result in a $949 
increase in the threshold amount, the threshold amount will be 
increased by $900.
    2. No increase in the CPI-W. If the CPI-W in effect on June 1 
does not increase from the CPI-W in effect on June 1 of the previous 
year, the threshold amount effective the following January 1 through 
December 31 will not change from the previous year. When this 
occurs, for the years that follow, the threshold is calculated based 
on the annual percentage change in the CPI-W applied to the dollar 
amount that would have resulted, after rounding, if decreases and 
any subsequent increases in the CPI-W had been taken into account.
    i. Net increases. If the resulting amount calculated, after 
rounding, is greater than the current threshold, then the threshold 
effective January 1 the following year will increase accordingly.
    ii. Net decreases. If the resulting amount calculated, after 
rounding, is equal to or less than the current threshold, then the 
threshold effective January 1 the following year will not change, 
but future increases will be calculated based on the amount that 
would have resulted.
    3. Threshold. For purposes of Sec.  34.203(b)(2), the threshold 
amount in effect during a particular period is the amount stated in 
the following for that period.
    i. From January 18, 2014, through December 31, 2014, the 
threshold amount is $25,000.
    ii. From January 1, 2015, through December 31, 2015, the 
threshold amount is $25,500.
    iii. From January 1, 2016, through December 31, 2016, the 
threshold amount is $25,500.
    iv. From January 1, 2017, through December 31, 2017, the 
threshold amount is $25,500.
    v. From January 1, 2018, through December 31, 2018, the 
threshold amount is $26,000.
    vi. From January 1, 2019, through December 31, 2019, the 
threshold amount is $26,700.
    vii. From January 1, 2020, through December 31, 2020, the 
threshold amount is $27,200.
    viii. From January 1, 2021, through December 31, 2021, the 
threshold amount is $27,200.
    ix. From January 1, 2022, through December 31, 2022, the 
threshold amount is $28,500.
    x. From January 1, 2023, through December 31, 2023, the 
threshold amount is $31,000.
    xi. From January 1, 2024, through December 31, 2024, the 
threshold amount is $32,400.
    xii. From January 1, 2025, through December 31, 2025, the 
threshold amount is $33,500.
    4. Qualifying for exemption--in general. A transaction is exempt 
under Sec.  34.203(b)(2) if the creditor makes an extension of 
credit at consummation that is equal to or below the threshold 
amount in effect at the time of consummation.
    5. Qualifying for exemption--subsequent changes. A transaction 
does not meet the condition for an exemption under Sec.  
34.203(b)(2) merely because it is used to satisfy and replace an 
existing exempt loan unless the amount of the new extension of 
credit is equal to or less than the applicable threshold amount. For 
example, assume a closed-end loan that qualified for a Sec.  
34.203(b)(2) exemption at consummation in year one is refinanced in 
year ten and that the new loan amount is greater than the threshold 
amount in effect in year ten. In these circumstances, the creditor 
must comply with all of the applicable requirements of Sec.  34.203 
with respect to the year ten transaction if the original loan is 
satisfied and replaced by the new loan unless another exemption from 
the requirements of Sec.  34.203 applies. See Sec.  34.203(b) and 
(d)(7).
* * * * *

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 
Regulation Z, 12 CFR part 226, as set forth below:

PART 226--TRUTH IN LENDING (REGULATION Z)

0
3. The authority citation for part 226 continues to read as follows:

    Authority:  12 U.S.C. 3806; 15 U.S.C. 1604, 1637(c)(5), 1639(l), 
and 1639h; Pub. L. 111-24, section 2, 123 Stat. 1734; Pub. L. 111-
203, 124 Stat. 1376.


0
4. In supplement I to part 226, under Section 226.43--Appraisals for 
Higher-Risk Mortgage Loans, paragraph 43(b)(2) is revised to read as 
follows:

Supplement I to Part 226--Official Staff Interpretations

* * * * *

Section 226.43--Appraisals for Higher-Risk Mortgage Loans

* * * * *

Paragraph 43(b)(2)

    1. Threshold amount. For purposes of Sec.  226.43(b)(2), the 
threshold amount in effect during a particular period is the amount 
stated in comment 43(b)(2)-3 for that period. The threshold amount 
is adjusted effective January 1 of each year by any annual 
percentage increase in the Consumer Price Index for Urban Wage 
Earners and Clerical Workers (CPI-W) that was in effect on the 
preceding June 1. Comment 43(b)(2)-3 will be amended to provide the 
threshold amount for the upcoming year after the annual percentage 
change in the CPI-W that was in effect on June 1 becomes available. 
Any increase in the threshold amount will be rounded to the nearest 
$100 increment. For example, if the annual percentage increase in 
the CPI-W would result in a $950 increase in the threshold amount, 
the threshold amount will be increased by $1,000. However, if the 
annual percentage increase in the CPI-W would result in a $949 
increase in the threshold amount, the threshold amount will be 
increased by $900.
    2. No increase in the CPI-W. If the CPI-W in effect on June 1 
does not increase from the CPI-W in effect on June 1 of the previous 
year, the threshold amount effective the following January 1 through 
December 31 will not change from the previous year. When this 
occurs, for the years that follow, the threshold is calculated based 
on the annual percentage change in the CPI-W applied to the dollar 
amount that would have resulted, after rounding, if decreases and 
any subsequent increases in the CPI-W had been taken into account.
    i. Net increases. If the resulting amount calculated, after 
rounding, is greater than the current threshold, then the threshold 
effective January 1 the following year will increase accordingly.
    ii. Net decreases. If the resulting amount calculated, after 
rounding, is equal to or less than the current threshold, then the 
threshold effective January 1 the following year will not change, 
but future increases will be calculated based on the amount that 
would have resulted.
    3. Threshold. For purposes of Sec.  226.43(b)(2), the threshold 
amount in effect during a particular period is the amount stated in 
the following for that period.
    i. From January 18, 2014, through December 31, 2014, the 
threshold amount is $25,000.
    ii. From January 1, 2015, through December 31, 2015, the 
threshold amount is $25,500.
    iii. From January 1, 2016, through December 31, 2016, the 
threshold amount is $25,500.
    iv. From January 1, 2017, through December 31, 2017, the 
threshold amount is $25,500.
    v. From January 1, 2018, through December 31, 2018, the 
threshold amount is $26,000.
    vi. From January 1, 2019, through December 31, 2019, the 
threshold amount is $26,700.
    vii. From January 1, 2020, through December 31, 2020, the 
threshold amount is $27,200.
    viii. From January 1, 2021, through December 31, 2021, the 
threshold amount is $27,200.
    ix. From January 1, 2022, through December 31, 2022, the 
threshold amount is $28,500.
    x. From January 1, 2023, through December 31, 2023, the 
threshold amount is $31,000.

[[Page 82934]]

    xi. From January 1, 2024, through December 31, 2024, the 
threshold amount is $32,400.
    xii. From January 1, 2025, through December 31, 2025, the 
threshold amount is $33,500.
    4. Qualifying for exemption--in general. A transaction is exempt 
under Sec.  226.43(b)(2) if the creditor makes an extension of 
credit at consummation that is equal to or below the threshold 
amount in effect at the time of consummation.
    5. Qualifying for exemption--subsequent changes. A transaction 
does not meet the condition for an exemption under Sec.  
226.43(b)(2) merely because it is used to satisfy and replace an 
existing exempt loan unless the amount of the new extension of 
credit is equal to or less than the applicable threshold amount. For 
example, assume a closed-end loan that qualified for a Sec.  
226.43(b)(2) exemption at consummation in year one is refinanced in 
year ten and that the new loan amount is greater than the threshold 
amount in effect in year ten. In these circumstances, the creditor 
must comply with all of the applicable requirements of Sec.  226.43 
with respect to the year ten transaction if the original loan is 
satisfied and replaced by the new loan unless another exemption from 
the requirements of Sec.  226.43 applies. See Sec.  226.43(b) and 
(d)(7).
* * * * *

CONSUMER FINANCIAL PROTECTION BUREAU

Authority and Issuance

    For the reasons set forth in the preamble, the CFPB amends 
Regulation Z, 12 CFR part 1026, as set forth below:

PART 1026--TRUTH IN LENDING (REGULATION Z)

0
5. 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.


0
6. In supplement I to part 1026, under Section 1026.35--Requirements 
for Higher-Priced Mortgage Loans, paragraph 35(c)(2)(ii) is revised to 
read as follows:

Supplement I to Part 1026--Official Interpretations

* * * * *
    Section 1026.35--Requirements for Higher-Priced Mortgage Loans
* * * * *

Paragraph 35(c)(2)(ii)

    1. Threshold amount. For purposes of Sec.  1026.35(c)(2)(ii), 
the threshold amount in effect during a particular period is the 
amount stated in comment 35(c)(2)(ii)-3 for that period. The 
threshold amount is adjusted effective January 1 of each year by any 
annual percentage increase in the Consumer Price Index for Urban 
Wage Earners and Clerical Workers (CPI-W) that was in effect on the 
preceding June 1. Comment 35(c)(2)(ii)-3 will be amended to provide 
the threshold amount for the upcoming year after the annual 
percentage change in the CPI-W that was in effect on June 1 becomes 
available. Any increase in the threshold amount will be rounded to 
the nearest $100 increment. For example, if the annual percentage 
increase in the CPI-W would result in a $950 increase in the 
threshold amount, the threshold amount will be increased by $1,000. 
However, if the annual percentage increase in the CPI-W would result 
in a $949 increase in the threshold amount, the threshold amount 
will be increased by $900.
    2. No increase in the CPI-W. If the CPI-W in effect on June 1 
does not increase from the CPI-W in effect on June 1 of the previous 
year, the threshold amount effective the following January 1 through 
December 31 will not change from the previous year. When this 
occurs, for the years that follow, the threshold is calculated based 
on the annual percentage change in the CPI-W applied to the dollar 
amount that would have resulted, after rounding, if decreases and 
any subsequent increases in the CPI-W had been taken into account.
    i. Net increases. If the resulting amount calculated, after 
rounding, is greater than the current threshold, then the threshold 
effective January 1 the following year will increase accordingly.
    ii. Net decreases. If the resulting amount calculated, after 
rounding, is equal to or less than the current threshold, then the 
threshold effective January 1 the following year will not change, 
but future increases will be calculated based on the amount that 
would have resulted.
    3. Threshold. For purposes of Sec.  1026.35(c)(2)(ii), the 
threshold amount in effect during a particular period is the amount 
stated in the following for that period.
    i. From January 18, 2014, through December 31, 2014, the 
threshold amount is $25,000.
    ii. From January 1, 2015, through December 31, 2015, the 
threshold amount is $25,500.
    iii. From January 1, 2016, through December 31, 2016, the 
threshold amount is $25,500.
    iv. From January 1, 2017, through December 31, 2017, the 
threshold amount is $25,500.
    v. From January 1, 2018, through December 31, 2018, the 
threshold amount is $26,000.
    vi. From January 1, 2019, through December 31, 2019, the 
threshold amount is $26,700.
    vii. From January 1, 2020, through December 31, 2020, the 
threshold amount is $27,200.
    viii. From January 1, 2021, through December 31, 2021, the 
threshold amount is $27,200.
    ix. From January 1, 2022, through December 31, 2022, the 
threshold amount is $28,500.
    x. From January 1, 2023, through December 31, 2023, the 
threshold amount is $31,000.
    xi. From January 1, 2024, through December 31, 2024, the 
threshold amount is $32,400.
    xii. From January 1, 2025, through December 31, 2025, the 
threshold amount is $33,500.
    4. Qualifying for exemption--in general. A transaction is exempt 
under Sec.  1026.35(c)(2)(ii) if the creditor makes an extension of 
credit at consummation that is equal to or below the threshold 
amount in effect at the time of consummation.
    5. Qualifying for exemption--subsequent changes. A transaction 
does not meet the condition for an exemption under Sec.  
1026.35(c)(2)(ii) merely because it is used to satisfy and replace 
an existing exempt loan unless the amount of the new extension of 
credit is equal to or less than the applicable threshold amount. For 
example, assume a closed-end loan that qualified for a Sec.  
1026.35(c)(2)(ii) exemption at consummation in year one is 
refinanced in year ten and that the new loan amount is greater than 
the threshold amount in effect in year ten. In these circumstances, 
the creditor must comply with all of the applicable requirements of 
Sec.  1026.35(c) with respect to the year ten transaction if the 
original loan is satisfied and replaced by the new loan unless 
another exemption from the requirements of Sec.  1026.35(c) applies. 
See Sec.  1026.35(c)(2) and (c)(4)(vii).
* * * * *

Michael J. Hsu,
Acting Comptroller of the Currency.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority.

Benjamin W. McDonough,
Deputy Secretary of the Board.
Brian Shearer,
Assistant Director, Office of Policy Planning and Strategy, Consumer 
Financial Protection Bureau.

[FR Doc. 2024-23277 Filed 10-11-24; 8:45 am]
BILLING CODE 6210-01-P; 4810-33-P; 4810-AM-P


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