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.

Rules and Regulations Federal Register

82931 

Vol. 89, No. 199 

Tuesday, October 15, 2024 

1Public 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). 

5See 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). 

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). 

8See 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). 

9See 81 FR 86250 (Nov. 30, 2016). 

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 AG 82 

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. 

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 CFPB_

Accessibility@cfpb.gov. 

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. 

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

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

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 


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82932 Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Rules and Regulations 

10The 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. 

11 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. 

14 2 U.S.C. 1532. 

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. 

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: 

• Comment 203(b)(2)–3.xii to 12 CFR 

part 34, appendix C to subpart G (OCC); 

• Comment 43(b)(2)–3.xii to 

supplement I of 12 CFR part 226 

(Board); and 

• 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. 

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. 

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. 

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. 

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-inlending. 

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 

■ 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. 

■ 2. In appendix C to subpart G, under 

Section 34.203—Appraisals for HigherPriced 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 HigherPriced Mortgage Loans 

* * * * * 


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Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Rules and Regulations 82933 

Paragraph 34.203(b)(2) 

1. Threshold amount. For purposes of 

§ 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 

§ 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 § 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 

§ 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 

§ 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 § 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 

§ 34.203 applies. See § 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) 

■ 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. 

■ 4. In supplement I to part 226, under 

Section 226.43—Appraisals for HigherRisk 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 

§ 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 

§ 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. 


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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 § 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 

§ 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 

§ 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 § 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 

§ 226.43 applies. See § 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) 

■ 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. 

■ 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 HigherPriced Mortgage Loans 

* * * * * 

Paragraph 35(c)(2)(ii) 

1. Threshold amount. For purposes of 

§ 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 

§ 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 

§ 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 

§ 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 

§ 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 § 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 § 1026.35(c) applies. See 

§ 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 

FEDERAL RESERVE SYSTEM 

12 CFR Part 213 

[Docket No. R–1842] 

RIN 7100–AG 83 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1013 

Consumer Leasing (Regulation M) 

AGENCY: Board of Governors of the 

Federal Reserve System (Board) and 

Consumer Financial Protection Bureau 

(CFPB). 

ACTION: Final rules and official 

interpretations. 

SUMMARY: The Board and the CFPB 

(collectively, Agencies) are finalizing 

amendments to the official 


khammond on DSKJM1Z7X2PROD with RULES