41158 Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Rules and Regulations 

1Credit Card Accountability Responsibility and 

Disclosure Act of 2009, Public Law 111–24, 123 

Stat. 1734 (2009). 

implementing regulations to restrict 

DOE’s ability to allocate the Transaction 

Advisory Costs or other Category II 

Costs associated with a particular 

application to the relevant applicant. 

Based on its interpretation of the 

statute as explained in this rule, 

applicants for ATVM loans can bear all 

Transaction Advisory Costs associated 

with their respective applications. 

Applicants would pay Transaction 

Advisory Costs pursuant to direct 

agreements executed by and between 

the applicant and each relevant outside 

transaction advisor, in a form acceptable 

to DOE and each such transaction 

advisor, no later than the date 

determined by DOE in its discretion 

with respect to such pending 

application. 

II. Approval of the Office of the 

Secretary 

The Secretary of Energy has approved 

publication of this interpretive rule. 

List of Subjects in 10 CFR Part 611 

Administrative practice and 

procedure, Loan programs—energy, 

Reporting and recordkeeping 

requirements. 

Issued in Washington, DC, on August 24, 

2017. 

John Sneed, 

Executive Director, Loan Programs Office. 

[FR Doc. 2017–18400 Filed 8–29–17; 8:45 am] 

BILLING CODE 6450–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Truth in Lending (Regulation Z) Annual 

Threshold Adjustments (Credit Cards, 

HOEPA, and ATR/QM) 

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 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 DoddFrank 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, 2017. 

DATES: This final rule is effective 

January 1, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Jaclyn Maier, Counsel, Office of 

Regulations, Consumer Financial 

Protection Bureau, 1700 G Street NW., 

Washington, DC 20552 at (202) 435– 

7700. 

SUPPLEMENTARY INFORMATION: The 

Bureau is amending the 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 openend consumer credit plans under TILA, 

the threshold that triggers requirements 

to disclose minimum interest charges 

will remain unchanged at $1.00 in 2018. 

For open-end consumer credit plans 

under the CARD Act amendments to 

TILA, the adjusted dollar amount for the 

safe harbor for a first violation penalty 

fee will remain unchanged at $27 in 

2018 and the adjusted dollar amount for 

the safe harbor for a subsequent 

violation penalty fee will remain 

unchanged at $38 in 2018. For HOEPA 

loans, the adjusted total loan amount 

threshold for high-cost mortgages in 

2018 will be $21,032. The adjusted 

points and fees dollar trigger for highcost mortgages in 2018 will be $1,052. 

For the general rule to determine 

consumers’ ability to repay mortgage 

loans, the maximum thresholds for total 

points and fees for qualified mortgages 

in 2018 will be 3 percent of the total 

loan amount for a loan greater than or 

equal to $105,158; $3,155 for a loan 

amount greater than or equal to $63,095 

but less than $105,158; 5 percent of the 

total loan amount for a loan greater than 

or equal to $21,032 but less than 

$63,095; $1,052 for a loan amount 

greater than or equal to $13,145 but less 

than $21,032; and 8 percent of the total 

loan amount for a loan amount less than 

$13,145. 

I. Background 

A. Credit Card Annual Adjustments 

Minimum Interest Charge Disclosure 

Thresholds 

Sections 1026.6(b)(2)(iii) and 

1026.60(b)(3) of the Bureau’s 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 the disclosure of any minimum 

interest charge exceeding $1.00 that 

could be imposed during a billing cycle 

and provide that, for open-end 

consumer credit plans, the minimum 

interest charge thresholds will be recalculated 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. When 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. 

The BLS publishes consumer-based 

indices monthly but does not report a 

CPI change on June 1; adjustments are 

reported in the middle of the month. 

This adjustment analysis is based on the 

CPI–W index in effect on June 1, 2017, 

which was reported by BLS on May 12, 

2017, and reflects the percentage change 

from April 2016 to April 2017. The CPI– 

W is a subset of the Consumer Price 

Index for All Urban Consumers (CPI–U) 

index and represents approximately 28 

percent of the U.S. population. The 

adjustment analysis accounts for a 2.1 

percent increase in the CPI–W from 

April 2016 to April 2017. This increase 

in the CPI–W when applied to the 

current amounts in §§ 1026.6(b)(2)(iii) 

and 1026.60(b)(3) did 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 

the Bureau’s Regulation Z implements 

section 149(e) of TILA, established by 

the CARD Act.1 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. The BLS publishes 

consumer-based indices monthly but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of the month. The CPI–W is a subset of 

the CPI–U index and represents 

approximately 28 percent of the U.S. 

population. When the cumulative 

change in the adjusted value derived 

Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Rules and Regulations 41159 

2 Dodd-Frank Wall Street Reform and Consumer 

Protection Act, Public Law 111–203, 124 Stat. 1376 

(2010). 

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, when 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 2018 

adjustment analysis is based on the CPI– 

W index in effect on June 1, 2017, 

which was reported by BLS on May 12, 

2017, and reflects the percentage change 

from April 2016 to April 2017. The 2.1 

percent increase in the CPI–W from 

April 2016 to April 2017 did not trigger 

an increase in the first violation safe 

harbor penalty fee of $27 or the 

subsequent violation safe harbor penalty 

fee of $38, and the Bureau is therefore 

not amending § 1026.52(b)(1)(ii)(A) and 

(B) for the 2018 calendar year. 

B. HOEPA Annual Threshold 

Adjustments 

Section 1026.32(a)(1)(ii) of the 

Bureau’s Regulation Z implements 

section 1431 of the Dodd-Frank Act,2

which amended the HOEPA points and 

fees coverage test. Under 

§ 1026.32(a)(1)(ii)(A) and (B), when 

determining whether a transaction is a 

high-cost mortgage, the determination of 

the applicable points and fees coverage 

test is based upon 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 June 1; the Bureau uses the CPI–U for 

this adjustment. The CPI–U is based on 

all urban consumers and represents 

approximately 88 percent of the U.S. 

population. The BLS publishes 

consumer-based indices monthly but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of each month. The 2018 adjustment is 

based on the CPI–U index in effect on 

June 1, which was reported by BLS on 

May 12, 2017, and reflects the 

percentage change from April 2016 to 

April 2017. The adjustment to the 

$20,000 figure being adopted here 

reflects a 2.2 percent increase in the 

CPI–U index for this period and is 

rounded to whole dollars for ease of 

compliance. 

Under § 1026.32(a)(1)(ii)(B) the 

HOEPA points and fees dollar trigger 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 June 1; the Bureau 

uses the CPI–U for this adjustment. The 

2018 adjustment is based on the CPI–U 

index in effect on June 1, which was 

reported by BLS on May 12, 2017, and 

reflects the percentage change from 

April 2016 to April 2017. The 

adjustment to the $1,000 figure being 

adopted here reflects a 2.2 percent 

increase in the CPI–U index for this 

period and is rounded to whole dollars 

for ease of compliance. 

C. Ability To Repay and Qualified 

Mortgages 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 qualified mortgages. 

Under § 1026.43(e)(3)(i), a covered 

transaction is not a qualified mortgage if 

the transaction’s 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) 

are recalculated annually for inflation 

using the CPI–U index in effect on June 

1. The CPI–U is based on all urban 

consumers and represents 

approximately 88 percent of the U.S. 

population. The BLS publishes 

consumer-based indices monthly but 

does not report a CPI change on June 1; 

adjustments are reported in the middle 

of each month. The 2018 adjustment is 

based on the CPI–U index in effect on 

June 1, which was reported by BLS on 

May 12, 2017, and reflects the 

percentage change from April 2016 to 

April 2017. The adjustment to the 2017 

figures being adopted here reflects a 2.2 

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 2018. Accordingly, 

the Bureau is not amending these 

sections of Regulation Z. 

Safe Harbor Penalty Fees— 

§ 1026.52(b)(1)(ii)(A) and (B) 

The safe harbor penalty fee amounts 

remain unchanged at $27 for 

§ 1026.52(b)(1)(ii)(A) (first violation safe 

harbor penalty fee) and $38 for 

§ 1026.52(b)(1)(ii)(B) (subsequent 

violation safe harbor penalty fee) for the 

year 2018. Accordingly, the Bureau is 

not amending these sections of 

Regulation Z. 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, 2018, 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 $21,032, and the adjusted points and 

fees dollar trigger under 

§ 1026.32(a)(1)(ii)(B) is $1,052. When 

the total loan amount for a transaction 

is $21,032 or more, and the points and 

fees amount exceeds 5 percent of the 

total loan amount, the transaction is a 

high-cost mortgage. When the total loan 

amount for a transaction is less than 

$21,032, and the points and fees amount 

exceeds the lesser of the adjusted points 

and fees dollar trigger of $1,052 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 

2018 the new loan amount dollar 

threshold and the new points and fees 

dollar trigger, respectively. 

C. Ability To Repay and Qualified 

Mortgages Annual Threshold 

Adjustments 

Effective January 1, 2018, for purposes 

of determining whether a covered 

transaction is a qualified mortgage 

under § 1026.43(e), 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 

41160 Federal Register / Vol. 82, No. 167 / Wednesday, August 30, 2017 / Rules and Regulations 

amount for a loan amount greater than 

or equal to $105,158; $3,155 for a loan 

amount greater than or equal to $63,095 

but less than $105,158; 5 percent of the 

total loan amount for loans greater than 

or equal to $21,032 but less than 

$63,095; $1,052 for a loan amount 

greater than or equal to $13,145 but less 

than $21,032; or 8 percent of the total 

loan amount for loans less than $13,145. 

The Bureau is amending comment 

43(e)(3)(ii)–1, which lists the 

adjustments for each year, to reflect the 

new dollar threshold amounts for 2018. 

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. 5 U.S.C. 

553(b)(B). Pursuant to this final rule, in 

Regulation Z, comments 32(a)(1)(ii)–1.iv 

and –3.iv, 43(e)(3)(ii)–1.iv, and 

52(b)(1)(ii)–2.i.E in supplement I are 

added to update the exemption 

thresholds. The amendments in this 

final rule are technical and nondiscretionary, as they merely apply the 

method previously established in 

Regulation Z for determining 

adjustments to the thresholds. 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. 5 U.S.C. 603(a), 604(a). 

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3506; 

5 CFR part 1320), the Bureau reviewed 

this final rule. No collections of 

information pursuant to the Paperwork 

Reduction Act are contained in the final 

rule. 

List of Subjects in 12 CFR Part 1026 

Advertising, 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. 

■ 2. In Supplement I to part 1026— 

Official Interpretations: 

■ a. Under Section 1026.32— 

Requirements for High-Cost Mortgages, 

under 32(a) Coverage, under Paragraph 

32(a)(1)(ii), paragraphs 1.iv and 3.iv are 

added. 

■ b. Under Section 1026.43—Minimum 

Standards for Transactions Secured by 

a Dwelling, under 43(e) Qualified 

mortgages, under Paragraph 43(e)(3)(ii), 

paragraph 1.iv is added. 

■ c. Under Section 1026.52— 

Limitations on Fees, under 52(b) 

Limitations on Penalty Fees, under 

52(b)(1)(ii) Safe harbors, paragraph 2.i.E 

is added. 

The additions read as follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain 

Home Mortgage Transactions 

* * * * * 

Section 1026.32—Requirements for 

Certain Closed-End Home Mortgages 

32(a) Coverage 

* * * * * 

Paragraph 32(a)(1)(ii). 

1. * * * 

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. 

* * * * * 

3. * * * 

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. 

* * * * * 

Section 1026.43—Minimum Standards 

for Transactions Secured by a Dwelling 

* * * * * 

43(e) Qualified mortgages. 

* * * * * 

Paragraph 43(e)(3)(ii). 

1. * * * 

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. 

* * * * * 

Subpart G—Special Rules Applicable 

to Credit Card Accounts and Open-End 

Credit Offered to College Students 

* * * * * 

Section 1026.52—Limitations on Fees 

* * * * * 

52(b) Limitations on Penalty Fees 

* * * * * 

52(b)(1)(ii) Safe harbors 

* * * * * 

2. * * * 

i. * * * 

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. 

* * * * * 

Dated: July 25, 2017. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2017–18003 Filed 8–29–17; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2017–0503; Product 

Identifier 2017–NM–032–AD; Amendment 

39–19009; AD 2017–17–19] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for all The 

Boeing Company Model DC–9–81 (MD–