For immediate release

The Federal Reserve Board today published its annual adjustment of the dollar amount that triggers additional disclosure requirements under Truth in Lending for mortgage loans that bear fees above a certain amount. The Home Ownership and Equity Protection Act of 1994 bars credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed $400 (to be adjusted annually) or 8 percent of the total loan amount, whichever is larger. The Board has adjusted the dollar amount from $435 for 1998 to $441 for 1999 based on the annual percentage change reflected in the Consumer Price Index that is in effect on June 1. A copy of the Board's notice is attached.

Summary only | Summary and Notice of adjustment (10 KB PDF)

1998 Banking and consumer regulatory policy