Regulators Raise Consumer Exemption Thresholds to Adjust for Inflation

U.S. regulators increased certain exemption thresholds on mortgage loans, consumer leases, and consumer credit transactions to adjust for inflation.

As required by law, the regulators amended interpretations to rules under the Truth in Lending Act and the Consumer Leasing Act. The amendments were published in the Federal Register.

The OCC, Federal Reserve Board, and CFPB finalized amendments to the official interpretations for regulations that implement section 129H of the TILA (“Property appraisal requirements”), adjusting the exemption threshold for "higher-priced mortgage" loans from $32,400 to $33,500, effective January 1, 2025. The adjustment was based on the June 1, 2024 annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers ("CPI-W"). 

The Federal Reserve Board and CFPB finalized amendments to the official interpretations for Regulation M (“Consumer Leasing”), adjusting the exemption threshold for consumer leases from $69,500 to $71,900, effective January 1, 2025. The amendment was based on the June 1, 2024 CPI-W. 

The Federal Reserve Board and CFPB finalized amendments to the official interpretations for Regulation Z (“Truth in Lending Act”), adjusting the exemption threshold for consumer credit transactions from $69,500 to $71,900, effective January 1, 2025. The adjustment was based on the June 1, 2024 CPI-W.