As we prepare to exit 2013 and enter 2014, there a few annual regulatory changes that you should be aware of:
1. The asset size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan. Effective January 1, 2014, the exemption threshold is increased to $2.028 billion from $2 billion. Therefore, creditors with assets of $2.028 billion or less as of December 31, 2013, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2014. This also affects the definition of “small creditor” for purposes of the Ability To Repay rule under Regulation Z section 1026.43.
2. The asset size threshold for creditors under the Home Mortgage Disclosure Act (HMDA) and Regulation C. The exemption threshold is increased from $42 million to $43 million. Therefore, credit unions with assets of $43 million or less as of December 31, 2013, are exempt from collecting HMDA data in 2014.
3. The dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions is increased from $53,000 to $53,500, effective January 1, 2014. Therefore, the Truth in Lending and Consumer Leasing acts generally will apply to consumer credit transactions and consumer leases of $53,500 or less in 2014. However, private education loans and loans secured by real property (such as mortgages) are subject to the Truth in Lending Act regardless of the amount of the loan.
I wish those would be the only regulatory changes you will see in 2014. But, it is just that, wishful thinking. Happy New Year!