Skip to main content

Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold

This rule amends Regulation Z (Truth in Lending) to implement certain amendments to the Truth in Lending Act made by the Dodd-Frank Act. This rule amends the official commentary that interprets the requirements of the Bureau’s Regulation Z (Truth in Lending) to reflect changes in the asset-size thresholds for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan. These changes reflect updates to, together with affiliates that regularly extended covered transactions secured by first liens, had total assets of less than $2 billion (adjusted annually for inflation) and the exemption the Bureau added, by implementing section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation). These amendments are based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the 4.1 percent increase in the average of the CPI-W for the 12-month period ending in November 2023, the exemption threshold for creditors and their affiliates that regularly extended covered transactions secured by first liens is adjusted to $2.640 billion from $2.537 billion. The exemption threshold for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation) is adjusted to $11.835 billion from $11.374 billion.

Annual adjustments

Dec. 18, 2023

  • For certain first-lien higher-priced mortgage loans, the exemption threshold is adjusted to increase to $2.640 billion from $2.537 billion. Therefore, creditors with assets of less than $2.640 billion (including assets of certain affiliates) as of Dec. 31, 2023, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2024. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2025. For certain insured depository institutions and insured credit unions meeting certain conditions, including an asset size exemption threshold, the exemption threshold is adjusted to increase to $11.835 billion from $11.374 billion. Therefore, insured depository institutions and insured credit unions that during calendar year 2023 had assets of $11.835 billion or less on December 31, 2023, will meet the asset-size exemption threshold for purposes of any loan consummated in 2024 and for purposes of any loan secured by a first lien on a principal dwelling of a consumer consummated in 2025 for which the application was received before April 1, 2025. These adjustments are based on the 4.1 percent increase in the average of the CPI-W for the 12-month period ending in November 2023.

Dec. 27, 2022

  • For certain first-lien higher-priced mortgage loans, the exemption threshold is adjusted to increase to $2.537 billion from $2.336 billion. Therefore, creditors with assets of less than $2.537 billion (including assets of certain affiliates) as of Dec. 31, 2022, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2023. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2024. For certain insured depository institutions and insured credit unions meeting certain conditions, including an asset size exemption threshold, the exemption threshold is adjusted to increase to $11.374 billion from $10.473 billion. Therefore, insured depository institutions and insured credit unions that during calendar year 2022 had assets of $11.374 billion or less on December 31, 2022, will meet the asset-size exemption threshold for purposes of any loan consummated in 2023 and for purposes of any loan secured by a first lien on a principal dwelling of a consumer consummated in 2024 for which the application was received before April 1, 2024. These adjustments are based on the 8.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2022.

Dec. 23, 2021

  • For certain first-lien higher-priced mortgage loans, the exemption threshold is adjusted to increase to $2.336 billion from $2.230 billion. Therefore, creditors with assets of less than $2.336 billion (including assets of certain affiliates) as of Dec. 31, 2021, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2022. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2023. For certain insured depository institutions and insured credit unions meeting certain conditions, including an asset size exemption threshold, the exemption threshold is adjusted to increase to $10.473 billion from $10 billion. Therefore, insured depository institutions and insured credit unions that during calendar year 2021 had assets of $10.473 billion or less on December 31, 2021, will meet the asset-size exemption threshold for purposes of any loan consummated in 2022 and for purposes of any loan secured by a first lien on a principal dwelling of a consumer consummated in 2023 for which the application was received before April 1, 2023. These adjustments are based on the 4.7 percent increase in the average of the CPI-W for the 12-month period ending in November 2021.

Dec. 22, 2020

  • The exemption threshold is adjusted to increase to $2.230 billion from $2.202 billion. The adjustment is based on the 1.3 percent increase in the average of the CPI-W for the 12-month period ending in November 2020. Therefore, creditors with assets of less than $2.230 billion (including assets of certain affiliates) as of Dec. 31, 2020, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2021. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2022.

Dec. 23, 2019

  • The exemption threshold is adjusted to increase to $2.202 billion from $2.167 billion. The adjustment is based on the 1.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2019. Therefore, creditors with assets of less than $2.202 billion (including assets of certain affiliates) as of Dec. 31, 2019, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2020. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2021.  

Dec. 31, 2018

  • The exemption threshold is adjusted to increase to $2.167 billion from $2.112 billion. The adjustment is based on the 2.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2018. Therefore, creditors with assets of less than $2.167 billion (including assets of certain affiliates) as of Dec. 31, 2018, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2019. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2020.  

Dec. 27, 2017

  • The exemption threshold is adjusted to increase to $2.112 billion from $2.069 billion. The adjustment is based on the 2.1 percent increase in the average of the CPI-W for the 12-month period ending in November 2017. Therefore, creditors with assets of less than $2.112 billion (including assets of certain affiliates) as of Dec. 31, 2017, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2018. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2019.  

Dec. 21, 2016

  • The exemption threshold is adjusted to increase to $2.069 billion from $2.052 billion. The adjustment is based on the 0.8 percent increase in the average of the CPI-W for the 12-month period ending in November 2016. Therefore, creditors with assets of less than $2.069 billion (including assets of certain affiliates) as of Dec. 31, 2016, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2017. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2018.  

Dec. 23, 2015

  • The exemption threshold is adjusted to decrease to $2.052 billion from $2.060 billion. The adjustment is based on the 0.4 percent decrease in the average of the CPI-W for the 12-month period ending in November 2015. Therefore, creditors with assets of less than $2.052 billion (including assets of certain affiliates) as of Dec. 31, 2015, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2016. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2017. 

Dec. 29, 2014

  • The exemption threshold is adjusted to increase to $2.060 billion from $2.028 billion. The adjustment is based on the 1.1 percent increase in the average of the CPI-W for the 12-month period ending in November 2014. Therefore, creditors with assets of $2.060 billion or less as of Dec. 31, 2014, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2015.

Dec. 30, 2013

  • The exemption threshold is adjusted to increase to $2.028 billion from $2 billion. The adjustment is based on the 1.4 percent increase in the average of the CPI-W for the 12-month period ending in November 2013. Therefore, creditors with assets of $2.028 billion or less as of Dec. 31, 2013, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2014.