Unknown. Final rule; official interpretation

8,685 words·~39 min read·/register/2023/09/21/2023-20476·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2023-09-21.xml --- 88 182 Thursday, September 21, 2023 Contents Agriculture Agriculture Department See Forest Service See National Institute of Food and Agriculture Consumer Financial Protection Bureau of Consumer Financial Protection RULES Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, Home Ownership and Equity Protection Act, and Qualified Mortgages), 65113-65118 2023-20476 Centers Medicare Centers for Medicare & Medicaid Services RULES Streamlining Medicaid;

Medicare Savings Program Eligibility Determination and Enrollment, 65230-65271 2023-20382 Coast Guard Coast Guard RULES Safety Zones: Allegheny River, Mile Markers 15.5 to 16.5, Allegheny County, PA, 65132-65134 2023-20396 Special Local Regulations: Marine Events within the Captain of the Port of Charleston, 65131-65132 2023-20460 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65186-65187 2023-20401 Availability of Data to the Public in Implementation of the Open Government Data Act and to Support Rulemaking, 65187-65188 2023-20477 Meetings:

National Boating Safety Advisory Committee, 65185-65186 2023-20473 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Consumer Product Consumer Product Safety Commission RULES Safety Standards: Button Cell or Coin Batteries and Consumer Products Containing Such Batteries, 65274-65304 2023-20333 2023-20334 Copyright Office Copyright Office, Library of Congress NOTICES Artificial Intelligence and Copyright, 65205 2023-20480 Defense Department Defense Department RULES Privacy Act;

Implementation, 65129-65131 2023-20434 Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: National Assessment of Educational Progress 2024 Amendment 3, 65159-65160 2023-20391 Applications for New Awards: Education Research Grant Programs; Correction, 65158-65159 2023-20472 Energy Department Energy Department See Federal Energy Regulatory Commission NOTICES Environmental Assessments; Availability, etc.:

New Fortress Energy Altamira FLNG Project, 65160-65161 2023-20427 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: Continental Aerospace Technologies, Inc. Engines, 65120-65122 2023-20445 Rolls-Royce Deutschland Ltd. and Co. KG Engines, 65118-65120 2023-20485 Vulcanair S.p.A. Airplanes, 65122-65125 2023-20481 Federal Communications Federal Communications Commission RULES 2023 Mandatory Data Collection for Incarcerated People's Communications Services, 65134-65135 2023-20518 Federal Energy Federal Energy Regulatory Commission NOTICES Application:

Eastern Shore Natural Gas Co., 65170-65172 2023-20456 Georgia Power Co., 65168-65169 2023-20455 Combined Filings, 65163-65165, 65167-65170 2023-20417 2023-20467 2023-20468 2023-20469 Environmental Impact Statements; Availability, etc.: Columbia Gas Transmission, LLC, Transcontinental Gas Pipe Line Co., LLC; Virginia Reliability Project, Commonwealth Energy Connector Project, 65161-65162 2023-20458 Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations:

BCD 2023 Fund 1 Lessee, LLC, 65162-65163 2023-20465 Earp Solar, LLC, 65163 2023-20466 Sunnyside Cogeneration Associates, 65168 2023-20464 Institution of Section 206 Proceeding and Refund Effective Date: System Energy Resources, Inc., 65165 2023-20459 Privacy Act; Systems of Records, 65165-65167 2023-20457 Food and Drug Food and Drug Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Submission of Petitions: Food Additive, Color Additive (Including Labeling), Submission of Information to a Master File in Support of Petitions; and Electronic Submission, 65173-65174 2023-20451 Guidance:

Considerations for the Conduct of Clinical Trials of Medical Products During Major Disruptions Due to Disasters and Public Health Emergencies, 65177-65179 2023-20474 Meetings: Menopause: Potential Impact on Clinical Pharmacology and Opportunities for Future Research; Public Workshop, 65172-65173 2023-20454 Request for Information: Scientific Challenges and Opportunities to Advance the Development of Individualized Cellular and Gene Therapies, 65174-65177 2023-20452 Forest Forest Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Locatable Minerals, 65151-65152 2023-20484 Proposed New Recreation Fee Site, 65151 2023-20414 2023-20415 Health and Human Health and Human Services Department See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration Homeland Homeland Security Department See Coast Guard Housing Housing and Urban Development Department NOTICES Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts for 2024, 65188-65194 2023-20478 Interior Interior Department See Surface Mining Reclamation and Enforcement Office International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Raw Honey from the Socialist Republic of Vietnam, 65155-65158 2023-20442 Sales at Less Than Fair Value; Determinations, Investigations, etc.: Certain Freight Rail Couplers and Parts Thereof from Mexico, 65153-65155 2023-20483 Corrosion-Resistant Steel Products from Taiwan; Correction, 65153 2023-20482 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Tin Mill Products from Canada, China, Germany, Netherlands, South Korea, Taiwan, Turkey, and the United Kingdom, 65194-65195 2023-20497 Labor Department Labor Department See Mine Safety and Health Administration See Occupational Safety and Health Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Construction Fall Protection Systems Criteria, Practices, and Training Requirements, 65195-65196 2023-20395 Occupational Safety and Health Administration Conflict of Interest and Disclosure, 65195 2023-20509 Legal Legal Services Corporation NOTICES Application Process for Subgranting Special Grant Funds, 65204-65205 2023-20413 Library Library of Congress See Copyright Office, Library of Congress Mine Mine Safety and Health Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Mine Accident, Injury, and Illness Report and Quarterly Mine Employment and Coal Production Report, 65196-65198 2023-20394 National Credit National Credit Union Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65205-65206 2023-20453 National Highway National Highway Traffic Safety Administration PROPOSED RULES Federal Motor Vehicle Safety Standards, 65149-65150 2023-20393 National Institute Food National Institute of Food and Agriculture NOTICES Meetings:

Stakeholder Listening Session Regarding Administration of the Veterinary Medicine Loan Repayment Program and Veterinary Services Grant Program, 65152-65153 2023-20463 National Institute National Institutes of Health NOTICES Licenses; Exemptions, Applications, Amendments etc.: Government-Owned Inventions; Availability for Licensing and Collaboration, 65183 2023-20479 Prospective Grant of an Exclusive Patent License: Development and Commercialization of Engineered T Cell Therapies for the Treatment of HPV-Positive Cancer(s), 65179-65180 2023-20487 Meetings:

Center for Scientific Review, 65183-65184 2023-20437 Diabetes Mellitus Interagency Coordinating Committee, 65184-65185 2023-20390 National Cancer Institute, 65182 2023-20489 National Heart, Lung, and Blood Institute, 65182, 65184 2023-20491 2023-20492 National Human Genome Research Institute, 65184 2023-20490 National Institute of Allergy and Infectious Diseases, 65181-65183 2023-20421 2023-20493 National Institute of Diabetes and Digestive and Kidney Diseases, 65180-65182 2023-20436 2023-20438 National Institute of Neurological Disorders and Stroke, 65181 2023-20420 National Institute on Aging, 65182 2023-20435 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic:

Snapper-Grouper Fishery of the South Atlantic; Amendment 53, 65135-65147 2023-20324 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Nationally Recognized Testing Laboratories: CSA Group Testing and Certification, Inc.; Grant of Expansion of Recognition, 65203-65204 2023-20402 Intertek Testing Services NA, Inc.; Grant of Expansion of Recognition, 65200-65202 2023-20403 TUV Rheinland of North America, Inc.; Grant of Expansion of Recognition, 65199-65200 2023-20405 TUV Rheinland of North America, Inc.;

Grant of Expansion of Recognition and Modification to the NRTL Program's List of Appropriate Test Standards, 65202-65203 2023-20406 TUV SUD America, Inc.; Grant of Expansion of Recognition, 65198-65199 2023-20404 Pipeline Pipeline and Hazardous Materials Safety Administration PROPOSED RULES Hazardous Materials: Modernizing Regulations to Improve Safety and Efficiency, 65148-65149 2023-20440 Postal Regulatory Postal Regulatory Commission NOTICES Negotiated Service Agreement Filings, 65207 2023-20499 New Postal Products, 65206-65207 2023-20400 Postal Service Postal Service NOTICES Meetings;

Sunshine Act, 65207-65208 2023-20564 Product Change: Ground Advantage Negotiated Service Agreement, 65208 2023-20410 Priority Mail and USPS Ground Advantage Negotiated Service Agreement, 65207-65208 2023-20411 2023-20412 Priority Mail Express, Priority Mail, and USPS Ground Advantage Negotiated Service Agreement, 65208 2023-20409 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: Constitution Day and Citizenship Day, and Constitution Week (Proc. 10625), 65109-65110 2023-20600 National Farm Safety and Health Week (Proc. 10626), 65111-65112 2023-20605 Securities Securities and Exchange Commission NOTICES Self-Regulatory Organizations;

Proposed Rule Changes: Cboe Exchange, Inc., 65218-65221 2023-20426 ICE Clear Europe, Ltd., 65210-65218 2023-20424 Miami International Securities Exchange, LLC, 65210 2023-20428 Nasdaq ISE, LLC, 65208-65210 2023-20425 Small Business Small Business Administration NOTICES Delegation of Authority, 65222-65223 2023-20495 Disaster Declaration: California; Public Assistance Only, 65223 2023-20500 Florida, 65221 2023-20504 Illinois; Public Assistance Only, 65224 2023-20501 New Hampshire;

Public Assistance Only, 65222 2023-20505 Vermont, 65223 2023-20498 Wyoming; Public Assistance Only, 65222 2023-20496 State Department State Department NOTICES Culturally Significant Objects Imported for Exhibition: Africa and Byzantium, 65224 2023-20418 Going Dark: The Contemporary Figure at the Edge of Visibility, 65225 2023-20431 Hanne Darboven—Writing Time, 65225 2023-20429 Lineages: Korean Art at The Met, 65224 2023-20430 Transatlantic Bridges: Corrado Cagli, 1938-1948, 65225 2023-20433 Substance Substance Abuse and Mental Health Services Administration NOTICES Supplemental Funding Opportunity:

Fiscal Year 2023, 65185 2023-20432 Surface Mining Surface Mining Reclamation and Enforcement Office RULES Kentucky Regulatory Program, 65125-65129 2023-20013 Transportation Department Transportation Department See Federal Aviation Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration Veteran Affairs Veterans Affairs Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:

Availability of Educational Licensing and Certification Records, 65226 2023-20462 Medical Expense Report, 65225-65226 2023-20470 Requests for Nominations: Advisory Committee on Tribal and Indian Affairs, 65226-65227 2023-20475 Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 65230-65271 2023-20382 Part III Consumer Product Safety Commission, 65274-65304 2023-20333 2023-20334 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 88 182 Thursday, September 21, 2023 Rules and Regulations CONSUMER FINANCIAL PROTECTION BUREAU 12 CFR Part 1026 Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages) AGENCY: Consumer Financial Protection Bureau.

ACTION: Final rule; official interpretation. SUMMARY: The Consumer Financial Protection Bureau (Bureau or CFPB) is issuing this final rule amending the regulation text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The CFPB calculates the dollar amounts for several provisions in Regulation Z annually; this final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index

(CPI)in effect on June 1, 2023. DATES: This final rule is effective January 1, 2024. FOR FURTHER INFORMATION CONTACT: Anna Boadwee and Adrien Fernandez, Attorney-Advisors, Office of Regulations, at

(202)435-7700. If you require this document in an alternative electronic format, please contact *CFPB_Accessibility@cfpb.gov* . SUPPLEMENTARY INFORMATION: The CFPB is amending the regulation text and official interpretations for Regulation Z, which implements TILA, to update the dollar amounts of various thresholds that it must adjust annually to reflect the annual percentage change in the CPI as published by the Bureau of Labor Statistics (BLS). Specifically, for open-end consumer credit plans under TILA, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.00 in 2024. For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages in 2024 will be $26,092. The adjusted points-and-fees dollar trigger for high-cost mortgages in 2024 will be $1,305. For qualified mortgages

(QMs)under the General QM loan definition in § 1026.43(e)(2), the thresholds for the spread between the annual percentage rate

(APR)and the average prime offer rate

(APOR)1 in 2024 will be: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $130,461; 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $78,277 but less than $130,461; 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $78,277; 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $130,461; 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $78,277; or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $78,277. For all categories of QMs, the thresholds for total points and fees in 2024 will be 3 percent of the total loan amount for a loan greater than or equal to $130,461; $3,914 for a loan amount greater than or equal to $78,277 but less than $130,461; 5 percent of the total loan amount for a loan greater than or equal to $26,092 but less than $78,277; $1,305 for a loan amount greater than or equal to $16,308 but less than $26,092; and 8 percent of the total loan amount for a loan amount less than $16,308. 2 1 On April 20, 2023, the CFPB published a document announcing the availability of a revised version of its “Methodology for Determining Average Prime Offer Rates,” which describes the data and methodology used to calculate the average prime offer rate for purposes of Regulation C and Regulation Z. *See* 88 FR 24393. The methodology statement was revised to address the imminent unavailability of certain data the CFPB previously relied on to calculate average prime offer rates, as a result of a decision by Freddie Mac to make changes to its Primary Mortgage Market Survey® (PMMS). After evaluating potential sources, the CFPB determined that data from Intercontinental Exchange Mortgage Technology (ICE Mortgage Technology) is currently the most suitable option to replace PMMS. Beginning on April 24, 2023, the CFPB started using data provided by ICE Mortgage Technology and the revised methodology to calculate average prime offer rates. 2 The QM categories in Regulation Z appear at 12 CFR 1026.43(e)(2), (e)(4), (e)(5), (e)(6), and (e)(7). Note that 12 CFR 1026.43(e)(6) applies only to covered transactions for which the application was received before April 1, 2016. I. Background A. Credit Card Annual Adjustments Minimum Interest Charge Disclosure Thresholds Sections 1026.6(b)(2)(iii) and 1026.60(b)(3) of 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 creditors to disclose any minimum interest charge exceeding $1.00 that could be imposed during a billing cycle. These provisions also state that, for open-end consumer credit plans, the CFPB shall calculate the minimum interest charge thresholds annually using the CPI that was in effect on the preceding June 1; the CFPB uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for this adjustment. 3 If 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 CFPB will increase the minimum interest charge amounts set forth in the regulation by $1.00. The CFPB bases its 2024 adjustment analysis on the CPI-W index in effect on June 1, 2023, as reported by BLS on May 10, 2023. 4 As a result, the adjustment reflects the percentage change in the CPI-W from April 2022 to April 2023. The adjustment analysis accounts for a 4.6 percent increase in the CPI-W from April 2022 to April 2023. This increase in the CPI-W when applied to the current amounts in §§ 1026.6(b)(2)(iii) and 1026.60(b)(3) does not trigger an increase in the minimum interest charge threshold of at least $1.00, and the CFPB, therefore, is not amending §§ 1026.6(b)(2)(iii) and 1026.60(b)(3). 3 The CPI-W is a subset of the Consumer Price Index for All Urban Consumers (CPI-U) index and represents approximately 30 percent of the U.S. population. 4 BLS publishes Consumer Price Indices monthly, usually in the middle of each calendar month. Thus, the CPI-W reported on May 10, 2023, was the most current as of June 1, 2023. B. HOEPA Annual Threshold Adjustments Section 1026.32(a)(1)(ii) of Regulation Z implements section 1431 of the Dodd-Frank Act, 5 which amended the HOEPA points-and-fees coverage test. Under § 1026.32(a)(1)(ii)(A) and (B), in assessing whether a transaction is a high-cost mortgage due to points and fees the creditor is charging, the applicable points-and-fees coverage test depends on 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 the CFPB recalculate this threshold amount annually using the CPI index in effect on the preceding June 1; the CFPB uses the CPI-U for this adjustment. 6 The CFPB bases the 2024 adjustment on the CPI-U index in effect on June 1, 2023, as reported by BLS on May 10, 2023. As a result, the adjustment reflects the percentage change in the CPI-U from April 2022 to April 2023, which is an increase of 4.9 percent. The adjustment to $26,092 here reflects the 4.9 percent increase in the CPI-U index from April 2022 to April 2023 rounded to the nearest whole dollar amount for ease of compliance. 5 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 (2010). 6 The CPI-U is based on all urban consumers and represents approximately 93 percent of the U.S. population. Under § 1026.32(a)(1)(ii)(B), the HOEPA points-and-fees threshold is the lesser of 8 percent of the total loan amount or $1,000. Section 1026.32(a)(1)(ii)(B) provides that the CFPB will recalculate the dollar amount threshold annually using the CPI index in effect on the preceding June 1; the CFPB uses the CPI-U for this adjustment. The CFPB bases the 2024 adjustment on the CPI-U index in effect on June 1, 2023, as reported by BLS on May 10, 2023. As a result, the adjustment reflects the percentage change in CPI-U from April 2022 to April 2023, which is an increase of 4.9 percent. The adjustment to $1,305 here reflects the 4.9 percent increase in the CPI-U index from April 2022 to April 2023 rounded to the nearest whole dollar amount for ease of compliance. C. QM Annual Threshold Adjustments The CFPB'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 QMs. On December 10, 2020, the CFPB issued a final rule amending the General QM loan definition in § 1026.43(e)(2). 7 The final rule established pricing thresholds in § 1026.43(e)(2)(vi)(A) through

(F)based on the spread of a loan's APR compared to the APOR for a comparable transaction as of the date the interest rate is set. To satisfy the General QM loan definition, a loan's APR must be below the applicable pricing threshold and must satisfy other requirements in § 1026.43(e)(2). Specifically, under § 1026.43(e)(2)(vi), a covered transaction is a QM if the APR does not exceed the APOR for a comparable transaction as of the date the interest rate is set by: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $110,260 (indexed for inflation); 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $66,156 (indexed for inflation) but less than $110,260 (indexed for inflation); 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $66,156 (indexed for inflation); 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $110,260 (indexed for inflation); 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $66,156 (indexed for inflation); or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $66,156 (indexed for inflation). 8 The rule states that the CFPB will adjust the loan amounts in § 1026.43(e)(2)(vi) annually on January 1 by the annual percentage change in the CPI-U that was in effect on the preceding June 1. 9 7 85 FR 86308 (Dec. 29, 2020). This final rule was initially effective on March 1, 2021, with a mandatory compliance date of July 1, 2021. On April 27, 2021, the CFPB issued a final rule effective June 30, 2021, which extended the mandatory compliance date of the final rule published on December 29, 2020, at 85 FR 86308, until October 1, 2022. 86 FR 22844 (Apr. 30, 2021). 8 The loan amounts in the regulatory text reflect the CPI-U in effect on June 1, 2020. 9 *See* comment 43(e)(2)(vi)-3. Regulation Z also contains points and fees limits applicable to all categories of QMs. Under § 1026.43(e)(3)(i), a covered transaction is not a QM if the transaction's total points and fees exceed: 3 percent of the total loan amount for a loan amount greater than or equal to $100,000 (indexed for inflation); $3,000 (indexed for inflation) for a loan amount greater than or equal to $60,000 (indexed for inflation) but less than $100,000 (indexed for inflation); 5 percent of the total loan amount for loans greater than or equal to $20,000 (indexed for inflation) but less than $60,000 (indexed for inflation); $1,000 (indexed for inflation) for a loan amount greater than or equal to $12,500 (indexed for inflation) but less than $20,000 (indexed for inflation); or 8 percent of the total loan amount for loans less than $12,500 (indexed for inflation). Section 1026.43(e)(3)(ii) provides that the CFPB will recalculate the limits and loan amounts in § 1026.43(e)(3)(i) annually for inflation using the CPI-U index in effect on the preceding June 1. The CFPB bases the 2024 adjustment to the loan amounts applicable to the pricing thresholds for the General QM loan definition and the points and fees limits for all categories of QM on the CPI-U index in effect on June 1, 2023, as reported by BLS on May 10, 2023. As a result, the adjustment reflects the percentage change in CPI-U from April 2022 to April 2023, which is an increase of 4.9 percent. The 2024 adjustment 10 adopted here reflects a 4.9 percent increase in the CPI-U index for this period rounded to whole dollars for ease of compliance. 10 For 2024, a covered transaction is a qualified mortgage if the APR does not exceed the APOR for a comparable transaction as of the date the interest rate is set by: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $130,461; 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $78,277 but less than $130,461; 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $78,277; 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $130,461; 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $78,277; or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $78,277. Additionally, a covered transaction is not a qualified mortgage if the transaction's total points and fees exceed 3 percent of the total loan amount for a loan amount greater than or equal to $130,461; $3,914 for a loan amount greater than or equal to $78,277 but less than $130,461; 5 percent of the total loan amount for loans greater than or equal to $26,092 but less than $78,277; $1,305 for a loan amount greater than or equal to $16,308 but less than $26,092; or 8 percent of the total loan amount for loans less than $16,308. 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 2024. Accordingly, the CFPB is not amending these sections of Regulation Z. B. HOEPA Annual Threshold Adjustment—Comments 32(a)(1)(ii)-1 and -3 Effective January 1, 2024, 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 figure is $26,092, and the adjusted points-and-fees dollar trigger under § 1026.32(a)(1)(ii)(B) is $1,305. If the total loan amount for a transaction is $26,092 or more, and the points-and-fees amount exceeds 5 percent of the total loan amount, the transaction is a high-cost mortgage. If the total loan amount for a transaction is less than $26,092, and the points-and-fees amount exceeds the lesser of the adjusted points-and-fees dollar trigger of $1,305 or 8 percent of the total loan amount, the transaction is a high-cost mortgage. The CFPB is amending comments 32(a)(1)(ii)-1 and -3, which list the adjustments for each year, to reflect for 2024 the new points-and-fees dollar trigger and the new loan amount dollar threshold, respectively. C. Qualified Mortgages Annual Threshold Adjustments Effective January 1, 2024, to satisfy § 1026.43(e)(2)(vi) under the General QM loan definition, the annual percentage rate may not exceed the average prime offer rate for a comparable transaction as of the date the interest rate is set by the following amounts: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $130,461; 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $78,277 but less than $130,461; 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $78,277; 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $130,461; 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $78,277; or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $78,277. Accordingly, the CFPB is amending comment 43(e)(2)(vi)-3, which lists the adjustments for each year, to reflect the new dollar threshold amounts for § 1026.43(e)(2)(vi)(A) through (F). Effective January 1, 2024, 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 amount for a loan amount greater than or equal to $130,461; $3,914 for a loan amount greater than or equal to $78,277 but less than $130,461; 5 percent of the total loan amount for loans greater than or equal to $26,092 but less than $78,277; $1,305 for a loan amount greater than or equal to $16,308 but less than $26,092; or 8 percent of the total loan amount for loans less than $16,308. The CFPB is amending comment 43(e)(3)(ii)-1, which lists the adjustments for each year, to reflect the new dollar threshold amounts for 2024. III. Procedural Requirements A. Administrative Procedure Act The Administrative Procedure Act does not require notice and opportunity for public comment if an agency finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest. 11 Pursuant to this final rule, the CFPB adds comments 32(a)(1)(ii)-1.ix, 32(a)(1)(ii)-3.ix, 43(e)(2)(vi)-3.ii, and 43(e)(3)(ii)-1.ix to update the exemption thresholds. The amendments in this final rule are technical and non-discretionary, as they merely apply the method previously established in Regulation Z for determining adjustments to the thresholds. For these reasons, the CFPB 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. 11 5 U.S.C. 553(b)(B). B. Regulatory Flexibility Act The Regulatory Flexibility Act

(RFA)does not apply to a rulemaking where a general notice of proposed rulemaking is not required. 12 As noted previously, the CFPB has determined that it is unnecessary to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA's requirement relating to an initial and final regulatory flexibility analysis do not apply. 12 5 U.S.C. 603(a), 604(a). C. Paperwork Reduction Act The information collections contained in Regulation Z which implements TILA are approved by OMB under Control number 3170-0015. The current approval for this control number expires on May 31st, 2026. In accordance with the Paperwork Reduction Act of 1995, 13 the CFPB reviewed this final rule. The CFPB has determined that this rule does not create any new information collections or substantially revise any existing collections. 13 44 U.S.C. 3506; 5 CFR part 1320. D. Congressional Review Act Pursuant to the Congressional Review Act (5 U.S.C. 801 *et seq.* ), the CFPB will submit a report containing this rule and other required information to the United States Senate, the United States House of Representatives, and the Comptroller General of the United States prior to the rule taking effect. The Office of Information and Regulatory Affairs

(OIRA)has designated this rule as not a “major rule” as defined by 5 U.S.C. 804(2). List of Subjects in 12 CFR Part 1026 Advertising, Banks, banking, 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 CFPB 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: a. Under *Section 1026.32—Requirements for High-Cost Mortgages,* revise *Paragraph 32(a)(1)(ii);* and b. Under *Section 1026.43—Minimum Standards for Transactions Secured by a Dwelling,* revise *Paragraph 43(e)(2)(vi)* and *Paragraph 43(e)(3)(ii).* The revisions read as follows: SUPPLEMENT I TO PART 1026—OFFICIAL INTERPRETATIONS Section 1026.32—Requirements for High-Cost Mortgages *Paragraph 32(a)(1)(ii).* 1. *Annual adjustment of $1,000 amount.* The $1,000 figure in § 1026.32(a)(1)(ii)(B) is adjusted annually on January 1 by the annual percentage change in the CPI that was in effect on the preceding June 1. The Bureau will publish adjustments after the June figures become available each year. i. For 2015, $1,020, reflecting a 2 percent increase in the CPI-U from June 2013 to June 2014, rounded to the nearest whole dollar. ii. For 2016, $1,017, reflecting a 0.2 percent decrease in the CPI-U from June 2014 to June 2015, rounded to the nearest whole dollar. iii. For 2017, $1,029, reflecting a 1.1 percent increase in the CPI-U from June 2015 to June 2016, rounded to the nearest whole dollar. 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. v. For 2019, $1,077, reflecting a 2.5 percent increase in the CPI-U from June 2017 to June 2018, rounded to the nearest whole dollar. vi. For 2020, $1,099, reflecting a 2 percent increase in the CPI-U from June 2018 to June 2019, rounded to the nearest whole dollar. vii. For 2021, $1,103, reflecting a 0.3 percent increase in the CPI-U from June 2019 to June 2020, rounded to the nearest whole dollar. viii. For 2022, $1,148, reflecting a 4.2 percent increase in the CPI-U from June 2020 to June 2021, rounded to the nearest whole dollar. ix. For 2023, $1,243, reflecting an 8.3 percent increase in the CPI-U from June 2021 to June 2022, rounded to the nearest whole dollar. x. For 2024, $1,305, reflecting a 4.9 percent increase in the CPI-U from June 2022 to June 2023, rounded to the nearest whole dollar. 2. *Historical adjustment of $400 amount.* Prior to January 10, 2014, a mortgage loan was covered by § 1026.32 if the total points and fees payable by the consumer at or before loan consummation exceeded the greater of $400 or 8 percent of the total loan amount. The $400 figure was adjusted annually on January 1 by the annual percentage change in the CPI that was in effect on the preceding June 1, as follows: i. For 1996, $412, reflecting a 3 percent increase in the CPI-U from June 1994 to June 1995, rounded to the nearest whole dollar. ii. For 1997, $424, reflecting a 2.9 percent increase in the CPI-U from June 1995 to June 1996, rounded to the nearest whole dollar. iii. For 1998, $435, reflecting a 2.5 percent increase in the CPI-U from June 1996 to June 1997, rounded to the nearest whole dollar. iv. For 1999, $441, reflecting a 1.4 percent increase in the CPI-U from June 1997 to June 1998, rounded to the nearest whole dollar. v. For 2000, $451, reflecting a 2.3 percent increase in the CPI-U from June 1998 to June 1999, rounded to the nearest whole dollar. vi. For 2001, $465, reflecting a 3.1 percent increase in the CPI-U from June 1999 to June 2000, rounded to the nearest whole dollar. vii. For 2002, $480, reflecting a 3.27 percent increase in the CPI-U from June 2000 to June 2001, rounded to the nearest whole dollar. viii. For 2003, $488, reflecting a 1.64 percent increase in the CPI-U from June 2001 to June 2002, rounded to the nearest whole dollar. ix. For 2004, $499, reflecting a 2.22 percent increase in the CPI-U from June 2002 to June 2003, rounded to the nearest whole dollar. x. For 2005, $510, reflecting a 2.29 percent increase in the CPI-U from June 2003 to June 2004, rounded to the nearest whole dollar. xi. For 2006, $528, reflecting a 3.51 percent increase in the CPI-U from June 2004 to June 2005, rounded to the nearest whole dollar. xii. For 2007, $547, reflecting a 3.55 percent increase in the CPI-U from June 2005 to June 2006, rounded to the nearest whole dollar. xiii. For 2008, $561, reflecting a 2.56 percent increase in the CPI-U from June 2006 to June 2007, rounded to the nearest whole dollar. xiv. For 2009, $583, reflecting a 3.94 percent increase in the CPI-U from June 2007 to June 2008, rounded to the nearest whole dollar. xv. For 2010, $579, reflecting a 0.74 percent decrease in the CPI-U from June 2008 to June 2009, rounded to the nearest whole dollar. xvi. For 2011, $592, reflecting a 2.2 percent increase in the CPI-U from June 2009 to June 2010, rounded to the nearest whole dollar. xvii. For 2012, $611, reflecting a 3.2 percent increase in the CPI-U from June 2010 to June 2011, rounded to the nearest whole dollar. xviii. For 2013, $625, reflecting a 2.3 percent increase in the CPI-U from June 2011 to June 2012, rounded to the nearest whole dollar. xix. For 2014, $632, reflecting a 1.1 percent increase in the CPI-U from June 2012 to June 2013, rounded to the nearest whole dollar. 3. *Applicable threshold.* For purposes of § 1026.32(a)(1)(ii), a creditor must determine the applicable points and fees threshold based on the face amount of the note (or, in the case of an open-end credit plan, the credit limit for the plan when the account is opened). However, the creditor must apply the allowable points and fees percentage to the “total loan amount,” as defined in § 1026.32(b)(4). For closed-end credit transactions, the total loan amount may be different than the face amount of the note. The $20,000 amount in § 1026.32(a)(1)(ii)(A) and

(B)is adjusted annually on January 1 by the annual percentage change in the CPI that was in effect on the preceding June 1. i. For 2015, $20,391, reflecting a 2 percent increase in the CPI-U from June 2013 to June 2014, rounded to the nearest whole dollar. ii. For 2016, $20,350, reflecting a .2 percent decrease in the CPI-U from June 2014 to June 2015, rounded to the nearest whole dollar. iii. For 2017, $20,579, reflecting a 1.1 percent increase in the CPI-U from June 2015 to June 2016, rounded to the nearest whole dollar. 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. v. For 2019, $21,549, reflecting a 2.5 percent increase in the CPI-U from June 2017 to June 2018, rounded to the nearest whole dollar. vi. For 2020, $21,980, reflecting a 2 percent increase in the CPI-U from June 2018 to June 2019, rounded to the nearest whole dollar. vii. For 2021, $22,052 reflecting a 0.3 percent increase in the CPI-U from June 2019 to June 2020, rounded to the nearest whole dollar. viii. For 2022, $22,969 reflecting a 4.2 percent increase in the CPI-U from June 2020 to June 2021, rounded to the nearest whole dollar. ix. For 2023, $24,866 reflecting an 8.3 percent increase in the CPI-U from June 2021 to June 2022, rounded to the nearest whole dollar. x. For 2024, $26,092, reflecting a 4.9 percent increase in the CPI-U from June 2022 to June 2023, rounded to the nearest whole dollar. Section 1026.43—Minimum Standards for Transactions Secured by a Dwelling *Paragraph 43(e)(2)(vi).* 1. *Determining the average prime offer rate for a comparable transaction as of the date the interest rate is set.* For guidance on determining the average prime offer rate for a comparable transaction as of the date the interest rate is set, see comments 43(b)(4)-1 through -3. 2. *Determination of applicable threshold.* A creditor must determine the applicable threshold by determining which category the loan falls into based on the face amount of the note (the “loan amount” as defined in § 1026.43(b)(5)). For example, for a first-lien covered transaction with a loan amount of $75,000, the loan would fall into the tier for loans greater than or equal to $66,156 (indexed for inflation) but less than $110,260 (indexed for inflation), for which the applicable threshold is 3.5 or more percentage points. 3. *Annual adjustment for inflation.* The dollar amounts in § 1026.43(e)(2)(vi) will be adjusted annually on January 1 by the annual percentage change in the CPI-U that was in effect on the preceding June 1. The Bureau will publish adjustments after the June figures become available each year. i. For 2022, reflecting a 4.2 percent increase in the CPI-U that was reported on the preceding June 1, to satisfy § 1026.43(e)(2)(vi), the annual percentage rate may not exceed the average prime offer rate for a comparable transaction as of the date the interest rate is set by the following amounts: A. For a first-lien covered transaction with a loan amount greater than or equal to $114,847, 2.25 or more percentage points; B. For a first-lien covered transaction with a loan amount greater than or equal to $68,908 but less than $114,847, 3.5 or more percentage points; C. For a first-lien covered transaction with a loan amount less than $68,908, 6.5 or more percentage points; D. For a first-lien covered transaction secured by a manufactured home with a loan amount less than $114,847, 6.5 or more percentage points; E. For a subordinate-lien covered transaction with a loan amount greater than or equal to $68,908, 3.5 or more percentage points; F. For a subordinate-lien covered transaction with a loan amount less than $68,908, 6.5 or more percentage points. ii. For 2023, reflecting an 8.3 percent increase in the CPI-U that was reported on the preceding June 1, to satisfy § 1026.43(e)(2)(vi), the annual percentage rate may not exceed the average prime offer rate for a comparable transaction as of the date the interest rate is set by the following amounts: A. For a first-lien covered transaction with a loan amount greater than or equal to $124,331, 2.25 or more percentage points; B. For a first-lien covered transaction with a loan amount greater than or equal to $74,599 but less than $124,331, 3.5 or more percentage points; C. For a first-lien covered transaction with a loan amount less than $74,599, 6.5 or more percentage points; D. For a first-lien covered transaction secured by a manufactured home with a loan amount less than $124,331, 6.5 or more percentage points; E. For a subordinate-lien covered transaction with a loan amount greater than or equal to $74,599, 3.5 or more percentage points; F. For a subordinate-lien covered transaction with a loan amount less than $74,599, 6.5 or more percentage points. iii. For 2024, reflecting a 4.9 percent increase in the CPI-U that was reported on the preceding June 1, to satisfy § 1026.43(e)(2)(vi), the annual percentage rate may not exceed the average prime offer rate for a comparable transaction as of the date the interest rate is set by the following amounts: A. For a first-lien covered transaction with a loan amount greater than or equal to $130,461, 2.25 or more percentage points; B. For a first-lien covered transaction with a loan amount greater than or equal to $78,277 but less than $130,461, 3.5 or more percentage points; C. For a first-lien covered transaction with a loan amount less than $78,277, 6.5 or more percentage points; D. For a first-lien covered transaction secured by a manufactured home with a loan amount less than $130,461, 6.5 or more percentage points; E. For a subordinate-lien covered transaction with a loan amount greater than or equal to $78,277, 3.5 or more percentage points; F. For a subordinate-lien covered transaction with a loan amount less than $78,277, 6.5 or more percentage points. 4. *Determining the annual percentage rate for certain loans for which the interest rate may or will change.* i. *In general.* The commentary to § 1026.17(c)(1) and other provisions in subpart C address how to determine the annual percentage rate disclosures for closed-end credit transactions. Provisions in § 1026.32(a)(3) address how to determine the annual percentage rate to determine coverage under § 1026.32(a)(1)(i). Section 1026.43(e)(2)(vi) requires, for the purposes of § 1026.43(e)(2)(vi), a different determination of the annual percentage rate for a qualified mortgage under § 1026.43(e)(2) for which the interest rate may or will change within the first five years after the date on which the first regular periodic payment will be due. An identical special rule for determining the annual percentage rate for such a loan also applies for purposes of § 1026.43(b)(4). ii. *Loans for which the interest rate may or will change.* Section 1026.43(e)(2)(vi) includes a special rule for determining the annual percentage rate for a loan for which the interest rate may or will change within the first five years after the date on which the first regular periodic payment will be due. This rule applies to adjustable-rate mortgages that have a fixed-rate period of five years or less and to step-rate mortgages for which the interest rate changes within that five-year period. iii. *Maximum interest rate during the first five years.* For a loan for which the interest rate may or will change within the first five years after the date on which the first regular periodic payment will be due, a creditor must treat the maximum interest rate that could apply at any time during that five-year period as the interest rate for the full term of the loan to determine the annual percentage rate for purposes of § 1026.43(e)(2)(vi), regardless of whether the maximum interest rate is reached at the first or subsequent adjustment during the five-year period. For additional instruction on how to determine the maximum interest rate during the first five years after the date on which the first regular periodic payment will be due, see comments 43(e)(2)(iv)-3 and -4. iv. *Treatment of the maximum interest rate in determining the annual percentage rate.* For a loan for which the interest rate may or will change within the first five years after the date on which the first regular periodic payment will be due, the creditor must determine the annual percentage rate for purposes of § 1026.43(e)(2)(vi) by treating the maximum interest rate that may apply within the first five years as the interest rate for the full term of the loan. For example, assume an adjustable-rate mortgage with a loan term of 30 years and an initial discounted rate of 5.0 percent that is fixed for the first three years. Assume that the maximum interest rate during the first five years after the date on which the first regular periodic payment will be due is 7.0 percent. Pursuant to § 1026.43(e)(2)(vi), the creditor must determine the annual percentage rate based on an interest rate of 7.0 percent applied for the full 30-year loan term. 5. *Meaning of a manufactured home.* For purposes of § 1026.43(e)(2)(vi)(D), manufactured home means any residential structure as defined under regulations of the U.S. Department of Housing and Urban Development

(HUD)establishing manufactured home construction and safety standards (24 CFR 3280.2). Modular or other factory-built homes that do not meet the HUD code standards are not manufactured homes for purposes of § 1026.43(e)(2)(vi)(D). 6. *Scope of threshold for transactions secured by a manufactured home.* The threshold in § 1026.43(e)(2)(vi)(D) applies to first-lien covered transactions less than $110,260 (indexed for inflation) that are secured by a manufactured home and land, or by a manufactured home only. *Paragraph 43(e)(3)(ii).* 1. *Annual adjustment for inflation.* The dollar amounts, including the loan amounts, in § 1026.43(e)(3)(i) will be adjusted annually on January 1 by the annual percentage change in the CPI-U that was in effect on the preceding June 1. The Bureau will publish adjustments after the June figures become available each year. i. For 2015, reflecting a 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 transactions total points and fees do not exceed; A. For a loan amount greater than or equal to $101,953: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $61,172 but less than $101,953: $3,059; C. For a loan amount greater than or equal to $20,391 but less than $61,172: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $12,744 but less than $20,391; $1,020; E. For a loan amount less than $12,744: 8 percent of the total loan amount. ii. For 2016, reflecting a 0.2 percent decrease in the CPI-U that was reported on the preceding June 1, a covered transaction is not a qualified mortgage unless the transactions total points and fees do not exceed; A. For a loan amount greater than or equal to $101,749: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $61,050 but less than $101,749: $3,052; C. For a loan amount greater than or equal to $20,350 but less than $61,050: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $12,719 but less than $20,350; $1,017; E. For a loan amount less than $12,719: 8 percent of the total loan amount. iii. For 2017, reflecting a 1.1 percent increase in the CPI-U that was reported on the preceding June 1, a covered transaction is not a qualified mortgage unless the transactions total points and fees do not exceed: A. For a loan amount greater than or equal to $102,894: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $61,737 but less than $102,894: $3,087; C. For a loan amount greater than or equal to $20,579 but less than $61,737: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $12,862 but less than $20,579: $1,029; E. For a loan amount less than $12,862: 8 percent of the total loan amount. 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. v. For 2019, reflecting a 2.5 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 $107,747: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $64,648 but less than $107,747: $3,232; C. For a loan amount greater than or equal to $21,549 but less than $64,648: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $13,468 but less than $21,549: $1,077; E. For a loan amount less than $13,468: 8 percent of the total loan amount. vi. For 2020, reflecting a 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 $109,898: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $65,939 but less than $109,898: $3,297; C. For a loan amount greater than or equal to $21,980 but less than $65,939: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $13,737 but less than $21,980: $1,099; E. For a loan amount less than $13,737: 8 percent of the total loan amount. vii. For 2021, reflecting a 0.3 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 $110,260: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $66,156 but less than $110,260: $3,308; C. For a loan amount greater than or equal to $22,052 but less than $66,156: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $13,783 but less than $22,052: $1,103; E. For a loan amount less than $13,783: 8 percent of the total loan amount. viii. For 2022, reflecting a 4.2 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 $114,847: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $68,908 but less than $114,847: $3,445; C. For a loan amount greater than or equal to $22,969 but less than $68,908: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $14,356 but less than $22,969: $1,148; E. For a loan amount less than $14,356: 8 percent of the total loan amount. ix. For 2023, reflecting an 8.3 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 $124,331: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $74,599 but less than $124,331: $3,730; C. For a loan amount greater than or equal to $24,866 but less than $74,599: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $15,541 but less than $24,866: $1,243; E. For a loan amount less than $15,541: 8 percent of the total loan amount. x. For 2024, reflecting a 4.9 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 $130,461: 3 percent of the total loan amount; B. For a loan amount greater than or equal to $78,277 but less than $130,461: $3,914; C. For a loan amount greater than or equal to $26,092 but less than $78,277: 5 percent of the total loan amount; D. For a loan amount greater than or equal to $16,308 but less than $26,092: $1,305; E. For a loan amount less than $16,308: 8 percent of the total loan amount. Brian Shearer, Senior Advisor, Consumer Financial Protection Bureau. [FR Doc. 2023-20476 Filed 9-20-23; 8:45 am]

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