Fed adjusts fee rate disclosure trigger

Northwestern Financial Review, Sep 15-Sep 30, 2003

>The Federal Reserve Board announced that the new trigger for additional Truth in Lending Act disclosures for home mortgages "will be fees of $499, effective Jan. 1. The Federal Reserve adjusts the trigger each year based on the Consumer Price Index. 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 paid by consumers exceed the fee-based trigger or 8 percent of the total loan amount, whichever is larger.