November 2024

 

Effective State Changes

 

TEXAS

The Texas Office of Consumer Credit Commissioner has released two new sets of regulations aimed at the motor vehicle finance space. TRD-202403782 and TRD-202405041 revise and create new responsibilities for Texas businesses involved with motor vehicle sales financing and motor vehicle installment sales, respectively. The new regulations involve licensing requirements, recordkeeping provisions, and examination procedures. Effective November 14, 2024.

 

WASHINGTON D.C.

D. C. Act 25-558 was signed into law on October 7, 2024. The bill enacts the New Student Loan Borrower Bill of Rights Amendment Act of 2024. Effective November 6, 2024, following a 30-day period for Congressional review.

 

 

Effective Federal Changes     

 

CONSUMER FINANCIAL PROTECTION BUREAU

Specific dollar threshold adjustments were announced by the Consumer Financial Protection Bureau (“CFPB”). The CFPB is required to make adjustments to dollar thresholds based on annual changes in the Consumer Price Index. Updates to the Ability to Repay/ Qualified Mortgage Rule, (“ATR/QM”) and Home Ownership and Equity Protection Act (“HOEPA”), among others, were announced and become effective January 1, 2025.

 

HOEPA Annual Threshold Adjustments:

• The adjusted total amount of the loan threshold will be $26,968, up from $26,092
• The adjusted points-and-fees dollar trigger will be $1,348, up from $1,305

 

ATR/QM Threshold Adjustments - To meet qualified mortgage criteria, the combined points and fees cannot exceed the following:

• 8% of total loan amount for loans less than $16,855
• $1,348 for loans greater than or equal to $16,855 but less than $26,968
• 5% of total loan amount for loans greater than or equal to $26,968 but less than $80,905
• $4,045 for loans greater than or equal to $80,905 but less than $134,841
• 3% of total loan amount for loans greater than or equal to $134,841