January 2025Transmittal 527
Effective: 1/1/2025
Monetary Policy and Reserve Requirements
Regulation D
The Board amended Regulation D to reflect
the annual indexing of the reserve requirement exemption amount and
the low reserve tranche for 2025.
More...
The annual indexation of these
amounts is required notwithstanding the Board’s action in March 2020
of setting all reserve requirement ratios to zero. The Board is amending
Regulation D to set the reserve requirement exemption amount at $37.8
million (increased from $36.1 million in 2024) and the amount of the
low reserve tranche at $645.8 million (increased from $644.0 million
in 2024). The adjustments to both of these amounts are derived using
statutory formulas specified in the Federal Reserve Act. The annual
indexation of the reserve requirement exemption amount and low reserve
tranche is required by statute but will not affect depository institutions’
reserve requirements, which will remain zero. The final rule is effective
December 20, 2024 (Regulation D, Docket R–1848) and was published in the Federal Register on November 20, 2024.
The new exemption amount and low reserve tranche will apply beginning
January 1, 2025.Banks and
Banking
Regulation I
The Board
issued a final rule that applies an inflation adjustment to the threshold
for total consolidated assets in Regulation I. Federal Reserve Bank
stockholders that have total consolidated assets above the threshold
receive a different dividend rate on their Reserve Bank stock than
stockholders with total consolidated assets at or below the threshold.
More...
The Federal Reserve
Act requires that the Board annually adjust the total consolidated
asset threshold to reflect the change in the Gross Domestic Product
Price Index, published by the Bureau of Economic Analysis. Based on
the change in the Gross Domestic Product Price Index as of September
26, 2024, the total consolidated asset threshold will be $12,841,000,000
through December 31, 2025. The final rule is effective December 12,
2024 (Regulation I, Docket R–1844) and was published in the Federal Register on November 12, 2024.
The adjusted threshold for total consolidated assets will apply beginning
January 1, 2025.Consumer and Community Affairs
Regulation M and CFPB’s Regulation M
The
Board and the Consumer Financial Protection Bureau (CFPB) finalized
amendments to the official interpretations and commentary for the
agencies’ regulations that implement the Consumer Leasing Act (CLA).
More...
The Dodd-Frank
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended
the CLA by requiring that the dollar threshold for exempt consumer
leases be adjusted annually by the annual percentage increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W).
Based on the annual percentage increase in the CPI–W as of June 1,
2024, the exemption threshold will increase from $69,500 to $71,900.
The final rule is effective January 1, 2025 (Regulation M and Consumer Financial Protection Bureau, Regulation M, Docket R–1842) and was published in the Federal Register on October 15, 2024.Regulation Z and CFPB’s Regulation Z
The Board, the
CFPB, and the Office of the Comptroller of the Currency finalized
amendments to the official interpretations for their regulations that
implement section 129H of the Truth in Lending Act (TILA).
More...
Section 129H of
TILA establishes special appraisal requirements for “higher-risk mortgages,”
termed “higher-priced mortgage loans” or HPMLs in the agencies’ regulations.
A December 2013 rulemaking exempted transactions of $25,000 or less
and required that this loan amount be adjusted annually based on any
annual percentage increase in the CPI–W. Based on the CPI–W in effect
as of June 1, 2024, the exemption threshold will increase from $32,400
to $33,500. The final rule is effective January 1, 2025 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R–1841) and was published in the Federal Register on October 15, 2024.The Board
and the CFPB are amending the official interpretations and commentary
for the agencies’ regulations that implement TILA.
More...
The Dodd-Frank Act amended TILA
by requiring that the dollar threshold for exempt consumer credit
transactions be adjusted annually by the annual percentage increase
in the CPI–W. Based on the annual percentage increase in the CPI–W
as of June 1, 2024, the exemption threshold will increase from $69,500
to $71,900. The final rule is effective January 1, 2025 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R–1843) and was published in the Federal Register on October 15, 2024.CFPB’s Regulation Z
The CFPB is amending the official
interpretations for Regulation Z, which implements TILA.
More...
The CFPB calculates
the dollar amounts for several provisions in Regulation Z annually;
this final rule revises the amounts for provisions implementing TILA
and its amendments, including under the Home Ownership and Equity
Protection Act of 1994 (HOEPA) and the Dodd-Frank Act. The CFPB adjusts
these amounts based on the annual percentage change of the Consumer
Price Index in effect on June 1, 2024. The final rule is effective
January 1, 2025 (Consumer Financial Protection Bureau, Regulation Z) and was published in the Federal Register on December 2, 2024.CFPB’s Regulation V
The CFPB is amending Regulation
V, which implements the Fair Credit Reporting Act (FCRA).
More...
The CFPB is required
to calculate annually the dollar amount of the maximum allowable charge
for disclosures by a consumer reporting agency to a consumer pursuant
to section 609 of the FCRA (15 U.S.C. 1681g); this final rule establishes
the maximum allowable charge for the 2025 calendar year. The final
rule is effective January 1, 2025 (Consumer Financial Protection Bureau, Regulation V) and was published in the Federal Register on November 29, 2024.