December 2025

 

Effective State Changes

 

CALIFORNIA

Governor Gavin Newsom signed Senate Bill 825 into law on October 6, 2025. This bill allows the California Department of Financial Protection and Innovation to bring deceptive or abusive acts or practices enforcement actions under the California Consumer Financial Protection Law. Effective January 1, 2026.

 

ILLINOIS

The document preparation fee in the State of Illinois will increase from $367.70 to $377.63 in 2026. Effective January 1, 2026.

 

NEW YORK

New York enacted SB 8408, which expands the Department of Financial Services’ (“DFS”) authority to impose civil penalties on any person or company engaging in regulated financial activities without proper licensing. The law applies to all regulated financial activities under the New York Financial Services Law, extends civil penalties to unlicensed entities, and authorizes DFS to impose enhanced penalties when consumer harm occurs and restitution for any unlicensed activity. Effective December 5, 2025.

 

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 effective January 1 each year based on any annual percentage increase in the Consumer Price Index as of June 1 of the preceding year.

Updates to the Home Ownership and Equity Protection Act (“HOEPA”) and Ability to Repay/Qualified Mortgage Rule (“ATR/QM”), among others, were announced and become effective January 1, 2026.

 

HOEPA Annual Threshold Adjustments:

• The adjusted total amount of the loan threshold will be $27,592, up from $26,968

• The adjusted points-and-fees dollar trigger will be $1,380, up from $1,348

 

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 $17,245

• $1,380 for loans greater than or equal to $17,245 but less than $27,592

• 5% of total loan amount for loans greater than or equal to $27,592 but less than $82,775

• $4,139 for loans greater than or equal to $82,775 but less than $137,958

• 3% of total loan amount for loans greater than or equal to $137,958

 

CFPB ANNUAL REGULATION M & Z ADJUSTMENTS

The Consumer Financial Protection Bureau published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For 2026, the exemption threshold amount for Regulation M and Z will increase from $71,900 to $73,400. Effective January 1, 2026.

 

 

Reminders

 

MAINE

Maine added a $1 fee for electronic lien titling transactions and raised the temporary plate fee to $2. Effective January 1, 2026.

 

OHIO

The Documentary Service charge increases to $398.00. Effective January 1, 2026.

The Prima Facie Credit Insurance rates have been adjusted. Effective January 1, 2026.

 

SOUTH CAROLINA

The Prima Facie Credit Insurance rates were released on October 1, 2025. Effective January 1, 2026.