February 2023

 

Effective State Changes

 

New York

SB 4104A enacts the “Digital Fair Repair Act.” Signed into law by Governor Kathy Hochul on December 28, 2022, this new bill requires original equipment manufacturers to make diagnostic and repair information for digital electronic parts and equipment available to independent repair providers and consumers if such parts and information are provided to their own authorized repair providers. Effective December 28, 2023.

 

Ohio

SB 249 was signed into law on December 13, 2022. This bill creates a regulatory sandbox for novel financial services or products in the State of Ohio. Effective March 14, 2023.

 

 

Effective Federal Changes     

 

Consumer Financial Protection Bureau 

Threshold Adjustment for Determining Exempt Transactions Re: Special Appraisal Requirements for Higher-Risk Mortgages under Reg. Z.—The Consumer Financial Protection Bureau and the Federal Reserve Board issued final rules amending the Regulation Z provision implementing Section 129H of the Truth in Lending Act, which establishes special appraisal requirements for higher-risk mortgages, dubbed higher-priced mortgage loans (HPMLs). The threshold for exempting loans from special appraisal requirements for HPMLs increased to $31,000 for 2023, up from $28,500 for 2022. Loans under the threshold amount will not be subject to the special appraisal requirements, such as the creditor obtaining a written appraisal based on a physical visit to the interior of the home before making a higher-priced mortgage loan. Effective January 1, 2023.

Specific dollar threshold adjustments were announced through the Consumer Protection Financial Bureau. The CPFB 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 Equity Protection Act (“HOEPA”), among others, were announced and become effective January 1, 2023.

 

HOEPA Annual Threshold Adjustments

• The adjusted total amount of the loan threshold will be $24,866, up from $22,969
• The adjusted points and fees trigger will be $1,243, up from $1,148

 

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 $15,541
• $1,243 for loans greater than or equal to $15,541 but less than $24,866
• 5% of total loan amount for loans greater than or equal to $24,866 but less than $74,599
• $3,730 for loans greater than or equal to $74,599 but less than $124,331
• 3% of total loan amount for loans greater than or equal to $124,331

 

 

In Case You Missed It     

 

Illinois 

The document preparation fee in the State of Illinois increased to $347.26. Effective January 1, 2023.

 

Michigan

The document preparation fee in the State of Michigan has been adjusted to be the lesser of $260 or 5% of the cash price for 2023 and 2024. Effective January 13, 2023.

 

Pennsylvania

The document preparation fee in the State of Pennsylvania for 2023 increased to $449 for electronic filings and $374 for non-electronic filings. Effective January 1, 2023.