NEWS: The Consumer Financial Protection Bureau (CFPB) released its annual updates to three threshold dollar figures that are important for credit unions with credit card and mortgage loan programs. The new figures go into effect Jan. 1, 2026. Please see the final rule for details.
CARD Act
During 2010, a number of Reg. Z rules took effect under the Credit Card Accountability, Responsibility, and Disclosure Act (the CARD Act). Among other things, the rules require the CFPB to calculate annual adjustments of the minimum interest charge threshold that triggers disclosure of the minimum interest charge in credit card applications, solicitations and account opening disclosures. Its calculations did not result in a change for 2026 to the current minimum interest charge threshold (which requires disclosure of any minimum interest charge above $1.00).
HOEPA triggers
As explained in The League’s ii Release No. B062, certain “high-cost” mortgage loans are subject to the Home Ownership and Equity Protection Act (HOEPA) rules in Reg. Z. Whether a mortgage loan is “high-cost” depends on three separate tests, based on the loan’s annual percentage rate, its points and fees, and the prepayment penalties that may be charged.
The CFPB has now increased the thresholds used in the points-and-fees test.
In 2026, a loan will be a high-cost mortgage if its points and fees exceed either of the following thresholds:
- 5% of the total loan amount for a loan amount greater than or equal to $27,592; or
- 8% of the total loan amount or $1,380 (whichever is less) for a loan amount less than $27,592.
Qualified mortgage points-and-fees caps
As explained in The League’s ii Release No. B074, certain mortgage loans are presumed to comply with the ability-to-repay rules if they are “qualified mortgages” (QMs).
The rule sets pricing thresholds based on the spread of a loan’s annual percentage rate (APR) compared to the average prime offer rate (APOR) for a comparable transaction as of the date the interest rate is set.
To satisfy the General QM loan definition, a loan’s APR must be below the applicable pricing threshold and must satisfy certain other requirements. In 2026, for QMs under the General QM loan definition, the thresholds for the spread between the APR and APOR will be:
- 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $137,958;
- 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $82,775 but less than $137,958;
- 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $82,775;
- 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $137,958;
- 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $82,775; or
- 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $82,775.
In addition, a mortgage cannot be a QM if its points and fees are beyond certain thresholds. In 2026, for all categories of QMs, the thresholds for total points and fees will be:
- 3 percent of the total loan amount for a loan greater than or equal to $137,958;
- $4,139 for a loan amount greater than or equal to $82,775 but less than $137,958;
- 5 percent of the total loan amount for a loan greater than or equal to $27,592 but less than $82,775;
- $1,380 for a loan amount greater than or equal to $17,245 but less than $27,592; and
- 8 percent of the total loan amount for a loan amount less than $17,245.