12 CFR § 1026.3 Exempt Transactions
12 CFR § 1026.3 of Truth in Lending Act (TILA) and Regulation Z outlines categories of credit transactions that are exempt from some or all of the regulation's requirements. While the truth-in-lending-act (TILA) generally covers consumer credit transactions, loans secured by real property or a consumer's principal dwelling, and private education loans are covered by TILA regardless of the loan amount.
However, certain transactions are specifically exempted. For example, specific disclosure requirements related to TILA sections 128(a)(16)-(19), 128(b)(4), 129C(f)(1), 129C(g)(2)-(3), 129D(h), or 129D(j)(1)(A), and RESPA section 4(c) are not required except in transactions subject to 12-cfr-1026-19-e-and-f (which mandates the loan-estimate and closing-disclosure).
Annual Adjustments to Dollar Thresholds
The dodd-frank-act mandated annual adjustments to the dollar threshold for certain exempt consumer credit transactions. These adjustments are based on the Consumer Price Index for Urban Wage Earners (CPI-W) to account for inflation. MLOs must be aware of these annually updated thresholds to correctly determine which transactions are subject to full Regulation Z requirements and which qualify for exemptions.
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