HOEPA places restrictions on credit terms and requires additional disclosures when the total points and fees payable by a consumer at or before loan consummation exceed the larger of $400 or 8 percent of the total loan. The Federal Reserve is required to adjust the $400 figure every January 1 based on the annual percentage change in the Consumer Price Index reported the preceding June 1.

This figure has been adjusted to $561 for 2008. The adjustment will have no effect on the new rules adopted by the Federal Reserve in July for “higher-priced mortgage loans.” The adjustment will become effective on January 1, 2009.