In the June 27, 2016, issue of the Federal Register (81 FR 41418), click here, the Consumer Financial Protection Bureau established the following 2017 thresholds for high-cost and qualified mortgages under §§1026.32 and 1026.43, respectively. HOEPA (High-cost Mortgages) 2017 Threshold Adjustments • Effective January 1, 2017, a consumer loan secured by the consumer’s principal dwelling and not otherwise exempt is a high-cost mortgage based on the total points and fees payable by the consumer under §1026.32(a)(1)(ii) if the points and fees exceed: (A) 5 percent of the total loan amount for a loan with a loan amount of $20,579 or more, or (B) the lesser of 8 percent of the total loan amount or $1,029 for a loan with a loan amount of less than $20,579. Comment 32(a)(1)(ii)-1.iii is added to reflect the new $1,029 threshold amount for 2017. Comment 32(a)(1)(ii)-3.iii is added to reflect the new $20, 579 threshold loan amount for 2017. Qualified Mortgages 2017 Threshold Adjustments • Effective January 1, 2017, for purposes of determining whether a covered transaction is a qualified mortgage under §1026.43(e), a covered transaction is not a qualified mortgage unless the transaction’s total points and fees in §1026.43(e)(3)(i) do not exceed: (A) 3 percent of the total loan amount for a loan amount greater than or equal to $102,894; (B) $3,087 for a loan amount greater than or equal to $61,737 but less than $102,894; (C) 5 percent of the total loan amount for a loan amount greater than or equal to $20,579 but less than $61,737; (D) $1,029 for a loan amount greater than or equal to $12,862 but less than $20,579; and (E) 8 percent of the total loan amount for a loan amount less than $12,862. Comment 43(e)(3)(ii)-1.iii is added to reflect the new threshold amounts for 2017. The above threshold adjustments are effective January 1, 2017, and will require updates to your software calculations for high-cost and qualified mortgages closing on and after the effective date.