source:
  type: regulation
  id: reg-z-1026.32
  authority: 12 CFR §1026.32 — Requirements for high-cost mortgages (HOEPA)
  description: 'Regulation Z §1026.32 implements HOEPA: coverage tests for high-cost mortgages, definitions,
    pre-consummation special disclosures, and prohibited terms.'
obligations:
- id: reg-z-1026.32-a
  canonical_id: reg-z-1026.32-a
  section: 12 CFR §1026.32(a)
  description: '(a): (a) Coverage. (1) The requirements of this section apply to a high-cost mortgage,
    which is any consumer credit transaction that is secured by the consumer ''s principal dwelling ,
    other than as provided in paragraph (a)(2) of this section, and in which:'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(a) Coverage. (1) The requirements of this section apply to a high-cost mortgage,
      which is any consumer credit transaction that is secured by the consumer ''s principal dwelling
      , other than as provided in paragraph (a)(2) of this section, and in which:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) The annual percentage rate applicable to the transaction, as determined in accordance
    with paragraph (a)(3) of this section, will exceed the average prime offer rate, as defined in § 1026.35(a)(2),
    for a comparable transaction by more than: (A) 6.5 percentage points for a first-lien transaction,…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(i) The annual percentage rate applicable to the transaction, as determined in accordance
      with paragraph (a)(3) of this section, will exceed the average prime offer rate, as defined in §
      1026.35(a)(2), for a comparable transaction by more than: (A) 6.5 percentage points for a first-lien
      transaction, other than as described in paragraph (a)(1)(i)(B) of this section; (B) 8.5 percentage
      points for a first-lien transaction if the dwelling is personal property and the loan amount is
      less than $50,000; or (C) 8.5 percentage points for a subordinate-lien transaction; or (ii) The
      transaction''s total points and fees, as defined in paragraphs (b)(1) and (2) of this section, will
      exceed: (A) 5 percent of the total loan amount for a transaction with a loan amount of $20,000 or
      more; the $20,000 figure shall be adjusted annually on January 1 by the annual percentage change
      in the Consumer Price Index that was reported on the preceding June 1; or (B) The lesser of 8 percent
      of the total loan amount or $1,000 for a transaction with a loan amount of less than $20,000; the
      $1,000 and $20,000 figures shall be adjusted annually on January 1 by the annual percentage change
      in the Consumer Price Index that was reported on the preceding June 1; or (iii) Under the terms
      of the loan contract or open-end credit agreement, the creditor can charge a prepayment penalty,
      as defined in paragraph (b)(6) of this section, more than 36 months after consummation or account
      opening, or prepayment penalties that can exceed, in total, more than 2 percent of the amount prepaid.
      (2) Exemptions. This section does not apply to the following:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) A reverse mortgage transaction subject to § 1026.33 ; (ii) A transaction to finance
    the initial construction of a dwelling ; (iii) A transaction originated by a Housing Finance Agency,
    where the Housing Finance Agency is the creditor for the transaction; or (iv) A transaction originated
    pursuant…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(i) A reverse mortgage transaction subject to § 1026.33 ; (ii) A transaction to
      finance the initial construction of a dwelling ; (iii) A transaction originated by a Housing Finance
      Agency, where the Housing Finance Agency is the creditor for the transaction; or (iv) A transaction
      originated pursuant to the United States Department of Agriculture ''s Rural Development Section
      502 Direct Loan Program. (3) Determination of annual percentage rate. For purposes of paragraph
      (a)(1)(i) of this section, a creditor shall determine the annual percentage rate for a closed- or
      open-end credit transaction based on the following:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) For a transaction in which the annual percentage rate will not vary during the
    term of the loan or credit plan, the interest rate in effect as of the date the interest rate for
    the transaction is set; (ii) For a transaction in which the interest rate may vary during the term
    of the loan or credi…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: (i) For a transaction in which the annual percentage rate will not vary during the
      term of the loan or credit plan, the interest rate in effect as of the date the interest rate for
      the transaction is set; (ii) For a transaction in which the interest rate may vary during the term
      of the loan or credit plan in accordance with an index, the interest rate that results from adding
      the maximum margin permitted at any time during the term of the loan or credit plan to the value
      of the index rate in effect as of the date the interest rate for the transaction is set, or the
      introductory interest rate, whichever is greater; and (iii) For a transaction in which the interest
      rate may or will vary during the term of the loan or credit plan, other than a transaction described
      in paragraph (a)(3)(ii) of this section, the maximum interest rate that may be imposed during the
      term of the loan or credit plan.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-b
  canonical_id: reg-z-1026.32-b
  section: 12 CFR §1026.32(b)
  description: '(b): (b) Definitions. For purposes of this subpart, the following definitions apply: (1)
    In connection with a closed-end credit transaction, points and fees means the following fees or charges
    that are known at or before consummation:'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(b) Definitions. For purposes of this subpart, the following definitions apply:
      (1) In connection with a closed-end credit transaction, points and fees means the following fees
      or charges that are known at or before consummation:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) All items included in the finance charge under § 1026.4(a) and (b) , except that
    the following items are excluded: (A) Interest or the time-price differential; (B) Any premium or
    other charge imposed in connection with any Federal or State agency program for any guaranty or insurance
    that protec…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(i) All items included in the finance charge under § 1026.4(a) and (b) , except
      that the following items are excluded: (A) Interest or the time-price differential; (B) Any premium
      or other charge imposed in connection with any Federal or State agency program for any guaranty
      or insurance that protects the creditor against the consumer ''s default or other credit loss; (C)
      For any guaranty or insurance that protects the creditor against the consumer ''s default or other
      credit loss and that is not in connection with any Federal or State agency program: (1) If the premium
      or other charge is payable after consummation, the entire amount of such premium or other charge;
      or (2) If the premium or other charge is payable at or before consummation, the portion of any such
      premium or other charge that is not in excess of the amount payable under policies in effect at
      the time of origination under section 203(c)(2)(A) of the National Housing Act ( 12 U.S.C. 1709(c)(2)(A)
      ), provided that the premium or charge is required to be refundable on a pro rata basis and the
      refund is automatically issued upon notification of the satisfaction of the underlying mortgage
      loan; (D) Any bona fide third-party charge not retained by the creditor, loan originator, or an
      affiliate of either, unless the charge is required to be included in points and fees under paragraph
      (b)(1)(i)(C), (iii), or (iv) of this section; (E) Up to two bona fide discount points paid by the
      consumer in connection with the transaction, if the interest rate without any discount does not
      exceed: (1) The average prime offer rate, as defined in § 1026.35(a)(2), by more than one percentage
      point; or (2) For purposes of paragraph (a)(1)(ii) of this section, for transactions that are secured
      by personal property, the average rate for a loan insured under Title I of the National Housing
      Act ( 12 U.S.C. 1702 et seq. ) by more than one percentage point; and (F) If no discount points
      have been excluded under paragraph (b)(1)(i)(E) of this section, then up to one bona fide discount
      point paid by the consumer in connection with the transaction, if the interest rate without any
      discount does not exceed: (1) The average prime offer rate, as defined in § 1026.35(a)(2), by more
      than two percentage points; or (2) For purposes of paragraph (a)(1)(ii) of this section, for transactions
      that are secured by personal property, the average rate for a loan insured under Title I of the
      National Housing Act ( 12 U.S.C. 1702 et seq. ) by more than two percentage points; (ii) All compensation
      paid directly or indirectly by a consumer or creditor to a loan originator, as defined in § 1026.36(a)(1)
      , that can be attributed to that transaction at the time the interest rate is set unless: (A) That
      compensation is paid by a consumer to a mortgage broker, as defined in § 1026.36(a)(2) , and already
      has been included in points and fees under paragraph (b)(1)(i) of this section; (B) That compensation
      is paid by a mortgage broker, as defined in § 1026.36(a)(2) , to a loan originator that is an employee
      of the mortgage broker; (C) That compensation is paid by a creditor to a loan originator that is
      an employee of the creditor; or (D) That compensation is paid by a retailer of manufactured homes
      to its employee. (iii) All items listed in § 1026.4(c)(7) (other than amounts held for future payment
      of taxes), unless: (A) The charge is reasonable; (B) The creditor receives no direct or indirect
      compensation in connection with the charge; and (C) The charge is not paid to an affiliate of the
      creditor; (iv) Premiums or other charges payable at or before consummation for any credit life,
      credit disability, credit unemployment, or credit property insurance, or any other life, accident,
      health, or loss-of-income insurance for which the creditor is a beneficiary, or any payments directly
      or indirectly for any debt cancellation or suspension agreement or contract;'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-v
  canonical_id: reg-z-1026.32-v
  section: 12 CFR §1026.32(v)
  description: '(v): (v) The maximum prepayment penalty, as defined in paragraph (b)(6)(i) of this section,
    that may be charged or collected under the terms of the mortgage loan; and (vi) The total prepayment
    penalty, as defined in paragraph (b)(6)(i) or (ii) of this section, as applicable, incurred by the
    consumer if t…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(v) The maximum prepayment penalty, as defined in paragraph (b)(6)(i) of this section,
      that may be charged or collected under the terms of the mortgage loan; and (vi) The total prepayment
      penalty, as defined in paragraph (b)(6)(i) or (ii) of this section, as applicable, incurred by the
      consumer if the consumer refinances the existing mortgage loan, or terminates an existing open-end
      credit plan in connection with obtaining a new mortgage loan, with the current holder of the existing
      loan or plan, a servicer acting on behalf of the current holder, or an affiliate of either. (2)
      In connection with an open-end credit plan, points and fees means the following fees or charges
      that are known at or before account opening:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) All items included in the finance charge under § 1026.4(a) and (b) , except that
    the following items are excluded: (A) Interest or the time-price differential; (B) Any premium or
    other charge imposed in connection with any Federal or State agency program for any guaranty or insurance
    that protec…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(i) All items included in the finance charge under § 1026.4(a) and (b) , except
      that the following items are excluded: (A) Interest or the time-price differential; (B) Any premium
      or other charge imposed in connection with any Federal or State agency program for any guaranty
      or insurance that protects the creditor against the consumer ''s default or other credit loss; (C)
      For any guaranty or insurance that protects the creditor against the consumer ''s default or other
      credit loss and that is not in connection with any Federal or State agency program: (1) If the premium
      or other charge is payable after account opening, the entire amount of such premium or other charge;
      or (2) If the premium or other charge is payable at or before account opening, the portion of any
      such premium or other charge that is not in excess of the amount payable under policies in effect
      at the time of account opening under section 203(c)(2)(A) of the National Housing Act ( 12 U.S.C.
      1709(c)(2)(A) ), provided that the premium or charge is required to be refundable on a pro rata
      basis and the refund is automatically issued upon notification of the satisfaction of the underlying
      mortgage transaction; (D) Any bona fide third-party charge not retained by the creditor, loan originator,
      or an affiliate of either, unless the charge is required to be included in points and fees under
      paragraphs (b)(2)(i)(C), (b)(2)(iii) or (b)(2)(iv) of this section; (E) Up to two bona fide discount
      points payable by the consumer in connection with the transaction, provided that the conditions
      specified in paragraph (b)(1)(i)(E) of this section are met; and (F) Up to one bona fide discount
      point payable by the consumer in connection with the transaction, provided that no discount points
      have been excluded under paragraph (b)(2)(i)(E) of this section and the conditions specified in
      paragraph (b)(1)(i)(F) of this section are met; (ii) All compensation paid directly or indirectly
      by a consumer or creditor to a loan originator, as defined in § 1026.36(a)(1) , that can be attributed
      to that transaction at the time the interest rate is set unless: (A) That compensation is paid by
      a consumer to a mortgage broker, as defined in § 1026.36(a)(2) , and already has been included in
      points and fees under paragraph (b)(2)(i) of this section; (B) That compensation is paid by a mortgage
      broker, as defined in § 1026.36(a)(2) , to a loan originator that is an employee of the mortgage
      broker; (C) That compensation is paid by a creditor to a loan originator that is an employee of
      the creditor; or (D) That compensation is paid by a retailer of manufactured homes to its employee.
      (iii) All items listed in § 1026.4(c)(7) (other than amounts held for future payment of taxes) unless:
      (A) The charge is reasonable; (B) The creditor receives no direct or indirect compensation in connection
      with the charge; and (C) The charge is not paid to an affiliate of the creditor; (iv) Premiums or
      other charges payable at or before account opening for any credit life, credit disability, credit
      unemployment, or credit property insurance, or any other life, accident, health, or loss-of-income
      insurance for which the creditor is a beneficiary, or any payments directly or indirectly for any
      debt cancellation or suspension agreement or contract;'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-v
  canonical_id: reg-z-1026.32-v
  section: 12 CFR §1026.32(v)
  description: '(v): (v) The maximum prepayment penalty, as defined in paragraph (b)(6)(ii) of this section,
    that may be charged or collected under the terms of the open-end credit plan; (vi) The total prepayment
    penalty, as defined in paragraph (b)(6)(i) or (ii) of this section, as applicable, incurred by the
    consumer …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: (v) The maximum prepayment penalty, as defined in paragraph (b)(6)(ii) of this section,
      that may be charged or collected under the terms of the open-end credit plan; (vi) The total prepayment
      penalty, as defined in paragraph (b)(6)(i) or (ii) of this section, as applicable, incurred by the
      consumer if the consumer refinances an existing closed-end credit transaction with an open-end credit
      plan, or terminates an existing open-end credit plan in connection with obtaining a new open-end
      credit plan, with the current holder of the existing transaction or plan, a servicer acting on behalf
      of the current holder, or an affiliate of either; (vii) Any fees charged for participation in an
      open-end credit plan, payable at or before account opening, as described in § 1026.4(c)(4) ; and
      (viii) Any transaction fee, including any minimum fee or per-transaction fee, that will be charged
      for a draw on the credit line, where the creditor must assume that the consumer will make at least
      one draw during the term of the plan. (3) Bona fide discount point —(i) Closed-end credit. The term
      bona fide discount point means an amount equal to 1 percent of the loan amount paid by the consumer
      that reduces the interest rate or time-price differential applicable to the transaction based on
      a calculation that is consistent with established industry practices for determining the amount
      of reduction in the interest rate or time-price differential appropriate for the amount of discount
      points paid by the consumer . (ii) Open-end credit. The term bona fide discount point means an amount
      equal to 1 percent of the credit limit for the plan when the account is opened, paid by the consumer
      , and that reduces the interest rate or time-price differential applicable to the transaction based
      on a calculation that is consistent with established industry practices for determining the amount
      of reduction in the interest rate or time-price differential appropriate for the amount of discount
      points paid by the consumer . See comment 32(b)(3)(i)-1 for additional guidance in determining whether
      a discount point is bona fide. (4) Total loan amount —(i) Closed-end credit. The total loan amount
      for a closed-end credit transaction is calculated by taking the amount financed, as determined according
      to § 1026.18(b) , and deducting any cost listed in § 1026.32(b)(1)(iii) , (iv), or (vi) that is
      both included as points and fees under § 1026.32(b)(1) and financed by the creditor. (ii) Open-end
      credit. The total loan amount for an open-end credit plan is the credit limit for the plan when
      the account is opened. (5) Affiliate means any company that controls , is controlled by, or is under
      common control with another company , as set forth in the Bank Holding Company Act of 1956 ( 12
      U.S.C. 1841 et seq. ). (6) Prepayment penalty —(i) Closed-end credit transactions. For a closed-end
      credit transaction, prepayment penalty means a charge imposed for paying all or part of the transaction's
      principal before the date on which the principal is due, other than a waived, bona fide third-party
      charge that the creditor imposes if the consumer prepays all of the transaction's principal sooner
      than 36 months after consummation, provided, however, that interest charged consistent with the
      monthly interest accrual amortization method is not a prepayment penalty for extensions of credit
      insured by the Federal Housing Administration that are consummated before January 21, 2015. (ii)
      Open-end credit. For an open-end credit plan, prepayment penalty means a charge imposed by the creditor
      if the consumer terminates the open-end credit plan prior to the end of its term, other than a waived,
      bona fide third-party charge that the creditor imposes if the consumer terminates the open-end credit
      plan sooner than 36 months after account opening.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-c
  canonical_id: reg-z-1026.32-c
  section: 12 CFR §1026.32(c)
  description: '(c): (c) Disclosures. In addition to other disclosures required by this part, in a mortgage
    subject to this section, the creditor shall disclose the following in conspicuous type size: (1) Notices.
    The following statement: “You are not required to complete this agreement merely because you have
    received …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(c) Disclosures. In addition to other disclosures required by this part, in a mortgage
      subject to this section, the creditor shall disclose the following in conspicuous type size: (1)
      Notices. The following statement: “You are not required to complete this agreement merely because
      you have received these disclosures or have signed a loan application. If you obtain this loan,
      the lender will have a mortgage on your home. You could lose your home, and any money you have put
      into it, if you do not meet your obligations under the loan.” (2) Annual percentage rate. The annual
      percentage rate. (3) Regular payment; minimum periodic payment example; balloon payment.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) For a closed-end credit transaction, the amount of the regular monthly (or other
    periodic) payment and the amount of any balloon payment provided in the credit contract, if permitted
    under paragraph (d)(1) of this section. The regular payment disclosed under this paragraph shall be
    treated as ac…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(i) For a closed-end credit transaction, the amount of the regular monthly (or other
      periodic) payment and the amount of any balloon payment provided in the credit contract, if permitted
      under paragraph (d)(1) of this section. The regular payment disclosed under this paragraph shall
      be treated as accurate if it is based on an amount borrowed that is deemed accurate and is disclosed
      under paragraph (c)(5) of this section. (ii) For an open-end credit plan: (A) An example showing
      the first minimum periodic payment for the draw period, the first minimum periodic payment for any
      repayment period, and the balance outstanding at the beginning of any repayment period. The example
      must be based on the following assumptions: (1) The consumer borrows the full credit line, as disclosed
      in paragraph (c)(5) of this section, at account opening and does not obtain any additional extensions
      of credit; (2) The consumer makes only minimum periodic payments during the draw period and any
      repayment period; and (3) The annual percentage rate used to calculate the example payments remains
      the same during the draw period and any repayment period. The creditor must provide the minimum
      periodic payment example based on the annual percentage rate for the plan, as described in paragraph
      (c)(2) of this section, except that if an introductory annual percentage rate applies, the creditor
      must use the rate that will apply to the plan after the introductory rate expires. (B) If the credit
      contract provides for a balloon payment under the plan as permitted under paragraph (d)(1) of this
      section, a disclosure of that fact and an example showing the amount of the balloon payment based
      on the assumptions described in paragraph (c)(3)(ii)(A) of this section. (C) A statement that the
      example payments show the first minimum periodic payments at the current annual percentage rate
      if the consumer borrows the maximum credit available when the account is opened and does not obtain
      any additional extensions of credit, or a substantially similar statement. (D) A statement that
      the example payments are not the consumer ''s actual payments and that the actual minimum periodic
      payments will depend on the amount the consumer borrows, the interest rate applicable to that period,
      and whether the consumer pays more than the required minimum periodic payment, or a substantially
      similar statement. (4) Variable-rate. For variable-rate transactions, a statement that the interest
      rate and monthly payment may increase, and the amount of the single maximum monthly payment, based
      on the maximum interest rate required to be included in the contract by § 1026.30 . (5) Amount borrowed;
      credit limit.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) For a closed-end credit transaction, the total amount the consumer will borrow,
    as reflected by the face amount of the note. Where the amount borrowed includes financed charges that
    are not prohibited under § 1026.34(a)(10) , that fact shall be stated, grouped together with the disclosure
    of the…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: (i) For a closed-end credit transaction, the total amount the consumer will borrow,
      as reflected by the face amount of the note. Where the amount borrowed includes financed charges
      that are not prohibited under § 1026.34(a)(10) , that fact shall be stated, grouped together with
      the disclosure of the amount borrowed. The disclosure of the amount borrowed shall be treated as
      accurate if it is not more than $100 above or below the amount required to be disclosed. (ii) For
      an open-end credit plan, the credit limit for the plan when the account is opened.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-d
  canonical_id: reg-z-1026.32-d
  section: 12 CFR §1026.32(d)
  description: '(d): (d) Limitations. A high-cost mortgage shall not include the following terms: (1)'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(d) Limitations. A high-cost mortgage shall not include the following terms: (1)'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) Balloon payment. Except as provided by paragraphs (d)(1)(ii) and (iii) of this
    section, a payment schedule with a payment that is more than two times a regular periodic payment.
    (ii) Exceptions. The limitations in paragraph (d)(1)(i) of this section do not apply to: (A) A mortgage
    transaction wi…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: '(i) Balloon payment. Except as provided by paragraphs (d)(1)(ii) and (iii) of this
      section, a payment schedule with a payment that is more than two times a regular periodic payment.
      (ii) Exceptions. The limitations in paragraph (d)(1)(i) of this section do not apply to: (A) A mortgage
      transaction with a payment schedule that is adjusted to the seasonal or irregular income of the
      consumer ; (B) A loan with maturity of 12 months or less, if the purpose of the loan is a “bridge”
      loan connected with the acquisition or construction of a dwelling intended to become the consumer
      ''s principal dwelling ; or (C) A loan that meets the criteria set forth in §§ 1026.43(f)(1)(i)
      through (vi) and 1026.43(f)(2), or the conditions set forth in § 1026.43(e)(6) . (iii) Open-end
      credit plans. If the terms of an open-end credit plan provide for a repayment period during which
      no further draws may be taken, the limitations in paragraph (d)(1)(i) of this section do not apply
      to any adjustment in the regular periodic payment that results solely from the credit plan''s transition
      from the draw period to the repayment period. If the terms of an open-end credit plan do not provide
      for any repayment period, the limitations in paragraph (d)(1)(i) of this section apply to all periods
      of the credit plan. (2) Negative amortization. A payment schedule with regular periodic payments
      that cause the principal balance to increase. (3) Advance payments. A payment schedule that consolidates
      more than two periodic payments and pays them in advance from the proceeds. (4) Increased interest
      rate. An increase in the interest rate after default . (5) Rebates. A refund calculated by a method
      less favorable than the actuarial method (as defined by section 933(d) of the Housing and Community
      Development Act of 1992 , 15 U.S.C. 1615(d) ), for rebates of interest arising from a loan acceleration
      due to default . (6) Prepayment penalties. A prepayment penalty, as defined in paragraph (b)(6)
      of this section. (7) [Reserved] (8) Acceleration of debt. A demand feature that permits the creditor
      to accelerate the indebtedness by terminating the high-cost mortgage in advance of the original
      maturity date and to demand repayment of the entire outstanding balance, except in the following
      circumstances:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.32-i
  canonical_id: reg-z-1026.32-i
  section: 12 CFR §1026.32(i)
  description: '(i): (i) There is fraud or material misrepresentation by the consumer in connection with
    the loan or open-end credit agreement; (ii) The consumer fails to meet the repayment terms of the
    agreement for any outstanding balance that results in a default in payment under the loan; or (iii)
    There is any actio…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.32(a)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.32
    snapshot_id: 64f8b836cbe21994
    fetched_at: '2026-05-22T18:22:23Z'
    content_hash: sha256:5595830e5e26f7a8845e3abec3143c09185f1d392eeb861e7529feba26114035
    paragraph_quote: (i) There is fraud or material misrepresentation by the consumer in connection with
      the loan or open-end credit agreement; (ii) The consumer fails to meet the repayment terms of the
      agreement for any outstanding balance that results in a default in payment under the loan; or (iii)
      There is any action or inaction by the consumer that adversely affects the creditor's security for
      the loan, or any right of the creditor in such security. [ 76 FR 79772 , Dec. 22, 2011, as amended
      at 78 FR 6583 , Jan. 30, 2013; 78 FR 6962 , Jan. 31, 2013; 78 FR 35502 , June 12, 2013; 78 FR 60440
      , Oct. 1, 2013] National Housing Act Bank Holding Company Act of 1956 Housing and Community Development
      Act of 1992 CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of
      Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1026.32 from Cornell LII snapshot 64f8b836cbe21994;
      body isolated between nav and notes; substring-verified.
  judgment: false
