The Federal Reserve Board on Thursday published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for home mortgage loans that bear rates or fees above a certain amount.

The amount of the fee-based trigger has been adjusted to $510 for 2005 based on the annual percentage change in the Consumer Price Index that was in effect June 1, 2004. The adjustment is effective Jan. 1, 2005.

The Home Ownership and Equity Protection Act of 1994 restricts credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed the fee-based trigger or 8 percent of the total loan amount, whichever is larger.

The fee-based trigger, adjusted annually, was initially set at $400.


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