CFPBFinal RuleJanuary 7, 2026

Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold

Finance & BankingHousing

Summary

This rule adjusts the size threshold that determines which lenders must follow detailed federal lending rules under the Truth in Lending Act. The change affects which banks and financial companies have to provide borrowers with clear disclosures about loan terms, interest rates, and costs.

Key Points

1The rule updates the asset-size threshold that exempts smaller lenders from certain Truth in Lending Act requirements
2Smaller financial institutions may become subject to or exempted from stricter lending disclosure rules depending on the direction of the threshold change
3Borrowers may see changes in how loan documents are prepared and presented, depending on which lenders are affected
4Lenders will need to review their compliance procedures to determine if they now fall above or below the new asset threshold
5The change takes effect after the published date and lenders will have time to adjust their practices accordingly

Impact Assessment

If you are a Financial Institution, this means you may need to comply with additional Truth in Lending Act disclosure requirements if the new asset-size threshold reclassifies your institution.

Impact Level

Significant

Geographic Scope

National

Compliance Cost

Moderate

Who is Affected

Financial InstitutionsConsumersSmall Businesses

Key Dates

Published

January 7, 2026

Regulatory Connections

Authorized By

Truth in Lending Act 15 U.S.C. § 1601 et seq.

Amends CFR Sections

12 CFR Part 1026

Other Documents in This Rulemaking (CFPB-2025-0001)

CFPBFinance & Banking

Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold

CFPBHousing

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.