---
title: Online Bankers Training - 2018 High-Cost Mortgage Threshold
description: BCC offers online banking regulations training & consulting - 2018 High-Cost Mortgage Threshold
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [Online Bankers Training - 2018 High-Cost Mortgage Threshold](https://blog.bankerscompliance.com/en/2018-high-cost-mortgage-threshold)

 Written by [Amy Kudlacek](https://blog.bankerscompliance.com/en/author/amy-kudlacek) | Dec 19, 2017 9:37:50 AM

The [Points & Fees thresholds](https://www.federalregister.gov/documents/2017/08/30/2017-18003/truth-in-lending-regulation-z-annual-threshold-adjustments-credit-cards-hoepa-and-atrqm) used to determine whether a loan is a High Cost Mortgage (HCM) will increase for 2018.  A loan will be considered a HCM if:

 

- The loan amount is at least $21,032 **AND** the points & fees exceed 5% of the total loan amount. This is up from $20,579 in 2017.

 

OR

 

- The loan amount is less than $21,032 and the points & fees exceed the lesser of 8% of the total loan amount or $1,052. This is up from $1,029 in 2017.

 

As a reminder, there are 3 separate “tests” to determine HCM status (an APR test, a points & fees test and a prepayment penalty test) and if a loan meets the criteria of any one of the 3 tests, it is a HCM. The points and fees test is the only test where thresholds adjust annually.

 

Published  
 2017/12/19  
 Amy Kudlacek

[View full post](https://blog.bankerscompliance.com/en/2018-high-cost-mortgage-threshold)

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