Agencies Issue Final Rule on Appraisals for Higher Priced Mortgage Loans

Federal financial regulatory agencies issued a final rule that establishes new appraisal requirements for "higher-priced mortgage loans." This rule implements the Truth in Lending Act amendments under the Dodd-Frank Act. The rule exempts several types of loans, such as qualified mortgages, temporary bridge loans and construction loans, loans for new manufactured homes, and loans for mobile homes, trailers and boats that are dwellings. The rule also has exemptions from the second appraisal requirement to facilitate loans in rural areas and other transactions.

The rule is being issued by the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

Effective Date: January 18, 2014.

View Final Rule in full here (links externally to Federal Reserve website).See also: OCC Press Release; FDIC Press Release