Regulatory Agencies Adjust Dollar Thresholds, Raise Exemption Limit for Appraisals on Higher-Priced Mortgage Loans

Title: Regulatory Agencies Adjust Dollar Thresholds, Raise Exemption Limit for Appraisals on Higher-Priced Mortgage Loans

In a joint announcement, the Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency have disclosed revisions to the dollar thresholds governing exemptions from appraisal requirements for higher-priced mortgage loans.

Effective January 1, 2024, the new threshold for determining whether higher-priced mortgage loans are subject to specific appraisal requirements will rise from $31,000 to $32,400. This adjustment is calculated based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2023.

Enacted under the Dodd-Frank Act, the special appraisal requirements for higher-priced mortgage loans mandate that creditors secure a written appraisal through a physical visit to the interior of the home before approving such loans. Notably, these rules include an exemption for loans totaling $25,000 or less, subject to annual adjustments reflecting CPI-W increases.

Read the Appraisals for Higher-Priced Mortgage Loans Exemption Threshold.