May 23, 2018

Limits to Appraisal Requirements Proposed

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Limits to Appraisal Requirements Proposed

Six regulatory agencies issued a proposal Wednesday that would exempt three types of higher-priced mortgages from appraisal requirements.  The plan would exempt loans secured by existing manufactured homes (and not land), certain types of "streamlined" refinancings, and loans of $25,000 or less.

The six agencies—Federal Reserve Board, 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—announced the proposal in a joint press release. They say the exemptions would "save borrowers time and money and... promote the safety and soundness of creditors."

The agencies are seeking comments until Sept. 9, 2013 on the exemption proposal.  If finalized, the rule would take effect on Jan. 18, 2014. The appraisal requirements for higher-priced mortgages were initially imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Source: "Agencies Issue Proposed Rule to Exempt Subset of Higher-Priced Mortgage Loans from Appraisal Requirements," Federal Reserve Board, (July 10, 2013)

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