Mortgage Daily Logo

Exemptions Proposed for Higher Priced Loan Appraisal Rule

Appraisal

Federal regulators have proposed exemptions to a final rule issued earlier this year on appraisals for higher-priced loans. The rule becomes effective in six months.

The regulators are the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corp., Federal Housing Finance Agency, National Credit Union Administration and Office of the Comptroller of the Currency.

The 170-page proposed appraisal rule would create exemptions from certain appraisal requirements for a subset of higher-priced home loans.

The appraisal requirements were imposed by the CFPB in January as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Compliance with the new requirements becomes mandatory on Jan. 18, 2014.

Wednesday’s joint press release indicated that the proposed rule would exempt loans that don’t exceed $25,000 from the Dodd-Frank act appraisal requirements.

In addition, certain streamlined refinance transactions and some manufactured housing loans would be exempt.

The regulators said they hope to save borrowers time and money with the proposal while promoting the safety and soundness of creditors.

Public comments are being accepted on the proposed rule until Sept. 9.

Related Posts

How Are My Property Taxes Calculated and How Do I Pay

How Are My Property Taxes Calculated and How Do I Pay

Homeownership comes with lots of new expenses and increased fees, like homeowner’s and title insurance, pricier utility bills, and property taxes. Even if you’re prepared for higher bills, it’s important to know exactly how much they’ll spike up. Especially when it...

Benefits of a Home Appraisal

Benefits of a Home Appraisal

A home appraisal inspection is not the same as a home inspection. The home appraisal inspector works for the bank that will be lending you the money to purchase your new home. The main reason an inspection is required is that the bank wants to ensure that the money...

Understanding Your Home Inspection Report

Understanding Your Home Inspection Report

How to read a home inspection report? A home inspection report, especially on an older home can be quite extensive. It usually carefully designed to be clear, easy to understand and helpful to the buyer. The home inspection report is an overview of conditions...

What Does a Home Inspector Do?

What Does a Home Inspector Do?

A home inspection report is very different from a home appraisal inspection. Inexperienced real estate salespeople sometimes do not understand the difference. Although real estate professionals that have worked in the mortgage industry and decide to shift into sales,...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam