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Advanced Search What's New · What's Next · Site Map · A-Z Index · Careers · RSS · All Videos · Current FAQs · Contact Us About the Fed News & Events Banking Information & Regulation Monetary Policy Testimony and Speeches Press Releases Payment Systems Economic Research & Data Consumer Information Community Development Reporting Forms Publications Home > News & Events > 2013 Banking and Consumer Regulatory Policy Joint Press Release Print Regulatory Reform Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau Federal Deposit Insurance Corporation Federal Housing Finance Agency National Credit Union Administration Office of the Comptroller of the Currency Conferences Other Public Communication For immediate release December 12, 2013 Agencies Issue Final Rule to Exempt Subset of Higher-Priced Mortgage Loans from Appraisal Requirements WASHINGTON--Six federal financial regulatory agencies today issued a final rule that creates exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. The exemptions are intended to save borrowers time and money while still ensuring that the loans are financially sound. The appraisal requirements for higher-priced mortgages were established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Under the Dodd-Frank Act, closed-end mortgage loans are considered to be higher-priced if they are secured by a consumer's home and have interest rates above a certain threshold. The Dodd-Frank Act requires creditors to obtain a written appraisal based on a physical visit of the home's interior before making these loans. The final rule provides that loans of $25,000 or less and certain "streamlined" refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on January 18, 2014. In addition, the final rule contains special provisions for manufactured homes, which can present unique issues in determining the appropriate valuation method. To ensure that access to affordable housing options is not hindered while creditors make the necessary adjustments, the requirements for manufactured home loans will not become effective for 18 months. Starting on July 18, 2015, loans secured by an existing manufactured home and land will be subject to the Dodd-Frank Act's appraisal requirements. Loans secured by a new manufactured home and land will be exempt only from the requirement that the appraiser visit the home's interior. For loans secured by manufactured homes without land, creditors will be allowed to use other valuation methods without an appraisal, such as using third-party valuation services or "book values." In January 2013, a final rule implementing the new Dodd-Frank Act appraisal requirements was issued by the 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. Compliance with the January 2013 final rule will become mandatory on January 18, 2014. These same agencies are jointly issuing today's final rule to provide additional exemptions in response to public comments. The Federal Register notice is attached. Media Contacts: Federal Reserve Susan Stawick (202) 452-2955 CFPB Sam Gilford (202) 435-7673 FDIC Greg Hernandez (202) 898-6984 FHFA Stefanie Johnson (202) 649-3030 NCUA Ben Hardaway (703) 518-6333 OCC Stephanie Collins (202) 649-6870 Attachment (1.37 MB PDF) Board Votes 2013 Banking and Consumer Regulatory Policy Last update: December 12, 2013 Home | News & Events Accessibility Contact Us Disclaimer Website Policies FOIA PDF Reader