An exemption from certain appraisal requirements for higher-priced mortgage loans will apply to loans of $31,000 or less in 2023 under a rule change announced by the Federal Reserve Board, Consumer Financial Protection Bureau (CFPB), and Office of the Comptroller of the Currency (OCC).
The Federal Reserve Board, CFPB, and OCC announced that the 2023 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $28,500 to $31,000. The new threshold amount will be effective January 1, 2023. The Dodd–Frank Wall Street Reform and Consumer Protection Act added special appraisal requirements for higher-priced mortgage loans, including that creditors obtain a written appraisal based on a physical visit to the interior of the home before making a higher-priced mortgage loan. The rules implementing these requirements contain an exemption for loans of $25,000 or less, adjusted annually to reflect CPI-W increases (Consumer Price Index for Urban Wage Earners and Clerical Workers).
To view the full details of the final rule concerning the annual threshold adjustment, please visit this link.