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Appraisals for Higher-Priced Mortgage Loans

We are issuing a final rule to amend Regulation Z jointly with the Federal Reserve Board, FDIC, FHFA, NCUA, and OCC. This rule implements the Truth in Lending Act (TILA), and the official interpretation to the regulation. The revisions to Regulation Z implement a new provision requiring appraisals for “higher-risk mortgages” that was added to TILA by the Dodd-Frank Act. For mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the final rule requires creditors to obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of the appraisals, and give applicants a copy of the written appraisals used.

This page contains resources to help you understand the rule and its implications.

Contents

  1. The rule
    1. Effective date
    2. Breakdown of the document’s contents
  2. Compliance guide and related information
  3. What this means for consumers
  4. Related proposals

The rule

Final rules submitted to the Federal Register

December 26, 2013: The Office of the Federal Register published this document. View the document as published in the Federal Register.

December 12, 2013: We issued the document containing this supplemental final rule. View the full document as issued.

February 13, 2013: The Office of the Federal Register published this document. View the document as published in the Federal Register.

January 18, 2013: We issued the document containing this final rule. View the full document as issued.

Effective dates

This rule is effective January 18, 2014.

Breakdown of the documents’ contents

This document contains the following parts:

  • Preamble summarizing why the agencies are issuing the rule, our legal authority, reasoning behind the rule, responses to comments, and analysis of the benefits, costs, and impacts of the rule
  • Regulatory text, which, when effective, will amend Regulation Z and can be found on page 238 of the full document
  • Official interpretations of the rule, which can be found on page 292 of the full document

Compliance guide and related information

Read the Small Entity Compliance Guide to learn more about the rule in a plain language and FAQ format which makes the content more accessible for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff. Or watch our video on YouTube to learn more about this rule and the ECOA appraisals rule issued by the CFPB.


What this means for consumers

The new rule will go into effect on January 18, 2014. This summary outlines some of the ways we expect it to impact consumers who seek or have residential mortgage loans. Download the consumer summary.


Related proposals

July 10, 2013: We issued a proposed rule with request for public comment that proposed certain amendments to the final Higher-Priced Mortgage Loans Appraisal Rule we issued in January 2013. This proposal was published in the Federal Register on August 8, 2013. You can also review comments submitted on the electronic docket.

September 5, 2012: The Office of the Federal Register published the following proposal issued by the Bureau, the Federal Reserve Board, FDIC, FHFA, NCUA, and OCC: Appraisals for Higher-Risk Mortgage Loans. View the proposed rule and comments received in response on the electronic docket.

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