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 also contains summaries and other 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. What this means for consumers
  3. Detailed summary of the rule
  4. Related proposals

The rule

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

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

When the Federal Register publishes the document, we will link to it here.

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.

Detailed summary of the rule

Read the detailed summary to learn more about the background of this rule and how it affects providers of financial products and services.

Related proposals

On 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.