Effective Date: January 18, 2014
The CFPB issues this 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.
December 12, 2013, six federal financial regulatory agencies issued a final rule creating additional exemptions from the appraisal requirements for higher-priced mortgage loans. The new exemptions include certain types of refinances, loans secured by manufactured homes made during the next 18 months, and loans of $25,000 or less.
CFPB Full Rule
CFPB Small Entity Compliance Guide for TILA Higher-Priced Mortgage Loans Appraisal Rule
CFPB Video Presentation for ECOA Valuations and TILA Higher-Priced Mortgage Loans Appraisal Rule
Issued: January 18, 2013
Effective date: January 18, 2014
CFR parts: 12 CFR 1026
Page count: 309