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Agencies Issue Proposed Rule to Exempt Subset of Higher-Priced Mortgage Loans from Appraisal Requirements

Joint Release
​Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
Office of Thrift Supervision
For Immediate Release July 10, 2013

Six federal financial regulatory agencies today issued a proposed rule that would create exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans.  The proposed exemptions are intended to save borrowers time and money and to promote the safety and soundness of creditors.  The appraisal requirements for higher-priced mortgages were imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).  Under the Dodd-Frank Act, 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 proposed rule would provide that the following three types of higher-priced mortgage loans would be exempt from the Dodd-Frank Act appraisal requirements:  loans of $25,000 or less; certain “streamlined” refinancings; and certain loans secured by manufactured housing.
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 final rule will become mandatory on January 18, 2014.  These same agencies are jointly issuing the proposed rule on additional exemptions in response to public comments previously received.
The Federal Register notice is attached.  The agencies are seeking comments from the public on all aspects of the proposal.  The public will have until September 9, 2013, to review and comment on most of the proposal.  However, comments related to the proposed Paperwork Reduction Act analysis will be due 60 days after the rule is published in the Federal Register.  Publication of the proposal in the Federal Register is expected shortly.


Media Contacts: ​ ​
Federal Reserve Susan Stawick (202) 452-2955
CFPB ​Moira Vahey ​(202) 435-9151
​FDIC ​Greg Hernandez ​(202) 898-6984
FHFA ​Stefanie Johnson (202) 649-3030
NCUA ​ John Fairbanks (703) 518-6336
OCC ​ Bryan Hubbard (202) 649-6870


NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 100 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At and Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.


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John Fairbanks
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Ben C. Hardaway
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Kenzie Snowden
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