WASHINGTON NCUA and banking regulators on Wednesday 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 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 NCUA, the Consumer Financial Protection Bureau and bank regulators.
The effective date of the rule is Jan. 18, 2014. These same agencies are jointly issuing the proposed rule on additional exemptions in response to public comments previously received.
NCUA and the other regulators are accepting comments on the proposed exemptions.
