Six regulatory agencies on Wednesday issued a proposal that would exempt three types of higher-priced mortgage loans from appraisal requirements.
Though appraisals are required for higher-priced mortgages under the Dodd-Frank Act, the plan would exempt a subset of mortgages, including loans secured by existing manufactured homes (and not land); certain types of "streamlined" refinancings; and loans of $25,000 or less.
In January, a final rule implementing the new Dodd-Frank Act appraisal requirements was issued by the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corp., the Federal Housing Finance Agency, the Federal Reserve, the National Credit Union Administration and the Office of the Comptroller of the Currency.
Those agencies are seeking comment by September 9 on the exemption proposal. If finalized, the rule would go into effect January 18, 2014.
