skip to main navigation skip to secondary navigation skip to content
Board of Governors of the Federal Reserve System
skip to content
Federal Reserve Board of Governors

Joint Press Release

Consumer Financial Protection Bureau
Federal Reserve Board of Governors
Office of the Comptroller of the Currency
For release at 12:00 p.m. EST
November 25, 2015

Agencies Announce Threshold for Smaller Loan Exemption from Appraisal Requirements for Higher-Priced Mortgage Loans

The Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) today announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2016 will remain $25,500.

The threshold amount will be effective January 1, 2016, and is the same threshold that applied in 2015--based on the annual percentage decrease in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2015.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 amended the Truth in Lending Act to add special appraisal requirements for higher-priced mortgage loans, including a requirement that creditors obtain a written appraisal based on a physical visit to the home's interior before making a higher-priced mortgage loan. The rules implementing these requirements contain an exemption for loans of $25,000 or less and also provide that the exemption threshold will be adjusted annually to reflect increases in the CPI-W. If there is no annual percentage increase in the CPI-W, the agencies will not adjust this exemption threshold from the prior year.

The Federal Register notice is attached.

Federal Register notice: HTML | PDF

Media Contacts:
CFPB Sam Gilford 202-435-7673
Federal Reserve Board Susan Stawick 202-452-2955
OCC William Grassano 202-649-6870
 
Last update: November 25, 2015