Six financial regulatory agencies issued on Wednesday a proposed rule to exempt a subset of higher-priced mortgage loans from certain appraisal requirements.[IMAGE]
In a joint release, the ""FDIC"":http://fdic.gov/, ""Consumer Financial Protection Bureau"":http://www.consumerfinance.gov/ (CFPB), ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA), ""Office of the Comptroller of the Currency"":http://occ.treas.gov/ (OCC), ""National Credit Union Administration"":http://www.ncua.gov/Pages/default.aspx (NCUA), and ""Federal Reserve Board"":http://www.federalreserve.gov/default.htm proposed to provide exemptions from Dodd-Frank appraisal requirements for loans of $25,000 or less, certain streamlined refinancings, and certain loans secured by manufactured housing.
According to the release, the proposed exemptions ""are intended to save borrowers time and money and to promote the safety and soundness and creditors.""
The ""initial guidelines"":https://themreport.com/articles/regulators-unveil-appraisal-rules-for-lenders-2013-01-18 for appraisal requirements on high-priced loans came down from the agencies earlier this year and will go into effect January 18, 2014. The finalized rule requires creditors to use a licensed or certified appraiser to prepare a written report based on a visit of the property.
It also has a requirement that creditors disclose information about the purpose of the appraisal to applicants and provide consumers with a free copy of any appraisal report, among other rules.
The rule already included exemptions for several types of loans, including qualified mortgages, temporary bridge loans and construction loans, loans for new manufactured homes, and loans for mobile homes, trailers, and houseboats.
The public has until September 9, 2013, to review and comment on most of the proposal.