high-priced loan

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Special Appraisal Requirements

On October 31, 2019, the CFPB announced an increase for the special appraisal requirements for higher-priced loans from $26,700 to $27,000. This will take effect January 01, 2020 and it will be based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2019.

The special appraisal requirements for higher-priced mortgage loans was added in 2010 to TILA. This requirement makes the creditor obtain a written appraisal based on a physical visit to the home’s interior before making a higher-priced loan.

The full announcement can be found at: https://www.federalregister.gov/documents/2020/12/10/2020-25872/appraisals-for-higher-priced-mortgage-loans-exemption-threshold (updated 12/2020)