A final rule establishing new appraisal requirements for higher priced mortgage loans was issued by federal financial regulatory agencies. The rule implements amendments to the Truth in Lending Act. For mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the final rule requires creditors to obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of the appraisals, and give applicants a copy of the written appraisals used. The final rule is effective January 18, 2014.
Read the Final Rule on Appraisals for Higher-priced Mortgage Loans: