Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

Agencies increase threshold for appraisal exemption under TILA for HPMLs

Agency Rule-Making & Guidance Mortgages Appraisal OCC Federal Register Federal Reserve CFPB

Agency Rule-Making & Guidance

On November 23, the CFPB, OCC, and the Federal Reserve Board published a final rule in the Federal Register, which increases the smaller loan exemption threshold for the special appraisal requirements for higher-priced mortgage loans (HPMLs) under TILA. TILA requires creditors to obtain a written appraisal based on a physical visit to the home’s interior before making a HPML, unless the loan meets or is less than the threshold exemption. Each year the threshold must be readjusted based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The exemption threshold for 2019 is $26,700, up from $26,000. This final rule is effective January 1, 2019.