Federal regulators have proposed exemptions to a final rule issued earlier this year on appraisals for higher-priced loans. The rule becomes effective in six months.
The regulators are the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corp., Federal Housing Finance Agency, National Credit Union Administration and Office of the Comptroller of the Currency.
The 170-page proposed appraisal rule would create exemptions from certain appraisal requirements for a subset of higher-priced home loans.
The appraisal requirements were imposed by the CFPB in January as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Compliance with the new requirements becomes mandatory on Jan. 18, 2014.
Wednesday’s joint press release indicated that the proposed rule would exempt loans that don’t exceed $25,000 from the Dodd-Frank act appraisal requirements.
In addition, certain streamlined refinance transactions and some manufactured housing loans would be exempt.
The regulators said they hope to save borrowers time and money with the proposal while promoting the safety and soundness of creditors.
Public comments are being accepted on the proposed rule until Sept. 9.
