Six federal financial regulatory agencies issued a final rule Friday that will become effective January 18, 2014 establishing new appraisal requirements for "higher-priced mortgage loans" to implement Dodd-Frank Act amendments to the Truth in Lending Act.
The rule was issued by the Federal Reserve, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration and the Office of the Comptroller of the Currency.
Under Dodd-Frank, mortgage loans are higher-priced if they are secured by a consumer's home and have interest rates above certain thresholds. For higher-priced mortgage loans, the rule requires creditors to use a licensed or certified appraiser who prepares a written appraisal report based on a physical visit of the interior of the property.
The rule also requires creditors to disclose to applicants information about the purpose of the appraisal and provide consumers with
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