Appraisal exemption threshold for higher-priced mortgages unchanged for 2021, agencies announce

The threshold for exempting loans from special appraisal requirements applied to higher-priced mortgage loans under the Truth in Lending Act will remain at $27,200 in 2021, unchanged from this year’s threshold, according to an announcement Wednesday by federal regulators.

The Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) said the threshold, effective Jan. 1, is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2020.

The higher-priced loan rules were added to TILA by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The act added special appraisal requirements for higher-priced mortgage loans, including a requirement that creditors obtain a written appraisal based on a physical visit to the home’s interior before making a higher-priced mortgage loan.

Agencies announce threshold for smaller loan exemption from appraisal requirements for higher-priced mortgage loans