WASHINGTON (12/3/15)--The threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2016 will remain at $25,500, the same as 2015. The Consumer Financial Protection Bureau, Federal Reserve board and Office of the Comptroller of the Currency published the 2016 threshold in Wednesday’s Federal Register.
The threshold amount will be effective Jan. 1, 2016. It is based on the annual percentage decrease in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2015.
The Dodd-Frank Act amended the Truth-in-Lending Act to add special appraisal requirements for higher-priced mortgage loans. They include a directive that creditors must obtain a written appraisal based on a physical visit to a home’s interior before making a higher-priced mortgage loan.
The exemption threshold is reviewed for adjustment annually. If there is no annual percentage increase in the CPI-W, the agencies will not adjust this exemption threshold from the prior year.