The Consumer Financial Protection Bureau (CFPB), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC) have jointly announced an increase in the 2024 threshold for higher-priced mortgage loans. The new threshold, increasing from $31,000 to $32,400, determines which loans are subject to special appraisal requirements.
Effective January 1, 2024, this adjustment 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, 2023.
The Dodd-Frank Act introduced special appraisal requirements for higher-priced mortgage loans. These regulations require creditors to obtain a written appraisal based on a physical visit to the interior of the home before approving a higher-priced mortgage loan. The rules implementing these requirements include an exemption for loans of $25,000 or less. This exemption threshold is adjusted annually to reflect increases in the CPI-W.
This announcement underscores the federal agencies’ commitment to maintaining regulatory adjustments that reflect economic conditions while safeguarding consumers in the mortgage loan market.
Read the Appraisals for Higher-Priced Mortgage Loans Exemption Threshold here.
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