WASHINGTON, D.C. — Federal banking and consumer protection agencies on Monday announced updated dollar thresholds that will change how certain mortgage loans and consumer credit transactions are regulated in 2026, modestly easing appraisal requirements for some borrowers while extending key disclosure protections to a wider range of loans.
The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency said the exemption threshold for higher-priced mortgage loans subject to special appraisal requirements will rise from $33,500 to $34,200 beginning January 1. The adjustment reflects a 2.1 percent annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, measured as of June 1, 2025.
Under the Dodd-Frank Act, higher-priced mortgage loans generally require creditors to obtain a written appraisal based on a physical visit to the interior of the property before a loan can be finalized. However, loans at or below the annually adjusted threshold are exempt from those requirements, a provision intended to reduce costs and administrative burdens for smaller loans.
In a separate announcement issued the same day, the Federal Reserve Board and the CFPB also updated the dollar thresholds that determine whether consumer credit and lease transactions fall under Regulation Z, which implements the Truth in Lending Act, and Regulation M, which governs consumer leasing.
For 2026, those regulations will generally apply to consumer credit transactions and consumer leases of $73,400 or less, up from the prior year’s limit. Transactions at or below that level are subject to disclosure and consumer protection requirements designed to ensure borrowers and lessees clearly understand the costs and terms of their agreements.
The agencies noted that certain loans remain covered by Regulation Z regardless of dollar amount, including private education loans and loans secured by real property such as mortgages.
Federal law requires the thresholds to be updated annually to account for inflation, using CPI-W as the benchmark. While the changes are incremental, regulators say they reflect ongoing efforts to keep consumer protections aligned with economic conditions while avoiding unnecessary regulatory friction for smaller transactions.
The new thresholds take effect January 1, 2026.
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