Federal Deposit Insurance
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-11-2013
March 18, 2013
APPRAISAL REQUIREMENTS FOR HIGHER-PRICED MORTGAGE LOANS AND RESOURCES
REGARDING OTHER CFPB MORTGAGE-RELATED RULEMAKINGS
Summary: On January 18, 2013, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal
Reserve System, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Federal
Housing Finance Agency, and the Consumer Financial Protection Bureau (CFPB) issued a final rule that establishes
new appraisal requirements for higher-priced mortgage loans. Under the Dodd-Frank Wall Street Reform and
Consumer Protection Act, mortgage loans are higher priced if they are secured by a consumer's home and have
interest rates above certain thresholds. In addition, a number of important changes to CFPB mortgage-related rules
also are underway, and the FDIC is making available to the public several resources addressing these changes.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies
to all FDIC-supervised institutions, including community banks.
Distribution:
FDIC-Supervised Banks (Commercial and
Savings)
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Chief Information Systems Officer
Compliance Officer
Related Topics:
Residential Mortgage Loans
Attachment:
Final Rule on Appraisals for Higher-Priced
Mortgages (PDF Help)
Resource List for Tracking Changes in
Mortgage-Related Rulemakings
Contact:
Beverlea S. Gardner, Senior Examination
Specialist, at Bgardner@fdic.gov or (202)
898-3640
Matthew Homer, Policy Analyst,
at mhomer@fdic.gov or (202) 898-6941
Note:
FDIC Financial Institution Letters (FILs)
may be accessed from the FDIC's Web
site
at www.fdic.gov/news/news/financial/2013
/index.html.
To receive FILs electronically,
visit http://www.fdic.gov/about/subscriptio
ns/fil.html.
Paper copies may be obtained through
the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA
22226 (877-275-3342 or 703-562-2200).
Highlights:
For certain higher-priced mortgage loans, the final 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, provide
consumers with a free copy of the appraisal report, disclose to applicants
information about the purpose of the appraisal, and obtain an additional
appraisal at no cost to the consumer under certain circumstances.
The final rule provides exemptions from the additional appraisal
requirement for loans in rural areas and certain other types of loans.
The final rule takes effect on January 18, 2014.
In response to banker requests for assistance in monitoring
developments in mortgage-related rulemakings, attached is a listing of
CFPB mortgage-related rules, applicable to FDIC-supervised institutions,
that are underway or have been recently issued and other FDIC
resources bankers may wish to monitor.Inactive
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-11-2013
March 18, 2013
APPRAISAL REQUIREMENTS FOR HIGHER-PRICED MORTGAGE LOANS AND RESOURCES
REGARDING OTHER CFPB MORTGAGE-RELATED RULEMAKINGS
Summary: On January 18, 2013, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal
Reserve System, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Federal
Housing Finance Agency, and the Consumer Financial Protection Bureau (CFPB) issued a final rule that establishes
new appraisal requirements for higher-priced mortgage loans. Under the Dodd-Frank Wall Street Reform and
Consumer Protection Act, mortgage loans are higher priced if they are secured by a consumer's home and have
interest rates above certain thresholds. In addition, a number of important changes to CFPB mortgage-related rules
also are underway, and the FDIC is making available to the public several resources addressing these changes.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies
to all FDIC-supervised institutions, including community banks.
Distribution:
FDIC-Supervised Banks (Commercial and
Savings)
Suggested Routing:
Chief Executive Officer
Chief Loan Officer
Chief Information Systems Officer
Compliance Officer
Related Topics:
Residential Mortgage Loans
Attachment:
Final Rule on Appraisals for Higher-Priced
Mortgages (PDF Help)
Resource List for Tracking Changes in
Mortgage-Related Rulemakings
Contact:
Beverlea S. Gardner, Senior Examination
Specialist, at Bgardner@fdic.gov or (202)
898-3640
Matthew Homer, Policy Analyst,
at mhomer@fdic.gov or (202) 898-6941
Note:
FDIC Financial Institution Letters (FILs)
may be accessed from the FDIC's Web
site
at www.fdic.gov/news/news/financial/2013
/index.html.
To receive FILs electronically,
visit http://www.fdic.gov/about/subscriptio
ns/fil.html.
Paper copies may be obtained through
the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA
22226 (877-275-3342 or 703-562-2200).
Highlights:
For certain higher-priced mortgage loans, the final 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, provide
consumers with a free copy of the appraisal report, disclose to applicants
information about the purpose of the appraisal, and obtain an additional
appraisal at no cost to the consumer under certain circumstances.
The final rule provides exemptions from the additional appraisal
requirement for loans in rural areas and certain other types of loans.
The final rule takes effect on January 18, 2014.
In response to banker requests for assistance in monitoring
developments in mortgage-related rulemakings, attached is a listing of
CFPB mortgage-related rules, applicable to FDIC-supervised institutions,
that are underway or have been recently issued and other FDIC
resources bankers may wish to monitor.Inactive