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CFPB RIN: 3170-AA11 Publication ID: Spring 2013 
Title: Amendments to TILA and FIRREA Concerning Appraisals  
Abstract: The CFPB is participating in interagency rulemaking processes with the Board of Governors of the Federal Reserve System (Board), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Federal Housing Finance Agency (FHFA) (collectively, the Agencies) to develop proposed regulations to implement the amendments made by the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) to the Truth in Lending Act (TILA) and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) concerning appraisals. The amendments made by the Dodd-Frank Act to TILA require creditors to obtain an appraisal, including a physical property visit by a certified appraiser, before extending higher-risk mortgage credit. The TILA amendments also contain new provisions concerning appraisal independence, the portability of appraisal reports, and charging of customary and reasonable fees. The amendments made by the Dodd-Frank Act to FIRREA require new minimum requirements to be applied by states in the registration, reporting, and supervision of appraisal management companies. The FIRREA amendments further require implementing regulations for new quality control standards for automated valuation models to ensure a high level of confidence in the estimates produced by the valuation models, protect against the manipulation of data, seek to avoid conflicts of interest, require random sample testing and reviews, and address any other factor that the agencies determine to be appropriate. As required by the Dodd-Frank Act, the Board published an interim final rule implementing the mandatory requirements relating to appraisal independence on October 28, 2010. Further action with respect to this rulemaking is being addressed through the interagency rulemaking process. Through the interagency process, the Agencies on January 18, 2013, issued a final rule (published in the Federal Register on February 13, 2013) relating to appraisal requirements for higher-risk mortgages. The Agencies amended Regulation Z, which implements TILA, to provide that, for mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, unless an exemption applies (such as for qualified mortgages and certain other types of transactions specified in the final rule), creditors must obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of the appraisals, and give applicants a copy of the written appraisals used. The Agencies are working to develop a supplemental proposal concerning possible additional exemptions from this rule for certain refinance transactions, smaller-dollar loans, and manufactured housing transactions. The Agencies also are continuing their work to develop proposals to implement the Dodd-Frank Act's amendments to FIRREA concerning appraisal management company registration and quality control standards for automated valuation models. 
Agency: Consumer Financial Protection Bureau(CFPB)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 12 CFR 1026   
Legal Authority: 15 USC 1639e    15 USC 1639h    12 USC 3353    12 USC 3354   
Legal Deadline:
Action Source Description Date
Final  Statutory    01/21/2013 
Action Date FR Cite
Interim Final Rule With Request For Public Comment  10/28/2010  75 FR 66554   
Interim Final Rule Comment Period End  12/27/2010    
NPRM  09/05/2012  77 FR 54722   
NPRM Comment Period End  10/15/2012 
Final Rule (TILA Higher-Risk Mortgages)  02/13/2013  78 FR 10368   
Supplemental NPRM  08/00/2013 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: State 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Related Agencies: Joint: FRS, TREAS/OCC, FDIC, NCUA, FHFA; 
Agency Contact:
Bill Matchneer
Office of Regulations
Consumer Financial Protection Bureau
Phone:202 435-7700