View Rule

View EO 12866 Meetings

Printer-Friendly Version Download RIN Data in XML

CFPB

RIN: 3170-AA11

Publication ID: Spring 2014

Title: Amendments to TILA Concerning Appraisals
Abstract: The CFPB has participated 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) 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 loans. The TILA amendments also contain new provisions concerning appraisal independence and charging of customary and reasonable fees. As required by the Dodd-Frank Act, the Board published an interim final rule implementing the mandatory requirements relating to appraisal independence and the charging of customary and reasonable fees on October 28, 2010. Under TILA, this rule is deemed an interagency rule. 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 on December 12, 2013, issued a final rule (published in the Federal Register on December 26, 2013) adopting additional exemptions from this rule for certain refinance transactions, smaller-dollar loans, and certain manufactured housing transactions.
Agency: Consumer Financial Protection Bureau(CFPB)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Completed Actions
Major: No	Unfunded Mandates: No
CFR Citation: 12 CFR 1026
Legal Authority: 15 USC 1639e 15 USC 1639h

Legal Deadline:

Action	Source	Description	Date
Final	Statutory		01/21/2013

Timetable:

Action	Date	FR Cite
Interim Final Rule With Request For Public Comment (Appraisal Independence)	10/28/2010	75 FR 66554
Interim Final Rule Comment Period End (Appraisal Independence)	12/27/2010
NPRM (Higher-Risk Mortgages)	09/05/2012	77 FR 54722
NPRM Comment Period End (Higher-Risk Mortgages)	10/15/2012
Final Rule (Higher-Risk Mortgages)	02/13/2013	78 FR 10368
Supplemental NPRM (Higher-Risk Mortgages)	08/08/2013	78 FR 48547
Supplemental NPRM Comment Period End (Higher-Risk Mortgages)	09/09/2013
Final Rule (Higher-Risk Mortgages)	12/26/2013	78 FR 78519

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
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: David Friend Office of Regulations Consumer Financial Protection Bureau Phone:202 435-7700 Owen Bonheimer Office of Supervision Policy Consumer Financial Protection Bureau Washington, DC 20552 Phone:202 435-7700