Six federal financial regulatory agencies have jointly issued a final rule establishing new appraisal requirements for “higher-priced mortgage loans” that are intended to address fraudulent property flipping.
The rule—issued by the Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, National Credit Union Administration, Office of the Comptroller of the Currency, and Federal Reserve on Friday—implements amendments to the Truth in Lending Act mandated by the Dodd-Frank Act. For higher-priced mortgage loans, the rule requires creditors to hire a certified appraiser for a report based on a physical inspection of the interior of a property.
