Six federal financial regulatory agencies have jointly issued a proposed rule to establish new appraisal requirements for what they deem “higher-risk mortgage loans” and combat the once frequent practice, during the housing market boom, of so-called “drive-by” appraisals that were conducted without an interior inspection of the property.
The proposed rule would implement amendments to the Truth in Lending Act enacted by the Dodd-Frank Act. Under the legislation, mortgage loans are categorized as higher-risk if they are secured by a consumer’s home and have interest rates above a set threshold.
