Reg Z (R-1443) NPRM Press Release

Printer Version - Board of Governors of the Federal Reserve System

Page 1 of 1

Joint Press Release
Board of Governors of the Federal Reserve System
Consumer Financial Protection Bureau
Federal Deposit Insurance Corporation
Federal Housing Finance Agency
National Credit Union Administration
Office of the Comptroller of the Currency

For immediate release

August 15, 2012

Agencies Issue Proposed Rule on Appraisals for Higher-Risk Mortgages
WASHINGTON--Six federal financial regulatory agencies today issued a proposed rule to establish
new appraisal requirements for "higher-risk mortgage loans." The proposed rule would implement
amendments to the Truth in Lending Act enacted by the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010. Under the Dodd-Frank Act, mortgage loans are higher-risk if
they are secured by a consumer's home and have interest rates above a certain threshold.
For higher-risk mortgage loans, the proposed rule would require creditors to use a licensed or
certified appraiser who prepares a written report based on a physical inspection of the interior of the
property. The proposed rule also would require creditors to disclose to applicants information about
the purpose of the appraisal and provide consumers with a free copy of any appraisal report.
Creditors would have to obtain an additional appraisal at no cost to the consumer for a homepurchase higher-risk mortgage loan if the seller acquired the property for a lower price during the
past six months. This requirement would address fraudulent property flipping by seeking to ensure
that the value of the property being used as collateral for the loan legitimately increased.
The proposed rule is being issued by the Board of Governors of the Federal Reserve System, the
Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal
Housing Finance Agency, the National Credit Union Administration, and the Office of the
Comptroller of the Currency.
The Federal Register notice is attached. The agencies are seeking comments from the public on all
aspects of the proposal. The public will have 60 days, or until October 15, 2012, to review and
comment on most of the proposal. However, comments related to the proposed Paperwork
Reduction Act analysis will be due 60 days after the rule is published in the Federal Register.
Publication of the proposal in the Federal Register is expected shortly.

Media Contacts:
Federal Reserve
CFPB
FDIC
FHFA
NCUA
OCC

Susan Stawick
Moira Vahey
Greg Hernandez
Stefanie Johnson
Kenzie Snowden
Bryan Hubbard

(202)-452-2955
(202) 435-9151
(202) 898-6984
(202) 649-3030
(703) 518-6334
(202) 874-5770

Attachment (1.28 MB PDF)

http://www.federalreserve.gov/newsevents/press/bcreg/20120815a.htm

8/15/2012