The Board of Governors of the Federal Reserve System ("Fed"), the Consumer Financial Protection Bureau ("CFPB") and the Office of the Comptroller of the Currency ("OCC") proposed amendments to the official interpretations of regulations that implement Section 129H of the Truth in Lending Act, which establish special appraisal requirements for "higher-risk mortgages."
The existing regulations exempt transactions of $25,000 or less from the appraisal requirements of Section 129H. Subject to certain conditions, the current proposal provides that the Fed and the CFPB will not adjust that exemption threshold if there has not been an annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers from the previous year. The proposal also memorializes the agencies' calculation method for determining the adjustment.
Comments on the proposal must be submitted 30 days following publication in the Federal Register.
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