Regulatory Alerts2025-12-15
Agencies Announce Dollar Thresholds for Smaller Loan Exemption from Appraisal Requirements for Higher-priced Mortgage Loans
The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency are raising the 2026 threshold for the higher-priced mortgage loan appraisal exemption from $33,500 to $34,200. This adjustment takes effect January 1, 2026, and reflects a 2.1 percent annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers as of June 1, 2025. The updated limit continues to exempt qualifying smaller loans from the Dodd-Frank Act mandate requiring creditors to obtain written appraisals based on interior physical home visits before issuing higher-priced mortgage loans.
The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency today announced that the 2026 threshold for higher-priced mortgage loans that are subject to special appraisal requirements will increase from $33,500 to $34,200. The threshold amount will be effective January 1, 2026, and is based on the 2.1 percent annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, as of June 1, 2025. The Dodd-Frank Act added special appraisal requirements for higher-priced mortgage loans to the Truth in Lending Act, including that creditors obtain a written appraisal based on a physical visit to the interior of the home before making a higher-priced mortgage loan. The rules implementing these requirements contain an exemption for loans at or below a threshold amount that is adjusted annually to reflect CPI-W increases. Read the Appraisals for Higher-Priced Mortgage Loans Exemption Threshold Media Contacts CFPB: CFPB Media Relations press@cfpb.gov FRB: Meg Nelson (202) 452-2955 OCC: Monica McCoy (202) 649-6870
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