(Nov. 20, 2020) The threshold for exempting loans from special appraisal requirements applied to higher-priced mortgage loans under the Truth in Lending Act will remain at $27,200 in 2021, unchanged from this year’s threshold, according to an announcement this week by the CFPB and federal banking agencies.
The agencies said the threshold, effective Jan. 1, is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2020. The higher-priced loan rules were added to the Truth in Lending Act (TILA) by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The act added special appraisal requirements for higher-priced mortgage loans, including a requirement that creditors obtain a written appraisal based on a physical visit to the home’s interior before making a higher-priced mortgage loan.
NASCUS posts all actions of the CFPB affecting the state credit union system on its “Latest CFPB updates” page of the NASCUS website.