Appraisals for Higher-Priced Mortgage Loans Exemption Threshold

Key Points

• 1The regulation increases the loan amount threshold above which banks must get an appraisal for mortgages, meaning some expensive home purchases no longer require this professional evaluation
• 2Borrowers buying homes could get loan decisions faster since appraisals take time and money, but they lose independent verification that the home price is fair
• 3The change primarily affects people taking out large mortgages, as smaller loans already had different rules
• 4Banks and lenders will need to update their procedures to follow the new higher threshold for when appraisals are required
• 5Consumer protection advocates worry this could allow people to pay too much for homes without professional oversight

Key Dates