On January 18, 2013, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Federal Housing Finance Agency, and the Consumer Financial Protection Bureau (CFPB) issued a final rule that establishes new appraisal requirements for higher-priced mortgage loans. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, mortgage loans are higher priced if they are secured by a consumer's home and have interest rates above certain thresholds. In addition, a number of important changes to CFPB mortgage-related rules also are underway, and the FDIC is making available to the public several resources addressing these changes.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies to all FDIC-supervised institutions, including community banks.
For certain higher-priced mortgage loans, the final rule requires creditors to use a licensed or certified appraiser who prepares a written appraisal report based on a physical visit of the interior of the property, provide consumers with a free copy of the appraisal report, disclose to applicants information about the purpose of the appraisal, and obtain an additional appraisal at no cost to the consumer under certain circumstances.
The final rule provides exemptions from the additional appraisal requirement for loans in rural areas and certain other types of loans.
The final rule takes effect on January 18, 2014.
In response to banker requests for assistance in monitoring developments in mortgage-related rulemakings, attached is a listing of CFPB mortgage-related rules, applicable to FDIC-supervised institutions, that are underway or have been recently issued and other FDIC resources bankers may wish to monitor.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Loan Officer
Chief Information Systems Officer
Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).
Resource List for Tracking Changes in Mortgage-Related Rulemakings
March 18, 2013
FDIC Regulatory Calendar: The FDIC Regulatory Calendar helps community banks remain current on changes in federal banking laws, regulations, and supervisory guidance, including the CFPB's changes to the mortgage-related rulemakings. It can be accessed at http://www.fdic.gov/regulations/resources/cbi/calendar.html.
FDIC Banker Teleconference Series: The FDIC periodically holds banker teleconferences about important rulemakings, guidance, and emerging issues. For example, in 2012, teleconferences addressed such topics as the proposed CFPB mortgage-related rules, fair lending, and third-party compliance risk management. The FDIC will continue to hold timely teleconferences to keep institutions informed about important banking regulatory and emerging issues. Information about future teleconferences will be communicated through Financial Institution Letters. To receive these communications electronically, you may subscribe at http://www.fdic.gov/about/subscriptions/fil.html.
CFPB Website: The CFPB's Web site is a resource for tracking changes to mortgage-related rulemakings. It can be accessed at http://www.consumerfinance.gov/regulations/. The Web site shows that a number of other mortgage-related rulemakings applicable to FDIC-supervised institutions are underway or have been recently issued. As of this writing, these include the following final mortgage rules issued by the CFPB: