Appraisals for Higher-Priced Mortgage Loans Exemption Threshold Adjustment
The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency announced the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $28,500 to $31,000 effective January 1, 2023.
Dollar Threshold Adjustments in Regulations Z for Determining Exempt Transactions
The Consumer Financial Protection Bureau and the Federal Reserve Board announced final rules amending the official interpretations for Regulation Z (related to the dollar threshold for exempt consumer credit transactions.
An extension of credit that exceeds the applicable threshold amount or has an express written commitment to extend credit in excess of the applicable threshold amount is exempt from the provisions of Regulation Z. This exemption does not apply to: (1) loans secured by real property, or personal property used as the principal dwelling of the consumer; or (2) private education loans.
Effective January 1, 2023, the exemption threshold amount will increase from $61,000 to $66,400.
FHFA Announces GSE Conforming Loan Limits for 2023
The Federal Housing Finance Agency (“FHFA”) announced that the maximum confirming loan limit for first mortgages secured by one-unit properties acquired by Fannie Mae and Freddie Mac in 2023 will be $726,200, with the exception of several higher-cost areas where higher loan limits will be in effect.
A list of counties and their corresponding limits is available at the link above under “List of conforming loan limits.” Please note that some states incorporate FHFA’s conforming loan limits into their “high-cost home loan” and other laws.