WASHINGTON Jan 18 U.S. mortgage lenders making
higher-priced loans to consumers must have properties appraised
and provide borrowers a free copy of the report, under new rules
released by six financial regulatory agencies on Friday.
The rule is part of an overhaul of mortgage market
regulations, as U.S. officials try to prevent the types of
industry abuses that contributed to millions of home
foreclosures and helped spark the 2007-2009 U.S. financial
Lenders making loans with interest rates above a certain
threshold, which do not meet the "qualified mortgage" definition
set by regulators last week, will be required to have a
certified appraiser visit the interior of the property, the
In an effort to crack down on property flipping, regulators
said creditors also must obtain a second appraisal if the
difference between what the seller paid for the property and
what the consumer will pay exceeds certain levels.
Six agencies approved the appraisal rules, which were called
for by the 2010 Dodd-Frank financial oversight law and which
will take effect in January 2014.
The Federal Deposit Insurance Corp, Consumer Financial
Protection Bureau, Federal Reserve, Federal Housing Finance
Agency, National Credit Union Administration and Office of the
Comptroller of the Currency all signed off on the rules.