18-month exemption in appraisal reg

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Dec. 19, 2013 – The supplemental final rule issued last week on appraisals for higher-priced mortgage loans provides a temporary, 18-month exemption for all loans secured in whole or in part by a manufactured home, CFPB said Wednesday.

Generally, the Dodd-Frank Act requirements for appraisals take effect Jan. 18 of next year but do not affect the above-noted transactions until July 18, 2015. As of that 2015 date:

  • transactions secured by a new manufactured home and land will be exempt from the requirement that the appraisal include a physical inspection of the interior of the property;
  • transactions secured by an existing manufactured home and land will not be exempt from the rules; and
  • transactions secured solely by a manufactured home and not land will be exempt from the rules if the creditor gives the consumer one of three types of information about the home’s value.

NAFCU will publish a Final Regulation on the supplemental final rule shortly.

CFPB also on Wednesday announced a nationwide education campaign on all the mortgage rules set to take effect next month. The announcement includes links to CFPB’s guide for housing counselors, tips on borrowers’ rights, tools (including a link to the complaints site) and more.

NAFCU has also produced materials and programs this year to ensure credit unions have tools they need to comply. These include the CFPB Mortgage Reform Webcast Series and a special online resources section providing links to mortgage rule compliance tools for credit unions.

Each webcast in the series remains available for purchase and viewing for one year past the original broadcast date.

Related Links:
CFPB announcement, final rule
CFPB announcement, education campaign
NAFCU's CFPB Mortgage Reform Webcast Series
Mortgage rules compliance resources