Page 7 - Compliance Monthly - November 2019

Finalized Rules

Appraisals for Residential Real Estate Transactions
The final rule, issued jointly by the Agencies, makes amendments to the appraisal rules to require that banks obtain

evaluations in lieu of title XI appraisals for transactions covered by the residential threshold exemption. The final rule:
• Increases the appraisal threshold for residential transactions from $250,000 to $400,000. (Effective October 9, 2019)
• Extends the requirement for banks to obtain evaluations on exempt residential transactions from $250,000 to
$400,000, although banks retain the discretion to use appraisals. (Effective October 9, 2019)
•
• Makes conforming and technical changes relating to the increase in the residential threshold.
Makes conforming changes to the appraisal rules to reflect two requirements in the EGRRCPA and Dodd–Frank.
o First, the final rule amends the appraisal rule to reflect the appraisal exemption in section 103 of the
EGRRCPA for certain residential real estate transactions of $400,000 or less in rural areas where appraisers
are not available within the statutory cost and time parameters in section 103. It incorporates this
exemption in the list of exempt transactions in the appraisal regulations and requires evaluations for these
o Second, the final rule makes a conforming change to the appraisal regulations to reflect the statutory
exempt transactions, although banks retain the discretion to use appraisals. (Effective October 9, 2019)

minimum requirement in section 1473(e) of Dodd–Frank for institutions to review appraisals for compliance
with the Uniform Standards of Professional Appraisal Practice. (Effective January 1, 2020)
Source: OCC, Publication Date: October 9, 2019

Home Mortgage Disclosure Act

The Bureau of Consumer Financial Protection (Bureau) is amending Regulation C to adjust the threshold for reporting data about
open-end lines of credit by extending to January 1, 2022, the current temporary threshold of 500 open-end lines of credit. The
Bureau is also incorporating into Regulation C the interpretations and procedures from the interpretive and procedural rule that
the Bureau issued on August 31, 2018, and implementing further section 104(a) of the Economic Growth, Regulatory Relief, and
Consumer Protection Act.

Source: CFPB, Publication Date: October 10, 2019

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