All mortgages secured by manufactured homes will be exempt from Dodd-Frank’s appraisal requirements for higher-priced mortgage loans (HPML) until July 2015 under final rules issued by six federal agencies. The final rules, released on Dec. 12, create exemptions from rules issued earlier this year that go into effect on Jan. 18, 2014.
Under the Dodd-Frank Act, closed-end mortgage loans are considered to be higher-priced if they are secured by a consumer’s home and have interest rates above a certain threshold. Dodd-Frank requires creditors to obtain a written appraisal based on a physical visit of the home’s interior before making these loans.
In January, six agencies, including the Federal Deposit Insurance Corp. and Consumer Financial Protection Bureau, finalized a rule implementing Dodd-Frank’s appraisal requirements for HPMLs. The rule included certain exemptions. In addition to those exemptions, proposed rules released for comment on July 10 sought to exempt three types of HMPLs from Dodd-Frank’s appraisal requirements: loans of $25,000 or less; certain “streamlined” refinancings; and certain loans secured by manufactured housing.