"The Consumer Financial Protection Bureau (CFPB), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC) announced on Monday that the 2026 threshold for higher-priced mortgage loans that are subject to special appraisal requirements will increase from $33,500 to $34,200. A press release from the Federal Reserve Board confirmed that the threshold amount will be effective January 1, 2026, and is based on the 2.1% annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, as of June 1, 2025."
"The Dodd-Frank Act added special appraisal requirements for higher-priced mortgage loans under the Truth in Lending Act, including a requirement that lenders obtain a written appraisal based on an interior inspection of the home. The rules include an exemption for loans at or below a dollar threshold that is adjusted annually based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers."
The threshold for higher-priced mortgage loans requiring special appraisal procedures will increase from $33,500 to $34,200 effective January 1, 2026. The increase is based on a 2.1% annual rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2025. Dodd-Frank added appraisal requirements under the Truth in Lending Act that require a written appraisal based on an interior inspection for covered loans. The exemption applies to loans at or below an annually adjusted dollar threshold tied to CPI-W movements. If CPI-W does not rise, the agencies do not adjust the threshold. The prior increase took the threshold from $32,400 to $33,500 effective Jan. 1, 2025.
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