New Appraisal Requirements Proposed

The regulatory agencies issued a proposed rule under Dodd-Frank that would establish new appraisal requirements for “higher-risk mortgage loans.”

The proposal would require creditors to use a licensed or certified appraiser to prepare a written report based on a physical inspection of the property’s interior. The proposal also would mandate that creditors disclose information about the appraisal’s purpose and provide consumers with a free copy of the appraisal report.