Appraisals for Higher-Priced Mortgage Loans under TILA
“In an attempt to strengthen lending requirements and expand consumer protections on higher-priced mortgage loans (HPML), § 1471 of the Dodd Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) revised the Truth in Lending Act (TILA) and the CFPB amended Regulation Z pursuant to the new TILA requirements. The amendments require creditors to obtain a written appraisal by a licensed or certified appraiser who must also visit the interior of the property. The amendments also require certain notice to consumers of their rights to receive copies of all appraisals promptly after the appraisals are completed. If the seller of the property recently purchased that property (a “flipped property”), a second written appraisal is required at no cost to the applicants. Qualified Mortgages and other types of mortgages are exempt from these requirements. The OCC, Federal Reserve Board, National Credit Union Administration, Federal Housing Finance Agency and the CFPB jointly issued rules pursuant to the new TILA requirements.”
You can get an overview of the amendments here: Appraisals for Higher-Priced Mortgage Loans under TILA