WBK Industry News - Federal Regulatory Developments

HPML Appraisal Exemption Threshold Unchanged for 2021

The CFPB, Federal Reserve Board, and OCC (Agencies) recently announced that the smaller loan exemption threshold for the special appraisal requirements for higher-priced mortgage loans (HPMLs) under TILA will remain unchanged.  Effective January 1, 2021, the exemption threshold amount for HPMLs will remain at $27,200.

The exemption threshold must be adjusted annually based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  Any increase in the threshold amount will be rounded to the nearest $100 increment.  However, if there is no annual percentage increase in the CPI-W, the Agencies will not adjust the exemption threshold from the prior year.  The CPI-W in effect on June 1, 2020, reflects a 0.1 percent increase in the CPI-W, which results in an exemption threshold of $27,200 after rounding.