FRSFinal Rule
Appraisals for Higher-Priced Mortgage Loans Exemption Threshold
Finance & BankingHousing
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Summary
This regulation changes the rules about when banks must get a professional appraisal (property evaluation) before approving a mortgage loan. By raising the price threshold, fewer home loans will require formal appraisals, which could speed up the lending process and potentially lower costs for borrowers.
Key Points
- 1The Federal Reserve increased the loan amount threshold above which banks must require a professional appraisal for mortgage loans
- 2Higher-priced mortgages that fall below the new threshold will no longer automatically require formal appraisals, allowing faster loan approvals
- 3This change aims to reduce costs and streamline the mortgage process for borrowers, though it may mean less independent evaluation of property value
- 4Lenders still have the option to order appraisals even when not required, especially for higher-risk loans
- 5The rule affects anyone applying for a mortgage on a home, potentially making the loan process faster but with potentially less protection against overpriced properties
Key Dates
Published
December 16, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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