HPML Appraisal Exemption Threshold Increased For 2023

The CFPB, Federal Reserve Board, and OCC (collectively, the Agencies) announced an increase to the smaller loan exemption threshold for the special appraisal requirements for higher-priced mortgage loans (HPMLs) under TILA.  Effective January 1, 2023, the exemption threshold amount for HPMLs will increase from $28,500 to $31,000.

The Agencies’ rules exempt loans below the threshold amount from the special appraisal requirements TILA imposes on HPMLs.  The exemption threshold is adjusted each year based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  The CPI-W increased 8.9 percent from June 1, 2021 to June 1, 2022, resulting in an exemption threshold of $31,000 after rounding.