The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency have announced that starting on January 1, 2024, the threshold for higher-priced mortgage loans to be subject to special appraisal requirements will increase from $31,000 to $32,400. This increase is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers as of June 1, 2023. These special appraisal requirements were added by the Dodd-Frank Act and include obtaining a written appraisal based on a physical visit to the home before approving a higher-priced mortgage loan. There is an exemption for loans of $25,000 or less, which is adjusted annually to reflect CPI-W increases.
Read the original Federal Reserve release here.