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HPML Appraisal Rule

Effective January 18, 2014 for mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the High Priced Mortgage Loan (HPML) final rule requires creditors to obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of the appraisals, and give applicants a copy of the written appraisals used.

The rule applies to higher-priced, first-lien or subordinate-lien closed-end loans secured by a consumer’s principal dwelling.

A higher-priced mortgage loan is:

  • First lien with an APR that exceeds the APOR by 1.5% or more
  • First lien jumbo loan with an APR that exceeds the APOR by 2.5% or more
  • Subordinate lien with an APR that exceeds the APOR by 3.5% or more


  • Disclose to the member(s) within three business days after receiving the members’ applications that they are entitled to a free copy of any appraisal the credit union orders and they can also hire their own appraiser at their own expense for their own use.
  • Obtain a written appraisal performed by a certified or licensed appraiser in conformity with the USPAP and Title XI of FIRREA.
  • Have the appraiser visit the interior of the property and provide a written report.
  • Deliver copies of appraisals to applicants no later than three business days before consummation.

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