Federal Agencies Announce Threshold for Smaller Loan Exemption – NMP Skip to main content

Federal Agencies Announce Threshold for Smaller Loan Exemption

Oct 14, 2022
Federal Reserve Bank
Staff Writer

The 2023 threshold will involve exempting loans from special appraisal requirements for higher-priced mortgage loans.

KEY TAKEAWAYS
  • The threshold amount will be effective January 1, 2023, and is based on the annual percentage increase in the CPI-W as of June 1.
  • The rules implementing these requirements contain an exemption for loans of $25,000 or less.

The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency today announced that the 2023 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $28,500 to $31,000.

Each agency released statements about the new change. According to each press release, the threshold amount will be effective January 1, 2023, and is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2022.

The Dodd–Frank Wall Street Reform and Consumer Protection Act added special appraisal requirements for higher-priced mortgage loans, including that creditors must obtain a written appraisal based on a physical visit to the interior of the home before making a higher-priced mortgage loan. 

The rules implementing these requirements contain an exemption for loans of $25,000 or less, adjusted annually to reflect CPI-W increases.

An addendum to the Fed’s release states that if there is no annual percentage increase in the CPI-W, the agencies will not adjust this exemption threshold from the prior year. 

Additionally, in years following a year where the exemption threshold was not adjusted due to a decrease in the CPI-W, the threshold would be calculated by applying the annual percentage increase in the CPI-W to the dollar amount that would have ensued, after rounding, if the decreases and any subsequent increases in the CPI-W had been taken into account.

About the author
Staff Writer
Sarah Wolak is a staff writer at NMP.
Published
Oct 14, 2022
New Appraisal Rules Could Vary By Lender Under GSE Exception

Fannie and Freddie are giving some lenders more time to adopt UAD 3.6, meaning mortgage brokers may need to navigate different appraisal requirements across wholesale partners

Credit-Score Competition Could Expand Beyond FICO, VantageScore

CHLA sees new Fannie and Freddie score disclosures as a first step toward more competition, while lenders are already finding different borrower outcomes under today's models

Mortgage AI Survey Finds Monitoring Gap At Smaller Lenders

Only 40% of smaller lenders surveyed reported ongoing AI monitoring, compared with 80% of larger lenders, as a new state examiner guide details the records regulators may request

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

ACES Targets Loans Traditional QC Samples May Miss

New population-testing technology applies lender-defined rules across selected origination and servicing records, then directs flagged files to human reviewers

Sep 21, 2026
The Risk Your Credit Score Can't See

Place-based market risk can produce dramatically different default outcomes among borrowers with nearly identical credit profiles

Sep 17, 2026