A final interagency rule released this week that increaseshigher-risk mortgage appraisal requirements appears to be verysimilar to the proposed rule.
|The rule, which includes the NCUA among other federalregulators, will require lenders who offer higher-risk mortgages touse licensed or certified appraisers who must prepare writtenreports, based on physical inspections of a home's interior, whenthey determine the value of a given home.
|Mortgage lenders will also be required to provide homebuyerswith a free copy of the appraisal, according to the final rulereleased late Tuesday.
|In an attempt to address fraudulent flipping, sellers whopurchased the home for less than the current sale price within thepast six months must also provide to the homebuyer additionaldocumentation that details the difference in sale prices, anychanges in market conditions, and any improvements that have beenmade to the property since it was purchased by the current owner.Loans exempted from the rule include mortgages secured bymanufactured homes, mobile homes, boats or trailers, constructionloans and loans with maturities of 12 months or less if a “bridge”loan.
|The higher-risk mortgage appraisal requirements will go intoeffect on Jan. 18, 2014. The NCUA Board approvedthe rule during its Jan. 10 board meeting.
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