The NCUA and five other agencies on Wednesday issued a proposedrule that would exempt some higher-priced mortgage loans fromcertain appraisal requirements.

The rule would exempt from Dodd-Frank Act appraisalrequirements: loans of $25,000 or less; certain “streamlined”refinancings; and certain loans secured by manufactured housing.The banking reform act considers loans to be higher-priced if theyare secured by a borrower's home and have interest rates of acertain threshold, the agencies' announcement said.

“The proposed exemptions are intended to save borrowers time andmoney and to promote the safety and soundness of creditors,” saidthe announcement from the NCUA, FDIC, CFPB, FHFA, Federal ReserveBoard and the Office of the Comptroller of the Currency.

The public has until Sept. 9 to comment on the proposed rule,expected to be published in the Federal Register shortly, theagencies said.

The 132-page Federal Register notice is available online.

The new rule is in response to public comments gathered afterthe January 2013 implementation of a final rule on Dodd-Frankappraisal requirements that requires compliance on Jan. 18, 2014, the agencies said.

That rule, approved in January by the NCUA, requires lenders whooffer higher-risk mortgages to use licensed or certified appraiserswho must prepare written reports, based on physical inspections ofa home's interior, when they determine the value of a givenhome.

Also, sellers who purchased the home for less than the currentsale price within the past six months must also provide to thehomebuyer additional documentation that details the difference insale prices, any changes in market conditions, and any improvementsthat have been made to the property since it was purchased by thecurrent owner.

Mortgage lenders will also be required to provide homebuyerswith a free copy of the appraisal, according to the final rulereleased in January.

Loans exempted from that 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.