15 USC 1639h - Property appraisal requirements

U.S Code last checked for updates: Feb 22, 2025

§ 1639h.

Property appraisal requirements

(a)

In general

(b)

Appraisal requirements

(1)

Physical property visit

(2)

Second appraisal under certain circumstances

(A)

In general

(B)

No cost to applicant

(3)

Certified or licensed appraiser defined

For purposes of this section, the term “certified or licensed appraiser” means a person who—

(A)

is, at a minimum, certified or licensed by the State in which the property to be appraised is located; and

(B)

performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 [12 U.S.C. 3331 et seq.], and the regulations prescribed under such title, as in effect on the date of the appraisal.

(4)

Regulations

(A)

In general

(B)

Exemption

(c)

Free copy of appraisal

(d)

Consumer notification

(e)

Violations

(f)

Higher-risk mortgage defined

For purposes of this section, the term “higher-risk mortgage” means a residential mortgage loan, other than a reverse mortgage loan that is a qualified mortgage, as defined in section 1639c of this title, secured by a principal dwelling—

(1)

that is not a qualified mortgage, as defined in section 1639c of this title; and

(2)

with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction, as defined in section 1639c of this title, as of the date the interest rate is set—

(A)

by 1.5 or more percentage points, in the case of a first lien residential mortgage loan having an original principal obligation amount that does not exceed the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the sixth sentence of section 1454(a)(2) of title 12;

(B)

by 2.5 or more percentage points, in the case of a first lien residential mortgage loan having an original principal obligation amount that exceeds the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the sixth sentence of section 1454(a)(2) of title 12; and

(C)

by 3.5 or more percentage points for a subordinate lien residential mortgage loan.

(Pub. L. 90–321, title I, § 129H, as added Pub. L. 111–203, title XIV, § 1471, July 21, 2010, 124 Stat. 2185.)

cite as: 15 USC 1639h