The Consumer Financial Protection Bureau (CFPB), along with the OCC and the Federal Reserve, has issued a final rule amending the official interpretations for regulations implementing Section 129H of the Truth in Lending Act (TILA). This amendment increases the exemption threshold for appraisals on higher-priced mortgage loans (HPMLs) from $33,500 to $34,200. This adjustment is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and will take effect on January 1, 2026. The original exemption was set at $25,000 in December 2013 and has been adjusted annually since.

Financial institutions originating mortgages will need to update their systems to reflect the new appraisal exemption threshold of $34,200 for HPMLs, effective January 1, 2026. This change is an annual adjustment based on inflation, so compliance officers should ensure their internal policies and procedures are updated to align with this new threshold to avoid potential violations related to appraisal requirements for higher-risk mortgages. No specific compliance actions beyond system updates are immediately required, as this is a routine threshold adjustment.