Feds Raise Bar on Mortgage Appraisals to Speed Up Home Buying
Published Date: 12/16/2025
Rule
Summary
Starting January 1, 2026, the minimum loan amount that needs a special appraisal for higher-priced mortgage loans goes up from $33,500 to $34,200. This change affects lenders and borrowers by slightly raising the exemption threshold, meaning some smaller loans won’t need extra appraisals anymore. It’s all based on inflation adjustments to keep things fair and up to date!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Appraisal Exemption Raised to $34,200
Starting January 1, 2026, the dollar threshold for the higher-priced mortgage loan (HPML) appraisal exemption rises from $33,500 to $34,200. That means transactions with an extension of credit equal to or below $34,200 during 2026 are exempt from the HPML special appraisal requirement.
Annual CPI-W Adjustment and Rounding Rule
The HPML appraisal exemption threshold is adjusted each January 1 based on the annual percentage change in the CPI-W that was in effect on the preceding June 1 and any increase is rounded to the nearest $100. If the CPI-W does not increase, the threshold does not change from the prior year.
Refinancing Can Lose the Exemption
A loan that was exempt at origination does not stay exempt just because it replaces an existing exempt loan if the new loan amount is greater than the threshold in effect at consummation. For example, if an exempt closed-end loan is refinanced later with a new loan amount above the applicable threshold, the creditor must comply with all HPML appraisal requirements for the new loan.
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Key Dates
Department and Agencies
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