New 2026 HPML Thresholds

The OCC, Federal Reserve Board, and CFPB have published [90 FR 58141] a final rule amending, respectively, the 12 CFR Part 34, 12 CFR Part 226, and 12 CFR Part 1026 special appraisal requirements for "higher-risk mortgages," known as "higher-priced mortgage loans" or "HPMLs" in their regulations.

A December 2023 rulemaking exempted transactions of $25,000 or less from those special appraisal requirements. The rulemaking also required that the $25,000 threshold be adjusted annually for inflation.

Under the final rule the exemption threshold will increase from $33,500 to $34,200, effective January 1, 2026.

The threshold amount will be effective January 1, 2026, and is based on the 2.1 percent annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W.