source:
  type: regulation
  id: tila-15usc-1639h
  authority: 15 U.S.C. §1639h — Property appraisal requirements
  description: 'TILA''s higher-risk-mortgage appraisal-requirements section

    (Dodd-Frank §1471, the HVCC statutory successor). Written

    appraisal required before extending HPML credit, with physical

    property visit by a certified or licensed appraiser, second

    appraisal on 180-day-flip scenarios at no cost to applicant,

    free copy delivered 3 days prior to closing, and consumer-

    notification at initial application. Implemented in Regulation Z

    §1026.35. Bootstrap target for Round C promotion; obligations

    populated from candidate file.

    '
obligations:
- id: tila-15usc-1639h-a
  canonical_id: tila-15usc-1639h-a
  section: 15 U.S.C. §1639h(a)
  description: '(a): (a) In general A creditor may not extend credit in the form of a higher-risk mortgage
    to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared
    in accordance with the requirements of this section.'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639h(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639h
    snapshot_id: 9af1a16853403a76
    fetched_at: '2026-05-24T16:52:24Z'
    content_hash: sha256:6fd43deb2c1f26c8256c8d60a421b0bcdc810a096861da973a251d8bd5984c92
    paragraph_quote: (a) In general A creditor may not extend credit in the form of a higher-risk mortgage
      to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared
      in accordance with the requirements of this section.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639h from Cornell LII snapshot 9af1a16853403a76;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-15usc-1639h-b
  canonical_id: tila-15usc-1639h-b
  section: 15 U.S.C. §1639h(b)
  description: '(b): (b) Appraisal requirements (1) Physical property visit Subject to the rules prescribed
    under paragraph (4), an appraisal of property to be secured by a higher-risk mortgage does not meet
    the requirement of this section unless it is performed by a certified or licensed appraiser who conducts
    a physic…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639h(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639h
    snapshot_id: 9af1a16853403a76
    fetched_at: '2026-05-24T16:52:24Z'
    content_hash: sha256:6fd43deb2c1f26c8256c8d60a421b0bcdc810a096861da973a251d8bd5984c92
    paragraph_quote: (b) Appraisal requirements (1) Physical property visit Subject to the rules prescribed
      under paragraph (4), an appraisal of property to be secured by a higher-risk mortgage does not meet
      the requirement of this section unless it is performed by a certified or licensed appraiser who
      conducts a physical property visit of the interior of the mortgaged property. (2) Second appraisal
      under certain circumstances (A) In general If the purpose of a higher-risk mortgage is to finance
      the purchase or acquisition of the mortgaged property from a person within 180 days of the purchase
      or acquisition of such property by that person at a price that was lower than the current sale price
      of the property, the creditor shall obtain a second appraisal from a different certified or licensed
      appraiser . The second appraisal shall include an analysis of the difference in sale prices, changes
      in market conditions, and any improvements made to the property between the date of the previous
      sale and the current sale. (B) No cost to applicant The cost of any second appraisal required under
      subparagraph (A) may not be charged to the 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 The Board, the Comptroller of the Currency,
      the Federal Deposit Insurance Corporation , the National Credit Union Administration Board, the
      Federal Housing Finance Agency , and the Bureau shall jointly prescribe regulations to implement
      this section. (B) Exemption The agencies listed in subparagraph (A) may jointly exempt, by rule,
      a class of loans from the requirements of this subsection or subsection (a) if the agencies determine
      that the exemption is in the public interest and promotes the safety and soundness of creditors
      .
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639h from Cornell LII snapshot 9af1a16853403a76;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-15usc-1639h-c
  canonical_id: tila-15usc-1639h-c
  section: 15 U.S.C. §1639h(c)
  description: '(c): (c) Free copy of appraisal A creditor shall provide 1 copy of each appraisal conducted
    in accordance with this section in connection with a higher-risk mortgage to the applicant without
    charge, and at least 3 days prior to the transaction closing date.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639h(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639h
    snapshot_id: 9af1a16853403a76
    fetched_at: '2026-05-24T16:52:24Z'
    content_hash: sha256:6fd43deb2c1f26c8256c8d60a421b0bcdc810a096861da973a251d8bd5984c92
    paragraph_quote: (c) Free copy of appraisal A creditor shall provide 1 copy of each appraisal conducted
      in accordance with this section in connection with a higher-risk mortgage to the applicant without
      charge, and at least 3 days prior to the transaction closing date.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639h from Cornell LII snapshot 9af1a16853403a76;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-15usc-1639h-d
  canonical_id: tila-15usc-1639h-d
  section: 15 U.S.C. §1639h(d)
  description: '(d): (d) Consumer notification At the time of the initial mortgage application, the applicant
    shall be provided with a statement by the creditor that any appraisal prepared for the mortgage is
    for the sole use of the creditor , and that the applicant may choose to have a separate appraisal
    conducted at t…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639h(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639h
    snapshot_id: 9af1a16853403a76
    fetched_at: '2026-05-24T16:52:24Z'
    content_hash: sha256:6fd43deb2c1f26c8256c8d60a421b0bcdc810a096861da973a251d8bd5984c92
    paragraph_quote: (d) Consumer notification At the time of the initial mortgage application, the applicant
      shall be provided with a statement by the creditor that any appraisal prepared for the mortgage
      is for the sole use of the creditor , and that the applicant may choose to have a separate appraisal
      conducted at the expense of the applicant.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639h from Cornell LII snapshot 9af1a16853403a76;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-15usc-1639h-e
  canonical_id: tila-15usc-1639h-e
  section: 15 U.S.C. §1639h(e)
  description: '(e): (e) Violations In addition to any other liability to any person under this subchapter,
    a creditor found to have willfully failed to obtain an appraisal as required in this section shall
    be liable to the applicant or borrower for the sum of $2,000.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639h(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639h
    snapshot_id: 9af1a16853403a76
    fetched_at: '2026-05-24T16:52:24Z'
    content_hash: sha256:6fd43deb2c1f26c8256c8d60a421b0bcdc810a096861da973a251d8bd5984c92
    paragraph_quote: (e) Violations In addition to any other liability to any person under this subchapter,
      a creditor found to have willfully failed to obtain an appraisal as required in this section shall
      be liable to the applicant or borrower for the sum of $2,000.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639h from Cornell LII snapshot 9af1a16853403a76;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-15usc-1639h-f
  canonical_id: tila-15usc-1639h-f
  section: 15 U.S.C. §1639h(f)
  description: '(f): (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 qualifie…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1639h(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1639h
    snapshot_id: 9af1a16853403a76
    fetched_at: '2026-05-24T16:52:24Z'
    content_hash: sha256:6fd43deb2c1f26c8256c8d60a421b0bcdc810a096861da973a251d8bd5984c92
    paragraph_quote: (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 .)
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1639h from Cornell LII snapshot 9af1a16853403a76;
      body isolated between nav and notes; substring-verified.
  judgment: false
