source:
  type: regulation
  id: reg-z-1026.35
  authority: 12 CFR §1026.35 — Requirements for higher-priced mortgage loans (HPML)
  description: 'Regulation Z §1026.35 imposes the HPML regime: first-lien escrow, written-appraisal-with-interior-inspection
    requirement, additional-appraisal property-flip rule, application-stage disclosure, copy delivery,
    and open-end-evasion ban.'
obligations:
- id: reg-z-1026.35-full
  canonical_id: reg-z-1026.35-full
  section: 12 CFR §1026.35
  description: Link to an amendment published at 90 FR 2501 , Jan. 10, 2025.
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: Link to an amendment published at 90 FR 2501 , Jan. 10, 2025.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-a
  canonical_id: reg-z-1026.35-a
  section: 12 CFR §1026.35(a)
  description: '(a): (a) Definitions. For purposes of this section: (1) “Higher-priced mortgage loan”
    means a closed-end consumer credit transaction secured by the consumer ''s principal dwelling with
    an annual percentage rate that exceeds the average prime offer rate for a comparable transaction as
    of the date the inter…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(a) Definitions. For purposes of this section: (1) “Higher-priced mortgage loan”
      means a closed-end consumer credit transaction secured by the consumer ''s principal dwelling with
      an annual percentage rate that exceeds the average prime offer rate for a comparable transaction
      as of the date the interest rate is set:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-i
  canonical_id: reg-z-1026.35-i
  section: 12 CFR §1026.35(i)
  description: '(i): (i) By 1.5 or more percentage points for loans secured by a first lien with a principal
    obligation at consummation that does not exceed the limit in effect as of the date the transaction''s
    interest rate is set for the maximum principal obligation eligible for purchase by Freddie Mac; (ii)
    By 2.5 or …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: (i) By 1.5 or more percentage points for loans secured by a first lien with a principal
      obligation at consummation that does not exceed the limit in effect as of the date the transaction's
      interest rate is set for the maximum principal obligation eligible for purchase by Freddie Mac;
      (ii) By 2.5 or more percentage points for loans secured by a first lien with a principal obligation
      at consummation that exceeds the limit in effect as of the date the transaction's interest rate
      is set for the maximum principal obligation eligible for purchase by Freddie Mac; or (iii) By 3.5
      or more percentage points for loans secured by a subordinate lien. (2) “Average prime offer rate”
      means an annual percentage rate that is derived from average interest rates, points, and other loan
      pricing terms currently offered to consumers by a representative sample of creditors for mortgage
      transactions that have low-risk pricing characteristics. The Bureau publishes average prime offer
      rates for a broad range of types of transactions in a table updated at least weekly as well as the
      methodology the Bureau uses to derive these rates. (3) “Insured credit union” has the meaning given
      in Section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ). (4) “Insured depository institution”
      has the meaning given in Section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ).
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-b
  canonical_id: reg-z-1026.35-b
  section: 12 CFR §1026.35(b)
  description: '(b): (b) Escrow accounts —(1) Requirement to escrow for property taxes and insurance.
    Except as provided in paragraph (b)(2) of this section, a creditor may not extend a higher-priced
    mortgage loan secured by a first lien on a consumer ''s principal dwelling unless an escrow account
    is established before …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(b) Escrow accounts —(1) Requirement to escrow for property taxes and insurance.
      Except as provided in paragraph (b)(2) of this section, a creditor may not extend a higher-priced
      mortgage loan secured by a first lien on a consumer ''s principal dwelling unless an escrow account
      is established before consummation for payment of property taxes and premiums for mortgage-related
      insurance required by the creditor, such as insurance against loss of or damage to property, or
      against liability arising out of the ownership or use of the property, or insurance protecting the
      creditor against the consumer ''s default or other credit loss. For purposes of this paragraph (b),
      the term “escrow account” has the same meaning as under Regulation X ( 12 CFR 1024.17 (b)), as amended.
      (2) Exemptions. Notwithstanding paragraph (b)(1) of this section:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-i
  canonical_id: reg-z-1026.35-i
  section: 12 CFR §1026.35(i)
  description: '(i): (i) An escrow account need not be established for: (A) A transaction secured by shares
    in a cooperative; (B) A transaction to finance the initial construction of a dwelling ; (C) A temporary
    or “bridge” loan with a loan term of twelve months or less, such as a loan to purchase a new dwelling
    where t…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(i) An escrow account need not be established for: (A) A transaction secured by
      shares in a cooperative; (B) A transaction to finance the initial construction of a dwelling ; (C)
      A temporary or “bridge” loan with a loan term of twelve months or less, such as a loan to purchase
      a new dwelling where the consumer plans to sell a current dwelling within twelve months; or (D)
      A reverse mortgage transaction subject to § 1026.33 . (ii) Insurance premiums described in paragraph
      (b)(1) of this section need not be included in escrow accounts for loans secured by dwellings in
      condominiums, planned unit developments, or other common interest communities in which dwelling
      ownership requires participation in a governing association, where the governing association has
      an obligation to the dwelling owners to maintain a master policy insuring all dwellings. (iii) Except
      as provided in paragraph (b)(2)(v) of this section, an escrow account need not be established for
      a transaction if, at the time of consummation: (A) During the preceding calendar year, or, if the
      application for the transaction was received before April 1 of the current calendar year, during
      either of the two preceding calendar years, the creditor extended a covered transaction, as defined
      by § 1026.43(b)(1) , secured by a first lien on a property that is located in an area that is either
      “rural” or “underserved,” as set forth in paragraph (b)(2)(iv) of this section; (B) During the preceding
      calendar year, or, if the application for the transaction was received before April 1 of the current
      calendar year, during either of the two preceding calendar years, the creditor and its affiliates
      together extended no more than 2,000 covered transactions, as defined by § 1026.43(b)(1) , secured
      by first liens, that were sold, assigned, or otherwise transferred to another person , or that were
      subject at the time of consummation to a commitment to be acquired by another person ; (C) As of
      the preceding December 31st, or, if the application for the transaction was received before April
      1 of the current calendar year, as of either of the two preceding December 31sts, the creditor and
      its affiliates that regularly extended covered transactions, as defined by § 1026.43(b)(1) , secured
      by first liens, together, had total assets of less than $2,000,000,000; this asset threshold shall
      adjust automatically each year, based on the year-to-year change in the average of the Consumer
      Price Index for Urban Wage Earners and Clerical Workers, not seasonally adjusted, for each 12-month
      period ending in November, with rounding to the nearest million dollars (see comment 35(b)(2)(iii)-1.iii
      for the applicable threshold); and (D) Neither the creditor nor its affiliate maintains an escrow
      account of the type described in paragraph (b)(1) of this section for any extension of consumer
      credit secured by real property or a dwelling that the creditor or its affiliate currently services,
      other than: (1) Escrow accounts established for first-lien higher-priced mortgage loans for which
      applications were received on or after April 1, 2010, and before June 17, 2021; or (2) Escrow accounts
      established after consummation as an accommodation to distressed consumers to assist such consumers
      in avoiding default or foreclosure. (iv) For purposes of paragraph (b)(2)(iii)(A) of this section:
      (A) An area is “rural” during a calendar year if it is: (1) A county that is neither in a metropolitan
      statistical area nor in a micropolitan statistical area that is adjacent to a metropolitan statistical
      area, as those terms are defined by the U.S. Office of Management and Budget and as they are applied
      under currently applicable Urban Influence Codes (UICs), established by the United States Department
      of Agriculture ''s Economic Research Service (USDA-ERS); or (2) A census block that is not in an
      urban area, as defined by the U.S. Census Bureau using the latest decennial census of the United
      States. (B) An area is “underserved” during a calendar year if, according to Home Mortgage Disclosure
      Act (HMDA) data for the preceding calendar year, it is a county in which no more than two creditors
      extended covered transactions, as defined in § 1026.43(b)(1) , secured by first liens on properties
      in the county five or more times. (C) A property shall be deemed to be in an area that is rural
      or underserved in a particular calendar year if the property is: (1) Located in a county that appears
      on the lists published by the Bureau of counties that are rural or underserved, as defined by §
      1026.35(b)(2)(iv)(A)( 1 ) or § 1026.35(b)(2)(iv)(B) , for that calendar year, (2) Designated as
      rural or underserved for that calendar year by any automated tool that the Bureau provides on its
      public Web site, or (3) Not designated as located in an urban area, as defined by the most recent
      delineation of urban areas announced by the Census Bureau, by any automated address search tool
      that the U.S. Census Bureau provides on its public Web site for that purpose and that specifically
      indicates the urban or rural designations of properties.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-v
  canonical_id: reg-z-1026.35-v
  section: 12 CFR §1026.35(v)
  description: '(v): (v) Notwithstanding paragraphs (b)(2)(iii) and (vi) of this section, an escrow account
    must be established pursuant to paragraph (b)(1) of this section for any first-lien higher-priced
    mortgage loan that, at consummation, is subject to a commitment to be acquired by a person that does
    not satisfy th…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(v) Notwithstanding paragraphs (b)(2)(iii) and (vi) of this section, an escrow account
      must be established pursuant to paragraph (b)(1) of this section for any first-lien higher-priced
      mortgage loan that, at consummation, is subject to a commitment to be acquired by a person that
      does not satisfy the conditions in paragraph (b)(2)(iii) or (vi) of this section, unless otherwise
      exempted by this paragraph (b)(2). (vi) Except as provided in paragraph (b)(2)(v) of this section,
      an escrow account need not be established for a transaction made by a creditor that is an insured
      depository institution or insured credit union if, at the time of consummation: (A) As of the preceding
      December 31st, or, if the application for the transaction was received before April 1 of the current
      calendar year, as of either of the two preceding December 31sts, the insured depository institution
      or insured credit union had assets of $10,000,000,000 or less, adjusted annually for inflation using
      the Consumer Price Index for Urban Wage Earners and Clerical Workers, not seasonally adjusted, for
      each 12-month period ending in November (see comment 35(b)(2)(vi)(A)-1 for the applicable threshold);
      (B) During the preceding calendar year, or, if the application for the transaction was received
      before April 1 of the current calendar year, during either of the two preceding calendar years,
      the creditor and its affiliates, as defined in § 1026.32(b)(5) , together extended no more than
      1,000 covered transactions secured by a first lien on a principal dwelling ; and (C) The transaction
      satisfies the criteria in paragraphs (b)(2)(iii)(A) and (D) of this section. (3) Cancellation —(i)
      General. Except as provided in paragraph (b)(3)(ii) of this section, a creditor or servicer may
      cancel an escrow account required in paragraph (b)(1) of this section only upon the earlier of:
      (A) Termination of the underlying debt obligation ; or (B) Receipt no earlier than five years after
      consummation of a consumer ''s request to cancel the escrow account. (ii) Delayed cancellation.
      Notwithstanding paragraph (b)(3)(i) of this section, a creditor or servicer shall not cancel an
      escrow account pursuant to a consumer ''s request described in paragraph (b)(3)(i)(B) of this section
      unless the following conditions are satisfied: (A) The unpaid principal balance is less than 80
      percent of the original value of the property securing the underlying debt obligation ; and (B)
      The consumer currently is not delinquent or in default on the underlying debt obligation .'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-c
  canonical_id: reg-z-1026.35-c
  section: 12 CFR §1026.35(c)
  description: '(c): (c) Appraisals —(1) Definitions. For purposes of this section:'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(c) Appraisals —(1) Definitions. For purposes of this section:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-i
  canonical_id: reg-z-1026.35-i
  section: 12 CFR §1026.35(i)
  description: '(i): (i) Certified or licensed appraiser means a person who is certified or licensed by
    the State agency in the State in which the property that secures the transaction is located, and who
    performs the appraisal in conformity with the Uniform Standards of Professional Appraisal Practice
    and the requireme…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: (i) Certified or licensed appraiser means a person who is certified or licensed by
      the State agency in the State in which the property that secures the transaction is located, and
      who performs the appraisal in conformity with the Uniform Standards of Professional Appraisal Practice
      and the requirements applicable to appraisers in title XI of the Financial Institutions Reform,
      Recovery, and Enforcement Act of 1989, as amended ( 12 U.S.C. 3331 et seq. ), and any implementing
      regulations in effect at the time the appraiser signs the appraiser's certification. (ii) Credit
      risk means the financial risk that a consumer will default on a loan. (iii) Manufactured home has
      the same meaning as in 24 CFR 3280.2 . (iv) Manufacturer's invoice means a document issued by a
      manufacturer and provided with a manufactured home to a retail dealer that separately details the
      wholesale (base) prices at the factory for specific models or series of manufactured homes and itemized
      options (large appliances, built-in items and equipment), plus actual itemized charges for freight
      from the factory to the dealer's lot or the homesite (including any rental of wheels and axles)
      and for any sales taxes to be paid by the dealer. The invoice may recite such prices and charges
      on an itemized basis or by stating an aggregate price or charge, as appropriate, for each category.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-v
  canonical_id: reg-z-1026.35-v
  section: 12 CFR §1026.35(v)
  description: '(v): (v) National Registry means the database of information about State certified and
    licensed appraisers maintained by the Appraisal Subcommittee of the Federal Financial Institutions
    Examination Council. (vi) New manufactured home means a manufactured home that has not been previously
    occupied. (vii) …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(v) National Registry means the database of information about State certified and
      licensed appraisers maintained by the Appraisal Subcommittee of the Federal Financial Institutions
      Examination Council. (vi) New manufactured home means a manufactured home that has not been previously
      occupied. (vii) State agency means a “State appraiser certifying and licensing agency” recognized
      in accordance with section 1118(b) of the Financial Institutions Reform, Recovery, and Enforcement
      Act of 1989 ( 12 U.S.C. 3347(b) ) and any implementing regulations. (2) Exemptions. Unless otherwise
      specified, the requirements in paragraph (c)(3) through (6) of this section do not apply to the
      following types of transactions:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-i
  canonical_id: reg-z-1026.35-i
  section: 12 CFR §1026.35(i)
  description: '(i): (i) A loan that satisfies the criteria of a qualified mortgage as defined pursuant
    to 15 U.S.C. 1639c ; (ii) An extension of credit for which the amount of credit extended is equal
    to or less than the applicable threshold amount , which is adjusted every year to reflect increases
    in the Consumer Pri…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: (i) A loan that satisfies the criteria of a qualified mortgage as defined pursuant
      to 15 U.S.C. 1639c ; (ii) An extension of credit for which the amount of credit extended is equal
      to or less than the applicable threshold amount , which is adjusted every year to reflect increases
      in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as applicable, and published
      in the official staff commentary to this paragraph (c)(2)(ii); (iii) A transaction secured by a
      mobile home, boat, or trailer. (iv) A transaction to finance the initial construction of a dwelling
      .
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-v
  canonical_id: reg-z-1026.35-v
  section: 12 CFR §1026.35(v)
  description: '(v): (v) A loan with a maturity of 12 months or less, if the purpose of the loan is a
    “bridge” loan connected with the acquisition of a dwelling intended to become the consumer ''s principal
    dwelling . (vi) A reverse-mortgage transaction subject to 12 CFR 1026.33 (a). (vii) An extension of
    credit that is …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(v) A loan with a maturity of 12 months or less, if the purpose of the loan is a
      “bridge” loan connected with the acquisition of a dwelling intended to become the consumer ''s principal
      dwelling . (vi) A reverse-mortgage transaction subject to 12 CFR 1026.33 (a). (vii) An extension
      of credit that is a refinancing secured by a first lien, with refinancing defined as in § 1026.20(a)
      (except that the creditor need not be the original creditor or a holder or servicer of the original
      obligation), provided that the refinancing meets the following criteria: (A) Either— (1) The credit
      risk of the refinancing is retained by the person that held the credit risk of the existing obligation
      and there is no commitment, at consummation, to transfer the credit risk to another person ; or
      (2) The refinancing is insured or guaranteed by the same Federal government agency that insured
      or guaranteed the existing obligation ; (B) The regular periodic payments under the refinance loan
      do not— (1) Cause the principal balance to increase; (2) Allow the consumer to defer repayment of
      principal; or (3) Result in a balloon payment, as defined in § 1026.18(s)(5)(i); and (C) The proceeds
      from the refinancing are used solely to satisfy the existing obligation and amounts attributed solely
      to the costs of the refinancing; and (viii) A transaction secured by: (A) A new manufactured home
      and land, but the exemption shall only apply to the requirement in paragraph (c)(3)(i) of this section
      that the appraiser conduct a physical visit of the interior of the new manufactured home ; or (B)
      A manufactured home and not land, for which the creditor obtains one of the following and provides
      a copy to the consumer no later than three business days prior to consummation of the transaction—
      (1) For a new manufactured home , the manufacturer''s invoice for the manufactured home securing
      the transaction, provided that the date of manufacture is no earlier than 18 months prior to the
      creditor''s receipt of the consumer ''s application for credit; (2) A cost estimate of the value
      of the manufactured home securing the transaction obtained from an independent cost service provider;
      or (3) A valuation, as defined in § 1026.42(b)(3), of the manufactured home performed by a person
      who has no direct or indirect interest, financial or otherwise, in the property or transaction for
      which the valuation is performed and has training in valuing manufactured homes. (3) Appraisals
      required —(i) In general. Except as provided in paragraph (c)(2) of this section, a creditor shall
      not extend a higher-priced mortgage loan to a consumer without obtaining, prior to consummation,
      a written appraisal of the property to be mortgaged. The appraisal must be performed by a certified
      or licensed appraiser who conducts a physical visit of the interior of the property that will secure
      the transaction. (ii) Safe harbor. A creditor obtains a written appraisal that meets the requirements
      for an appraisal required under paragraph (c)(3)(i) of this section if the creditor: (A) Orders
      that the appraiser perform the 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, as amended ( 12 U.S.C. 3331 et seq. ), and any implementing regulations in effect at
      the time the appraiser signs the appraiser''s certification; (B) Verifies through the National Registry
      that the appraiser who signed the appraiser''s certification was a certified or licensed appraiser
      in the State in which the appraised property is located as of the date the appraiser signed the
      appraiser''s certification; (C) Confirms that the elements set forth in appendix N to this part
      are addressed in the written appraisal; and (D) Has no actual knowledge contrary to the facts or
      certifications contained in the written appraisal. (4) Additional appraisal for certain higher-priced
      mortgage loans —(i) In general. Except as provided in paragraphs (c)(2) and (c)(4)(vii) of this
      section, a creditor shall not extend a higher-priced mortgage loan to a consumer to finance the
      acquisition of the consumer ''s principal dwelling without obtaining, prior to consummation, two
      written appraisals, if: (A) The seller acquired the property 90 or fewer days prior to the date
      of the consumer ''s agreement to acquire the property and the price in the consumer ''s agreement
      to acquire the property exceeds the seller''s acquisition price by more than 10 percent; or (B)
      The seller acquired the property 91 to 180 days prior to the date of the consumer ''s agreement
      to acquire the property and the price in the consumer ''s agreement to acquire the property exceeds
      the seller''s acquisition price by more than 20 percent. (ii) Different certified or licensed appraisers.
      The two appraisals required under paragraph (c)(4)(i) of this section may not be performed by the
      same certified or licensed appraiser . (iii) Relationship to general appraisal requirements. If
      two appraisals must be obtained under paragraph (c)(4)(i) of this section, each appraisal shall
      meet the requirements of paragraph (c)(3)(i) of this section. (iv) Required analysis in the additional
      appraisal. One of the two required appraisals must include an analysis of: (A) The difference between
      the price at which the seller acquired the property and the price that the consumer is obligated
      to pay to acquire the property, as specified in the consumer ''s agreement to acquire the property
      from the seller; (B) Changes in market conditions between the date the seller acquired the property
      and the date of the consumer ''s agreement to acquire the property; and (C) Any improvements made
      to the property between the date the seller acquired the property and the date of the consumer ''s
      agreement to acquire the property.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-v
  canonical_id: reg-z-1026.35-v
  section: 12 CFR §1026.35(v)
  description: '(v): (v) No charge for the additional appraisal. If the creditor must obtain two appraisals
    under paragraph (c)(4)(i) of this section, the creditor may charge the consumer for only one of the
    appraisals. (vi) Creditor''s determination of prior sale date and price —(A) Reasonable diligence.
    A creditor must…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: '(v) No charge for the additional appraisal. If the creditor must obtain two appraisals
      under paragraph (c)(4)(i) of this section, the creditor may charge the consumer for only one of
      the appraisals. (vi) Creditor''s determination of prior sale date and price —(A) Reasonable diligence.
      A creditor must obtain two written appraisals under paragraph (c)(4)(i) of this section unless the
      creditor can demonstrate by exercising reasonable diligence that the requirement to obtain two appraisals
      does not apply. A creditor acts with reasonable diligence if the creditor bases its determination
      on information contained in written source documents, such as the documents listed in appendix O
      to this part. (B) Inability to determine prior sale date or price—modified requirements for additional
      appraisal. If, after exercising reasonable diligence, a creditor cannot determine whether the conditions
      in paragraphs (c)(4)(i)(A) and (c)(4)(i)(B) are present and therefore must obtain two written appraisals
      in accordance with paragraphs (c)(4)(i) through (v) of this section, one of the two appraisals shall
      include an analysis of the factors in paragraph (c)(4)(iv) of this section only to the extent that
      the information necessary for the appraiser to perform the analysis can be determined. (vii) Exemptions
      from the additional appraisal requirement. The additional appraisal required under paragraph (c)(4)(i)
      of this section shall not apply to extensions of credit that finance a consumer ''s acquisition
      of property: (A) From a local, State or Federal government agency; (B) From a person who acquired
      title to the property through foreclosure, deed-in-lieu of foreclosure, or other similar judicial
      or non-judicial procedure as a result of the person ''s exercise of rights as the holder of a defaulted
      mortgage loan; (C) From a non-profit entity as part of a local, State , or Federal government program
      under which the non-profit entity is permitted to acquire title to single-family properties for
      resale from a seller who acquired title to the property through the process of foreclosure, deed-in-lieu
      of foreclosure, or other similar judicial or non-judicial procedure; (D) From a person who acquired
      title to the property by inheritance or pursuant to a court order of dissolution of marriage, civil
      union, or domestic partnership, or of partition of joint or marital assets to which the seller was
      a party; (E) From an employer or relocation agency in connection with the relocation of an employee;
      (F) From a servicemember, as defined in 50 U.S.C. App. 511(1), who received a deployment or permanent
      change of station order after the servicemember purchased the property; (G) Located in an area designated
      by the President as a federal disaster area, if and for as long as the Federal financial institutions
      regulatory agencies, as defined in 12 U.S.C. 3350(6) , waive the requirements in title XI of the
      Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended ( 12 U.S.C. 3331
      et seq. ), and any implementing regulations in that area; or (H) Located in a rural county, as defined
      in 12 CFR 1026.35 (b)(2)(iv)(A). (5) Required disclosure —(i) In general. Except as provided in
      paragraph (c)(2) of this section, a creditor shall disclose the following statement, in writing,
      to a consumer who applies for a higher-priced mortgage loan: “We may order an appraisal to determine
      the property''s value and charge you for this appraisal. We will give you a copy of any appraisal,
      even if your loan does not close. You can pay for an additional appraisal for your own use at your
      own cost.” Compliance with the disclosure requirement in Regulation B, 12 CFR 1002.14 (a)(2), satisfies
      the requirements of this paragraph. (ii) Timing of disclosure. The disclosure required by paragraph
      (c)(5)(i) of this section shall be delivered or placed in the mail no later than the third business
      day after the creditor receives the consumer ''s application for a higher-priced mortgage loan subject
      to paragraph (c) of this section. In the case of a loan that is not a higher-priced mortgage loan
      subject to paragraph (c) of this section at the time of application, but becomes a higher-priced
      mortgage loan subject to paragraph (c) of this section after application, the disclosure shall be
      delivered or placed in the mail not later than the third business day after the creditor determines
      that the loan is a higher-priced mortgage loan subject to paragraph (c) of this section. (6) Copy
      of appraisals —(i) In general. Except as provided in paragraph (c)(2) of this section, a creditor
      shall provide to the consumer a copy of any written appraisal performed in connection with a higher-priced
      mortgage loan pursuant to paragraphs (c)(3) and (c)(4) of this section. (ii) Timing. A creditor
      shall provide to the consumer a copy of each written appraisal pursuant to paragraph (c)(6)(i) of
      this section: (A) No later than three business days prior to consummation of the loan; or (B) In
      the case of a loan that is not consummated, no later than 30 days after the creditor determines
      that the loan will not be consummated. (iii) Form of copy. Any copy of a written appraisal required
      by paragraph (c)(6)(i) of this section may be provided to the applicant in electronic form, subject
      to compliance with the consumer consent and other applicable provisions of the Electronic Signatures
      in Global and National Commerce Act (E-Sign Act) ( 15 U.S.C. 7001 et seq. ). (iv) No charge for
      copy of appraisal. A creditor shall not charge the consumer for a copy of a written appraisal required
      to be provided to the consumer pursuant to paragraph (c)(6)(i) of this section. (7) Relation to
      other rules. The rules in this paragraph (c) were adopted jointly by the Federal Reserve Board (Board),
      the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation ,
      the National Credit Union Administration , the Federal Housing Finance Agency , and the Bureau.
      These rules are substantively identical to the Board''s and the OCC''s higher-priced mortgage loan
      appraisal rules published separately in 12 CFR 226.43 (for the Board) and in 12 CFR part 34 , subpart
      G and 12 CFR part 164 , subpart B (for the OCC).'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.35-d
  canonical_id: reg-z-1026.35-d
  section: 12 CFR §1026.35(d)
  description: '(d): (d) Evasion; open-end credit. In connection with credit secured by a consumer ''s
    principal dwelling that does not meet the definition of open-end credit in § 1026.2(a)(20) , a creditor
    shall not structure a home-secured loan as an open-end plan to evade the requirements of this section.
    [ 78 FR 4753…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.35(b)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.35
    snapshot_id: d4a1f9f9784148ec
    fetched_at: '2026-05-22T18:22:26Z'
    content_hash: sha256:0e205cb8d48e3dd330e323595ee5a3114914c4c00602adfe171006eca76e693c
    paragraph_quote: (d) Evasion; open-end credit. In connection with credit secured by a consumer 's
      principal dwelling that does not meet the definition of open-end credit in § 1026.2(a)(20) , a creditor
      shall not structure a home-secured loan as an open-end plan to evade the requirements of this section.
      [ 78 FR 4753 , Jan. 22, 2013, as amended at 78 FR 10442 , Feb. 13, 2013; 78 FR 30745 , May 23, 2013;
      78 FR 44718 , July 24, 2013; 78 FR 60441 , Oct. 1, 2013; 78 FR 78585 , 78586, Dec. 26, 2013; 80
      FR 59967 , Oct. 2, 2015; 81 FR 16082 , Mar. 25, 2016; 86 FR 9852 , Feb. 17, 2021] Federal Credit
      Union Act Federal Deposit Insurance Act Electronic Signatures in Global and National Commerce Act
      CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities
      Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1026.35 from Cornell LII snapshot d4a1f9f9784148ec;
      body isolated between nav and notes; substring-verified.
  judgment: false
