15 U.S.C. §1639h — Property appraisal requirements
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.
Verbatim regulatory text
Verbatim provisions from 15 U.S.C. §1639h — Property appraisal requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
15 U.S.C. §1639h(a) — Written appraisal required before extending higher-risk mortgage credit
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.
15 U.S.C. §1639h(b)(1) — Physical property visit by certified or licensed appraiser
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.
15 U.S.C. §1639h(b)(2)(A) — Second appraisal on 180-day property flip
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.
15 U.S.C. §1639h(c) — Free copy of appraisal at least 3 days prior to closing
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.
15 U.S.C. §1639h(d) — Consumer notification at initial mortgage application
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.