New proposed federal rules will require consumers with high-risk mortgage loans and people whose interest rates are above the average prime offer interest rates, to obtain property appraisals. Since the current Average Primer Offer Rate (APOR) is around 3.64 percent only, consumers with a typical mortgage of 5.14 percent or higher would have to get an appraisal. If the loan amount is above conventional loan limits, a rate higher than 6.4 percent would require the property to be appraised.
To prevent fraud using inflated appraisals, the seller of a home who bought it at a lower price in the six months before selling it will be required to obtain a second appraisal.
The rule is open for public comment until October 15, 2012. The Federal Reserve has posted more information about the rule, including a way to contact the issuing agencies, on its website.
Information obtained from: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=279791
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