Legislative Update – December 2018

Legal and Compliance Report—December 2018[1]
Steven Kubik, Attorney at Law
Kubik Law Firm, PLLC
13150 Coit Road, Suite 316
Dallas, Texas 75240
December 5, 2018

FHFA Announces Conforming Loan Limit Increases for 2019.

On November 27, 2018, the Federal Housing Finance Agency (FHFA) announced nearly a 7% increase in the conforming mortgage loan limits for 2019.[2]

Specifically, the maximum loan amount for one-unit homes in non-high cost areas in the continental United States will increase from $453,100 to $484,350. For high-cost areas in the continental United States, the maximum loan amount for a one-unit home will increase from $679,650 to $726,525.

A jurisdiction-by-jurisdiction list of maximum loan amounts may be found here, and a map of the United States showing maximum loan amounts by jurisdiction may be found here.

2019 Exemption Threshold Increases for Higher-Priced Mortgage Loan Appraisals and Consumer Credit Transactions.

On November 23, 2018, the Bureau of Consumer Financial Protection, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency published notices in the Federal Register announcing increases to (i) the exemption threshold from required appraisals for higher priced mortgage loans[3]and (ii) the threshold for consumer credit transactions exempt from the Truth in Lending Act.[4]

Effective January 1, 2019, through December 31, 2019, these exemption thresholds are increased as follows:

  • Smaller loans exempt from the appraisal requirement for “higher-priced mortgage loans,” increased from $26,000 to $26,700. Under this final rule, higher-priced mortgage loans of $26,700 or less will be exempt from the appraisal requirements of these Federal regulations.
  • Consumer credit transactions exempt from Truth in Lending Act/Regulation Z, increased from $55,800 to $57,200. Notably, this exemption does not apply to loans secured by real property or by personal property used or expected to be used as a principal dwelling or private educational loans These loans will continue to be covered under TILA regardless of the loan amount.


[1] Disclaimer: While the information on this page is about legal issues, it is not legal advice. This web page is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of an attorney/client relationship. Moreover, due to the rapidly changing nature of the law and the reliance on information provided by outside sources, we make no warranty or guarantee concerning the accuracy or reliability of the content at this site or at other sites to which we link.

[2] The FHFA press release can be found here.

[3] 83 FR 29272, available here.

[4] 83 FR 29274, available here.

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