PROGRAM UPDATE
1. 2026 Appraisal Exemption Threshold Rises to $34,200
A federal threshold tied to special appraisal rules for certain higher-priced mortgage loans increased from $33,500 to $34,200 for 2026.
According to the Consumer Financial Protection Bureau, the 2026 threshold will increase to $34,200 effective January 1, 2026.
The Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, and Office of the Comptroller of the Currency announced a higher 2026 dollar threshold for an exemption from special appraisal requirements on certain higher-priced mortgage loans.
- The new threshold took effect January 1, 2026, rising by $700 from the 2025 amount.
- The adjustment reflects a 2.1% annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured as of June 1, 2025.
- Loans at or below the annually adjusted threshold are exempt from the specific appraisal requirements described in the source. For loans subject to those requirements, creditors generally must obtain a written appraisal based on an interior inspection before making the loan.
Why it matters: This is a targeted compliance adjustment, not a change to every mortgage appraisal or a guarantee that a loan will qualify for an exemption. Its practical effect depends on the loan’s characteristics and the applicable higher-priced mortgage loan rules.
Bottom line: Mortgage professionals should use the 2026 threshold when reviewing whether the specific higher-priced-loan appraisal exemption may apply.
HOUSING SNAPSHOT
2. U.S. Home Prices Fell 0.1% in April, FHFA Reports
The latest FHFA reading points to a nearly flat national housing market in April: prices slipped 0.1% month over month but remained 2.0% above April 2025 levels.
According to the Federal Housing Finance Agency’s House Price Index release, U.S. home prices declined 0.1% from March to April 2026.
The Federal Housing Finance Agency (FHFA) reports that its seasonally adjusted House Price Index showed a 0.1% nationwide decline from March to April 2026. Compared with April 2025, prices were 2.0% higher. The Pacific census division recorded a 0.2% 12-month increase, while monthly changes across the nine divisions ranged from a 0.8% decline in Mountain to a 1.0% increase in New England.
- The national seasonally adjusted index decreased 0.1% from March to April 2026.
- Annual price changes varied significantly by region, from 0.2% in the Pacific division to 4.4% in East North Central.
- FHFA revised the previously reported March monthly change from a 0.1% increase to a 0.2% increase.
Why it matters: For consumers, the report describes broad price movement rather than mortgage rates, payment levels, or the value of any individual home. Pacific-region annual growth was positive but modest at 0.2%, according to the source.
Bottom line: Use the FHFA data as national and regional context, while evaluating local conditions separately.
REGULATORY UPDATE
3. 2026 Lending Threshold Rises to $73,400, But Mortgages Remain Covered
A new $73,400 threshold will generally determine whether certain consumer credit and lease transactions receive protections under Regulation Z and Regulation M in 2026. The agencies also clarify that mortgage protections do not turn on this dollar limit.
According to the CFPB and Federal Reserve Board, the 2026 threshold is based on a 2.1% CPI-W increase.
The Consumer Financial Protection Bureau (CFPB) and Federal Reserve Board announced that certain 2026 consumer credit transactions and leases generally fall under Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) at $73,400 or less. The threshold reflects a 2.1% annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
- The 2026 threshold is $73,400 or less for generally covered consumer credit transactions and leases.
- The adjustment is tied to the 2.1% annual increase in the CPI-W measured as of June 1, 2025.
- Private education loans and loans secured by real property, including mortgages, remain subject to Regulation Z regardless of loan amount.
Why it matters: For mortgage consumers, the announcement does not create a new loan-size cutoff: loans secured by real property remain subject to Regulation Z regardless of amount. The threshold is more directly relevant to certain other consumer-credit and leasing transactions.
Bottom line: Mortgage professionals can treat this as an annual regulatory threshold update, not a change to mortgage coverage.
HOUSING SNAPSHOT
4. U.S. Home Prices Held Steady in February as Annual Growth Slowed to 1.7%
The latest FHFA data point to a largely stable national housing market in February, but regional performance remained uneven. The Mountain division recorded the largest monthly decline, while the South Atlantic posted the strongest monthly increase.
According to the Federal Housing Finance Agency’s House Price Index release, national home prices were unchanged in February 2026 and up 1.7% year over year.
The Federal Housing Finance Agency (FHFA) reported that its seasonally adjusted House Price Index showed no monthly change in February 2026. Prices were 1.7% higher than in February 2025. January’s previously reported 0.1% increase was revised to 0.2%.
- National prices were unchanged from January to February 2026 and rose 1.7% over 12 months.
- Monthly regional changes ranged from a 1.1% decline in the Mountain division to a 0.6% increase in the South Atlantic.
- Annual regional changes ranged from a 0.7% decline in the Mountain division to a 4.2% increase in the Middle Atlantic.
Why it matters: Stable national prices do not describe every local market. Buyers and sellers may encounter different pricing conditions depending on geography, while appraisals and equity trends can also vary by area.
Bottom line: Use national home-price data as context, but evaluate local market conditions before making housing or financing decisions.
This RGI Mortgage Brief is for general educational purposes only. Programs, pricing, terms, eligibility, and availability may change and remain subject to complete review and lender approval. This is not a commitment to lend.