Six federal financial regulatory agencies — the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration and the Office of the Comptroller of the Currency — issued a proposed rule yesterday that would establish new appraisal requirements for “higher-risk mortgage loans,” according to a joint press release from the agencies.

Under the Dodd-Frank Act, mortgage loans are deemed higher-risk if “they are secured by a consumer's home and have interest rates above a certain threshold.” The proposed rule would require creditors to “use a licensed or certified appraiser” to prepare “a written report based on a physical inspection” of the property and to “disclose to applicants information about the purpose of the appraisal,” the release said. Additionally, to address fraudulent property flipping, creditors would be required to “obtain an additional appraisal at no cost to the consumer for a home-purchase higher-risk mortgage loan if the seller acquired the property for a lower price during the past six months,” the release said.

For more information, including the Federal Register notice as well as information on submitting comments about the proposal, read the press release.