The past few years have seen significant developments in real estate appraisals and evaluation rules and regulations. Revised Interagency Guidelines, new rules under Reg Z, additional requirements finalized due to Dodd-Frank, and changed thresholds and proposed some additional exceptions from the requirements. We’re also awaiting new rules on Automated Valuation Models, or AVMs. We’re also hearing quite a bit lately on racial bias in appraisals, and this promises to be a hot topic for some time to come. We will discuss all of the hot topics. Because breakdowns in appraisal practices have been partly blamed for the mortgage crisis more than ten year ago, regulators raised their expectations, lenders’ appraisal and evaluation programs must include more elements than ever before. Some themes now emphasized by the agencies are independence of the appraiser, and evaluator, reviews, and qualifications. There are also restrictions against using AVMs (automated valuation models), BPOs (broker price opinions), and tax valuations that have upset many in the industry. Do you know the requirements? We’ll provide in-depth details of the appraisal and valuation process, from both the lender and appraiser side of the game, to provide a thorough understanding of what is required and what you need.
What You’ll Learn
- What is an appraisal? What is an evaluation? What is the difference?
- Exemptions, threshold amounts, and appraisals in rural areas
- CFPB mortgage regulations under Reg Z – additional requirements for certain loan types
- Regulations and Interagency Guidelines – requirements for lenders and brokers
- Coming new rules for AVMs
- Clarified independence requirements and their importance to examiners
- The many forms of appraisals and evaluations – what can you use and when? AVMs and BPOs aren’t what they used to be
- Can you accept a previous appraisal? Dealing with “readdressed” and “transferred” appraisals
- USPAP rules and standards – how do appraiser rules influence what lenders must do?
- How to achieve appraiser independence – you’ve got to prove it
- Anti-coercion and undue influence provisions of Reg Z – what can you NOT do (or say)?
- Racial bias in appraisals – what does this mean to the lending industry?
Who Should Attend
Real estate lenders, compliance officers, auditors, underwriters, appraisers (in-house or external), closing agents, management, and anyone else involved in the real estate or residential lending process with a need to understand the current state of appraisal regulation and requirements.