[rcooper]

A question we received from a member:

Must we comply with this rule when doing appraisals or valuations on loans that are in foreclosure or in a workout repayment?

Topic

[rcooper]

If a valuation or appraisal is developed for reasons other than in connection with an application for credit 1002.14 would not apply.

The regulation states: 1002.14(a) Providing appraisals and other valuations. (1) In general. A creditor shall provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling.

The preamble to the final rule has a discussion on this specific topic. You can find it here, pages 23-28: https://files.consumerfinance.gov/f/201301_cfpb_final-rule_ecoa-appraisals-preamble.pdf

*****

Jack’s Compliance Resource offers Director/Senior Management Updates, Policy Updates, Procedures Updates, Checklists, Flowcharts and other compliance products. To view our marketplace click here: https://mycomplianceresource.com/compliance-marketplace/

[Author]

Replies