What is the valuation independence rule?
What is the valuation independence rule?
Section 1026.42(c)(1) prohibits both direct and indirect attempts to cause the value assigned to the consumer’s principal dwelling to be based on a factor other than the independent judgment of the person that prepares the valuation, through coercion and certain other acts and practices.
What does the ECOA valuation rule apply to?
The ECOA Valuations Rule requires creditors to disclose to applicants that they have the right to receive copies of appraisals and written valuations.
What two practices are not prohibited with regard to appraisers?
List at least two practices that are not prohibited with regard to appraisers.
- Asking an appraiser to consider additional information about a consumer’s principal dwelling or about comparable properties.
- Requesting that an appraiser provide additional information about the basis for a valuation.
Which is a covered transaction under Regulation Z’s appraisal independence rules?
What is a “covered transaction”? The rule applies to consumer credit transactions secured by the consumer’s principal dwelling, including both closed end loans as well as open end home equity lines of credit.
Which of the following are prohibited under the appraisal independence requirements?
Prohibited acts include blacklisting, boycotting, intimidation, coercion, and any other means that impairs or may impair the independent judgment of the appraiser, including but not limited to the withholding or threatened withholding of payment for an appraisal fee, or the conditioning of the payment of any appraisal …
Does Fannie Mae allow transferred appraisals?
Yes. A lender may accept an appraisal transfer from a different lender. However, the lender delivering the loan to Fannie Mae makes all representations and warranties that the loan complies with the requirements of the Fannie Mae Selling Guide and related documents.
What is ECOA valuation waiver?
A lender can ask you to “waive” your right to get a copy of valuations three business days before closing. This means you agree that the lender does not have to provide you with a copy three days in advance of closing. Even if you waive this right, the lender still has to give you a copy of any valuations.
What is the 30 day ECOA rule?
A creditor must notify an applicant of action taken on the applicant’s request for credit, whether favorable or adverse, within 30 days after receiving a completed application.
Can appraisers be bribed?
Don’t Offer Tricks or Treats – This should be a given, but please, don’t even THINK about trying to bribe your appraiser. It’s illegal, they could lose their license, and it’s an overall terrible, horrible, no good, very bad idea.
What properties are exempt from the firrea federal appraisal guidelines?
The new appraisal exemption applies to residential real-estate transactions covered by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), which generally requires an appraisal to be performed on every federally regulated transaction in accordance with uniform standards of professional …
What is firrea regulation?
The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) is a law that revised the federal government agency structure and rules governing the U.S. savings and loan banking system and the real estate appraisal industry, passed in 1989 in response to the savings and loan crisis of the late 1980s.
What is undue influence in appraisal?
(a) No person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.