Lenders often try to save borrowers’ time and money. Although these efforts are well intended, compliance with regulations and guidance statements must be the overriding concern. In addition, financial regulators are reviewing real estate appraisal practices. They expect management to have developed an appraisal and evaluation policy that provides guidelines for obtaining appropriate valuation documents, including ordering and reviewing the document, ongoing monitoring of local market values, and obtaining updated or new valuation documents as required by guidance statements and regulations. This webinar will address common appraisal violations cited during on-site examinations of community financial institutions.
Common appraisal violations cited during on-site examinations
When the intended user is not the borrower
Red flags when ordering appraisals and evaluations
Ordering valuation documents – loan officers’ role
Understanding appraisal exemptions
Generating a sufficient engagement letter
Proper use of AVM and tax cards
Red flags when reviewing appraisals and evaluations
Reliance on a simple checklist is frowned upon in agency exams
Regulators look for the reasoning behind the reviewer’s conclusion (acceptance or rejection)
Caution about accepting a “restricted” appraisal report
Adequacy of validation documentation
In-house evaluations may not meet minimum guidelines
Handling value disagreements – how to dispute appraisals in a compliant way
Use of appraisals on the same property with a different client
Additional collateral (second property pledged)
Attendance verification for CE credits provided upon request.
Who Should Attend?
This information-packed program will benefit all residential real estate lending personnel, including marketing and business development staff, lending officers, lending support staff, loan administration staff, auditors, and loan reviewers.
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.