A Fannie Mae Dec. 10 letter to lenders addressed appraisal quality, appraiser selection requirements, data quality issues and new processes to identify and monitor appraisers. Fannie Mae stated that there are appraisals being completed by appraisers who have has their license suspended or revoked. Fannie also reminded lenders that patterrns of discrepancy and inconsistancies in physical data are occuring and that Fannie reviews for that. Fannie will be contacting the appraiser directly about inconsistancies or errors. See the Dec. 10 Fannie Mae Letter.
Do you feel like you’re being buried under not just new regulations, but the paperwork that accompanies it? When it comes to compliant appraisal policies and procedures many community bank lenders believe they are compliant now, or at the least, believe they know what to do to become compliant. But so many regulations have changed that touching all the bases can be difficult. The Consumer Financial Protection Bureau (CFPB) is moving towards enforcement and oversight, and penalties that will make everyone take notice.
One of the many regulations that the CFPB is charged to oversee is the Equal Credit Opportunity Act (ECOA). One existing ECOA appraisal rule is: