Dealing with Appraisals: Regulations and Requirements

Date:

Oct 3, 2024

This session will cover the significant developments in real estate appraisals and evaluation rules and regulations we’ve seen over the past few years. It will discuss Revised Interagency Guidelines, rules under Reg Z, additional requirements finalized due to Dodd-Frank, changed thresholds, and some proposed additional exceptions from the requirements.

Because breakdowns in appraisal practices have been partly blamed for the mortgage crisis more than ten years ago, regulators raised their expectations, and 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. 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.