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Dealing with Appraisals and Valuations: Regulations and Requirements, including Recent Developments - 2 Part Series

The past few years have seen significant developments in real estate appraisals and evaluation rules and regulations. Revised Interagency Guidelines, rules under Reg Z, additional requirements finalized due to Dodd-Frank, and changed thresholds have proposed some additional exceptions from the requirements. Do you know all the requirements?

Upcoming
February 20, 2025
February 27, 2025
Presented by Carl Pry
5 CRCM Credits
$549.00 or 2 Tokens

Includes: Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Compliance
  • Lending
  • Lending Compliance
  • Branch Manager
  • Compliance Officer
  • Consumer Lender/Retail Banker
  • Internal Auditor
  • Loan Closer
  • Loan Operations Manager/Specialist
  • Mortgage Lender
  • Senior Management
  • Training Manager
  • Trainer

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We also have new requirements to follow regarding Reconsiderations of Value, or ROVs. Plus, we now have the final rule covering Automated Valuation Models, or AVMs. We’ve also heard a lot on bias in appraisals and valuations, and this promises to be a hot topic for some time to come.

Because breakdowns in appraisal practices have been partly blamed for the mortgage crisis more than fifteen years ago, regulators raised their expectations, meaning 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. And how to deal with bias or other problems with an appraisal or valuation.

Must applicants be provided with the ability to contest the appraisal (hint: yes, through the ROV proves). How should this be handled? Are there additional requirements for FHA lenders, or those that sell loans to Fannie or Freddie?

We’ll provide in-depth answers to all these questions and discuss all the details of the appraisal and valuation process, from both the lender and appraiser side of the game (including USPAP requirements), to provide a thorough understanding of what is required and what you need.

Included Webinars

  • Dealing with Appraisals and Valuations - Part 1
  • Dealing with Appraisals and Valuations - Part 2

Series Details

Dealing with Appraisals and Valuations - Part 1

  • What is an appraisal? What is an evaluation? What is the difference?
  • What are the requirements of an appraisal? What does it look like?
  • When must we get what? Exemptions, threshold amounts, and evaluations (including when you don’t need anything at all)
  • Selecting the appraiser: Who does this? Who can do it?
  • Board of Director responsibilities and the approved appraiser list
  • Appraiser selection criteria – licensed vs. certified
  • Independence of the appraisal function
  • Readdressed and transferred appraisals
  • Communication between lenders and appraisers
  • Final Reconsideration of Value (ROV) guidance: What does this mean?
  • ROV policies, procedures, and controls
  • FHA and Fannie/Freddie guidance on ROVs
  • When can we get a second appraisal?
  • Use and review of evaluations

Dealing with Appraisals and Valuations - Part 2

  • Utilizing existing appraisals: Criteria for acceptance
  • Appraisal Management Company (AMC) requirements
  • Reg. Z valuation rules: When are they applicable?
  • Avoiding coercion and undue influence of appraisers
  • Reg. Z’s “flipping” rule: Obtaining a second appraisal
  • Reg. B rules: Disclosure and copies
  • Appraisal bias: What to look for
  • The Property Appraisal and Valuation Equity (PAVE) taskforce: Recommendations and future changes
  • Do we have to worry about liability for a biased appraisal?
  • FHFA, Fannie, and Freddie information
  • HUD’s process on bias
  • The Uniform Standards of Professional Appraisal Practice (USPAP): Rules for appraisers
  • How does USPAP intersect with banking regulations? What do we have to know?

What You'll Learn

Each webinar will offer best practices and techniques you can implement in your organization.

Who Should Attend

This session is ideal for real estate lenders, compliance officers, auditors, underwriters, appraisers (in-house or external), closing agents, management, and anyone else involved in the real estate or residential lending process with a need to understand the current state of appraisal regulation and requirements.

Carl Pry

Instructor Bio

Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Senior Advisor for Asurity Advisors in Washington, DC. Through his more than 30-year working career, as well as through his experience as a banking attorney and officer, he has provided a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues, and is a frequent contributor to and currently serves as the Chair of the Editorial Advisory Board for the ABA Bank Compliance magazine. He has spoken at scores of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.

Continuing Education Credit Information

Dealing with Appraisals and Valuations: Regulations and Requirements, including Recent Developments - 2 Part Series has been approved for 5 CRCM credits. This statement is not an endorsement of this program or its sponsor. Credits are redeemable for both Live and OnDemand viewing. For questions on certificates, please email support@oncourselearning.com. Certification holders must report these credits at https://aba.csod.com.

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