The CFPB recently hosted the first hearing of the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (“ASC”) on appraisal bias. The hearing was led by CFPB Deputy Director Zixta Martinez and ASC Executive Director Jim Park. HUD Secretary Marcia L. Fudge, CFPB Director Rohit Chopra, and FHFA Director Sandra Thompson also participated in the hearing.… Continue Reading
Appraisals
HUD Issues Draft Reconsideration of Value Guidance with FHA Loans
By Richard J. Andreano, Jr. on
The U.S. Department of Housing and Urban Development (HUD) recently issued a draft Mortgagee Letter on reconsideration of value (ROV) policies in connection with appraisals for FHA insured mortgage loans. The draft Mortgagee Letter follows up on action plan items set forth in the Property Appraisal and Valuation Equity action plan jointly issued by HUD and other federal agencies in March 2022. … Continue Reading
NCRC Files Appraisal Bias Complaints with HUD and Issues a Related Report
By Richard J. Andreano, Jr. on
The National Community Reinvestment Coalition (NCRC) recently filed two complaints against appraisers with the Department of Housing and Urban Development asserting different treatment based on race in violation of the Fair Housing Act. One complaint asserts different service levels based on race, and the other asserts different home valuations based on race, with White individuals receiving better service or home valuations than Black individuals.… Continue Reading
FHFA Addresses Appraisal Bias
By Richard J. Andreano, Jr. on
The Federal Housing Finance Agency (FHFA) addresses appraisal bias reflected in the recently released Uniform Appraisal Dataset (UAD) Aggregate Statistics Data File and Dashboard. The UAD information is derived from more than 47 million appraisals conducted between 2013 and June 30, 2022. As the name suggests, the UAD standardizes various data elements regarding an appraisal.… Continue Reading
CFPB Warns Mortgage Lenders That Failure to Have Appraisal Reconsideration Policies Can Violate Federal Law
By Richard J. Andreano, Jr. on
In a recent blog post the CFPB warned mortgage lenders that “[l]enders that fail to have a clear and consistent method to ensure that borrowers can seek a reconsideration of value risk violating federal law.”
In the blog post the CFPB states the following:
“Accurate appraisals are essential to the integrity of mortgage lending.… Continue Reading