Dodd-Frank Reform Watch
Sponsored by

CFPB Requires Mortgage Lenders to Release Free Appraisal Reports

Print
Email
Reprints
Comment (1)
Twitter
LinkedIn
Facebook
Google+

As a part of several appraisal rules released last week, the Consumer Financial Protection Bureau will require mortgage lenders to release free copies of home appraisals to borrowers.

The CFPB, created under the Dodd-Frank reform law, will allow lenders to charge borrowers "a reasonable fee" for performing the appraisal, but the copies to the applicant must be free. This includes all appraisals and any home value estimates.

"Lenders typically charge applicants for an appraisal but are not required to give a copy of it to borrowers unless they request it. Under the CFPB's rule, lenders can still charge for performing the appraisal but must give copies for free," writes American Banker's Rachel Witkowski.

CFPB Director Richard Cordray stated in a release, "This rule will guarantee consumers can receive important information on how a lender determines the value of the home. Having this information available promptly makes it easier for loan applicants to make informed decisions."

For the full piece see "CFPB Mandates Free Appraisal Reports for Borrowers" (may require subscription).

JOIN THE DISCUSSION

(1) Comment

SEE MORE IN

Legal Bills Pile Up at Banks
Each quarter banks report their worst-case estimates of costs tied to lawsuits and regulatory probes. Some banks reported lower figures in recent quarters, but others are braced to spend more to resolve legacy issues. New legal threats loom, too.

(Image: Fotolia)

Comments (1)
Regulators also issued a separate rule last week that tightens the appraisal requirements for higher-priced mortgages, which are generally subprime loans. For this type of mortgage, lenders will be required to have the appraiser physically inspect the home before determining the value of the property. Some payday lenders online use a valuation system based on recent sales to figure out how much the home is worth.
Posted by robertq | Tuesday, January 29 2013 at 7:09AM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

About

As Dodd-Frank's impact continues to be felt far beyond banks' compliance departments, American Banker is your eyes and ears. In addition to our award-winning coverage, we now also scour a range of resources to aggregate even more of the news you need on this vital topic.
Already a subscriber? Log in here
Please note you must now log in with your email address and password.