Time for a residential appraisal compliance check-up! Gain a solid
understanding of the rules surrounding residential real estate appraisals,
including examples of compliance red flags that can lead to violations.
- Identify red flags in residential appraisal compliance which could lead to citations
- Confidently discuss requirements of Regulation B and the provision of appraisal for
both consumer and commercial purpose transactions
- Understand independence requirements pertaining to the appraisal management
process, including specific requirements of Regulation Z
- Clearly understand content requirements for evaluations including considerations
for automated valuation models and tax assessment valuations
The appraisal of residential real estate is a critical component of the underwriting process
for both consumer and commercial transactions. Conceptually this should be a relatively
simple process: we order an appraisal or develop an in-house evaluation, derive market
value from the valuation document and then utilize that market value as part of our
decision to originate a loan. However, this seemingly easy process can elevate compliance
risk when an understanding of the multiple rules surrounding the appraisal of residential
real estate are not understood by the institution.
This presentation will bring focus to the various regulatory requirements surrounding
residential real estate appraisals and evaluations. We will discuss components of
Regulation B (Equal Credit Opportunity Act) and Regulation Z (Truth in Lending Act)
regarding the valuation of residential real estate. Additionally, the December 2010
Interagency Appraisal and Evaluation Guidelines and subsequent Agency statements will
be discussed. Topics such as appraisal disclosure requirements, independence, USPAP,
evaluation content, and the use of technological tools such as automated valuation models
will be included in the presentation. Attend this session to gain a better understanding of
the rules surrounding residential real estate appraisals, including examples of compliance
red flags that can lead to violations.
Aaron Lewis, Young & Associates, Inc.
Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the
banking industry, his expertise is now dedicated to the lending division of Young &
Associates where he assists financial institutions with loan, ALLL, policy, and credit process and compliance reviews. He also conducts seminars on credit risk and compliance.
Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of
a community financial institution in southeast Michigan and managed all facets of the
lending function, including originations, underwriting, ALLL analysis, servicing, and
secondary market compliance. He holds a Bachelor’s in finance from Michigan State
University and graduated from the Graduate School of Banking, University of Wisconsin.