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Red Flags in Residential Appraisal Compliance

Feb 04 2:00 PM - Feb 04, 2021 3:30 PM
Feb 04, 2021 2:00 PM - 3:30 PM
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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.

Learning Objectives

  • 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.




Additional Info

Event Type

On-Demand Webinar

Topics Covered

  • On-Demand Webinars
  • Lending & Collections
  • Compliance