AppraisalPro is 100% Dodd-Frank Compliant
In July 2010, the Dodd-Frank Act, or the Wall Street Reform and Consumer Protection Act, became law. The goal of Dodd-Frank is to ensure financial stability by improving accountability and transparency in the American financial system, end “too big to fail” and to protect taxpayers from abusive financial services practices and the financing of future bailouts.
It includes “appraisal independence standards” that seek to ensure that:
– Any appraisals completed by a loan originator-selected appraiser are accepted by Fannie Mae or Freddie Mac
– Appraisers are paid fair market rates
– Loan originators are held accountable for unethical influence of appraisers
Within the Act, a Certified or licensed appraiser means someone who:
– Is certified or licensed by the state in which the property is located
– Performs appraisals according to USPAP standards
Dodd-Frank stipulates that creditors may not offer credit for higher-risk mortgages to a borrower without first securing a written appraisal report that has the following:
– Physical Property Visit – including a visit of the interior of the property
– A Second Appraisal – creditor must obtain a second appraisal, with no cost to the applicant, if the original appraisal is over 180 days old or if the current acquisition price is lower than the previous sale price.
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