Consumer Financial Protection Bureau Proposes Rule To Improve Consumer Access To Appraisal Reports

Consumer Financial Protection Bureau Proposes Rule To Improve Consumer Access To Appraisal Reports

Consumer Financial Protection Bureau Proposes Rule To Improve Consumer Access To Appraisal Reports

Rule would give consumers additional rights to information on how a home value is determined

In an effort to give consumes more information when buying a home, the Consumer Financial Protection Bureau (CFPB) released a proposed rule that would require mortgage lenders to provide home loan applicants with copies of written appraisals and other home value estimates developed in connection with the application. The rule would ensure that consumers receive information prior to closing about how the bank and appraiser determined the property value.

The Dodd-Frank Wall Street Reform and Consumer Protection Act require that creditors provide mortgage applicants with a copy of written appraisals and home value estimates developed in connection with the application. This new proposed rule would require that creditors inform consumers within three days of applying for a loan of their right to receive a free copy of appraisal reports and home value estimates.

Creditors would then be required to provide the reports to consumers as promptly as possible, but in no case later than three days before closing, regardless of whether credit is extended, denied, incomplete or withdrawn.

Ever since the new appraiser regulations took effect, the whole bank/home/appraisal system took a plunge down a deep slope.  Contracted appraisers can only work for companies like LandSafe (which happens to be owned by Bank of America). How impartial is that? Appraisers who work under contract for these companies can’t take independent appraisal jobs for homeowners. Appraisers get into disagreements with far away asset managers and underwriters so if this new appraisal regulation passes, will it offer consumers a big advantage? We hardly think so but we could be surprised.

Reviewing the Proposed Rule

The CFPB welcomes comments on the proposed rule. The public will have 60 days, or until October 15, 2012 to review and provide comments on the proposed rule. The CFPB will review and analyze the comments before issuing a final rule in January 2013.

The CFPB’s proposed rule is available at: http://files.consumerfinance.gov/f/201208_cfpb_ECOA_proposed_rule.pdf

A summary of the CFPB’s proposed rule is available at: http:://files.consumerfinance.gov/f/201208_cfpb_ECOA_plain_language_summary.pdf

The proposed rule can be found here: http://files.consumerfinance.gov/f/201208_cfpb_ECOA_proposed_rule.pdf

Photo courtesy of http://yesiamcheap.com/ (A useful consumer blog)

Consumer Financial Protection Bureau Proposes Rule To Improve Consumer Access To Appraisal Reports

Consumer Financial Protection Bureau Proposes Rule To Improve Consumer Access To Appraisal Reports

Consumer Financial Protection Bureau Proposes Rule To Improve Consumer Access To Appraisal Reports

Advertisements

Leave a comment

Filed under Banks

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s