THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
A Creditor may not extend credit for a higher-risk mortgage to a Consumer without first obtaining a written appraisal of the property with the following components:
- Physical Property Visit – including a visit of the interior of the property
- Second Appraisal Circumstances – 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
A "Certified or Licensed Appraiser" is defined as someone who:
- is certified or licensed by the state in which the property is located
- performs each appraisal in conformity with Uniform Standards of Professional Appraisal Practice (USPAP) and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
Compliance and Non-Influence
- Appraisal order(s) are placed by a Client either directly to Touchvelocity or through a secure Loan Origination System (LOS) intergration into Touchvelocity's secure web-based transaction management system.
- Touchvelocity performs an independent appraiser selection process by utilizing criteria including: 1) appraiser service level performance, 2) quality ranking, 3) capacity, 4) appraiser's proximity to subject property, 5) proper licensing or state certification, 6) availability.
- Our appraisal vendor database is considered proprietary information and is never publicly disclosed. Touchvelocity order assignment processes through our automated system employing the criteria cited above.
- Appraiser contact information is never provided to the Client until the appraisal is submitted and the appraiser is provided only the Client name and address to be included on the appraisal report.
- Touchvelocity prohibits appraisers from communication with the Client and the Property Owner/Borrower to obtain market and/or loan values.
- Touchvelocity does not provide estimated values, loan amounts, or loan-to-value ratios to the appraiser either verbally, electronically, printed or written format. However, a purchase agreement is supplied to the appraiser containing the negotiated purchase price in a purchase transaction.
The Fed, Comptroller of the Currency, FDIC, National Credit Union Administration Board, Federal Housing Finance Agency and Bureau of Consumer Financial Protection (created in this law) shall jointly prescribe regulations.