About This Course:
The past few years have seen significant developments in real estate appraisals and evaluation rules and regulations. Revised Interagency Guidelines and new rules under Reg Z have been issued, and we've seen additional requirements finalized recently due to Dodd-Frank. Just in the last six months we've seen significant proposed and final regulations changing some thresholds and proposing some additional exceptions from the requirement. In some cases (called "flipping transactions"), lenders will even have to obtain two appraisals on the same property for one loan.
Because breakdowns in appraisal practices have been partly blamed for the mortgage crisis, regulators raised their expectations; lenders' appraisal and evaluation programs must include more elements than ever before. Some themes now emphasized by the agencies are independence of the appraiser, and evaluator, reviews, and qualifications.
There are also restrictions against using AVMs (automated valuation models), BPOs (broker price opinions), and tax valuations that have upset many in the industry.
Do you know the requirements? We'll provide in-depth details of the appraisal and valuation process, from both the lender and appraiser side of the game, to provide a thorough understanding of what is required and what you need.
The "Dealing with Appraisals: Regulations and Requirements" webinar has been approved for 2.5 CRCM credits. This statement is not an endorsement of this program or its sponsor. Credits are redeemable for Live attendance only. To receive a certificate, email info@ttsTrain.com. Certification holders must report these credits at https://aba.csod.com
What You'll Learn:- New rules and proposals around exemptions, threshold amounts, and appraisals in rural areas
- CFPB mortgage regulations under Reg Z - additional requirements for certain loan types
- Regulations and Interagency Guidelines - requirements for lenders and brokers
- Clarified independence requirements and their importance to examiners
- The many forms of appraisals and evaluations - what can you use and when? AVMs and BPOs aren't what they used to be
- Can you accept a previous appraisal? Dealing with "readdressed" and "transferred" appraisals
- USPAP rules and standards - how do appraiser rules influence what lenders must do?
- How to achieve appraiser independence - you've got to prove it
- Anti-coercion and undue influence provisions of Reg Z - what can you NOT do (or say)?
Who Should Attend:
Real estate lenders, compliance officers, auditors, underwriters, appraisers (in-house or external), closing agents, management, and anyone else involved in the real estate or residential lending process with a need to understand the current state of appraisal regulation and requirements.
Top FAQs
A mortgage appraisal is a professional opinion of a property's value. Appraisals are typically required whenever a mortgage is involved in buying, refinancing, or selling a property.
Tax return analysis for loans primarily handles income verification. Also, as part of the loan approval process, lenders usually also ask for proof of employment and salary, as well as retirement holdings. For self-employed borrowers, they also may have to provide copies of their P& statements and other documents.
A mortgage processor collects and reviews income, expenses, etc. If the information is favorable, the loan application is forwarded for loan underwriting. Essentially, the process determines the lender's ability to repay the loan.
LAPP is the Lender Appraisal Processing Program that is a available to lenders that have met specific requirements for veteran buyers. SAR is the acronym for Staff Appraisal Reviewer.
While Mortgage Loan Officers must be licensed, most states do not require loan processors to be licensed. That said, be sure to check your state's requirements.
A mortgage underwriter evaluates the applicant's credit history, assets, the size of the loan, then uses this info to dertermine if the applicant can pay back the loan.
While the Mortage Loan Office must be licensed, mortgage underwriters do not need a mortgage license.
A tax return analysis typically involves looking at a couple of years of tax returns to verify that the potential borrower has the income, investments, and holdings to pay back the loan
Mortgage certification programs offer mortgage professionals a chance to acquire essential skills, enhance their professional standing, and earn more.
The process for earning a "certification" involves taking advanced education, then passing an exam.
They must be able to identify eligible property types, ensure appraisals meet minimum property requirements, identify, the requirements and processes for ordering and reviewing appraisals, review sample documents, deliver Notices of Value (NOV) to the veteran borrower, and be able to identify common SAR errors.
A loan underwriter assesses the risk of lending money for a home, car, or debt consolidation.
Depending on where you live, loan processors can expect to earn $50,000 or more.
A mortgage processor is responsible for assembling, administering, and processing loan application paperwork before it gets approved.
Yes, there are FNMA and other forms, as well as training classes, to help loan processors conduct their review.
a Debt-To-Income (DTI) ratio is the percentage of a potential borrower's monthly mortgage payment and other debt responsibilities versus income. Generally speaking, a DTI over 40% is a potential red flag with regard to loan approval.
Depending on where you live, loan underwrites can expect to earn $100,000 or more.
Continuing Education Credits:
Click the 'Credits' tab above for information on PHR/SPHR, PDCs, and other CE credits offered by taking this course.
