USPAP Issues & Best Practices for Residential Appraisal Reviewers: Avoiding Violations
Duration: 90 Minutes
This webinar introduces the regulations governing the appraisal profession, Mortgage lenders and those reviewing residential appraisals for regulatory and GSE compliance are required to include in their reviews an opinion as to whether the report complies with USPAP. But how can a residential reviewer state whether an appraisal complies with the requirements of USPAP if he/she has never read USPAP or attended any education on that topic?
Objectives of the Presentation
Why Should you Attend
- Learn what group promulgates USPAP and sets qualifications for appraisers
- Learn what agencies enforce USPAP
- Get an overview of banking laws and regulations as they pertain to USPAP
- Learn how USPAP requirements for appraisers differ from bank regulations and GSE appraisal and lending requirements
- Learn how appraisal review differs from a check of underwriter guidelines
The Interagency Appraisal and Evaluation Guidelines require appraisal reviewers to understand the methods applied by appraisers, but also to know when appraisal standards have been violated. In fact, Dodd-Frank imposes monetary penalties on banks that fail to comply with the appraisal requirements set forth therein. It is true that congress is talking about repeal or modification of Dodd-Frank, but until that happens, banks have exposure to regulatory penalties for non-compliance. Per Dodd-Frank, and its predecessor FIRREA, USPAP is the benchmark for measuring appraisal report acceptability. Familiarity with USPAP is a good way to avoid regulatory violations.
Who will Benefit
- The webinar includes a brief overview of the Interagency Appraisal and Evaluation Guidelines and its requirements for appraisal reviewers
- It reveals how USPAP is organized and which sections are most relevant for residential reviewers
- Included are key terms as they are specifically defined in USPAP and used by appraisers in their practice
- Covers the Ethics Rule, Competency Rule, Scope of Work Rule, and Record Keeping Rule
- Reveals how appraisal development differs from, but is related to, appraisal reporting
- Mortgage Lending Group Managers and Appraisal Managers
- Employees who review residential appraisal reports
- Credit Administration Officers
- Credit Officers involved in the appraisal function
- Credit Reviewers and other credit side personnel
- Mortgage lending underwriters
The Uniform Standards of Professional Appraisal Practice (USPAP) is the core document that the state appraiser licensing agencies require appraisers to conform with. The Interagency Appraisal and Evaluation Guidelines require a financial institution's review process to determine whether each appraisal ordered for real estate secured lending is in full compliance with USPAP. Federal law presently requires financial institutions to not only recognize when an appraisal report fails to comply with USPAP, but also mandates all non-USPAP compliant residential reports be turned into the relevant state Appraisers Board for oversight and potential disciplinary action against the appraiser. How can a bank or credit union comply with the regulatory and legal requirements if no one in the bank has ever received any education on USPAP? This webinar is the first step in such education.