Comment for 1026.42 - Valuation Independence
Accepting an appraisal assignment on the condition that the appraiser will report a value equal to or
- 1026 (Regulation Z)
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Accepting an appraisal assignment on the condition that the appraiser will report a value equal to or
For example, in an open-end plan to be secured by real estate, the creditor may estimate the appraisal
secured by a new manufactured home and land could comply with § 1026.35(c)(3)(i) by obtaining an appraisal
Value of the property, as established by an appraisal or the sales price on the HUD-1 Settlement Statement
For example, if only one appraisal management company exists or is predominant in a particular market
(i) If there was an appraisal of the property in connection with the loan, the creditor is required to
when the last version is received by the creditor, or when the creditor has reviewed and accepted the appraisal
“Covered persons” include creditors, mortgage brokers, appraisers, appraisal management companies, real
Includes a certification signed by the appraiser that the appraisal was prepared in accordance with the
such dwelling is $250,000 applying the standards required by the Uniform Standards of Professional Appraisal
depends upon the facts and circumstances, including but not limited to when the creditor receives the appraisal
personal property or real estate appraiser is a financial institution because real and personal property appraisal
(h) The Bureau issued a joint rule to implement the appraisal management company minimum requirements
in paragraph (c)(2) of this section, a creditor shall provide to the consumer a copy of any written appraisal
information derived therefrom, excludes compensation paid to fee appraisers for appraisals ordered by appraisal
The lessee does not have the right to an independent appraisal merely because the lessee is liable at
For example, if the recent rates identified by the creditor or its agent were solely for appraisal assignments
application that will result in the extension of a high-cost mortgage (by, for example, ordering an appraisal
mortgage is subject to 24 CFR part 206, or the appraised value of the property, as determined by the appraisal
In general, the additional appraisal required under § 1026.35(c)(4)(i) should include an analysis
To comply with this requirement, the creditor discloses the value determined by the appraisal or valuation
violates § 1026.42(c)(1) if the creditor attempts to cause the value an appraiser engaged by an appraisal
section, but may require applicants to pay a reasonable fee to reimburse the creditor for the cost of the appraisal
calculate the total loan amount for closed-end mortgage loans, each using a $10,000 amount borrowed, a $300 appraisal
Appraisal independence requirements not affected.