“Appraisal Process Changed, Dodd-Frank Strikes Again”
I have done business with this bank for many years, even after HVCC came into place. We did mortgages with them in the 8 states that we are licensed. We had always ordered appraisal from appraisers that we knew and trusted. Appraisers that knew each market area, however no more.
This bank has never has a loss on any loan that they did with Right Trac Financial Group, Inc. This is a perfect example of government that doesn’t work. What is supposed to help consumers, now ends up costing each person more money for the appraisal and in many cases the quality of the work will be below average.
The sooner that HVCC, Dodd-Frank and Obamacare is repealed, the better.
Top Ranked Funder USB Moves Appraisal Oversight In-house
By: Kate Berry
U.S. Bancorp has moved all its home appraisals to an in-house unit overseen by a senior risk officer, breaking from the way most banks handle valuations of residential properties.
The Minneapolis bank made the move to streamline its operations and improve compliance with the Dodd-Frank Act, according to executives.
"This is part of an effort to establish a higher standard of compliance," says Todd Loudenslager, a senior vice president and senior risk officer for U.S. Bank's consumer banking division, who is overseeing the new unit.
Real estate appraisals determine the value of a property at a specific point in time, typically by looking at sales of comparable properties in the surrounding market. As banks have found themselves with more soured mortgages, their need for frequent property valuations has skyrocketed.
A few years ago, U.S. Bank had seven separate processes for assessing the value of the homes of its mortgage borrowers. But those separate appraisal processes, one for each business line, became redundant, according to Loudenslager.
In 2010, the company created its separate in-house appraisal unit, USB Lending Support Services LLC. The unit handled a small volume of appraisals last year, but now it is responsible for all appraisals of residential properties.
Loudenslager is chief executive of the unit and ultimately reports to Richard C. Hartnack, the bank's vice chairman of consumer banking.
U.S. Bank's focus on appraisal compliance has been accelerated by the 2010 Dodd-Frank Act, which emphasizes appraisal independence and mandates that banks pay appraisers "customary and reasonable" fees. Banks now have compliance responsibilities for all aspects of the appraisal process, including those outsourced to third-party appraisal management companies.
Loudenslager says his bank's appraisal overhaul is part of an overall effort to improve "our ability to analyze, understand and measure the risk associated with appraisals."
"We look at the creditworthiness of the customer and the value of the collateral, which is an important part, and that's why we're giving it the attention," he says.
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