Real Estate Appraisals are the Target of the new Proposed CFPB Rule

After reading this article on the Appraisal Institute’s website we wanted to comment on the Consumer Financial Protection Bureau (CFPB) releasing a proposed rule August 15^th in regards to valuation services. The goal is for consumers to be able to make informed decisions and would require lenders to give them copies of real estate appraisals and other home value estimates created in connection with their application. While the Dodd Frank Act already requires this, the proposed rule states that the applicant be notified within three days of applying for a loan that they have a right to receive a free copy of appraisals. The key word here is free, since creditors apparently often charge a fee to the consumer to obtain a copy of the appraisal, even though the consumer is the one who paid for the appraisal to begin with, typically through the appraisal management company, who handles the appraisal process for the lender. I know if this proposed rule goes through, it will be a huge sigh of relief for nationwide appraisers and nationwide AMCs, who have long gotten phone calls from irate borrowers demanding a copy of their appraisal, only to be told they have to obtain it from their lender…which leads to confusion for the borrower because this was never explained to them. It truly would be beneficial not only to the consumer, but to everyone involved in the loan process. I know if I paid for something I would expect in turn it would be my property.