CFPB Provides New Guidance on Appraisal Disclosures
The Consumer Financial Protection Bureau has provided an update to National Mortgage News on a story with inaccurate information about appraisal disclosures. Under the qualified mortgage rule, lenders are required to provide borrowers with all appraisal reports ordered or requested in conjunction with a loan application.
On Jan. 2, NMN reported that certain appraisal products that lenders use to validate the accuracy of the appraisal for internal purposes would not have to be disclosed.
Since then, CFPB officials have told lenders that any validation of the property’s value (whether it is a range or a precise point estimate) must be disclosed to the borrower.
NMN based the appraisal disclosure story on an interview with PrimeLending senior vice president Cindy Wortham.
Wortham told NMN Thursday morning that a CFPB attorney called PrimeLending’s general counsel shortly after the Jan. 2 story appeared and indicated the bureau had reconsidered its guidance on appraisal disclosures.
“This was follow-up guidance for us,” she said, and PrimeLending is changing its procedures to comply.