Hello Everyone,
I have a question regarding the Appraisal Availability Requirements under Regulation B. I am trying to determine if internal evaluations of property prices using Comps from the MLS and Title Property Profiles are considered a "valuation" under Reg. B.
Under the examples of valuations (Comment 14(b)(3)-1), "A document prepared by the creditor's staff that assigns value to the property" is considered a valuation.
Under the examples of items not considered valuations are "Publicly available lists of valuations (such as published sales prices or mortgage amounts, tax assessments and retail price ranges".
So... when I ask the department's management for clarification on what they are using for a valuation, the response is "We get comps from various sources such as a title company profile".
Now, when I think of internal evaluations, I am thinking of an internal valuation produced within our appraisal department which is a formal written document attesting to the Bank's estimated value of the property. I do not believe using outside sources and compiling this information in emails constitutes a valuation under the reg but I wanted to hear other's opinion on the matter. Perhaps I am being way too cautious/paranoid.
We are not using these internal emails/comps as the actual valuation, but I came across a file where the department made an internal estimate of the value and told the applicant that the property would likely not come in anywhere near the amount needed to make the loan work. I think it was in the consumer's best interest to not request hundreds of dollars for an appraisal when we did not think the value was anywhere near what was needed... but at that point is it just an estimate or a valuation?
Thank you to everyone as always for opining.
Appreciate it!
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The opinions expressed are mine, do not represent the opinions of my employer, and they are not to be taken as legal advice.