The U.S. Department of Justice and the CFPB have state that mortgage lenders can be held liable under federal law for relying upon discriminatory appraisals from third-party appraisers. Discriminatory appraisals are considered a violation of the Equal Credit Opportunity Act and the Fair Housing Act. Institutions must ensure that property valuations are compliant with fair lending principles, including the free-form text commentary. Regulatory findings have shown that the free-form commentary is a key risk factor that requires appropriate mitigation.
Can a lender be held liable for third-party appraisal valuations?
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Can a lender be held liable for third-party appraisal valuations?
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Fair and Inclusive Mortgage Lending Outreach is the premier 2023 resource guide for implementing fair lending goals. Covers modern-day redlining, appraisal equality, marketplace demographics, credit needs assessment, peer analysis, product enhancement, community outreach, and preparing for an examination. PDF format with dozens of infographics and links to resources.