The Consumer Financial Protection Bureau ( CFPB ) has issued the much-anticipated final rules that implement residential mortgage reforms of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( Dodd-Frank ). In a series of reports, PYA is analyzing the impact of each of these new rules, this week looking at the amendment to the Equal Credit Opportunity Act ( ECOA ) that will require creditors to provide applicants with copies of appraisal reports and other written valuations prepared in connection with first-lien loans secured by a dwelling.
The CFPB states: This provision was designed to inform mortgage applicants of how a property s value was determined by the creditor, and to make it easier for loan applicants to determine if a loan application was denied due to discrimination.
The final rule, which takes effect January 18, 2014:
View the final rule amending appraisal requirements under ECOA. To discuss the bearing of the new mortgage rules on your institution, please contact the expert listed below at PYA, (800) 270-9629.
Learn more about PYA’s Financial Institutions Advisory Services and Financial Institutions Audit & Accounting Services
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