Can a regulated institution accept an appraisal prepared by an appraiser who was engaged by a loan broker?
The agencies’ appraisal regulations allow a regulated institution to accept an appraisal prepared by an appraiser engaged by another financial services institution, including a loan broker. This is allowed as long as the regulated institution has appropriate controls in place to ensure that the appraiser is acting on behalf of the financial services institution, the appraisal conforms to the requirements of the regulation and is otherwise acceptable, and the appraiser is independent from the borrower. Regulated institutions should review broker-ordered appraisals thoroughly to ensure that the appraisal complies with the regulation and meets the quality standards required by the institution’s appraisal policies.
Related Questions
- Can the regulated institution accept an appraisal prepared by an appraiser who is engaged by a financial services institution with whom the appraiser has an affiliated business relationship?
- Can the regulated institution accept an appraisal prepared by an appraiser who is a family member of the loan broker who engaged him/her?
- Can a regulated institution accept an appraisal prepared by an appraiser who was engaged by a loan broker?
