Ensuring Independence
By Michael Dresden, President, Dart Appraisal
This article originally appeared in theMReport, March
2017
A fundamental requirement of loan origination and mortgage
lending is that the appraisal process must be absolutely
independent from anyone who is responsible for generating loan
volume or who stands to financially benefit from the funding of a
loan. Also, the appraisal must not be influenced by anyone
responsible for ordering, reviewing, or accepting appraisals and
evaluations.
While appraisal independence has always been integral to the
mortgage lending process, today's emphasis on this principle
derives from and is now governed by a complex cascade of
legislation and standards brought forth since the financial
crisis of the last decade.
Most importantly, our organizational structures, systems, and
documentation must ensure appraisal independence, further supported
by the way in which lending institutions and their
strategic partners conduct themselves in a practical,
real-world sense.
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the full article here.