Topic: Appraisals and Valuations
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Are there any prohibitions on charging fees for our in-house valuations under Illinois law? The CFPB’s new ECOA rules state that we can charge mortgage loan borrowers for appraisals or valuations, if not otherwise prohibited by law.
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We are not aware of any Illinois law that would prohibit or limit your ability to charge customers a fee for the cost of a property appraisal or valuation, which is permitted by Regulation B (12 CFR 1002.14(a)(3)). Section 5e of the Illinois Banking Act states that “[n]otwithstanding the provisions of any other law in…
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Does the Gramm-Leach-Bliley Act (GLBA) require that appraisal firms email appraisals only by encrypted email?
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We believe that federal and Illinois privacy requirements would require the encryption of appraisals only if the appraisal document contains “sensitive customer information” or “personal information.” While some appraisal reports may contain customer names and account numbers, others may contain no customer information at all. For example, we spoke to MountainSeed Appraisal Management, an appraisal…
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Can we reuse an appraisal that is four months old if it was prepared on behalf of a different institution?
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We do not believe that it is illegal to use an existing appraisal transferred from another lender for a new loan, provided that the appraisal “conforms to the Board’s appraisal regulations and is otherwise acceptable.” FRB Commercial Bank Examination Manual, Section 4140.1, p. 12