CoesterVMS, a nationwide appraisal management company, launched its Consumer Financial Protection Bureau (CFPB) Suite, a web-accessible compliance program that allows lenders to verify compliance with all third-party regulations set forth by the CFPB every time an appraisal is done.  CoesterVMS’ CFPB Suite is powered by a proprietary technology that logs, files and sorts all CoesterVMS’ compliance related activities for every third-party regulation, from appraiser independence and appraiser selection requirements, to mandates for customary and reasonable fees, and current state licensing laws. 

“The CFPB has stated that it expects lenders to do their due diligence on the service providers it engages,” said CoesterVMS CEO Brian Coester, who has appeared on CNBC and ABC-7’s  Washington Business Report to discuss CFPB regulations. “The CFPB Suite allows lenders to find out the actual steps CoesterVMS took to ensure compliance with every CFPB third-party regulation that could possibly be considered their responsibility.”

Coester customers can access that information, verifying compliance on any third-party regulation on a per loan basis, via their own CoesterVMS.com client pages. The CFPB Suite provides more than a yes/no response to its compliance checklist. It also provides supporting information for each regulation, so lenders know the steps CoesterVMS took to stay compliant.    

In April 2012, the CFPB announced that it may hold lenders responsible for third-party providers used by the bank that fail to comply with federal consumer financial law. In an April 13, 2012, bulletin, the CFPB stated that it not only expects lenders to have an effective process for managing the risks of service provider relationships, but it also has the authority to obtain reports from lenders and examine them for compliance with any applicable laws.