The set of new regulations and requirements established by the Consumer Financial Protection Bureau (CFPB) since its founding are a reality for those in the appraisal profession. Everyone in the real estate and settlement services industries knew the changes would come for appraisers. However, there hasn’t exactly been an eagerness for such change.
The biggest change for appraisers has been the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule. Appraisers inundated the CFPB with comments, mostly concerning the bureau’s reluctance to separate the appraisal fee and the appraisal management fee on TRID’s new disclosure forms.
Time extensions also were discussed to give affected industries more time to prepare, including creditors and service providers who would benefit from such a grace period to gain a better understanding of the rule’s extensive provisions The bureau, though, did not, saying an extension was unnecessary and that the two-year adoption time provided enough opportunity for the appraisal industry and others to prepare.
“Much of what the Consumer Finance Protection Bureau has done in its first five years is beyond the scope of real estate valuation,” Appraisal Institute President Scott Robinson said. “However, there are two areas of particular concern to the Appraisal Institute as the nation’s largest professional association of real estate appraisers. Both were included in CFPB’s Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure Rules.”
TRID, though, is not the only appraisers regulations that the CFPB has been working to finalize.
For the rest of this story, and all the additional content and insight available in our 16-page 2016 CFPB Anniversary special report, download your free copy of the report here.