FIRREA DISCLOSURE

[ratherbefishing]

Must be a relative of Rip Van Winkle...today I received a revision request from one of my AMC's stating that a FIRREA Certification Statement must be included on all interior appraisal reports (per requirements of the Dodd-Frank Safe Harbor provisions for Higher Priced Mortgage Loans (HPML)...within an appraisal report that is for an interior inspection, HPML loan assignment...
This is the first time I have received such a revision request from any of the AMC's I currently do business with -- so my question is: Have I just been lucky??? Or is this something everyone else has experienced and I have been taking a nap under a shady tree???

 

[Evincere]

Must be a relative of Rip Van Winkle...today I received a revision request from one of my AMC's stating that a FIRREA Certification Statement must be included on all interior appraisal reports (per requirements of the Dodd-Frank Safe Harbor provisions for Higher Priced Mortgage Loans (HPML)...within an appraisal report that is for an interior inspection, HPML loan assignment...
This is the first time I have received such a revision request from any of the AMC's I currently do business with -- so my question is: Have I just been lucky??? Or is this something everyone else has experienced and I have been taking a nap under a shady tree???

It was the late 1980’s we used to include a pre-printed (detoxed) FIRREA statement in all Appraisal reports - but back then reports weren’t 32+ pages the way they are today. And before Appraisal software became the norm

 

[Meandering]

12 cfr 1026.35
(3) Appraisals required —

(ii) Safe harbor. A creditor obtains a written appraisal that meets the requirements for an appraisal required under paragraph (c)(3)(i) of this section if the creditor:

(A) Orders that the appraiser perform the appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended (12 U.S.C. 3331 et seq.), and any implementing regulations in effect at the time the appraiser signs the appraiser's certification;


(B) Verifies through the National Registry that the appraiser who signed the appraiser's certification was a certified or licensed appraiser in the State in which the appraised property is located as of the date the appraiser signed the appraiser's certification;


(C) Confirms that the elements set forth in appendix N to this part are addressed in the written appraisal; and

(D) Has no actual knowledge contrary to the facts or certifications contained in the written appraisal.

Appendix N to Part 1026 — Higher-Priced Mortgage Loan Appraisal Safe Harbor Review
To qualify for the safe harbor provided in § 1026.35(c)(3)(ii), a creditor must confirm that the written appraisal:


1. Identifies the creditor who ordered the appraisal and the property and the interest being appraised.

2. Indicates whether the contract price was analyzed.

3. Addresses conditions in the property's neighborhood.

4. Addresses the condition of the property and any improvements to the property.

5. Indicates which valuation approaches were used, and includes a reconciliation if more than one valuation approach was used.

6. Provides an opinion of the property's market value and an effective date for the opinion.

7. Indicates that a physical property visit of the interior of the property was performed, as applicable.

8. Includes a certification signed by the appraiser that the appraisal was prepared in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice.

9. Includes a certification signed by the appraiser that the appraisal was prepared in accordance with the requirements of title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended (12 U.S.C. 3331 et seq.), and any implementing regulations.



Your client is an idiot.
But go ahead and label 1-9 with comments about where in the report they are.

.

 

[andrew81]

i have a client that requests for all in-house appraisals (not FNMA, FHLMC, FHA, USDA, RD, or VA) that this statement is included in the additional certifications:

"This appraisal was prepared in accordance with the requirements of title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended (12 U.S.C. 3331 et seq.), and any implementing regulations. ."

i reduced it to:
"This appraisal was performed in accordance with FIRREA and any implementing regulations."

i have a few portfolio lender clients, i include the statement for any appraisal i know is in-house and have never been questioned about it.

 

[Dublin ohio]

Your client is an idiot.
But go ahead and label 1-9 with comments about where in the report they are.

Not sure who is the idiot. But if I am reading correctly. Does not #9 actually confirm what the AMC is asking for?

 

[Meandering]

Not sure who is the idiot. But if I am reading correctly. Does not #9 actually confirm what the AMC is asking for?

Incorporated by reference in the 1004 cert.

3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal
Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in
place at the time this appraisal report was prepared.



USPAP is only prepared to fit FIRREA requirements. Existence of the Appraisal Foundation is because of FIRREA requirements.



§ 323.1 Authority, purpose, and scope.
(a) Authority. This subpart is issued under 12 U.S.C. 1818, 1819(a)(Seventh and Tenth), 1831p--1 and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (Pub. L. 101--73, 103 Stat. 183, 12 U.S.C. 3331 et seq. (1989)).

§ 323.4 Minimum appraisal standards.
For federally related transactions, all appraisals shall, at a minimum:

(a) Conform to generally accepted appraisal standards as evidenced by the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of the Appraisal Foundation, 1155 15th Street, Suite 1111, Washington, DC 20005, unless principles of safe and sound banking require compliance with stricter standards;

https://www.FDIC.gov/regulations/laws/rules/2000-4300.html

Nice try though.

.

 

[Dublin ohio]

Incorporated by reference in the 1004 cert.

3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal
Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in
place at the time this appraisal report was prepared.



USPAP is only prepared to fit FIRREA requirements. Existence of the Appraisal Foundation is because of FIRREA requirements.



§ 323.1 Authority, purpose, and scope.
(a) Authority. This subpart is issued under 12 U.S.C. 1818, 1819(a)(Seventh and Tenth), 1831p--1 and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (Pub. L. 101--73, 103 Stat. 183, 12 U.S.C. 3331 et seq. (1989)).

§ 323.4 Minimum appraisal standards.
For federally related transactions, all appraisals shall, at a minimum:

(a) Conform to generally accepted appraisal standards as evidenced by the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board of the Appraisal Foundation, 1155 15th Street, Suite 1111, Washington, DC 20005, unless principles of safe and sound banking require compliance with stricter standards;

2000 - Rules and Regulations | FDIC.gov

2000 - Rules and Regulations

www.FDIC.gov

Nice try though.

.

If you stretch it much more. It will break. Not sure where you get the "incorporated by reference" part. Cannot agree with your "backed into" interpretation. Absolutley no direct reference. Nice try though

 

[Dublin ohio]

USPAP is only prepared to fit FIRREA requirements. Existence of the Appraisal Foundation is because of FIRREA requirements.

Lets see. First USPAP 1986-1987. TAF founded in 1987. USPAP donated to TAF in 1987. FIRREA 1989. Think about it.

 

[Meandering]

If you stretch it much more. It will break. Not sure where you get the "incorporated by reference" part. Cannot agree with your "backed into" interpretation. Absolutley no direct reference. Nice try though

Lets see. First USPAP 1986-1987. TAF founded in 1987. USPAP donated to TAF in 1987. FIRREA 1989. Think about it.

in August 1989, Congress enacted the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, better known as FIRREA. Title XI requires federally regulated financial institutions, such as federally insured banks, thrifts and credit unions, to use state certified or licensed appraisers to perform appraisals assignments in federally related transactions.

And do you know that FIRREA is Public Law 101-73
And sets up, all the requirements,
which are the same requirements found in parts of the 1004 certification.
but of course, only a licensed or certified appraiser is signing a 1004, so that goes without saying.

Oh but

feel free to read the original 1989 version to verify this.

https://www.govinfo.gov/content/pkg/STATUTE-103/pdf/STATUTE-103-Pg183.pdf

And see that the legal reference for the law, was contained in what I first posted for you.

 

[Meandering]

Oh, but you won't find the "safe harbor" in the original FIRREA from 1989.

Cause that's the "update" which I already posted.

But do feel free to read the 1989 version and look for something that needs an appraiser certifying too, which, is not already in the per-printed certification.

.