djd09
Elite Member
- Joined
- May 20, 2009
- Professional Status
- Licensed Appraiser
- State
- Ohio
Appraisal Bias Compliance Management in Focus
On February 12, 2024, the Federal Financial Institutions Examination Council (FFIEC) issued a concise statement on Examination Principles Related to Valuation Discrimination and Bias in Residential Lending. Although the document is styled as a statement of principles, it sets forth a compliance management framework for which banks, credit unions and mortgage lenders will be examined as to their oversight of appraisals and property valuations. The statement further indicates that evidence of valuation discrimination or bias may negatively affect an institution’s safety and soundness, which will be reflected in examination ratings. While the statement references appraiser independence requirements – which were established, in large part, due to concerns about risks in inflated appraisals and overvaluation post-financial crisis – its discussion of risk is tied exclusively to undervaluation, discrimination and bias, with the focus on lack of access to credit, credit offered on less favorable terms or steering to a narrower product offering.
According to the statement, lenders will have to apply the typical compliance management system framework to assessing and evaluating risk of discrimination in appraisal practices. This includes:
Appraisal Bias Compliance Management in Focus | JD Supra
On February 12, 2024, the Federal Financial Institutions Examination Council (FFIEC) issued a concise statement on Examination Principles Related to...
appraisers could just grid a dei line adjustment...


