Effective October 3, 2015 under the new TRID (TILA-RESPA Integrated Disclosure) regulations, variances in the cost of appraisals will no longer fall into the 10% tolerance bucket. There are six specific exceptions under which the cost of an appraisal to the borrower can exceed what was disclosed on the Loan Estimate (LE), the most impactful to the appraisal process being a “changed circumstance.”
October 3rd is right around the corner, and TRID will be here before we know it. Lenders, AMCS, and appraisers nationwide are preparing their staff and clients for TRID and what it means to us all. Working RE published an article, “TRID: What’s it mean for appraisers?” and in this article, they go into aspects of TRID and the potential impact for appraisers.
Valuation Management Group’s Vice President of Client Relations, Sharon Lynn, gives thoughts on TRID and the impact on the industry in the Working RE article. Sharon emphasizes the importance of creating dialogue between the AMC and Lender regarding guidelines and strategies for achieving compliance.
In the Working RE article, Sharon states, “The questionnaire we are recommending to our lender clients will tip us off if we are dealing with a complex property and allow us to respond accordingly. If the property looks like it may be atypical or unique, we can then put that order out to bid immediately and before our client issues the Loan Estimate. The result is that we’ll be able to pay reasonable and customary fees to appraisers while helping our clients comply with TRID.”
As a part of our appraisal management services, Valuation Management Group is presenting a webinar for clients that addresses obtaining a bid prior to disclosure and changed circumstances. In this, Sharon presents the questionnaire that Valuation Management Group has developed to help make this process easier for the lender and the borrower.
The Valuation Management Group Webinar will be Tuesday, September 22, 2015 at 2:00pm, and Sharon will be available to address questions and concerns related to TRID.
To register for this webinar, please click here.
Valuation Management Group is a national, full service appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.