Residential Real Estate Valuation

On Demand Course

Instructor: Maureen Carollo

Duration: 2 HR

What You'll Learn

The regulatory developments in real estate evaluations and AVMs reflect a concerted effort to enhance the accuracy, fairness, and transparency of property valuations. These changes are expected to benefit both consumers and financial institutions by promoting a more reliable and equitable mortgage lending process.

Real estate evaluations are a critical component of the mortgage lending process, providing an estimate of a property's market value. These evaluations are essential for lenders to determine the amount of credit they can extend to borrowers. Recently, there have been significant developments in the regulatory landscape surrounding real estate evaluations, particularly with the introduction of new rules on Automated Valuation Models (AVMs) and the Consumer Financial Protection Bureau's (CFPB) perspective on these evaluations.

Automated Valuation Models (AVMs) are computer algorithms that provide property valuations based on data inputs such as recent sales, property characteristics, and market trends. The new rules, adopted by the joint agencies including the CFPB, aim to implement quality control standards for AVMs. These standards are designed to ensure a high level of confidence in the estimates produced by AVMs, protect against data manipulation, avoid conflicts of interest, and ensure compliance with nondiscrimination laws. Institutions using AVMs in certain credit decisions or securitization determinations must adopt policies, practices, procedures, and control systems to adhere to these quality control standards.

This session will brief you on all the latest information you need to make sure that your real estate valuation, appraisal and AVM programs are in compliance.

Topics covered in this session

QC standards for the AVMs as well as the renewed expectations for prevention of discriminatory practices related to appraisals
Additional specific expectations the banking regulators now have, and not just the CFPB
Background on why this topic continues to be so “hot”
Steps to update your policies and procedures-what changes will you need to make to ensure that you have the most up to date info for your appraisal program

*This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

About the Author:

Maureen Carollo

Maureen E. Carollo is a highly experienced risk and compliance professional and instructor/speaker and is currently serves as the Fair Lending Manager, AVP, for MidFirst Bank in Oklahoma City, Ok. MidFirst Bank at over $40B in total assets, is the largest privately held bank in the U.S. Previously, she was the Chief Compliance & Chief Risk Officer, SVP, for Old Glory Bank. She has over 35 years of experience in deposit operations, loan operations, compliance management, risk management, internal audit and BSA/AML/CFT program management areas and has held the Certified Regulatory Compliance Manager (CRCM) designation for over 20 years and also holds the Certified Anti-Money Laundering Specialist (CAMS) certification. She is a graduate of the Southwestern Graduate School of Banking at SMU in Dallas, Texas, and graduated with Recognition for Leadership. She serves on the “ABA Bank Compliance” magazine Editorial Advisory Board, where she has had multiple articles and columns published. She has also received an APEX Award for “Excellence in Publishing.” She has been a regular speaker for the ABA Risk and Compliance Conference, where she serves on the Advisory Board and was awarded the 2021 “Distinguished Service Award” for Compliance. She has also regularly spoken at events for Marquis Centrax, CbanC, Bankers Online, and Bankers Hub. She has been active in the Oklahoma Bankers Association, where she has been past Chairman of the Compliance School Board of Regents and served on the Board for over 20 years. She has also been a frequent speaker for the OBA’s Compliance School and past speaker for their Operations School, Consumer Lending School, and Intermediate Banking School.

On-Demand Course