Compliance Questions & Answers

ANSWER:

An institution should establish qualification criteria for persons who are eligible to review appraisals and evaluations.

Persons who review appraisals and evaluations should be independent of the transaction and have no direct or indirect interest, financial or otherwise, in the property or transaction, and be independent of and insulated from any influence by loan production staff.  Reviewers also should possess the requisite education, expertise, and competence to perform the review commensurate with the complexity of the transaction, type of real property, and market.

Further, reviewers should be capable of assessing whether the appraisal or evaluation contains sufficient information and analysis to support the institution’s decision to engage in the transaction.  When an institution identifies an appraisal or evaluation that is inconsistent with the Agencies’ appraisal regulations and the deficiencies cannot be resolved with the appraiser or person who performed the evaluation, the institution must obtain an appraisal or evaluation that meets the regulatory requirements prior to making a credit decision.

Though a reviewer cannot change the value conclusion in the original appraisal, an appraisal review performed by an appropriately qualified and competent state certified or licensed appraiser in accordance with USPAP may result in a second opinion of market value. An institution may rely on the second opinion of market value obtained through an acceptable USPAP-compliant appraisal review to support its credit decision.

Reference: Interagency Appraisal Guidelines, December 2010, page 15 and 16.

ANSWER:

If a recipient makes a request using a mechanism provided pursuant to paragraph (3) not to receive some or any commercial electronic mail messages from such sender, then it is unlawful— (i) for the sender to initiate the transmission to the recipient, more than 10 business days after the receipt of such request, of a commercial electronic mail message that falls within the scope of the request.

Reference: CAN-SPAM 16 CFR 316.3

ANSWER:

There is an exception to the disclosure and opt out provisions of Regulation P pertaining to service providers. If the service provider meets the exception no opt out is necessary. Note that the Fair Credit Reporting Act and state law (if it is more restrictive) may be applicable.

Reference: Regulation P 12 CFR 1016.14

Regulation E states that the rule for replacing an access device is one for one when issuing a renewal or substitute access device, only one renewal or substitute device may replace a previously issued device. However, the bank may provide additional devices at the time it issues the renewal or substitute access device but must follow the requirements of 1005.5(b) for Unsolicited Issuance.

Reference: Official Staff Interpretation 1005.5(a) and (b).

Until FinCEN directs otherwise, if euros are involved and the country of origin is unknown, enter “BE” for Belgium in Items 26/28, as applicable.

Reference: FinCEN CTR FAQ, Q28.

Maybe. If the mobile home serves as the applicant's primary residence, the disclosure requirements would apply.

Reference: 12 CFR 1026.3 and 1026.19(b).