Following the onset of heightened lender regulations implemented by the Consumer Financial Protection Bureau, appraisal management company CoesterVMS has incorporated a online compliance check into its lender-facing appraisal program.
Coined “CFPB Suite,” the verification is web-accessible and allows vendors to check compliance with all third-party regulations set by the CFPB each time an appraisal is done.
The CFPB considers lenders responsible for the third-party vendors they contract with, appraisers included, which is one reason for the launch of the new verification system, CoesterVMS CEO Brian Coester says.
“Using a third party service provider can be a lender’s best decision for specialized services like appraisal management, but engaging the wrong provider exposes them to unnecessary risk,” Coester says. “The CFPB has stated that it expects lenders to do their due diligence on the service providers it engages. The CFPB Suite allows lenders to find out the actual steps CoesterVMS took to ensure compliance with every CFPB third party regulation that could possibly be considered their responsibility.”
The information can be accessed by lenders via their CoesterVMS client pages on a per loan basis.
Written by Elizabeth Ecker