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Center Lender
For too many years lenders and appraisers
have been "held hostage" by third party referral
sources, such as real estate agents, loan brokers and high
performing loan officers who have, in return for business
referrals, demanded that appraisal results be sufficiently
high to make transactions occur. Not withstanding the dictates
of FIRREA, Federal and State regulations, too many lenders
have found themselves compromised by the business need to
Improperly Influence valuations and Improperly Retaliate against
appraisers and management companies that refuse to create
overly aggressive valuations.
The Center for Responsible
Appraisals and Valuations
The National Community Reinvestment Coalition
(NCRC) is the nation's largest consumer interest group that
focuses on real estate lending. A coalition of over 600 local
consumer groups, we are dedicated to ending the valuation
abuse that has become a major form of predatory lending. We
have formed the Center For Responsible Appraisals and Valuations
to accomplish together what legislators and regulators have
failed to do.
The center has created a Code of Conduct,
within voluntary compliance agreements for industry participants,
that reinforces the federal and state laws, rules, regulations
and guidelines and gives signatories a means of Alternative
Dispute Resolution (ADR) when they claim that they have been
harmed by a breach of that code. By becoming an center signatory,
a lender agrees to that code of conduct and to the alternative
dispute resolution method that has been created through the
American Arbitration Association (AAA). That method offers
complainants an online, quick and inexpensive means of reaching
voluntary resolution with a respondent. Where necessary, specialized
mediators will be chosen to assist in the settlement of disputes
online and by phone in an inexpensive and time efficient manner.
Finally, if all efforts fail, the parties can choose to have
a more formal arbitration of the dispute, under modified commercial
guidelines of the AAA.
Participation and Benefits
to Lenders
Signatory lenders pay nothing
for participation, other than the fees paid for staff appraisers
to become signatories and when they file complaints against
others. They will receive the following benefits for participating:
- The ability to file claims against
third party referral sources that have improperly retaliated
against them for refusing to give in to improper influence
of the valuation process.
- Publication of their signatory status
in the center signatory lists that will be promoted in national
and local media, press releases, web listings and to all
600 plus center local affiliates.
- The ability to respond to claims of
improper influence and retaliation under the ADR methods.
Non-signatory lenders will be placed in the position of
having to respond to complaints through regulators, organized
consumer and center local affiliates' activities. Alternative
dispute resolution can only create injector relief and not
monetary damages and, thus, the lender need only remediate
instances of improper conduct rather than face claims of
monetary damages from center signatories.
- The ability to compel review of what
is believed to be poor appraisal results through the center
review process.
Cost of Signatory Status
for Staff Appraisers
Less than 10- $500 per
year
11 to 100 - $5,000 per year
101 to 500 - $25,000 per year
501 or higher $50,000 per year
Cost of Complaints
File a new dispute: $125
To
Find Out More click here or call us at 866-244-9708
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