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SharperLending's Appraisal Firewall Keeps Lenders Compliant with Dodd-Frank Wall Street Reform and Consumer Protection Act

Appraisal Firewall is an efficiency and compliance technology tool used by community banks, mortgage banks, and credit unions at the local, regional, and national level to build their own appraiser panels and automate their appraisal processes.

"One of the biggest changes under the new law compared with the Home Valuation Code of Conduct (HVCC) appears to be that mortgage loan originators, including brokers, can order appraisals," says Dave Black, President and CEO of SharperLending, the company behind the Appraisal Firewall technology. "However, we may see lenders hold back from extending appraisal ordering out to mortgage loan originators unless they can prove that no appraiser influence occurred on the appraisal. With usage of a technology system like Appraisal Firewall, lenders can prove with certainty that no appraiser valuation influence occurred. Lenders can choose to extend ordering rights out to these individuals with confidence. This reduces bottlenecks at the lender level and proves compliance with Dodd-Frank for brokers, loan officers, and lenders alike. "

With the past appraisal regulations of 2009 and early 2010, many lenders chose to utilize an Appraisal Management Company to keep commissioned employees from selecting, retaining, compensating, ordering, or having substantive communication with appraisers.

"AMCs were costly to begin with," continues Black. "Now they will be under increased scrutiny with Dodd-Frank for registration, to pay appraiser, state, and national fees, and to pay appraisers the full fees they deserve. And when costs go up in one place, they will inevitably go up elsewhere - meaning possible increased lender costs or increased appraisal prices to consumers. Appraisal Firewall does not fall under the Dodd-Frank definition of an AMC so lenders can reduce their costs even further, add more efficiency by allowing mortgage loan originators to order if they choose, and prove that no appraiser influence occurred for audits, all while continuing to work with their trusted local appraisers."

About SharperLending, LLC

Headquartered in Spokane, Wash., SharperLending, LLC, was founded in 1989 and was the first to offer a complete Web browser-based mortgage credit reporting system on the Internet. The company's proven technology has processed more than 100 million secure mortgage transactions. SharperLending has been processing appraisals since the late 1990s, with Appraisal Firewall breaking out of the company's settlement services technology into its own unique offering. SharperLending, LLC, has three divisions under its corporate umbrella: SharperLending Mortgage Services Division, the mortgage services and Appraisal Firewall platforms; SharperLending Credit Division, technology for the credit reporting industry; and SharperLending Solutions, the loan origination product packaging division. For more information, visit www.SharperLending.com.

SharperLending, LLC
Matt Brannon, Communications Manager, 800-452-1174
Matt.Brannon@SharperLending.com