Valuation independence.

CFR · 2024-01-01 · US · Title 12

(a) (b) (1) “Covered person” means a creditor with respect to a covered transaction or a person that provides “settlement services,” as defined in 12 U.S.C. 2602(3) and implementing regulations, in connection with a covered transaction. (2) “Covered transaction” means an extension of consumer credit that is or will be secured by the consumer's principal dwelling, as defined in § 1026.2(a)(19). (3) “Valuation” means an estimate of the value of the consumer's principal dwelling in written or electronic form, other than one produced solely by an automated model or system. (4) “Valuation management functions” means: (i) Recruiting, selecting, or retaining a person to prepare a valuation; (ii) Contracting with or employing a person to prepare a valuation; (iii) Managing or overseeing the process of preparing a valuation, including by providing administrative services such as receiving orders for and receiving a valuation, submitting a completed valuation to creditors and underwriters, collecting fees from creditors and underwriters for services provided in connection with a valuation, and compensating a person that prepares valuations; or (iv) Reviewing or verifying the work of a person that prepares valuations. (c) (i) Examples of actions that violate paragraph (c)(1) include: (A) Seeking to influence a person that prepares a valuation to report a minimum or maximum value for the consumer's principal dwelling; (B) Withholding or threatening to withhold timely payment to a person

official document · source cfr-2024 · id 12:§ 1026.42