TheMReport

March, 2013

TheMReport — News and strategies for the evolving mortgage marketplace.

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the latest ORIGINATION Or ig i nat ion Agencies Hand Down Appraisal Rules U.S .banks such as Chase, Citi, Bank of America, and Wells Fargo," said Brian Caplen, editor of The Banker magazine, owned by Brand Finance. Chinese bank brand values increased a total of 335 percent since last year. "Only U.K. banks continue to lag behind the global recovery in both reputation and brand value," said David Haigh, CEO of Brand Finance. In fact, the United Kingdom, which is home to last year's most valuable bank brand, HSBC, is the only top 10 country to experience a decline in bank brand value during the past year. The country's bank brands experienced a 2 percent decline in value. HSBC fell two spots to the No. 3 brand this year. Chase took the No. 2 spot, and Bank of America and Citi claimed the No. 4 and No. 5 spots on the list of most valuable brands. "This year's results show that globally the banking crisis is nearly over as both brand ratings and values are rising," Haigh said. priced mortgage loans (defined under tarting in January 2014, mortgage lenders will work under new rules Dodd-Frank as loans that "are secured governing the handling of appraisals by a consumer's home and have interand other home value estimates. est rates above certain thresholds"). The Consumer Financial ProtecAccording to a joint release, the tion Bureau (CFPB) announced the new rule implements amendments to adoption of a new rule intended to the Truth in Lending Act (TILA), which improve consumer access to appraisal was made to establish disclosures on reports. While borrowers are typically the costs and terms of consumer credit. charged for the costs related to conFor higher-priced loans, crediducting an appraisal, curtors will be required rent laws do not require to use a licensed or that consumers receive a certified appraiser copy of the appraisal unwho prepares a written less they request it. Lendappraisal report based ers are also not currently on a physical visit to required to provide copies the property interior. of any other estimates of a The rule also requires home's value. lenders to disclose to The new rule impleapplicants information ments requirements under about the appraisal's the Dodd-Frank Act state purpose and to that lenders must give provide consumers consumers a copy of with a free copy of any each appraisal (or other appraisal report. estimate) free of charge. A In addition, if a selllender generally may still er flips a property for a charge a reasonable fee higher price within six for the cost of conducting months of purchasing the appraisal. it, lenders will have "This rule will to obtain a second guarantee consumers appraisal (at no cost —Richard Cordray, can receive important to the consumer) to CFPB Director information on how ensure the value of the a lender determines property is legitimately the value of the increased. home," said CFPB Director Richard According to the agencies, the rule Cordray. "Having this information exempts several types of loans, such as available promptly makes it easier qualified mortgages; temporary bridge for loan applicants to make informed loans and construction loans; loans for decisions." new manufactured homes; and loans The rule also requires that lenders for mobile homes, trailers, and houseinform consumers with three days boats. Certain loans (including some of receiving a loan application of the made in rural areas) will also be exempt borrower's right to receive a copy of all from the second appraisal requirement. appraisals. Creditors are then required In response to public comments, to provide those reports promptly, or the agencies announced they will three days before closing, whichever is publish a supplemental proposal to reearlier. The rule will applies to first-lien quest additional comment on possible mortgages, CFPB said. exemptions for streamlined refinance In addition, CFPB (in partnership programs and small-dollar loans. They with five other federal regulatory agenalso seek comment on whether the rule cies) issued a rule establishing specific should apply to loans secured by existappraisal requirements for highering manufactured homes and certain "This rule will guarantee consumers can receive important information on how a lender determines the value of the home." The M Report | 53 se c on da r y m a r k e t B ank brand values across the globe are on the rise, charting their highest values ever and double their values in 2009, during the financial crisis, according to the results of an annual study by Brand Finance. Following a $100 billion decline in brand values last year, this year's study found a 15 percent increase in bank brand values worldwide to a total of $860.7 billion. U.S. banks hold four of the top five spots on Brand Finance's list of most valuable bank brands. The most valuable bank brand worldwide is Wells Fargo, with a $26 billion brand, according to the study. "CEO John Stumpf has spearheaded an impressive recovery from 2012," according to Brand Finance. Emerging markets are showing strong growth in bank brand values, particularly in Russia, the Philippines, and China. "Chinese banks are still leading the charge in terms of the largest increases in brand value, but they are now being joined by leading S a na ly t ic s The U.S. is home to four of the top five most valuable bank brands in the world, with Wells Fargo leading the way. s e r v ic i ng Banks See Brand Values Rise to Record High The CFPB and other regulators unveil new rules to improve borrower access to appraisal reports.

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