Ohio Admin. Code 109:4-3-24 - Improperly influencing appraiser
(A) Division (B)(10) of section
1345.031 of the Revised Code
states that in connection with a consumer transaction, a supplier is prohibited
from knowingly compensating, instructing, inducing, coercing, or intimidating,
or attempting to compensate, instruct, induce, coerce, or intimidate, a person
licensed or certified under Chapter 4763. of the Revised Code for the purpose
of corrupting or improperly influencing the independent judgment of the person
with respect to the value of the dwelling offered as security for repayment of
a mortgage loan.
(B) Without
limiting the scope or applicability to other acts or practices that may violate
division (B)(10) of section
1345.031 of the Revised Code, a
supplier is "attempting to instruct or induce a person licensed or certified
under Chapter 4763. of the Revised Code for the purpose of improperly
influencing the independent judgment of that person with respect to the
valuation of the dwelling offered as security for repayment of a mortgage loan"
if:
(1) In the case of any refinance loan or
non-purchase second mortgage loan, a supplier, or any person acting at the
supplier's direction, identifies on the appraisal order form or communicates by
any other means to any person licensed or certified under Chapter 4763. of the
Revised Code, either the loan amount or any other express or implied statement
of the anticipated or desired appraisal valuation of the dwelling subject to
the appraisal; or,
(2) In the case
of any purchase money mortgage loan, including any second mortgage loan
connected to a sale transaction, a supplier or person acting at the supplier's
direction, except as set forth herein, identifies on the appraisal order form
or communicates by any other means to any person licensed or certified under
Chapter 4763. of the Revised Code, either the loan amount or any other express
or implied statement of the anticipated or desired appraisal valuation of the
dwelling subject to the appraisal. This prohibition does not preclude the
supplier, or a person acting at the direction of the supplier, from disclosing
either the sales price of the property or providing a copy of the sales
agreement to the person licensed or certified under Chapter 4763. of the
Revised Code. However, if the supplier knows that within the preceding thirty
days there had been a separate sales agreement between the buyer and seller
containing a lower sales price for the same property, the supplier shall
provide a copy of the prior sales agreement to the appraiser and append a copy
of the prior sales agreement to any appraisal the supplier provides to the
consumer, lender or anticipated purchaser of the note.
(C) It is not a violation of division (B)(10)
of section 1345.031 of the Revised Code or
this rule for a supplier, based upon a good faith belief that a completed
appraisal report prepared by a person licensed or certified under Chapter 4763.
of the Revised Code contains an error or is professionally deficient, to
request, in writing or by electronic transmittal, that the appraiser who
prepared the appraisal report consider additional appropriate information about
the dwelling or property; provide further detail, substantiation, or
explanation for the appraiser's valuation; or correct errors in the appraisal.
However, the supplier may not request, orally or in writing, that an appraiser
review or revise their appraisal report on the grounds that the valuation is
not high enough to qualify the consumer for the proposed loan.
(D) This rule shall not be construed to
preclude a supplier from communicating any information to a person licensed or
certified under Chapter 4763. of the Revised Code that is required to be
communicated to the appraiser by Chapter 1322. of the Revised Code, Chapter
4763. of the Revised Code, or by the Uniform Standards of Professional
Appraisal Practice as promulgated by the appraisal standards board of the
appraisal foundation, including, without limitation, a copy of a previously
completed appraisal report provided to a person licensed or certified under
Chapter 4763. of the Revised Code for the purpose of an appraisal review.
(E) For purposes of this rule a
"refinance loan" includes any subsequent first mortgage loan on the borrower's
primary residence or other property subject to coverage pursuant to division
(A) of section 1322.01 of the Revised Code.
(F) For purposes of this rule the
words "appraisal," "appraisal report," "appraisal foundation," and "valuation"
have the same definition as contained in section
4763.01 of the Revised Code.
(G) Each supplier who orders or
controls the referral of an appraisal on a residential mortgage lending
transaction and each supplier who subsequently comes into possession of
appraisal documents shall retain all documents related to the appraisal in the
borrower's residential mortgage loan file for a period of at least two years
from the date of closing, or as required by other applicable state or federal
law, whichever time period is greater. This document retention requirement
applies to any appraisal, whether or not the appraisal is ultimately relied
upon to set the market value of the real property underlying the residential
mortgage loan. Records required to be maintained by this rule may be retained
in an electronic format.
Notes
Promulgated Under: 1345.05
Statutory Authority: 1345.05
Rule Amplifies: 1345.031(B)(10)
Prior Effective Dates: 01/07/2007
Promulgated Under: 119.03
Statutory Authority: 1345.05
Rule Amplifies: 1345.031(B)(10)
Prior Effective Dates: 1/7/07
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