Compliance Knowledge Base

Dodd Frank

In 2010, The Dodd Frank Interim Final Rule was passed to regulate banking and mortgage practices. Dodd Frank addresses many aspects of the mortgage industry, but for purposes of valuation (appraisals) prescribes independence in the appraisal process to shield appraisers from influence.

The Dodd Frank interim final rules can be found and read here

Section 226.42 covers Valuation Independence and defines the roles, responsibilities and "covered persons" who cannot perform "valuation management functions" within a lending institution.

AIR (Appraisal Independence Requirements)

Fannie Mae and Freddie Mac have jointly provided the Appraiser Independence Requirements to ensure appraiser independence and non-influence of the appraisal process of selection, ordering, and communication with appraisers from the loan production and origination process. An outgrowth of the original HVCC (Home Valuation Code of Conduct) from the 2008 financial reforms, AIR strengthens and promulgates appraisal independence rules that govern all secondary market transactions. Such transactions are also governed in an overarching way by the Dodd Frank Interim Final Rule.

An FAQ about AIR and specific answers to questions about who can order or choose appraisers and AMCs as well as guidelines covering appraisal management process can be found at Fannie Mae's AIR FAQ.


The Uniform Collateral Data Portal (UCDP) and the Electronic Appraisal Delivery Portal (EAD) were built by VEROS software for the GSEs to homologize the submission of appraisal data into their systems and form the basis for the collection and creation of a property database for appraisals. The portals deliver appraisals in the MISMO XML GSE format and most residential appraisal formats are required to be uploaded in a compatible format for submission to the UCDP and EAD.

Upon submission, the portals return a Submission Summary Report (SSR) that provides a results analysis of whether the appraisal PASSED or FAILED the UCDP or EAD process.

Triserv has full integration to both portals directly with VEROS. This provides us several advantages that give our clients benefits including advance deployment of all new features or "hard stops" within the UCDP and EAD, as well as access to the VEROS Hard Edit Preview which allows Triserv’s review team to view whether a particular appraisal will pass/fail prior to delivery to the portals and also a preview of the Collateral Underwriter Risk Score.

AMC QC & Review Requirements

Triserv adheres to and exceeds the minimum appraisal requirements for review mandated by the Federal Government.

Triserv exceeds the basic regulatory review requirements above by adding the following components to our review process:

Consumer Loan Evaluations

Triserv offers consumer loan evaluations or hybrid evaluation products for home equity lending and portfolio valuation services. These include AVM products, Home inspections, and hybrid products like Triserv's MACR (Market Analysis & Conditions Report).

The Interagency Advisory on the Use of Evaluations in Real Estate-Related Transactions can be found on the Federal Reserve's website here.

The guidelines establish the use of non-appraisal evaluation products for transactions where:

Under these definitions, lenders can utilize evaluation products in combination with non-appraiser inspections to underwrite certain types of loans. The majority of these in the banking and credit union space are home equity loans.

Title XIV, Section 14.7.6 in the Dodd Frank banking reforms also specifically prohibits the use of BPO (Broker Price Opinion) for use as the primary basis in determining the value of a piece of property in regards to a mortgage loan secured by that property [§1473(r)].

Though Triserv offers Broker Price Opinions for our lenders, it is clear that valuation options that combine AVM and onsite property inspections are the preferred method for conducting these types of evaluations. Triserv offers lending institutions the MACR (Market Analysis & Conditions Report) for home equity lending and portfolio management.