The Federal Financial Institutions Examination Council issued a statement of principles related to valuation discrimination and bias for member agencies to consider when examining financial institutions.
Details: The FFIEC said:
The principles aid member agencies in assessing whether their supervised institutions’ compliance and risk management practices are appropriate to identify and mitigate discrimination or bias in their residential property valuation practices.
The examination principles are designed for both consumer compliance as well as safety and soundness examinations.
The statement of principles should not be interpreted as new guidance to supervised institutions nor an increased focus on supervised institutions’ appraisal practices.
Instead, the statement is designed to offer transparency into the examination process and support risk-focused examination work.
