ECOA Valuations Rule effective January 18th: Mercury Network automates compliance
Written by a la mode on January 9, 2014
The new ECOA Valuations Rule essentially requires that the lender or AMC notify all borrowers of several key issues before electronically delivering any appraisal report. Mercury Network's secure borrower delivery tool now automatically notifies the borrower in accordance with ECOA, prior to the secure electronic delivery of the appraisal report.
Some lenders and AMCs are still delivering appraisal reports as simple attachments in unencrypted email messages. This practice is a violation of the Gramm-Leach-Bliley Act, and can have serious consequences. Many lenders and AMCs have already eliminated those risks by using an appraisal delivery tool offered by appraisal management software platforms, but many of those platforms have yet to address the new ECOA requirements.
"More than 600 lenders and AMCs use Mercury Network to manage their collateral valuation pipelines, so we have to be innovative and on the forefront of compliance," noted Jennifer Miller, president of a la mode's Mortgage Solutions Division. "These automated safeguards provide tremendous time savings and risk mitigation for our clients, while also allowing them to deliver far better service to their borrowers."
For more information on the ECOA Valuations Rule, visit www.MercuryVMP.com/ECOA.
###