source:
  type: regulation
  id: reg-z-1026.42
  authority: 12 CFR §1026.42 — Valuation independence (Reg Z)
  description: 'Regulation Z §1026.42 prohibits coercion of appraisers and similar

    valuation-independence violations in connection with covered

    transactions secured by a consumer''s principal dwelling.

    '
obligations:
- id: reg-z-1026.42-a
  canonical_id: reg-z-1026.42-a
  section: 12 CFR §1026.42(a)
  description: '(a): (a) Scope. Except for paragraph (i) of this section, this section applies to any
    consumer credit transaction secured by the consumer ''s principal dwelling . Paragraph (i) of this
    section applies to any mortgage, as defined in paragraph (i)(2)(v) of this section, secured by the
    consumer ''s principal …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (a) Scope. Except for paragraph (i) of this section, this section applies to any
      consumer credit transaction secured by the consumer 's principal dwelling . Paragraph (i) of this
      section applies to any mortgage, as defined in paragraph (i)(2)(v) of this section, secured by the
      consumer 's principal dwelling , even if the mortgage is primarily for business, commercial, agricultural,
      or organizational purposes.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-b
  canonical_id: reg-z-1026.42-b
  section: 12 CFR §1026.42(b)
  description: '(b): (b) Definitions. For purposes of this section: (1) “Covered person” means a creditor
    with respect to a covered transaction or a person that provides “settlement services,” as defined
    in 12 U.S.C. 2602(3) and implementing regulations, in connection with a covered transaction. (2) “Covered
    transaction…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(b) Definitions. For purposes of this section: (1) “Covered person” means a creditor
      with respect to a covered transaction or a person that provides “settlement services,” as defined
      in 12 U.S.C. 2602(3) and implementing regulations, in connection with a covered transaction. (2)
      “Covered transaction” means an extension of consumer credit that is or will be secured by the consumer
      ''s principal dwelling , as defined in § 1026.2(a)(19) . (3) “Valuation” means an estimate of the
      value of the consumer ''s principal dwelling in written or electronic form, other than one produced
      solely by an automated model or system. (4) “Valuation management functions” means:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Recruiting, selecting, or retaining a person to prepare a valuation; (ii) Contracting
    with or employing a person to prepare a valuation; (iii) Managing or overseeing the process of preparing
    a valuation, including by providing administrative services such as receiving orders for and receiving
    a …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (i) Recruiting, selecting, or retaining a person to prepare a valuation; (ii) Contracting
      with or employing a person to prepare a valuation; (iii) Managing or overseeing the process of preparing
      a valuation, including by providing administrative services such as receiving orders for and receiving
      a valuation, submitting a completed valuation to creditors and underwriters , collecting fees from
      creditors and underwriters for services provided in connection with a valuation, and compensating
      a person that prepares valuations; or (iv) Reviewing or verifying the work of a person that prepares
      valuations.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-c
  canonical_id: reg-z-1026.42-c
  section: 12 CFR §1026.42(c)
  description: '(c): (c) Valuation of consumer''s principal dwelling —(1) Coercion. In connection with
    a covered transaction, no covered person shall or shall attempt to directly or indirectly cause the
    value assigned to the consumer ''s principal dwelling to be based on any factor other than the independent
    judgment of a…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (c) Valuation of consumer's principal dwelling —(1) Coercion. In connection with
      a covered transaction, no covered person shall or shall attempt to directly or indirectly cause
      the value assigned to the consumer 's principal dwelling to be based on any factor other than the
      independent judgment of a person that prepares valuations, through coercion, extortion, inducement,
      bribery, or intimidation of, compensation or instruction to, or collusion with a person that prepares
      valuations or performs valuation management functions.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Examples of actions that violate paragraph (c)(1) include: (A) Seeking to influence
    a person that prepares a valuation to report a minimum or maximum value for the consumer ''s principal
    dwelling ; (B) Withholding or threatening to withhold timely payment to a person that prepares a valuation
    or …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) Examples of actions that violate paragraph (c)(1) include: (A) Seeking to influence
      a person that prepares a valuation to report a minimum or maximum value for the consumer ''s principal
      dwelling ; (B) Withholding or threatening to withhold timely payment to a person that prepares a
      valuation or performs valuation management functions because the person does not value the consumer
      ''s principal dwelling at or above a certain amount ; (C) Implying to a person that prepares valuations
      that current or future retention of the person depends on the amount at which the person estimates
      the value of the consumer ''s principal dwelling ; (D) Excluding a person that prepares a valuation
      from consideration for future engagement because the person reports a value for the consumer ''s
      principal dwelling that does not meet or exceed a predetermined threshold; and (E) Conditioning
      the compensation paid to a person that prepares a valuation on consummation of the covered transaction.
      (2) Mischaracterization of value —(i) Misrepresentation. In connection with a covered transaction,
      no person that prepares valuations shall materially misrepresent the value of the consumer ''s principal
      dwelling in a valuation. A misrepresentation is material for purposes of this paragraph (c)(2)(i)
      if it is likely to significantly affect the value assigned to the consumer ''s principal dwelling
      . A bona fide error shall not be a misrepresentation. (ii) Falsification or alteration. In connection
      with a covered transaction, no covered person shall falsify and no covered person other than a person
      that prepares valuations shall materially alter a valuation. An alteration is material for purposes
      of this paragraph (c)(2)(ii) if it is likely to significantly affect the value assigned to the consumer
      ''s principal dwelling . (iii) Inducement of mischaracterization. In connection with a covered transaction,
      no covered person shall induce a person to violate paragraph (c)(2)(i) or (ii) of this section.
      (3) Permitted actions. Examples of actions that do not violate paragraph (c)(1) or (c)(2) include:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Asking a person that prepares a valuation to consider additional, appropriate
    property information, including information about comparable properties, to make or support a valuation;
    (ii) Requesting that a person that prepares a valuation provide further detail, substantiation, or
    explanation fo…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (i) Asking a person that prepares a valuation to consider additional, appropriate
      property information, including information about comparable properties, to make or support a valuation;
      (ii) Requesting that a person that prepares a valuation provide further detail, substantiation,
      or explanation for the person 's conclusion about the value of the consumer 's principal dwelling
      ; (iii) Asking a person that prepares a valuation to correct errors in the valuation; (iv) Obtaining
      multiple valuations for the consumer 's principal dwelling to select the most reliable valuation;
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-v
  canonical_id: reg-z-1026.42-v
  section: 12 CFR §1026.42(v)
  description: '(v): (v) Withholding compensation due to breach of contract or substandard performance
    of services; and (vi) Taking action permitted or required by applicable Federal or state statute,
    regulation, or agency guidance.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (v) Withholding compensation due to breach of contract or substandard performance
      of services; and (vi) Taking action permitted or required by applicable Federal or state statute,
      regulation, or agency guidance.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-d
  canonical_id: reg-z-1026.42-d
  section: 12 CFR §1026.42(d)
  description: '(d): (d) Prohibition on conflicts of interest —(1)(i) In general. No person preparing
    a valuation or performing valuation management functions for a covered transaction may have a direct
    or indirect interest, financial or otherwise, in the property or transaction for which the valuation
    is or will be per…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(d) Prohibition on conflicts of interest —(1)(i) In general. No person preparing
      a valuation or performing valuation management functions for a covered transaction may have a direct
      or indirect interest, financial or otherwise, in the property or transaction for which the valuation
      is or will be performed. (ii) Employees and affiliates of creditors; providers of multiple settlement
      services. In any covered transaction, no person violates paragraph (d)(1)(i) of this section based
      solely on the fact that the person: (A) Is an employee or affiliate of the creditor; or (B) Provides
      a settlement service in addition to preparing valuations or performing valuation management functions,
      or based solely on the fact that the person ''s affiliate performs another settlement service. (2)
      Employees and affiliates of creditors with assets of more than $250 million for both of the past
      two calendar years. For any covered transaction in which the creditor had assets of more than $250
      million as of December 31st for both of the past two calendar years, a person subject to paragraph
      (d)(1)(i) of this section who is employed by or affiliated with the creditor does not have a conflict
      of interest in violation of paragraph (d)(1)(i) of this section based on the person ''s employment
      or affiliate relationship with the creditor if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) The compensation of the person preparing a valuation or performing valuation
    management functions is not based on the value arrived at in any valuation; (ii) The person preparing
    a valuation or performing valuation management functions reports to a person who is not part of the
    creditor''s loan p…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) The compensation of the person preparing a valuation or performing valuation
      management functions is not based on the value arrived at in any valuation; (ii) The person preparing
      a valuation or performing valuation management functions reports to a person who is not part of
      the creditor''s loan production function, as defined in paragraph (d)(5)(i) of this section, and
      whose compensation is not based on the closing of the transaction to which the valuation relates;
      and (iii) No employee, officer or director in the creditor''s loan production function, as defined
      in paragraph (d)(5)(i) of this section, is directly or indirectly involved in selecting, retaining,
      recommending or influencing the selection of the person to prepare a valuation or perform valuation
      management functions, or to be included in or excluded from a list of approved persons who prepare
      valuations or perform valuation management functions. (3) Employees and affiliates of creditors
      with assets of $250 million or less for either of the past two calendar years. For any covered transaction
      in which the creditor had assets of $250 million or less as of December 31st for either of the past
      two calendar years, a person subject to paragraph (d)(1)(i) of this section who is employed by or
      affiliated with the creditor does not have a conflict of interest in violation of paragraph (d)(1)(i)
      of this section based on the person ''s employment or affiliate relationship with the creditor if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) The compensation of the person preparing a valuation or performing valuation
    management functions is not based on the value arrived at in any valuation; and (ii) The creditor
    requires that any employee, officer or director of the creditor who orders, performs, or reviews a
    valuation for a covere…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) The compensation of the person preparing a valuation or performing valuation
      management functions is not based on the value arrived at in any valuation; and (ii) The creditor
      requires that any employee, officer or director of the creditor who orders, performs, or reviews
      a valuation for a covered transaction abstain from participating in any decision to approve, not
      approve, or set the terms of that transaction. (4) Providers of multiple settlement services. For
      any covered transaction, a person who prepares a valuation or performs valuation management functions
      in addition to performing another settlement service for the transaction, or whose affiliate performs
      another settlement service for the transaction, does not have a conflict of interest in violation
      of paragraph (d)(1)(i) of this section as a result of the person or the person ''s affiliate performing
      another settlement service for the transaction if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) The creditor had assets of more than $250 million as of December 31st for both
    of the past two calendar years and the conditions in paragraph (d)(2)(i)-(iii) are met; or (ii) The
    creditor had assets of $250 million or less as of December 31st for either of the past two calendar
    years and the con…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) The creditor had assets of more than $250 million as of December 31st for both
      of the past two calendar years and the conditions in paragraph (d)(2)(i)-(iii) are met; or (ii)
      The creditor had assets of $250 million or less as of December 31st for either of the past two calendar
      years and the conditions in paragraph (d)(3)(i)-(ii) are met. (5) Definitions. For purposes of this
      paragraph (d), the following definitions apply:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Loan production function. The term “loan production function” means an employee,
    officer, director, department, division, or other unit of a creditor with responsibility for generating
    covered transactions, approving covered transactions, or both. (ii) Settlement service. The term “settlement
    se…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (i) Loan production function. The term “loan production function” means an employee,
      officer, director, department, division, or other unit of a creditor with responsibility for generating
      covered transactions, approving covered transactions, or both. (ii) Settlement service. The term
      “settlement service” has the same meaning as in the Real Estate Settlement Procedures Act, 12 U.S.C.
      2601 et seq. (iii) Affiliate. The term “affiliate” has the same meaning as in Regulation Y of the
      Board of Governors of the Federal Reserve System , 12 CFR 225.2 (a).
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-e
  canonical_id: reg-z-1026.42-e
  section: 12 CFR §1026.42(e)
  description: '(e): (e) When extension of credit prohibited. In connection with a covered transaction,
    a creditor that knows, at or before consummation, of a violation of paragraph (c) or (d) of this section
    in connection with a valuation shall not extend credit based on the valuation, unless the creditor
    documents tha…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (e) When extension of credit prohibited. In connection with a covered transaction,
      a creditor that knows, at or before consummation, of a violation of paragraph (c) or (d) of this
      section in connection with a valuation shall not extend credit based on the valuation, unless the
      creditor documents that it has acted with reasonable diligence to determine that the valuation does
      not materially misstate or misrepresent the value of the consumer 's principal dwelling . For purposes
      of this paragraph (e), a valuation materially misstates or misrepresents the value of the consumer
      's principal dwelling if the valuation contains a misstatement or misrepresentation that affects
      the credit decision or the terms on which credit is extended.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-f
  canonical_id: reg-z-1026.42-f
  section: 12 CFR §1026.42(f)
  description: '(f): (f) Customary and reasonable compensation —(1) Requirement to provide customary and
    reasonable compensation to fee appraisers. In any covered transaction, the creditor and its agents
    shall compensate a fee appraiser for performing appraisal services at a rate that is customary and
    reasonable for com…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(f) Customary and reasonable compensation —(1) Requirement to provide customary
      and reasonable compensation to fee appraisers. In any covered transaction, the creditor and its
      agents shall compensate a fee appraiser for performing appraisal services at a rate that is customary
      and reasonable for comparable appraisal services performed in the geographic market of the property
      being appraised. For purposes of paragraph (f) of this section, “agents” of the creditor do not
      include any fee appraiser as defined in paragraph (f)(4)(i) of this section. (2) Presumption of
      compliance. A creditor and its agents shall be presumed to comply with paragraph (f)(1) of this
      section if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) The creditor or its agents compensate the fee appraiser in an amount that is
    reasonably related to recent rates paid for comparable appraisal services performed in the geographic
    market of the property being appraised. In determining this amount , a creditor or its agents shall
    review the factor…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) The creditor or its agents compensate the fee appraiser in an amount that is
      reasonably related to recent rates paid for comparable appraisal services performed in the geographic
      market of the property being appraised. In determining this amount , a creditor or its agents shall
      review the factors below and make any adjustments to recent rates paid in the relevant geographic
      market necessary to ensure that the amount of compensation is reasonable: (A) The type of property,
      (B) The scope of work, (C) The time in which the appraisal services are required to be performed,
      (D) Fee appraiser qualifications, (E) Fee appraiser experience and professional record , and (F)
      Fee appraiser work quality; and (ii) The creditor and its agents do not engage in any anticompetitive
      acts in violation of state or Federal law that affect the compensation paid to fee appraisers, including:
      (A) Entering into any contracts or engaging in any conspiracies to restrain trade through methods
      such as price fixing or market allocation, as prohibited under section 1 of the Sherman Antitrust
      Act, 15 U.S.C. 1 , or any other relevant antitrust laws; or (B) Engaging in any acts of monopolization
      such as restricting any person from entering the relevant geographic market or causing any person
      to leave the relevant geographic market, as prohibited under section 2 of the Sherman Antitrust
      Act, 15 U.S.C. 2 , or any other relevant antitrust laws. (3) Alternative presumption of compliance.
      A creditor and its agents shall be presumed to comply with paragraph (f)(1) of this section if the
      creditor or its agents determine the amount of compensation paid to the fee appraiser by relying
      on information about rates that:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Is based on objective third-party information, including fee schedules, studies,
    and surveys prepared by independent third parties such as government agencies, academic institutions,
    and private research firms; (ii) Is based on recent rates paid to a representative sample of providers
    of apprais…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) Is based on objective third-party information, including fee schedules, studies,
      and surveys prepared by independent third parties such as government agencies, academic institutions,
      and private research firms; (ii) Is based on recent rates paid to a representative sample of providers
      of appraisal services in the geographic market of the property being appraised or the fee schedules
      of those providers; and (iii) In the case of information based on fee schedules, studies, and surveys,
      such fee schedules, studies, or surveys, or the information derived therefrom, excludes compensation
      paid to fee appraisers for appraisals ordered by appraisal management companies, as defined in paragraph
      (f)(4)(iii) of this section. (4) Definitions. For purposes of this paragraph (f), the following
      definitions apply:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Fee appraiser. The term “fee appraiser” means: (A) A natural person who is a
    state -licensed or state -certified appraiser and receives a fee for performing an appraisal, but
    who is not an employee of the person engaging the appraiser; or (B) An organization that, in the ordinary
    course of busin…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) Fee appraiser. The term “fee appraiser” means: (A) A natural person who is a
      state -licensed or state -certified appraiser and receives a fee for performing an appraisal, but
      who is not an employee of the person engaging the appraiser; or (B) An organization that, in the
      ordinary course of business, employs state -licensed or state -certified appraisers to perform appraisals,
      receives a fee for performing appraisals, and is not subject to the requirements of section 1124
      of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 3353 ).
      (ii) Appraisal services. The term “appraisal services” means the services required to perform an
      appraisal, including defining the scope of work, inspecting the property, reviewing necessary and
      appropriate public and private data sources (for example, multiple listing services, tax assessment
      records and public land records ), developing and rendering an opinion of value, and preparing and
      submitting the appraisal report. (iii) Appraisal management company. The term “appraisal management
      company” means any person authorized to perform one or more of the following actions on behalf of
      the creditor: (A) Recruit, select, and retain fee appraisers;(B) Contract with fee appraisers to
      perform appraisal services; (C) Manage the process of having an appraisal performed, including providing
      administrative services such as receiving appraisal orders and appraisal reports, submitting completed
      appraisal reports to creditors and underwriters , collecting fees from creditors and underwriters
      for services provided, and compensating fee appraisers for services performed; or (D) Review and
      verify the work of fee appraisers.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-g
  canonical_id: reg-z-1026.42-g
  section: 12 CFR §1026.42(g)
  description: '(g): (g) Mandatory reporting —(1) Reporting required. Any covered person that reasonably
    believes an appraiser has not complied with the Uniform Standards of Professional Appraisal Practice
    or ethical or professional requirements for appraisers under applicable state or Federal statutes
    or regulations sh…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (g) Mandatory reporting —(1) Reporting required. Any covered person that reasonably
      believes an appraiser has not complied with the Uniform Standards of Professional Appraisal Practice
      or ethical or professional requirements for appraisers under applicable state or Federal statutes
      or regulations shall refer the matter to the appropriate state agency if the failure to comply is
      material. For purposes of this paragraph (g)(1), a failure to comply is material if it is likely
      to significantly affect the value assigned to the consumer 's principal dwelling . (2) Timing of
      reporting. A covered person shall notify the appropriate state agency within a reasonable period
      of time after the person determines that there is a reasonable basis to believe that a failure to
      comply required to be reported under paragraph (g)(1) of this section has occurred. (3) Definition.
      For purposes of this paragraph (g), “state agency” means “state appraiser certifying and licensing
      agency” under 12 U.S.C. 3350(1) and any implementing regulations. The appropriate state agency to
      which a covered person must refer a matter under paragraph (g)(1) of this section is the agency
      for the state in which the consumer 's principal dwelling is located.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-h
  canonical_id: reg-z-1026.42-h
  section: 12 CFR §1026.42(h)
  description: '(h): (h) The Bureau issued a joint rule to implement the appraisal management company
    minimum requirements in the Financial Institutions Reform, Recovery, and Enforcement Act, as amended
    by section 1473 of the Dodd-Frank Wall Street Reform and Consumer Protection Act . See 12 CFR part
    34 .'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (h) The Bureau issued a joint rule to implement the appraisal management company
      minimum requirements in the Financial Institutions Reform, Recovery, and Enforcement Act, as amended
      by section 1473 of the Dodd-Frank Wall Street Reform and Consumer Protection Act . See 12 CFR part
      34 .
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Quality Control Standards for Automated Valuation Models —(1) Scope. The purpose
    of this paragraph (i) is to implement quality control standards for the use of automated valuation
    models in determining the value of collateral in connection with making a credit decision or covered
    securitization …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) Quality Control Standards for Automated Valuation Models —(1) Scope. The purpose
      of this paragraph (i) is to implement quality control standards for the use of automated valuation
      models in determining the value of collateral in connection with making a credit decision or covered
      securitization determination regarding a mortgage or mortgage-backed security. This paragraph (i)
      applies to the use of automated valuation models by any mortgage originator or secondary market
      issuer, other than either a financial institution as defined in 12 U.S.C. 3350(7) , or a subsidiary
      owned and controlled by such a financial institution and regulated by one of the Federal financial
      institutions regulatory agencies as defined in 12 U.S.C. 3350(6) . This paragraph (i) does not apply
      to the use of automated valuation models in:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Monitoring of the quality or performance of mortgages or mortgage-backed securities
    ; (ii) Reviews of the quality of already completed determinations of the value of collateral; or (iii)
    The development of an appraisal by a certified or licensed appraiser as defined in § 1026.35(c)(1)(i)
    . (2) D…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) Monitoring of the quality or performance of mortgages or mortgage-backed securities
      ; (ii) Reviews of the quality of already completed determinations of the value of collateral; or
      (iii) The development of an appraisal by a certified or licensed appraiser as defined in § 1026.35(c)(1)(i)
      . (2) Definitions. As used in this paragraph (i):'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Automated valuation model means any computerized model used by mortgage originators
    and secondary market issuers to determine the value of a consumer ''s principal dwelling collateralizing
    a mortgage. (ii) Control systems means the functions (such as internal and external audits, risk review,
    qua…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(i) Automated valuation model means any computerized model used by mortgage originators
      and secondary market issuers to determine the value of a consumer ''s principal dwelling collateralizing
      a mortgage. (ii) Control systems means the functions (such as internal and external audits, risk
      review, quality control , and quality assurance) and information systems that are used to measure
      performance, make decisions about risk, and assess the effectiveness of processes and personnel,
      including with respect to compliance with statutes and regulations. (iii) Covered securitization
      determination means a determination regarding: (A) Whether to waive an appraisal requirement for
      a mortgage origination in connection with its potential sale or transfer to a secondary market issuer;
      or (B) Structuring, preparing disclosures for, or marketing initial offerings of mortgage-backed
      securitizations. (iv) Credit decision means a decision regarding whether and under what terms to
      originate, modify, terminate, or make other changes to a mortgage, including a decision whether
      to extend new or additional credit or change the credit limit on a line of credit.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-v
  canonical_id: reg-z-1026.42-v
  section: 12 CFR §1026.42(v)
  description: '(v): (v) Mortgage means a transaction in which a mortgage, deed of trust, purchase money
    security interest arising under an installment sales contract, or equivalent consensual security interest
    is created or retained in a consumer ''s principal dwelling . (vi) Mortgage originator means: (A)
    Any person wh…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: '(v) Mortgage means a transaction in which a mortgage, deed of trust, purchase money
      security interest arising under an installment sales contract, or equivalent consensual security
      interest is created or retained in a consumer ''s principal dwelling . (vi) Mortgage originator
      means: (A) Any person who, for direct or indirect compensation or gain, or in the expectation of
      direct or indirect compensation or gain— (1) Takes a mortgage application; (2) Assists a consumer
      in obtaining or applying to obtain a mortgage; or (3) Offers or negotiates terms of a mortgage;
      (B) Includes any person who represents to the public, through advertising or other means of communicating
      or providing information (including the use of business cards, stationery, brochures, signs, rate
      lists, or other promotional items), that such person can or will provide any of the services or
      perform any of the activities described in paragraph (A) of this definition; (C) Does not include
      any person who is not otherwise described in paragraph (A) or (B) of this definition and who performs
      purely administrative or clerical tasks on behalf of a person who is described in any such paragraph;
      (D) Does not include a retailer of manufactured or modular homes or an employee of the retailer
      if the retailer or employee, as applicable— (1) Does not receive compensation or gain for engaging
      in activities described in paragraph (A) of this definition that is in excess of any compensation
      or gain received in a comparable cash transaction; (2) Discloses to the consumer in writing any
      corporate affiliation with any creditor and, if the retailer has a corporate affiliation with any
      creditor, at least 1 unaffiliated creditor; and (3) Does not directly negotiate with the consumer
      or lender on loan terms (including rates, fees, and other costs); (E) Does not include a person
      or entity that only performs real estate brokerage activities and is licensed or registered in accordance
      with applicable State law, unless such person or entity is compensated by a lender, a mortgage broker,
      or other mortgage originator or by any agent of such lender, mortgage broker, or other mortgage
      originator; (F) Does not include a person that meets the criteria for seller financers provided
      in § 1026.36(a)(4) and (5) ; and (G) Does not include a servicer or servicer employees, agents and
      contractors, including but not limited to those who offer or negotiate terms of a mortgage for purposes
      of renegotiating, modifying, replacing and subordinating principal of existing mortgages where borrowers
      are behind in their payments, in default or have a reasonable likelihood of being in default or
      falling behind. (vii) Secondary market issuer means any party that creates, structures, or organizes
      a mortgage-backed securities transaction. (3) Quality control standards. Mortgage originators and
      secondary market issuers that engage in credit decisions or covered securitization determinations
      themselves, or through or in cooperation with a third-party or affiliate, must adopt and maintain
      policies, practices, procedures, and control systems to ensure that automated valuation models used
      in these transactions adhere to quality control standards designed to:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-i
  canonical_id: reg-z-1026.42-i
  section: 12 CFR §1026.42(i)
  description: '(i): (i) Ensure a high level of confidence in the estimates produced; (ii) Protect against
    the manipulation of data; (iii) Seek to avoid conflicts of interest; (iv) Require random sample testing
    and reviews; and'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (i) Ensure a high level of confidence in the estimates produced; (ii) Protect against
      the manipulation of data; (iii) Seek to avoid conflicts of interest; (iv) Require random sample
      testing and reviews; and
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.42-v
  canonical_id: reg-z-1026.42-v
  section: 12 CFR §1026.42(v)
  description: '(v): (v) Comply with applicable nondiscrimination laws. [ 76 FR 79772 , Dec. 22, 2011,
    as amended at 80 FR 32687 , June 9, 2015; 89 FR 64577 , Aug. 7, 2024] Dodd-Frank Wall Street Reform
    and Consumer Protection Act CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel
    Table of Author…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.42(c)(1)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.42
    snapshot_id: 639f785c5b544250
    fetched_at: '2026-05-24T00:21:59Z'
    content_hash: sha256:5841ffc68689f344b2de85d2fe3eed77e4308f244a46e876493c627c5f1fabb1
    paragraph_quote: (v) Comply with applicable nondiscrimination laws. [ 76 FR 79772 , Dec. 22, 2011,
      as amended at 80 FR 32687 , June 9, 2015; 89 FR 64577 , Aug. 7, 2024] Dodd-Frank Wall Street Reform
      and Consumer Protection Act CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel
      Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1026.42 from Cornell LII snapshot 639f785c5b544250;
      body isolated between nav and notes; substring-verified.
  judgment: false
