Joint Guidance on Residential Real Estate Valuations

The CFPB, FDIC, Federal Reserve, NCUA, and OCC, released proposed guidance and requested public comment on reconsiderations of value (ROV) for residential real estate valuations. The proposed guidance advises on policies that financial institutions may implement to allow consumers to provide financial institutions with information that may not have been considered during an appraisal or if deficiencies are identified in the original appraisal. ROVs are requests from a financial institution to an appraiser or other preparer of a valuation report to reassess the value of residential real estate. An ROV may be warranted if a consumer provides information to a financial institution about potential deficiencies or other information that may affect the estimated value.  

CFPB Issue Spotlight on AI

The CFPB’s latest Issue Spotlight focuses on artificial intelligence and chatbots in banking. The CFPB reports that it has received numerous complaints from frustrated customers trying to receive timely, straightforward answers from their financial institutions or raise a concern or dispute. Risks identified in the Spotlight include noncompliance with federal consumer protection laws, diminished customer service and trust, and the potential to cause harm to consumers. 

FTC Data Spotlight Talks Fraud

In a Data Spotlight, the FTC reports that bogus bank fraud warnings were the most common form of text message scam reported to the agency. “Reports about texts impersonating banks are up nearly twentyfold since 2019. You might get a fake number to call about supposed suspicious activity. Or they might say to reply “yes or no” to verify a large transaction (that you didn’t make). If you reply, you’ll get a call from the (fake) fraud department. People say they thought the bank was helping them get their money back. Instead, money was transferred out of their account. This scam’s median reported loss was a whopping $3,000 last year. Worse still, many people report giving their Social Security number and other personal information to scammers, leading to possible identity theft.”