Mortgage
A loan secured by real property, giving the lender a lien and the right to foreclose on default. Most appraisal volume exists because mortgage lending requires an independent opinion of the collateral's value.
Related Terms
Lien
A creditor's legal claim against property as security for a debt — mortgages, property taxes, judgments, and contractor (mechanic's) liens.
Loan-to-Value Ratio (LTV)
LTVLoan amount divided by the lesser of price or appraised value.
Foreclosure / REO Sale
The legal process by which a lender takes title after borrower default; an REO (real-estate-owned) sale is the lender's subsequent disposition of the property.
More in Legal & Regulatory
View allUniform Standards of Professional Appraisal Practice (USPAP)
USPAPThe nationally recognized ethical and performance standards for the appraisal profession, established by The Appraisal Foundation.
FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act)
FIRREAThe 1989 federal law that established the modern appraisal regulatory framework, requiring state licensing of appraisers and USPAP compliance for all federally related real estate transactions..
Dodd-Frank Act (Appraisal Provisions)
The 2010 federal financial reform law that included significant appraisal provisions: appraiser independence requirements, AMC registration, customary and reasonable fee mandates, and prohibition of BPOs for origination..
Appraiser Independence
The legal requirement that appraisers must be free from improper influence, coercion, or pressure from parties with a financial interest in the transaction outcome.