The updated Australian Banking and Finance Industry Residential Valuation Standing Instructions V2.0 the Standing Instructions V2.0) have been agreed to by four major banks and the two LMI providers, following consultation with the API and major valuation firms.
The new version provides clarity and includes a number of changes throughout the document such as PropertyPRO General Matters (in and out of scope clarification), preferred order of sales evidence and clarity around construction valuations definitions. Members are advised to review the entire document to ensure they are aware of all changes that have been made to the Standing Instructions.
They provide a single set of Standing Instructions to be adopted by the industry with respect to PropertyPRO, Restricted and Progress Inspection Reports. They represent the minimum a lender / LMI should be expecting in a valuation report, however specific reporting requirements will be dependent on the instructing party which may not require the full impact of the Standing Instructions, e.g. the VRA questions may not be applicable to all lenders.
The Standing Instructions provide clarity and are subject to the PropertyPRO Supporting Memorandum. In the event of any inconsistency, the provisions of the API PropertyPRO Supporting Memorandum shall prevail.
The Standing Instructions were developed to provide operational clarity for the valuation community and are to be read in conjunction with the API PropertyPRO Supporting Memorandum.
They provide further guidance, clarity and consistency in the requirements of lending institutions.
Every Valuer who undertakes residential mortgage valuations for Bank Panels will potentially be affected by the Standing Instructions.
It is recommended that a copy of the Standing Instructions V2.0 document is printed off and available as you work through the module.
CPD Points: 3