Which entity is responsible for engaging the appraiser in the context of federally regulated lending?

The lender is the entity responsible for engaging the appraiser in the context of federally regulated lending. This responsibility stems from the lender's role in ensuring that the loan amount aligns with the market value of the property being financed. Under federal regulations, specifically those set forth by the Dodd-Frank Act, lenders must obtain an independent and unbiased appraisal of the property to protect both themselves and the borrower from potential issues related to overvaluation.

In this scenario, the lender typically coordinates the appraisal process, including selecting the appraiser and overseeing the overall appraisal order to ensure compliance with regulations. This engagement is crucial as it allows lenders to make informed lending decisions based on accurate property valuations. The other entities, while they may interact with the appraisal process, do not have the same direct responsibility when it comes to engaging the appraiser specifically for federally regulated lending.