ECOA and Reg B: Appraisals and Other Valuations - 12 CFR 1002.14 Flashcards
General rule, disclosure and timing requirements
What type of application requires the creditor to provide an applicant with a copy of all appraisals and other written valuations?
An application for credit that is to be secured by a first lien on a dwelling.
What is considered to be a “valuation”?
Any estimate of the value of a dwelling developed in connection with an application, regardless of the application status (applies to originated, denied, ANA, withdrawn and incomplete)
What is the timing requirement to provide a copy(ies) of the appraisal(s) and valuation(s) to the applicant?
“Promptly upon completion” or within 3 business days prior to consummation/account opening, whichever is earlier
When may an applicant waive the appraisal timing requirement?
When the applicant agrees to receive the appraisal at or before consummation, and provides a written waiver to the lender at least 3 days prior to consummation
What is the one exception to the appraisal waiver timing requirement?
When clerical changes are required on an appraisal or valuation that was previously provided within the required timeframe.
In the event that an account is not consummated and an appraisal waiver is in place, when must the creditor provide copy(ies) of the appraisal(s) and/or valuation(s)?
No later than 30 days after the creditor determines that consummation will not occur
When must the written notice of the applicant’s right to receive a copy of all written appraisals be delivered to the applicant?
No later than the third business day after receipt of an application for a secured, first lien dwelling
Which fees associated with appraisals can a creditor charge for and which are prohibited?
A creditor may charge a reasonable cost for obtaining the appraisal or valuation, but cannot charge for copies of those appraisals or valuations.
