According to Kirchman's, effective 4/15/2004 we must provide borrowers two copies of the right to an appraisal notice. One for them to sign and return and one for them to keep. This was news to me. Has anyone else come across this?

This is news to me also. There is no "signature" requirement for the appraisal notice that I'm aware of.

I apologize. I got a little ahead of myself there. Kirchman's didn't indicate that the notice had to be signed but that most lenders incorporate the notice as part of the application docs. Here's what they indicated:

"There is now another subtle change that may cause you to revise your procedures for notifying applicants of their right to receive a copy of the appraisal used in connection with their loan request. Section 202.4(d), has been added to the regulation which requires all disclosures given in connection with Regulation B be provided in a clear and conspicuous manner and in a form an applicant may retain. Most of the other consumer protection regulations administered by the Federal Reserve Board already contain these standards; however, these are new requirements for Regulation B. Depending on how you handle disclosures relating to the customer's right to receive a copy of the appraisal, you may or may not need to revise your forms and procedures.

If you routinely provide applicants a copy of the appraisal used in connection with their loan request, which will be secured by a 1-4 family residential structure, you are not required to render any disclosure at all in that regard. This will not change under the new rules. If, however, you only provide a copy of the appraisal when requested to do so, your procedures may need to be updated. You see, under the old rules, the only requirement with respect to providing individuals a notice of their right to receive a copy of the appraisal was that that notice be provided in writing. As long as it was provided in writing, there was no additional requirement that the notice be in a format that the applicant could retain. Many lenders accordingly put the notice into boilerplate language that was embedded in the application form. That was fine under the old rules, but it will not be fine under the new rules. When the applicant returns the completed application, you will be getting back the one and only copy of the appraisal disclosure. If you do not currently give the notice of a right to receive a copy of the appraisal in a form the applicant will be able to keep, your procedures will need to be changed by April 15, 2004, the mandatory effective date of the new rules. If your notice is imbedded in your application, you will either have to give the applicant a copy of the application or create a separate notice."

Thanks for clarifying. I was well aware of having to give a copy they may retain , the signature requirement is what threw me. Ours is incorporated on the GFE.

Does this new guideline have any bearing on commercial loans and their appraisals?

Yes if the security involves a 1-4 family dwelling.