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October 29
Documenting an Applicant's Intent to be a Joint Applicant;
David Dickinson

November 4
Issues with Deceased Customers;
Mary Beth Guard and John Burnett

November 5
Vault Burglaries, Floods, Fires & Other Disasters;
Dave McGuinn

November 6
MLO v LO - Who Has to Do What?;
Jack Holzknecht and Mary Beth Guard

November 13
Domestic Violence & Workplace Violence: There Is A Link;
Shelly Collins and Dana Turner

November 18
Understanding USPAP and Regulatory Guidelines for Appraisal and Evaluation Compliance Reviews;
Eric Collinsworth



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#1857407 - 10/01/13 02:56 PM What happens with subordinate liens after 1/18?
BNach Offline
Junior Member

Registered: 07/15/11
Posts: 39
Loc: Central PA
Here is another Reg B appraisal question that has me stumped. Currently, Reg B applies to all loans secured by a dwelling. As you know, we have to give the Right to Receive notice to all loans secured by a dwelling. The new rule only covers 1st liens on a dwelling. So, after January 18th we will have to provide notice and appraisals to all applicants who apply for a loan secured by a 1st lien on a dwelling. So, what happens to the subordinate liens after January 18th? We have no Reg B appraisal requirements for subordinate liens? I would tend to believe that that is the correct answer since the regulation is silent on it but it seems like they would mention it since we currently have a responsibility to give them a notice.

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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#1857441 - 10/01/13 03:43 PM Re: What happens with subordinate liens after 1/18? [Re: BNach]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 16405
Loc: The Swamp
The changed language doesn't include any requirements for subordinates, so my take is...it disappears when the new rule takes over.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#1857834 - 10/02/13 04:00 PM Re: What happens with subordinate liens after 1/18? [Re: BNach]
John Burnett Offline
10K Club

Registered: 10/27/00
Posts: 30736
Loc: Cape Cod
1) You still have to conform to the Interagency Appraisal Guidelines.

2) There will not be a Regulation B requirement after 1/18/14 for notices or appraisal copies for junior-lien secured loans.

3) However, there remains the matter of the HPML appraisal requirement under Reg Z 1026.35(c). If the loan in question is closed-end and secured by the consumer's principal dwelling, and otherwise fits the definition of an HPML at 1026.35(a)(1) for a junior lien-secured loan, the appraisal requirements of section .35(c) will apply.
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John S Burnett
BankersOnline.com

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#1883698 - 01/07/14 10:17 AM Re: What happens with subordinate liens after 1/18? [Re: John Burnett]
DCollins Offline
Platinum Poster

Registered: 10/26/01
Posts: 704
If we decide to give our customers their appraisal even if the loan is a junior lien, are we in violation to the new requirements?

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#1883702 - 01/07/14 10:21 AM Re: What happens with subordinate liens after 1/18? [Re: BNach]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 16405
Loc: The Swamp
No.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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