Appraisal copy updated rules are covered by REG B and REG Z, but I don't see any reference to existing loans where appraisals are ordered for some reason.

Scenario: loan made couple of years ago. The note says appraisals during the term of the loan may be required by the lender and must be paid for by the borrower.

The Loan was down graded, and appraisal was ordered by the bank over a month ago and received in order to see new value for collection purposes. Customer was not asked to pay for the appraisal before it was ordered. Now customer wants a copy of the appraisal. Can we withhold the copy until he pays for the appraisal? Alternatively, if he refuses to pay, can we refuse the copy?

You should follow the current rules in Reg B...this is discussed in 1002.14.

I'm guessing this must be a commercial loan? I've never seen such language in a consumer loan.

Yes, this is a commercial loan. REG B indicates appraisal rules for applications. This is an existing loan and lanuguage to me is not clear enough that this applies to an existing loan where no credit request has been made by a borrower, consumer or commercial. The sole purpose is for the bank to determine the current value of a prop sec the loan as the borrower is periodically deliquent or could become worse.

True...I would not give a copy unless it was paid for, as per the contract requirements.

Thanks for your input