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#1883114 - 01/03/14 08:55 PM Adverse Action - HPML vs ECOA
Bec Offline
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So I am making this flowchart for disclosures and timing things on the two regs and where they overlap. I am at the part of adverse action. For ECOA if a waiver is signed then the copy of appraisal or other written valuation must be provided to the consumer no more than 30 days of determination. If a waiver is not signed, then the copies must be given promptly upon completion. In the small compliance guide for the HPML TILA Appraisal rules the instructions are:
If you determine that you are not going to close a loan, you still have to give the applicant appraisal copies within 30 days after you determine the transaction is not going to close. In addition, if the transaction is subject to the ECOA Valuations Rule, an earlier deadline of providing the copies “promptly upon completion” applies (unless the applicant has waived that deadline under the ECOA Valuations Rule).

I am getting confused because I thought that you could not waive if the loan was an HPML so wouldn't the default deadline to supply copies of the appraisal be promptly upon complietion if it is a first lien HPML?
Last edited by Bec; 01/03/14 08:58 PM.
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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#1883331 - 01/06/14 04:32 PM Re: Adverse Action - HPML vs ECOA Bec
Bec Offline
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bump
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#1883393 - 01/06/14 06:32 PM Re: Adverse Action - HPML vs ECOA Bec
John Burnett Offline
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If it is a first lien loan subject to Reg B 1002.14, your deadline on a declined application is promptly after completion unless you have a waiver under 1002.14. That would apply whether or not the loan is an HPML. If it's an HPML that is not subject to the Reg B appraisal copy requirement, the deadline on a loan that's not consummated is 30 days after it is determined it won't be consummated.
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#1883412 - 01/06/14 06:50 PM Re: Adverse Action - HPML vs ECOA Bec
Bec Offline
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But if it is an HPML the customer may not waiver at all right?
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#1883424 - 01/06/14 07:01 PM Re: Adverse Action - HPML vs ECOA Bec
rlcarey Offline
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What I think John is saying is that if the loan is denied, how can it be an HPML.
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#1883430 - 01/06/14 07:07 PM Re: Adverse Action - HPML vs ECOA Bec
Bec Offline
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Oh yes, that makes sense. Sorry John, I can be so dense sometimes. I blame the cold temperatures this time.

THanks for the clarification Rlcarey
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