We have a situation that occurs frequently with our commercial lenders. We grant credit secured by property that will be used for future development. The property currently includes several duplexes, which will eventually be torn down. But the duplexes are currently occupied with tenants.

So, our loan is currently secured by a lien on a 1 to 4 family dwelling because these improvements were not excluded in our DOT. However, our appraisal does not include the value of the current dwellings (or any future dwellings). The appraised value is based solely on the real estate with no improvements.

So, our appraisal does not meet the definition of a "valuation" under 1026.14 and should therefore be exempt from the appraisal delivery requirements of ECOA. Correct???