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#2080466 - 05/25/16 09:23 PM Appraisal update post-consummation
Darth HMDA, CRCM, CAMS Offline
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Darth HMDA, CRCM, CAMS
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So it's days like this I really question why I work in Compliance smile

We have a loan that was consummated a few days ago. Three days later the escrow company calls us and notifies us that the borrower/seller have added a small adjacent parcel to the transaction. This was never brought to our attention before docs went out.

The department ordered an updated appraisal, updating the legal description. Now, we're already in violation because were not sending out the corrected appraisal prior to consummation. I was asked to research what to do today and the department funded the loan while I was researching.

it's clearly a violation, and the department will be sending a copy of the corrected appraisal. Other than crying under my desk and notifying appropriate personnel of the error, is there anything else that can be done. A waiver can be used within three days PRIOR to consummation to correct a clerical error... never heard of one post-consummation.


Sigh. Thanks everyone. Any help would be greatly appreciated.
Last edited by Darth HMDA; 05/25/16 09:44 PM.
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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#2080474 - 05/25/16 10:15 PM Re: Appraisal update post-consummation Darth HMDA, CRCM, CAMS
rlcarey Offline
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rlcarey
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Galveston, TX
Three days later the escrow company calls us and notifies us that the borrower/seller have added a small adjacent parcel to the transaction.

How does your deed of trust encompass this additional parcel if you had already prepared your documents?? You sure you even have it as collateral???
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#2080573 - 05/26/16 02:21 PM Re: Appraisal update post-consummation Darth HMDA, CRCM, CAMS
John Burnett Offline
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John Burnett
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Cape Cod
And how would the escrow company explain its apparently unilateral decision (since when does it make lending decisions for the bank?) if that "small adjacent parcel" ended up being an EPA brown site or some other form of "white elephant"?
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#2080574 - 05/26/16 02:26 PM Re: Appraisal update post-consummation Darth HMDA, CRCM, CAMS
John Burnett Offline
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But to address your question -- I think you have an argument there's no violation, because this appraisal was not developed for the application for credit. But even if it is a violation, it was unavoidable given the circumstances, and the consumer was not harmed by the "late" delivery of the copy.

I'm really more concerned with the fact the escrow company let this happen.
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#2080605 - 05/26/16 03:21 PM Re: Appraisal update post-consummation Darth HMDA, CRCM, CAMS
Darth HMDA, CRCM, CAMS Offline
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Darth HMDA, CRCM, CAMS
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They're apparently correcting the D/T and legal description.

Nightmare all around. Thankfully this is the first (and hopefully last) time this occurs.

And yes... I am very concerned...

Thank you gentlemen!
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#2081004 - 05/27/16 07:45 PM Re: Appraisal update post-consummation Darth HMDA, CRCM, CAMS
John Burnett Offline
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Cape Cod
Did you see THAT, Randy? Apparently, we are gentlemen! I never thought it would come to that! laugh

Thank you, Darth. That's a bizarre situation. I hope things get all sorted out for you.
Last edited by John Burnett; 05/27/16 07:47 PM.
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