I have a new manager that would like to see a "Waiver of Receipt of Appraisal" form included in all initial disclosure pkgs to go out at application just in case the appraisal doesn't come back in a timely manner. He wants it signed up front in case they need it. I'm opposed to this but can't find where I read that you can't automatically send an Appraisal Waiver form to every applicant.

I looked in Reg B §1002.14 to no avail.

You will find no such statement or citation.

There are several banks that do this. Nothing in the rules prohibit this practice.

If you sell your loans, you will want to review any investor rules regarding such waivers.

Got it, thanks

It is acceptable to include a waiver on all files in the event that due to an action outside of bank control the appraisal cannot be delivered in a timely manner, the bank is protected. However, the risk increases if you are actually utilizing the waiver (delivering the appraisal outside of the regulatory requirements) on a high percentage of files.

It is not addressed - it is just another form you have to track. Unless your final appraisal actually doesn't come in until within three business days of closing, it is a waste of time. How many issues has your bank actually had with appraisals delaying closing? You are still required to deliver promptly upon receipt. I have seen banks that have done this and it just makes the lenders lazy. I found them sitting on appraisals for weeks and not sending them. When asked about it, they said don't worry, I have a waiver anyway.

A creditor shall provide a copy of each such appraisal or other written valuation promptly upon completion, or three business days prior to consummation of the transaction (for closed-end credit) or account opening (for open-end credit), whichever is earlier.

Nothing in the rules prohibit this practice.

YET!