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#2153228 - 11/13/17 11:23 AM Appraisal Waiver-TRID
ns Offline
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Registered: 08/02/16
Posts: 82
Is it an option to waive the Appraisal Waiver on a TRID loan since Appraisal Disclosure is now included in the LE and there is no reference on the LE in regard to waiving the receipt 3 days prior to closing or that a closing could be delayed?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2153233 - 11/13/17 11:41 AM Re: Appraisal Waiver-TRID [Re: ns]
RR Joker Offline
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Registered: 11/15/02
Posts: 19112
Loc: The Swamp
I think you are mixing requirements. You have a requirement for the acknowledgment and you have a requirement to deliver timely or obtain a waiver and deliver by or before closing.

There is no option to waive a waiver and no required disclosure that a waiver is even a possibility. Waivers are allowed by regulation, but not all FI's allow waivers.
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#2153237 - 11/13/17 11:49 AM Re: Appraisal Waiver-TRID [Re: ns]
Adam Witmer Offline
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Registered: 09/21/10
Posts: 312
I agree with Joker that there is no requirement to provide a waiver or even disclose that you offer one. Are you wanting to waive the waiver because you get it on every loan and don't want to?
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advise.

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#2153276 - 11/13/17 01:36 PM Re: Appraisal Waiver-TRID [Re: ns]
ns Offline
Member

Registered: 08/02/16
Posts: 82
I apologize, I was not clear in my original question. We don't want to waive the waiver. We weren't sure if the Appraisal Waiver was an option for a TRID loan since that disclosure is included in the Loan Estimate.

We have a construction loan set to close today. The final inspection changed the value of the property and it came in much higher because the borrower added square footage without alerting the bank. The appraiser called today to let the LO know of the discrepancy. We already missed the timing for the delivery of a new appraisal 3 days prior to closing and also missed the timing to get an appraisal waiver from the borrower so we're going to push closing back. The LO thought she remembered reading that Appraisal Waivers are not an option with TRID loans anyway because since it's not it's own disclosure, it's just a statement on the LE.

We were wanting to clarify, going forward, if we ever find ourselves in this situation again, can we even get the appraisal waiver 3 days prior to closing for a TRID loan? I hope this makes sense. Thanks!

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#2153280 - 11/13/17 01:43 PM Re: Appraisal Waiver-TRID [Re: ns]
RR Joker Offline
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Registered: 11/15/02
Posts: 19112
Loc: The Swamp
You can use waiver's on TRID loans. All they did was save a piece of paper by putting the required notice on the form.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2153290 - 11/13/17 02:11 PM Re: Appraisal Waiver-TRID [Re: ns]
ns Offline
Member

Registered: 08/02/16
Posts: 82
Ok, great. That's what we were unclear on. I appreciate the guidance!

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#2153297 - 11/13/17 02:31 PM Re: Appraisal Waiver-TRID [Re: ns]
Adam Witmer Offline
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Registered: 09/21/10
Posts: 312
Originally Posted By ns
We weren't sure if the Appraisal Waiver was an option for a TRID loan since that disclosure is included in the Loan Estimate.


Just to be clear, the appraisal waiver is not built into the LE, the appraisal notice under Reg B is.

Originally Posted By ns
We were wanting to clarify, going forward, if we ever find ourselves in this situation again, can we even get the appraisal waiver 3 days prior to closing for a TRID loan?

Yes, you can get an appraisal waiver three days prior to closing. In fact, you must get the waiver three days prior, or you must push back closing.

Sarcasm Alert: Or, i guess you could close without either the waiver or delivering the appraisal, as my mortgage company did when I bought my house last year... Though they did end up refunding me the entire cost of my appraisal... ;-)
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advise.

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