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#2169846 - 03/23/18 03:16 PM REG B Appraisal Notice
mdog76 Offline
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On a commercial loan secured by a dwelling (overnight rental), is both the REG B notice as well as the "appraisal acknowledgement" required?

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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#2169880 - 03/23/18 04:26 PM Re: REG B Appraisal Notice mdog76
rlcarey Online
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What is an "appraisal acknowledgement" ? The notice, yes.
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#2169899 - 03/23/18 05:33 PM Re: REG B Appraisal Notice mdog76
mdog76 Offline
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Appraisal Delivery Waiver Notice, we call it the Appraisal Acknowledgement.

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#2169901 - 03/23/18 05:35 PM Re: REG B Appraisal Notice mdog76
rlcarey Online
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Not a required form, so how you use it is up to you as long as you comply with the regulatory requirements.
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#2170246 - 03/27/18 01:36 PM Re: REG B Appraisal Notice mdog76
LoanCompliance Offline
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We use the appraisal delivery waiver IF the appraisal is not available at least three business days prior to closing. The notice of right to receive copy of appraisal is required for commercial loans. REG B Appraisal rule applies to consumer and commercial loan transactions as long as your collateral is a 1st lien 1-4 dwelling.

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#2170268 - 03/27/18 02:26 PM Re: REG B Appraisal Notice mdog76
rlcarey Online
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That's fine, as I am well aware of the requirements, but it still does not make this a required form. The waiver can be done orally, although most creditors choose to document it otherwise.
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#2170487 - 03/27/18 09:34 PM Re: REG B Appraisal Notice mdog76
LoanCompliance Offline
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That's fine, too. I wasn't questioning your statement. I merely wanted to state how we handle it. IMO, it is always hard to evidence if you provide a notice orally - even if one developed a different system, such as annotating the loan files or similar.

May main point was that we only provide said waiver IF needed. I heard of banks that include the waiver with every transaction and have the customer sign it regardless - that, IMO is not acceptable because it is the customer's right to waive the delivery time and if a lender provides it with each application, it could be questioned that it was the customer's decision to waive the delivery time.

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#2170506 - 03/28/18 11:08 AM Re: REG B Appraisal Notice mdog76
rlcarey Online
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Just a note. You can have a customer sign a waiver if they choose to do so anytime you want to. However, it does not stall the clock on delivery. You are still required to deliver the completed appraisal promptly - waiver or not. Just because you have a waiver in hand does not impact that delivery requirement.
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#2206467 - 02/19/19 04:36 PM Re: REG B Appraisal Notice mdog76
Nicole Offline
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Just to clarify there are no exceptions on delivering the appraisal by closing correct? This applies to all 1-4 family related transactions.

thank you!

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#2206468 - 02/19/19 04:39 PM Re: REG B Appraisal Notice mdog76
Skittles Online
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Correct - the borrower must have the appraisal in hand by loan origination. No exceptions.
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#2206540 - 02/20/19 01:13 PM Re: REG B Appraisal Notice Nicole
Adam Witmer Offline
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Skittles is correct. This comes from 1002.14(a)(1) as follows:
"An applicant may waive the timing requirement in this paragraph (a)(1) and agree to receive any copy at or before consummation or account opening, except where otherwise prohibited by law."

In addition, comment 6(ii) to 1002.14(a)(1) says the following:
"In addition, under ยง 1002.14(a)(1) the applicant still must receive the copy of the revision at or prior to consummation or account opening."

Originally Posted By Nicole
This applies to all 1-4 family related transactions.

Correct. The rule says it applies to any loan secured by a first lien on a dwelling. A dwelling is defined as "a residential structure that contains one to four units whether or not that structure is attached to real property" and includes business purpose loans.
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#2246896 - 12/23/20 09:37 PM Re: REG B Appraisal Notice mdog76
dutchbltz Offline
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Are there any requirements surrounding documentation of when the customer receives the appraisal? (having the customer sign a receipt form)

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#2246899 - 12/23/20 10:05 PM Re: REG B Appraisal Notice mdog76
rlcarey Online
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No more specific requirements than documenting when they receive a CD three business days prior to closing.
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