The loan is a refinance secured by a bed and breakfast. The owner of the bed and breakfast is a Corporation. The guarantors (owners of the Corp.) live in the bed and breakfast as their primary residence.

Would a B&B still be considered a dwelling? I could argue that it still would be since it is a residential structure and it is the someone's residence; yet I question it because it operates more like a hotel.


Dwelling for purposes of the appraisal disclosure and providing the appraisal is as follows:
1002.14(b)(2) - Dwelling. The term "dwelling" means a residential structure that contains one to four units whether or not that structure is attached to real property. The term includes, but is not limited to, an individual condominium or cooperative unit, and a mobile or other manufactured home. Official Interpretation states “"Motor vehicles" not covered. The requirements of § 1002.14 do not apply to "motor vehicles" as defined by 12 U.S.C. 5519(f)(1).”

The rules for providing a copy of the appraisal and disclosure is as follows:
1002.14(a)(1) - Providing appraisals and other valuations. (1) In general. A creditor shall provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling. 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…

1002.14(a)(2) - Disclosure. For applications subject to paragraph (a)(1) of this section, a creditor shall mail or deliver to an applicant, not later than the third business day after the creditor receives an application for credit that is to be secured by a first lien on a dwelling, a notice in writing of the applicant's right to receive a copy of all written appraisals developed in connection with the application.

You are not going to find a magic bullet. Would it not just be easier to comply?

Easier to just send them a copy of the appraisal when it is accepted by the bank.

what they said. when it doubt, mail it out

and disclose up front