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#2177185 - 05/08/18 04:19 PM Safe Harbor
ineedhelp Offline
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What is the safe harbor that is referenced in 1026.35(c)(3)(ii)? Is this the same safe harbor in the ability to repay rules?

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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#2177202 - 05/08/18 04:59 PM Re: Safe Harbor ineedhelp
ineedhelp Offline
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Regulation Z states "to qualify for the safe harbor provided in 1026.35(c)(3)(ii), a creditor must confirm that the written appraisal. . ."
1026.35(c)(3)(ii) does not state what the safe harbor is. What are we safe from?

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#2177208 - 05/08/18 05:10 PM Re: Safe Harbor ineedhelp
rlcarey Online
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Galveston, TX
That you made a non-compliant higher cost mortgage.
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#2177231 - 05/08/18 06:27 PM Re: Safe Harbor ineedhelp
ineedhelp Offline
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Is this the same safe harbor as the one mentioned in the ability to repay rules?

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#2177279 - 05/08/18 09:35 PM Re: Safe Harbor ineedhelp
raitchjay Offline
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No. That's a safe harbor under ATR...this is a safe harbor under the HPML appraisal rules.
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#2177283 - 05/08/18 09:43 PM Re: Safe Harbor ineedhelp
raitchjay Offline
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I don't really know why they use the term "safe harbor" in 1026.35(c)(3(ii)--to me, the bottom line of what it's saying is: Do things this way to comply with the HPML appraisal rules. Period.
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#2180079 - 05/29/18 08:40 PM Re: Safe Harbor raitchjay
RVFlyboy Offline
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Soaring over Georgia
Originally Posted By raitchjay
I don't really know why they use the term "safe harbor" in 1026.35(c)(3(ii)--to me, the bottom line of what it's saying is: Do things this way to comply with the HPML appraisal rules. Period.
Here's a scenario: You do everything just like it says in 1026.35(c)(3)(ii)(A) - (D). However, it turns out that the appraiser you had perform the appraisal had lost his license. Or it turns out that in this particular instance, because he had recently been in the house, he cut a corner and did not go in the house for this inspection. Without the safe harbor language, you'd technically be in violation of the regulatory requirement to have an appraisal conducted by a certified or licensed appraiser who conducts a physical visit of the interior of the property that will secure the transaction. But the safe harbor language gives you protection from that technical violation because you did those things.
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#2181034 - 06/07/18 05:25 PM Re: Safe Harbor ineedhelp
raitchjay Offline
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Hadn't thought of it that way....good point. Thanks. (I just saw this....i tend to zoom right past this forum in my perusing.)
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