We have an appraiser in our holding company who prepares commercial appraisals, but typically limits consumer work to engagements and reviews. However, we've run into a few consumer situations where a third-party appraiser falls through and our staff appraiser agrees to perform the appraisal directly. These are rare and unexpected, and happen after we've provided early disclosures (LE, etc.). We know RESPA's Affiliated Business Arrangement ("AfBA") Disclosure Statement is required, but we're questioning the timing. §1024.15(b)(1) states: "The disclosures must be provided on a separate piece of paper no later than the time of each referral or, if the lender requires use of a particular provider, the time of loan application..."

Is the AfBA required:
A) Within 3 days of application, even if we don't expect to "require" use of our staff appraiser?
B) Later, when we become aware that our appraiser will actually be used?

These are rare occurrences, so we would like to avoid providing the disclosure to all applicants if reasonably possible. Any clarity would be appreciated.

As soon as you choose your staff appraiser you should provide the AfBA.

Thank you! We were hoping that would work, since it still seems within the intent of the regulation. We just questioned the technicalities.