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#2225819 - 11/18/19 09:56 PM Appraisal notice when not required
kbaird Offline
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Joined: Dec 2015
Posts: 35
If an appraisal notice is provided on a loan secured by residential property that is not a first lien (so, not required), does that obligate us to provide a copy of the appraisal when it’s available?

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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#2225820 - 11/18/19 10:04 PM Re: Appraisal notice when not required kbaird
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
You told they are entitled - now you are going to tell them they are not?
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#2225825 - 11/18/19 10:31 PM Re: Appraisal notice when not required rlcarey
kbaird Offline
Junior Member
Joined: Dec 2015
Posts: 35
That was my thought as well.

I am anticipating pushback, though, since it is not required and wasn’t sure of the potential ramifications in providing a disclosure that is not required, promising to do something that is also not required.

You answered the question, though... thanks!!

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#2225833 - 11/19/19 12:51 PM Re: Appraisal notice when not required kbaird
Adam Witmer Offline
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Originally Posted by kbaird
I am anticipating pushback, though, since it is not required and wasn’t sure of the potential ramifications in providing a disclosure that is not required, promising to do something that is also not required.

The problem you have is that this is no longer a compliance issue. As you said, it wasn't required, so it isn't a regulatory compliance issue. Since you disclosed it, however, this becomes a potential contract issue and really a question for an attorney. One thing you could do is to give them two options: 1) follow through on what you disclose or 2) take it to their attorney for a legal opinion.
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#2226035 - 11/20/19 09:33 PM Re: Appraisal notice when not required kbaird
John Burnett Offline
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John Burnett
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Cape Cod
Or you could step back and compare the cost of making the copy and providing it with the cost of getting that legal opinion.

You may have already burned up more money in time than the question is worth.
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#2226055 - 11/20/19 10:41 PM Re: Appraisal notice when not required kbaird
Reg Warrior Offline
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Joined: Jan 2017
Posts: 214
If you are doing mortgage loans in CA, subordinate liens need to receive a notice that if they write to the lender they can receive a copy of the appraisal. As to save the headache of having two different processes to follow, we give all mortgage loans the Reg. B notice and provide a copy of the appraisal.

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