The key state in your scenario is the date the appraiser notified you of the increased cost or that the appraisal will be of Property Type B instead of Property Type A and you should be aware that means a changed cost. And "you" means the bank, whether the person notified is in your processing area or the lending officer, etc.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8