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#2254176 - 05/20/21 05:59 PM 1st lien on dwelling valuation rule
scb2011 Offline
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Joined: Mar 2011
Posts: 242
TN
Would the 1st lien on a dwelling rule to provide a copy of the appraisal or evaluation apply to the following scenario? The loan is a business loan to purchase a lot with an old dwelling on the lot that is currently rented out. The lender has requested to obtain a value on the land only with no consideration as to the value of the dwelling. The borrower eventually plans to tear down the home and build a new home, but this loan is only to purchase the property and not loan funds to build. The bank will have a 1st lien on a dwelling, and the valuation will be on the land, but not of the dwelling. Is the bank required to provide a copy of the valuation?

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Fair Lending
#2254178 - 05/20/21 06:23 PM Re: 1st lien on dwelling valuation rule scb2011
raitchjay Offline
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Joined: Oct 2009
Posts: 8,593
OK
Requesting a value with no consideration as to the value of the dwelling in and of itself has no bearing as to whether your loan is SECURED by a dwelling. Unless you're carving the dwelling out of your security interest, you'd be secured by it. I'd just give the Appraisal Notice and supply the borrowers a copy of the appraisal and call it good.
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#2254195 - 05/21/21 01:10 PM Re: 1st lien on dwelling valuation rule scb2011
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,548
Galveston, TX
And don't forget the flood regulations.
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