Is the customer entitled (required) to receive the Right to Appraisal, if they are a commercial customer when the loan is secured by a 1st or 2nd mortgage (commercial loan).

If the loan secured by a dwelling, then it doesn't matter whether it is consumer or commercial purpose nor does it matter whether the borrower is a natural person or an entity nor whether the lien is 1st or 2nd or 43rd.

Thanks. Do you know where I can find this info? I have someone challenging me on this and would like support.

From the Commentary to Sec. 202.14 Rules on Providing Appraisal Reports

14(a) Providing appraisals.
1. Coverage. This section covers applications for credit to be secured by a lien on a dwelling, as that term is defined in § 202.14(c), whether the credit is for a business purpose (for example, a loan to start a business) or a consumer purpose (for example, a loan to finance a child’s education).

Sec. 202.14

(c) Definitions. For purposes of paragraph (a) of this section, the term dwelling means a residential structure that contains one to four units whether or not that structure is attached to real property. The term includes, but is not limited to, an individual condominium or cooperative unit, and a mobile or other manufactured home. The term appraisal report means the document(s) relied upon by a creditor in evaluating the value of the dwelling.