Does the appraisal notice need to be given for subordinate mortgages? Or is it just first lien mortgages? The reg just states that it need be given for "any credit secured by a dwelling". No mention of lien position.

The right to obtain a copy of whatever the bank used to value the property in its underwriting process is not impacted by lien status.

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The reg just states that it need be given for "any credit secured by a dwelling".

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The key word is any. If the loan will be secured by a 1-4 family dwelling the notice is required unless you routinely give a copy of the appraisal.

No mention of lien position means just what it suggests: any credit secured by a dwelling, whether it's a commercial loan or residential mortgage, HELOC or home improvement loan, first mortgage-secured or a junior lien.

So, this still would apply even if we aren't ordering a new appraisal, just relying on an existing appraisal? For example, a new appraisal is ordered for a refinance of home. The customer gets the notice at that time. A month later, customer comes in for another loan to be secured by a 2nd mortgage on same property. No new appraisal is ordered. We would then give them another appraisal notice? Just want to make sure I understand correctly.

Don, Dan and John certainly jumped on the first post but must be cleaning off their desks about now.

If this is a renewal, no new notice is required.

OSC 202.14, 2. Renewals. This section applies when an applicant requests the renewal of an existing extension of credit and the creditor obtains a new appraisal report. This section does not apply when a creditor uses the appraisal report previously obtained to evaluate the renewal request.

So if they already have a copy, a new copy serves no purpose.

Actually I had my desk cleaned off at 5:01 yesterday.

The first question which Don, John and I responded to referenced if subordinate lien loans secured by 1-4 family dwelling are subject to the appraisal rules. The answer is definitely yes.

The second question, which Andy responded to, took a twist from the original question.

If you are using an existing appraisal then the notice is not required again either for a first or subordinate lien loan.