Our lending department wants to include waiver language on the right to receive a copy of the appraisal form automatically.

So, they get the right to receive, then below that, they're signing waiving their right to receive it prior, and agreeing to get their copy at closing.

We aren't e-sign compliant, and they don't want to deal with mailing appraisals or making people come in. Can we insist they waive the requirement, or is this fine as long as it's optional? Obviously, if it falls under the HPML definition, they can't waive it, so that would need to be addressed, but for other loans, would this be acceptable? I'm not sure how I feel about it.

2 thoughts:

1) If you follow that plan, what will you do for loans that don't close? You still have to provide the appraisal.

2) Sounds dangerously like UDAAP to require (or even strongly encourage) a borrower to waive legal rights that they've been granted under ECOA.

At Triage, other institutions mentioned the possibility of doing this, and the gurus strongly advised against it.

From the final rule:

The Bureau believes that, in general, requests for waivers should not be presented to consumers less than three business days before consummation or account opening. Permitting such requests would, in the Bureau's view, present a risk that consumers would feel unduly pressured to provide waivers in order to avoid delays in closing and that creditors could use such waivers to cure previous violations of the rule's timing requirements. The Bureau is adopting in § 1002.14(a)(1) an exception to this general rule, however, governing treatment of waivers pertaining to copies of appraisals or other written valuations containing correction of clerical errors in previously-provided copies.

(source: https://www.federalregister.gov/articles...under-the#p-146)

1 is being addressed, that would be part of the language to say if it didn't close, they would receive a copy within 30 days of the final loan decision.

2 is a good point. Having it on the same form was a little concerning to me. They were still intending on sending electronic copies out, but since we don't have a solid e-sign compliant method, I told them that wasn't enough to count. They could still send it, but they would have to give a paper copy at closing (assuming a waiver).

I suppose I'll have to advise against it, and they can stock up on envelopes to mail stuff out!

What about having a two-pager? Have the dislcosure on the first page and then a second page (not on the back of the first page) with the waiver? If they want to sign it right there and then, great! If not, they have it to take home if they change their mind.

Thoughts?

ETA: The bureau prolly wouldn't like that either though based on the post above.

Well, we don't care what the bureau says, and a form is already developed (which says crazy things that are all wrong).

I have advised against it already, but made corrections and stated that if they insist on doing it anyway, they would be better off saying it in a different way, and abiding by the requirements in the proper section.

Originally, I said "Why don't you just get e-SIGN figured out and do it right?"