I want to verify how the "business-day" count works if an appraisal copy is mailed to the borrower.

Per the regulation, the appraisal must be “provided” to the applicant no later than three business days before consummation. So using CFPB’s example - "if a loan will close on Friday, April 4, you must deliver the valuation no later than Tuesday, April 1" it looks like CFPB counts the "provided" day in their 3-business day example. So if the appraisal is “provided” to the borrower on Tuesday, April 4th, the borrower has Tues-Wed-Thurs to review it and close on Friday.

If mailing the appraisal, “provided” means “delivered.” The appraisal is considered “delivered” three business days after being placed in the mail. So to back into CFPB’s example, we would mail the appraisal on Friday, March 28 in order for it to be considered “delivered” on Tuesday, April 1.

Place in mail on Friday, March 28
Considered delivered on Tuesday, April 1 (Sat-Mon-Tues mailing period)
Closing Friday, April 4 (Tues-Wed-Thurs review period; i.e., start counting from the “delivered” day based on CFPB's example)

Does this sound right?

Yup

Awesome!! Thank you!!!

I'm confused by this (not hard to do these days). The rules provide that when mailed, it is considered delivered 3 days before consummation. In the Summer101 example a 3 day review period is mentioned after the mailing period. I'm not seeing where an additional 3 days is required and this came up in a discussion with one of our lenders. They are concerned about having to wait 6 business days to close and now want to do hand delivery of the appraisals. If it's mailed on Monday, 3 business days would be Tues-Weds-Thurs so it was delivered on Thursday. How does the additional 3 days come into this? It must be there in the rules, but I'm not seeing it. Thank you for helping me understand.

It's in there because they have to have 3 days to review before closing...so naturally, if you have to assume 3 days for mail delivery, you then have to account for the 3 days to review.

1002.14(a)(1)

Comment 4. Timing. Section 1002.14(a)(1) requires that the creditor "provide" copies of appraisals and other written valuations to the applicant "promptly upon completion," or no later than three business days before consummation (for closed-end credit) or account opening (for open-end credit), whichever is earlier.

i. For purposes of this timing requirement, "provide" means "deliver." Delivery occurs three business days after mailing or delivering the copies to the last-known address of the applicant, or when evidence indicates actual receipt by the applicant, whichever is earlier. Delivery to or actual receipt by the applicant by electronic means must comply with the E-Sign Act, as provided for in § 1002.14(a)(5).

Both the appraisal delivery business day and the loan closing business day may be included in the 3 business day calculation, right?


Assuming a non-holiday, here is an example:
- The borrower receives the appraisal on Monday.
1. Monday is counted as day one,
2. Tuesday is day two,
3. Wednesday is day three, and the loan may close.
- The borrower receives the appraisal on Friday.
1. Friday is counted as day one,
2. Saturday is day two,
3. Monday is day three, and the loan may close.

No you start on the closing date and count backwards. Close on Thursday - count back three days you get Monday - you need to deliver the appraisal on Monday.

ok thank you.

Do you find that in the actual regulation somewhere because I couldn't find any reference to it myself.

no later than three business days before consummation

I'm not sure much clearer it could be stated???

If you don't want to count backwards, start your first day as zero and go out 3 days beyond that to close.

Do you counts Saturdays if the bank is not open for business? I say no, but need a second opinion.

For example, if I hand deliver a copy Friday, I can close on Wednesday (assuming no holidays), correct?

Correct

Can we count Veteran's Day if we are open?

If it is a business day you can count it I believe

The ECOA Valuations Rule does not provide a definition of “business days” for purposes of the timing of the consumer notice and for providing copies of appraisals and other written valuations.

Is there a website link for a "calculator" [or a calculator available via any other source] such as is available for determining the end of the rescission period and the funding date, as it would apply to appraisal receipt date and earliest closing date? Thank you for your assistance!

Mike, this will cover the end of the rescission and funding date, etc. Doesn't really touch on the appraisal part, if I remember correctly. Hopefully it helps!

https://www.bankersonline.com/tools/148863