Bank ordered and obtained an appraisal on a property and then later the application was approved but not accepted by the borrower. Under the Reg. B rules we are still required to provide the borrower with a copy of the appraisal, correct? And can we attempt to collect payment for the appraisal from the applicant? I know we can't charge for a copy of the appraisal, but can't we try to collect payment from the applicant for the actual appraisal that was completed? And a copy of the appraisal must be provided regardless of whether or not the applicant paid for the appraisal or not, correct? Thanks.

1) You have to send them a copy promptly after completion whether they pay or not.

2) You are correct that you can't charge them for the copy.

3) But you can try and collect for the cost of the appraisal. Nothing prohibits this.

Episodes like this have convinced many lenders to collect the appraisal fee in advance, in connection with the applicant's notice of intent to proceed.