Non-payment for appraisal costs

An appraisal was ordered on a single-family residence that was going to secure a business purpose loan. Customer withdrew the loan application and did not pay for appraisal. Customer now wants copy of appraisal even though he didn’t pay for it. Section 202-5a.2.i says that you can withhold the appraisal until the later of three things, one being “or receives reimbursement from the applicant for the report.” Does this mean that until the customer pays for the cost of the appraisal that I can refuse to provide him a copy?

Loan officer tells me that that cost of the appraisal was going to be included in the loan fee that was to be collected at the time the loan was booked.

Gotta pay to play. There is no free lunch.

This also applies to 'no closing costs' loans. If the loan is not closed you only need to notify the applicant of their right to receive a copy after they pay for it.