Reg B- Right to Receive Copy of Appraisal

Are we required to give a "Right to Receive a Copy of an Appraisal" when an appraisal that we have on file is used to make the new loan? The new loan paid off the existing liens (held by us) and gave a small amount of cash back to the customer. The only information I could find was in the Official staff commentary to section 202.14 and stated "This section does not apply when a creditor uses the appraisal report previously obtained to evaluate the renewal request." However, I don't think our new loan is technically only a renewal since we extended more money. Thanks for your help!!

A refinancing is not a renewal. Therefore IMO you should have provided the notice.

I agree.

Thanks for the input...that's what I was thinking, but I just wanted to make sure.

Thanks again!!

If you have a place on your loan application that discloses their right to a copy of the appraisal, do you have to have some sort of separate document?

Our application has the language on it, but our internal auditor said we didn't properly disclose. Normally there is a stand-alone document in our closing package, but it was omitted in this case.

I think our application sufficiently covers it. Am I right?

No. It must me given in a form the consumer can keep and giving it at closing is too late.

202.4:

(d) Form of disclosures—

(1) General rule. A creditor that provides in writing any disclosures or information required by this regulation must provide the disclosures in a clear and conspicuous manner and, except for the disclosures required by §§202.5 and 202.13, in a form the applicant may retain.

202.14;

. . . The notice may be given at any time during the application process but no later than when the creditor provides notice of action taken under §202.9 of this regulation. . . .

Okay...I can see where we should have provided the notice along with the early disclosure package (the scenario I mentioned earlier is a HELOAN).

But, I am looking at our HELOC disclosure and it doesn't say anything anywhere about their right to receive a copy of the appraisal. They've just been getting it at closing.

So...it looks like we need to add that to our HELOC early disclosure!

Do you routinely provide the applicant a copy of the appraisal? If so, you do not have to provide the notice, otherwise you do.

One of our lenders does. I am not sure about everyone else. More than likely, no.

It would probably be best to include it in our HELOC early disclosure.

Dan...let me see if I am understanding what this is saying...

our right to rec copy of appraisal is on our application as well, which they fill out initially (first thing that is done)and then sign for a final time at closing. So are you saying that this is not sufficient? That we should also be giving the additional right to rec appraisal form?

THANKS!
KT

See the citation I gave from Reg. B 202.4 These disclosures must me given in a form the applicant can retain. How often does the applicant retain a copy of the application? They complete and return it to you.