Can you tell me how many of you are using the appraisal waiver form?

Have not yet.

We have an appraisal waiver form available for our commercial borrowers.

Do you just use it for your commercial borrowers Carolina Blue?

Our mortgage forms vendor has a waiver printed on the bottom of the appraisal disclosure form, so each borrower gets the opportunity to waive the 3-day prior requirement when they receive the disclosure. I think only a couple of borrowers have actually elected to waive.

Sorry, didn't see the question until now. Yes, we are only letting our commercial borrowers (typically builders) know about the waiver, but I suppose under certain circumstances we would allow a waiver on to a consumer when permitted (non-HPML or HPML QM).

You might want to read this thread before continuing to use the form from your vendor. I'm betting the vendor has another appraisal disclosure form WITHOUT the waiver language on it too.

This thread contains similar discussion Link to Thread on this topic. When there are not clear guidelines, I would rather go to my regulator for guidance.

I didn't say borrowers routinely SIGN the waiver, but they are given the right to waive at time of application, which is the right afforded them in Reg B. I suppose it's just a way of disclosing that they have the right. Does the regulation require that you wait until they ask for the right to waive??? As I said, we've only had a couple of borrowers actually opt to exercise their right to waive because of extenuating circumstances and a tight closing date.

Disclaimer: I did not read the additional links...BUT, I will say I'm not in favor of these combined vendor forms. To me, it's just asking for UDAAP issues to surface.

When are these vendors going to learn? Haven't the problems caused by the extra signature lines on rescission notice forms been enough for them to see this is another bad idea?

I guess I'm the lone voice of dissent on this, but my opinion was shaped by a conversation with our FDIC EIC. 1002.14(a)1 states that "An applicant may waive the timing requirement in this paragraph (a)(1) and agree to receive any copy at or before consummation or account opening..." How does merely informing them of this right to waive the timing requirement - at time of application - leap to UPAAP status? I could maybe see if the bank required the waiver to be signed by every applicant that it could have fairness implications (and if a creditor is doing that, I agree that sounds wrong). But simply informing the applicant of the right fully allowed under regulation does not convince me this is a UDAAP issue. Our EIC specifically said as long as the waiver requirements are followed as per 1002.14, no violation of Reg B can be cited. As I have said before, maybe once we get some anecdotal evidence that examiners consider merely disclosing the right to waive to the applicants is a UDAAP issue I will change my opinion on this. All I've heard so far is speculation without evidence.

I think your examiner has a good head on his/her shoulders. The one problem that I can see is that, if you include that information in your Reg B 1002.14 notice, you could mislead a consumer and cause confusion if you used that same notice to comply with the "right to receive appraisal" notice requirement under the HPML appraisal requirements, as permitted by 1026.35(c)(5).

I can see a vendor suggesting that the notice include the information about waivers, preceded by a checkbox, and "if this box is checked, you may waive ..."

It could be confusing and the borrower may feel pressure to automatically waive their rights. When waivers become the rule, you will have problems. These may come from the examiners or the financially troubled borrower 2 years from now.

The only possibility I'd like is a Miranda like disclosure, "you have a right to... and if you want to waive this right..." But I still come back to any encouragement to give up rights, defeats the purpose of having those rights in the first place. That defeats the intent of the law/reg.

We have a builder who builds residential homes and then sells them. Does the builder need to receive the appraisal notice at loan consumation when he has not built a home yet? He builds lots of homes on an annual basis. Any help would be appreciated!