Notice of Right to Receive a Copy of an Appraisal

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Question:

I have questions that bother me when I dealing with a commercial real estate transaction where a residential property is taken as collateral. When does the Notice of Right to Receive a copy of an Appraisal apply? I have seen many different concepts in the internet regarding to dwelling: - A 1-4 residential property which is the borrower or guarantor's principal residence; - Any 1-4 residential property which is the borrower's principal residence, and it is going to be refinanced; or - Any 1-4 residential property taken as collateral in the commercial real estate transaction. I would like somebody clarify which is in compliance. I am in Florida if that matters.

Answer:

1002.14(a) requieres the notification (Form C-9) to be delivered within 3 business days. It applies to ALL loans secured by a 1st lien on any dwelling.(1-4 family). Refer to the definition of "dwelling" in §1002.14(b)(2). It is not limited to principal dwellings, so it is "Any 1-4 residential property taken as collateral in the commercial real estate transaction", as you stated.