Right to Receive a Copy of an Appraisal on Note

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Question:

I read online a Right to Receive a Copy of an Appraisal notice is not required on a renewal note when pulling forward an existing appraisal/evaluation. Is this correct?

Answer:

Refer to the staff commentary for Reg B:

Regulation B - Supplement I
(Official Staff Interpretations)

Sec. 1002.14 Rules on Providing Appraisal Reports

14(a) Providing appraisals.
1. Coverage. This section covers applications for credit to be secured by a lien on a dwelling, as that term is defined in Section 1002.14(c), whether the credit is for a business purpose (for example, a loan to start a business) or a consumer purpose (for example, a loan to finance a child's education).

2. Renewals. This section applies when an applicant requests the renewal of an existing extension of credit and the creditor obtains a new appraisal report. This section does not apply when a creditor uses the appraisal report previously obtained to evaluate the renewal request.

First published on BankersOnline.com 3/12/12