Posted by Bear900/CA on 11/13/13 12:27am
Msg #492474

New rule on supplying appraisals

As of Jan 18, 2014, lenders no longer have the option to provide an appraisal routinely or upon request. They must now provide the appraisal “promptly upon completion”. Nice!

Unless...

“For applicants who waive the right to receive the required copies at least three business days before consummation or account opening, you must provide the copies either at, or prior to, consummation or account opening.”

“If you obtain a waiver from the applicant, you can wait until closing to provide the valuations all at once.”

http://www.consumerfinance.gov/regulations/disclosure-and-delivery-requirements-for-copies-of-appraisals-and-other-written-valuations-under-the-equal-credit-opportunity-act-regulation-b/

http://files.consumerfinance.gov/f/201305_compliance-guide_ecoa-appraisals-rule.pdf

Under what circumstances might a lender ask the customer to sign a waiver and receive the appraisal at closing?

In case there might be errors needing correction (this is not unusual), or in case a 2nd appraisal or valuation may be needed and to aid in supplying them all at once; or so hopefully the customer won’t take the appraisal and shop the loan. Often times customers don’t really care when they receive it so may easily sign a waiver to receive the appraisal at closing. It will be interesting to see how many waivers get signed.

The lender is also not allowed to charge for providing a copy (sometimes multiple if more than one appraisal), yet copies of all appraisals must be provided. That means a “specific” extra appraisal printing charge may not be added by the NSA and shown anywhere on an invoice. But you will need to hike your overall price to cover costs, if you want.

Conclusion: after Jan 18, ASK if an appraisal, one or more, is in the package and quote your fee accordingly, but don’t list it on your invoice as it's not an allowable charge.

Reply by jba/fl on 11/13/13 12:30am
Msg #492475

I will be sure to just ask verbally just as I would only be asked verbally to backdate, or whatever asinine request that is not totally kosher.

Let the games begin - another one.

Reply by Bear900/CA on 11/13/13 12:48am
Msg #492477

I'll do my part and continue to give them to the customer when I know they are error free. I feel many lenders will also forward them much like they do the original lender generated TIL.

Still, don't get caught lowballing and get stuck with printing maybe two full appraisals.

This was a big rule change in my NMLS recertification studies tonight.

Reply by Shoshana/AZ on 11/13/13 12:57am
Msg #492478

Revisiting the appraisals on my RM refi

When I had the first appraisal there were several errors. The Head Underwriter refused to ask the appraiser to make changes (several higher sales within the time limit were left out while some lower ones were included). Basically, they said it was their way or the highway. So we took the highway and changed to a broker. We had a fabulous LO. The appraiser, was well acquainted with my neighborhood. He pulled great comps and the house was appraised for $25,000 more than the original appraisal. The loan has closed and we should be getting the $$ tomorrow. If anyone in Phoenix Metro needs a great LO for a reverse mortgage, I know who to refer them to.

Reply by Marazz/AZ on 11/13/13 7:14am
Msg #492482

Good info Bear900, thanks.

Just an FYI, heading off the inevitable, "Why aren't the appraisers responsible for providing a copy to the homeowner" they are actually PROHIBITED from doing so. The homeowner is not their client and it is considered a breach of the lender's confidentiality. The lender is responsible for providing a copy of the appraisal, plain and simple.

If you choose to agree to provide this, as part of your service for the lender, you absolutely should be compensated for your time and printing costs.

Virtually all residential appraisals (at least the Fannie/Freddie/FHA type) are PDFs and routinely emailed so unless a homeowner specifically requests a hard copy there is no reason to print it. Any lender who is regularly requesting appraisals be printed as part of the closing docs is either lazy or clueless and you should find better clients.

Reply by SharonMN on 11/13/13 11:40am
Msg #492521

Bear, I'd disagree with this part:

The lender is also not allowed to charge for providing a copy (sometimes multiple if more than one appraisal), yet copies of all appraisals must be provided. **That means a “specific” extra appraisal printing charge may not be added by the NSA and shown anywhere on an invoice.** But you will need to hike your overall price to cover costs, if you want.

While the lender cannot charge the borrower to provide a copy of the appraisal, the notary (as a service provider) can certainly charge the title company or signing service for printing, as can any outside copy service the title company (or lender) might choose to use. Our fees don't affect what the borrower is charged unless we are on the HUD.