[MarieR]

I have a question about the Reg B appraisal notice. I know that we need to give it within 3 days of the application, but what if the application is denied or withdrawn within those 3 days? RESPA and TIL specify that if we deny within 3 days, generally speaking, we do not have to give the early disclosures. I did not see that same excemption within the Reg B rule about the appraisal notice. I know logically since we won’t be getting an appraisal if we deny or the applicant withdraws the applicantion within 3 days that we shouldn’t have to give a notice that says they may get a copy. But I also know that logic has no place in compliance at this point so I just wanted others opinions.

[JGo9]

Currently the appraisal notice just needs to be given before or at closing; so I’m guessing you are talking about the changes that are coming. Lets see what Jack has to say about this in an upcoming session.

[MarieR]

Yes, I was referring to the new requirements. Since we have already covered this and I didn’t hear this addressed, does this notice need to be given if we deny the application within 3 days? Of course logically (I know not to use logic as a tool) this notice would not be needed because normally within 3 days you won’t have an appraisal or statement of value to be able to give the applicant. But I would prefer if the regulation said we didn’t have to give it if denied within 3 days. Thanks

[jholzknecht]

The requirement to provide a notice regarding the appraisal is required by both Regulation B and Regulation Z. Neither regulation addresses the issue of whether an applicant whose application is denied or withdrawn within the three day period should receive a copy of the notice. The safe answer is to provide the notice.

[Author]

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