[Sandy]

We are doing a commercial loan to an LLC that is being secured by rental property. The lower part of the building is commercial space but there are 2 apartments located on the second level. Is the appraisal notice required to be given as well as a copy of the appraisal 3 days prior to closing to the borrower?

[Brent V]

Since Reg B doesn’t discuss mixed-use properties, your safest course of action is to assume the property securing the loan is a dwelling. In this case, that triggers the requirements to provide the applicant with a copy of the appraisal and the appraisal notice.

[Author]

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