[mcarey]

We have a construction loan that we are going to do the permanent financing for (2 separate loans). Do we have to wait three days after receiving the updated appraisal and providing a copy to the borrowers before we can close? It’s not a HPML so can we have the customers sign a waiver for the new transaction? If we can provide the waiver do we still need to give a copy of the updated appraisal when it is received?

[rcooper]

Do we have to wait three days after receiving the updated appraisal and providing a copy to the borrowers before we can close?

Under the Reg B appraisal/valuation delivery rules you must provide a copy of each appraisal or valuation promptly upon completion or three business days prior to consummation of the transaction whichever is earlier.

It’s not a HPML so can we have the customers sign a waiver for the new transaction?

Yes, you can have the customer sign a waiver, but you must have received it at least 3 business days before consummation.

If we can provide the waiver do we still need to give a copy of the updated appraisal when it is received?
Yes, the waiver is only for the timing requirement. If you receive a waiver of the timing requirement you still must deliver the appraisal at or before consummation.

[mcarey]

If we are only getting a report of completion from the appraiser do we have to get that to the customer three days prior to consummation? Does the customer need to get a copy at all?

[rcooper]

This isn’t addressed in the regulation or the commentary. With that said, based on the requirement in Reg B which states to ” provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling” and considering the definition of valuation which means “any estimate of the value of a dwelling developed in connection with an application for credit” my opinion is that you would need to provide a copy of the certificate of completion since it is assessing the final value of the property.

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