[Tower Bank]

We have had discussions about whether it would be an issue to have the ECOA Appraisal Waiver available in the early disclosure documents. The borrower would sign it at that time and then they would receive the appraisal at closing but not before.

I’m afraid this is asking for additional scrutiny because we are circumventing the reason for making available at least the 3 days before closing.

Any thoughts on this?

[rcooper]

While you may be able to technically meet the requirements by doing this, I agree by making this a standard part of your procedure, it appears your bank would be trying to evade the valuation delivery requirements under Regulation B. And if you are slipping another document (a waiver to sign) in with each early disclosure packet it could be deemed deceptive. Also remember that if it is an HPML there is no waiver of the appraisal delivery timing (three business day prior to consummation).

[Author]

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