[sbs1]

If a lender talks to a borrower and gets oral verification that the borrower is waiving their right to receive their appraisal 3 days prior to closing. Is it compliant to just document the file when you talked to the customer. Or do we need to have the customer sign a form later attesting that they did waive the right?

Also, if the customer did waive the right to receive the appraisal, when the customer receives the appraisal at closing is it sufficient to just document the file when the appraisal was given.

[rcooper]

The regulation allows for you to take an oral or written waiver. Make sure you are complying with any internal procedures that you have and if you take them orally make sure it is very well documented. I would say that most banks probably require the waiver to be in writing but, again, the regulation does give you the option.

1002.14(a)(1)-6 states:
6. Waiver. Section 1002.14(a)(1) permits the applicant to waive the timing requirement if the creditor provides the copies at or before consummation or account opening, except where otherwise prohibited by law. Except where otherwise prohibited by law, an applicant’s waiver is effective under § 1002.14(a)(1) in either of the following two situations:

i. if, no later than three business days prior to consummation or account opening, the applicant provides the creditor an affirmative oral or written statement waiving the timing requirement under this rule; or

ii. if, within three business days of consummation or account opening, the applicant provides the creditor an affirmative oral or written statement waiving the timing requirement under this rule and the waiver pertains solely to the applicant’s receipt of a copy of an appraisal or other written valuation that contains only clerical changes from a previous version of the appraisal or other written valuation provided to the applicant three or more business days prior to consummation or account opening. For purpose of this second type of waiver, revisions will only be considered to be clerical in nature if they have no impact on the estimated value, and have no impact on the calculation or methodology used to derive the estimate. In addition, under § 1002.14(a)(1) the applicant still must receive the copy of the revision at or prior to consummation or account opening.

As for delivery…

the applicant must receive the appraisal/valuation at or before consummation or account opening, except where otherwise prohibited by law.

comment 1002.14(a)(4)-I states:
For purposes of this timing requirement, “provide” means “deliver.” Delivery occurs three business days after mailing or delivering the copies to the last-known address of the applicant, or when evidence indicates actual receipt by the applicant, whichever is earlier. Delivery to or actual receipt by the applicant by electronic means must comply with the E-Sign Act, as provided for in § 1002.14(a)(5).

[Author]

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