The Consumer Financial Protection Bureau (CFPB) proposed a new rule on appraisals and valuations. General comments are due by October 15, 2012, and the CFPB is required to finalize the rule not later than January 21, 2013. The proposed rule would amend Regulation B, which implements the Equal Credit Opportunity Act and would apply to applications for credit where the loan would be secured by a first lien on a dwelling.
The rule would require creditors to notify applicants within three business days of receiving an application of their right to receive a copy of written appraisals and valuations developed in connection with their loan application. Additionally, creditors would be required to provide applicants with copies of all written appraisals and valuations promptly after receiving them, but in no case later than three business days prior to closing on the mortgage, and prohibit creditors from charging fees for providing a copy of such appraisals and valuations.
Creditors would remain able to charge applicants a reasonable fee to reimburse the creditor for the cost of the appraisal or valuation unless prohibited by law. Applicants would also be permitted to waive the timing requirement to receive copies of appraisals and valuations prior to consummation, as long as copies of all written appraisals and valuations are provided at or prior to closing.
CUNA will be posting a comment call on the new proposed rule soon. For a link to the proposed rule, click here.