Rules have changed. Compliance has changed. Now, as a result disclosures are changing.
The Consumer Financial Protection Bureau (CFPB) released new rules that went into effect at the beginning of the year. The rules updated the Right to Receive Appraisal Disclosure requiring the name of the borrower, the loan number and a date within three days of the loan application date.
You also must be made aware of your right to receive a copy of the appraisal and the requirement to have a minimum of three (3) business days after receipt to review your appraisal report(s). You can also choose to waive this right.
In addition, one of our lenders requires this exact model language from the CFPB:
“Pursuant to the disclosure and delivery requirements for copies of appraisals and other written valuations under the Equal Credit Opportunity Act (Regulation B), we may order an appraisal to determine the property’s value and charge you for this appraisal. We will promptly give you a copy of any appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost if you choose.”
After submitting this dated but unsigned form among others to the lender I can request your appraisal.
Wait! Not quite yet…
The lender must disclose their Truth-in-Lending to you and as the borrower you must acknowledge receipt of it. Then I can request your appraisal.
Logging in to the appraisal management company’s (AMC) web site I find one more result of regulators run amok. There, the specifics of the subject property are entered together with contact information. Once payment information is entered another new disclosure is posted.
Disclosures the consumer may never see except here.
“To move forward with your mortgage loan process, certain services & products must be ordered. To order these services & products on your behalf, the payment for these fees must be obtained. By authorizing these fee payments, you accept and agree to the following fee payment terms and conditions:
- You have authorized your Lender Representative to place an appraisal order on your behalf.
- The appraisal fee payment will be charged at time of order and/or per your Lender’s fee charge requirements.
- The appraisal fee payment is non-refundable. Appraisals are not a satisfaction guarantee product.
- Your appraisal fee payment responsibility is not dependent in any way on the value given in any appraisal or upon closing of a loan.
- Paying an appraisal fee does not guarantee a loan product will be available or that a loan will fund.
- By providing authorization to your Lender Representative to place an appraisal order, you agree that all applicable appraisal fees related to your order will be charged against the account you have provided.
- To maintain lending requirements, your Lender Representative placed your home appraisal order with an approved appraisal Provider. You will not pay the appraiser directly.
- If completed, you will receive a copy of your appraisal per the terms of your Borrower Appraisal Disclosure provided by your Lender Representative.
- Fee Services is the billing company that manages the appraisal fee payment process for your Lender. Their name and customer service number will appear on your statement.”
This is a secure web which the general public is not have access to. I am perplexed at best how they expect you, the consumer to ever get this disclosure. That’s why I posted to this article on MetFund’s website. I will be directing all of my clients here as we begin the loan process.
I believe smart regulations that protect the consumer from unscrupulous practitioners is a fine idea and very appropriate. I’m just not sure these regulations protect you the consumer as much as cover the asses of the banks.
What do you think? Tell us what you have experienced…