Buyers ask me when the appraisal shows up, usually after their loan officer has told them they’ll see it at the closing table. That’s not how the rule works, and it’s worth knowing before you apply.
When the copy has to reach you
A creditor making a loan secured by a first lien on a dwelling has to provide a copy of each appraisal and other written valuation developed in connection with your application, promptly upon completion or three business days before consummation, whichever is earlier. Consummation is the moment you become contractually obligated on the loan, and state law decides when that is. Delivery counts three business days after mailing, or when there’s evidence you actually received it, whichever comes first.
What counts as a valuation
More than the formal appraisal report. A valuation is any estimate of the value of a dwelling developed in connection with an application for credit. Automated valuation model reports and broker price opinions count. If several versions exist, you’re owed the latest one.
The notice your lender owes you first
No later than the third business day after it receives your application, the creditor has to mail or deliver a written notice of your right to receive a copy of all written appraisals developed in connection with the application. This count starts at your application, so it’s a separate deadline from the one before closing. If the notice never arrived, ask for it. Your right doesn’t depend on the paper showing up.
Waiving the timing, and what the copy costs
You may waive the timing requirement and agree to receive a copy at or before consummation, except where another law forbids it, but the waiver has to be obtained at least three business days before consummation. If you waive it and the deal never closes, the creditor still has to send the copies, no later than 30 days after it determines consummation won’t happen. A creditor may not charge you for providing the copy. It may require a reasonable fee to reimburse the cost of the appraisal or other written valuation itself, unless another law says otherwise.
It applies even if the loan dies
The copy requirement applies whether the credit is extended or denied, and whether the application is incomplete or withdrawn. A denied file still gets the copies.
Buying in Greater Boston this fall? When you apply, ask your lender when the appraisal is expected and when the copy will reach you. Diana Kim, REALTOR®, eXp Realty.
Questions
Common questions
When does my lender have to give me the appraisal?
Promptly upon completion, or three business days before consummation of the transaction, whichever is earlier. Consummation is the moment you become contractually obligated on the loan.
Can my lender charge me for a copy of the appraisal?
No. A creditor may not charge you for providing a copy of appraisals and other written valuations. It may require a reasonable fee to reimburse the cost of the appraisal itself, which is a separate thing from the copy.
Can I waive the three business day timing?
Yes, except where another law prohibits it. You may agree to receive the copies at or before closing instead, but the waiver has to be obtained at least three business days before consummation. You still get the copies, and if the deal never closes, no later than 30 days after the lender determines it won't.
Sources
- Consumer Financial Protection Bureau, Regulation B, 12 CFR 1002.14(a)(1): 'A creditor shall provide a copy of each such appraisal or other written valuation promptly upon completion, or three business days prior to consummation of the transaction (for closed-end credit) or account opening (for open-end credit), whichever is earlier.' The same paragraph lets an applicant waive the timing requirement and agree to receive a copy at or before consummation or account opening, except where otherwise prohibited by law, provided the waiver is obtained at least three business days prior to consummation or account opening
- Consumer Financial Protection Bureau, What are appraisals and why do I need to look at them: appraisals should be received 'soon after they are delivered to the lender in complete form ... no later than three days before closing', and 'You can't be charged a fee for copies of an appraisal or other valuation'. This consumer page says 'three days'; the regulation itself says three business days and controls
- CFPB official interpretation to 12 CFR 1002.14(a)(1): '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.'
Written by Diana Yeji Kim — REALTOR® at eXp Realty, serving Greater Boston in English, Korean, and Japanese.
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