The Consumer Financial Protection Bureau (CFPB) released a new proposed rule that would require mortgage lenders to provide home loan applicants with appraisal reports to determine how the value of a property was determined. CFPB proposed the rule in response to a provision of the Dodd-Frank Act that requires creditors to provide mortgage applicants with a copy of written appraisals and home value estimates. The newly-proposed rule would require that creditors inform applicants of their right to receive a free copy of appraisal reports and home estimates.
Consumers are to be informed of this right within three days of applying for a loan. Creditors would be required to provide these reports to consumers as quickly as possible and no later than three days before closing, regardless of whether credit is extended, denied, incomplete, or withdrawn.
Consumers are usually charged for the costs related to conducting appraisals. Currently, consumers must request appraisal reports from creditors, and they are sometimes charged a fee to obtain a report. Under the proposed rule, creditors may still charge reasonable fees associated with conducting appraisals to assist in lending decisions. However, they may not charge fees for providing a copy of an appraisal report.