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Washington
Reg B appraisal rules subject of new CUNA analysis
WASHINGTON (1/31/13)--New Consumer Financial Protection Bureau rules that require mortgage lenders to provide applicants with free copies of all appraisals and other home-value estimates are broken down in a new Credit Union National Association final rule analysis.

The appraisal rule, issued under Regulation B, implements changes to the Equal Credit Opportunity Act (ECOA) that were made under was required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. It is intended to ensure that consumers can receive information prior to a loan closing about how the property's value was determined.

The final rule also requires creditors to:

  • Inform consumers within three days of receiving an application for a loan of their right to receive copy of all appraisals; and
  • Provide the copies of appraisal reports and other written home-value estimates to consumers promptly, or three days before closing, whichever is earlier.
The new rule eliminates an exemption for federal credit unions that was included in the Federal Reserve's 1993 rule because the National Credit Union Administration had a similar rule requiring free reports be provided only when requested.

The requirements go into effect on Jan. 18, 2014. They will apply to first-lien mortgages.

This final rule analysis is the first in a series. CUNA also plans to report on the details of other mortgage issues addressed by recent CFPB regulatory releases, including:

  • Mortgage servicing;
  • Mortgage loan originator compensation;
  • Higher-priced mortgage appraisals;
  • Ability-to-repay requirements;
  • Escrow accounts; and
  • "High-cost" mortgages.
For the final rule analysis, use the resource link.
Other Resources

CUNA Final Rule Analysis
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