The ECOA and Regulation B:
•Require the Bank to notify applicants within three business days of receiving an application of their right to receive a copy of appraisals. See the Right to Receive a Copy of Appraisal Report notice form located at the end of this Chapter.
•Require the Bank to provide applicants a copy of each appraisal and other written valuation promptly upon their completion or three business days before consummation (for closed-end credit) or account opening (for open-end credit), whichever is earlier. See the sample Acknowledgement of Receipt of Copy of Appraisals form located at the end of this Chapter.
•Permit applicants to waive the timing requirement for providing these copies. However, applicants who waive the timing requirement must be given a copy of all appraisals and other written valuations at or prior to consummation or account opening, or if the transaction is not consummated or the account is not opened, no later than 30 days after the Bank determines the transaction will not be consummated or the account will not be opened. See the sample Appraisal Delivery Waiver form located at the end of this Chapter.
•Prohibit the Bank from charging for the copy of appraisals and other written valuations, but permits creditors to charge applicants reasonable fees for the cost of the appraisals or other written valuation unless applicable law provides otherwise.
These requirements implement an amendment that the Dodd-Frank Act made to the Truth in Lending Act, which also requires creditors to provide free copies of appraisals in covered transactions and to provide a disclosure at application. The same appraisal notice can be used to satisfy both these requirements in transactions where both the ECOA and the Truth in Lending Act apply.
The purpose of the loan (business or commercial) is not relevant, nor is the position of the lien (first or second).