REMN Wholesale is providing additional guidance regarding the new ECOA Valuations Rule. The information below contains new information in addition to what was previously communicated in REMN Wholesale Bulletin 14-03, issued January 9, 2014.
The ECOA Valuations Rule requires the following:
- The borrower(s) must be notified within three (3) days of application of their right to receive a copy of the appraisal(s) or any other written valuation of the property (i.e. AVM, field review, desk review, second appraisal, and recertification of value).
- The borrower(s) must receive the appraisal(s)/valuations(s) promptly upon completion, or at least three (3) business days prior to closing. When counting business days, Saturday is included but Sunday and Federal holidays are not. The three (3) business days period begins the day the appraisal(s)/valuation(s) were either emailed or mailed to the borrower.
- Loan is scheduled to close Friday, February 10th. The appraisal(s) and valuation(s) must be either emailed or mailed to the borrower no later than Tuesday, February 7th to be in compliance.
NOTE: The three (3) business day waiting period begins the day the appraisal/valuation was emailed/mailed to the borrower.
- The copy of the appraisal(s)/ valuation(s) must be provided whether the loan is approved, denied, or withdrawn.
Notice of Right to Receive Copy of Appraisal
REMN Wholesale is providing a Notice of Right to Receive Copy of Appraisal (Exhibit A) in the initial disclosures mailed to the borrower(s). Brokers are encouraged to communicate the ECOA Rule to the borrower to enable the borrower to make an informed choice on whether or not to waive the timing requirement for appraisal delivery.
The Notice of Right to Receive Copy of Appraisal must be completed and signed by the borrower(s) to acknowledge receipt and included in the loan file.
The Notice of Right to Receive Copy of Appraisal has two options:
1. The borrower may elect to receive the appraisal/valuation at least three (3) days prior to close, or
2. The borrower may elect to waive the right to receive the appraisal at least three (3) days prior to close subject to specific requirements detailed under the Waiver Eligibility topic below. The borrower is waiving the timing requirement only; they are not waiving their right to receive the appraisal(s)/valuation(s) and will receive the documentation no later than closing.
Options for Delivery of Notice of Right to Receive Copy of Appraisal to REMN Wholesale
Option One – Include Disclosure with Loan Submission
The following is the preferred method for delivery of the Notice to REMN Wholesale to avoid any delays with loan closing.
- Broker provides the borrower with a copy of the Notice of Right to Receive Copy of Appraisal, by using the Notice posted on the REMN Wholesale website at www.remnwholesale.com under “Forms & Docs”. A sample of the Notice is also provided with this Bulletin (Exhibit A).
- Borrower(s) indicate their option and sign the Notice.
- Broker includes completed and signed Notice in the loan submission package.
Option Two – Broker Returns Notice after Loan Submission
- Borrower(s) selects option and signs the Notice that is sent with the REMN Wholesale initial disclosure package.
- Broker is responsible to obtain the completed and signed Notice from the borrower.
- Broker submits the signed Notice to REMN Wholesale as early in the loan process as possible to avoid closing delays.
Borrower Elects to Waive Timing Requirement
While the borrower may elect to waive the timing requirement REMN Wholesale will make every effort to provide all appraisal/valuation documentation to the borrower as soon as it is available and will only exercise the waiver on an exception basis and not as a standard practice.
The waiver of the three (3) business day requirement is subject to the following:
Non-Higher Priced Mortgage Loans
If a loan is not a higher priced mortgage loan, the borrower may waive their right to receive the appraisal/valuation at least three (3) business days prior to close, however they are still required to receive a copy at closing. The Notice with the waiver selected must be received at least 3 business days prior to loan closing.
Higher Priced Mortgage Loans
When a loan is determined to be a higher priced mortgage loan, the borrower must receive the appraisal(s)/valuation(s) three (3) days prior to close even if the borrower signed the waiver. There are no exceptions to the three (3) business day requirement on HPMLs
Delivery of the Appraisal/Valuation to Borrower
Electronic delivery of the appraisal documentation to the borrower is the preferred method to expedite the delivery process. Brokers should provide the borrower’s email address on the Submission Form whenever possible. In the event the borrower does not have an email address the applicable appraisal(s)/valuation(s) will be sent to the borrower via U.S. mail.
Emailing the Appraisal Documentation
When an email address is provided on the Submission form, the borrower will receive an email notification from “Blitz Docs Notifications” with a link to access the appraisal documentation.
REMN Wholesale has created a Broker Guide to Borrower Appraisal Delivery Retrieval and has posted it on the REMN Wholesale website at www.remnwholesale.com under “Tools”. This document details how the borrower can access and retrieve their documentation. REMN Wholesale encourages brokers to familiarize themselves with this process so they can assist borrowers as needed.
Mailing the Appraisal Documentation
Borrowers who do not have an email address or one is not provided on the Submission form, will receive appraisal documentation via U.S. mail.
If you have any questions, please contact your Account Executive.