Under the three-day appraisal rule, your mortgage lender must give you a free copy of every appraisal and other written valuation of the property either promptly after it is completed or at least three business days before your loan closes, whichever comes first.1Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(1) In general. and (b)(1) Consummation. The point is simple: you should see what the lender thinks the home is worth with enough time left to react before you are legally obligated on the loan.
What the Lender Has to Send You
The rule, part of the Equal Credit Opportunity Act’s Valuation Rule, requires the creditor to send copies automatically. You do not have to ask. The copies themselves are free, though the lender may charge a reasonable fee to cover the cost of preparing the valuation itself.2Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(1) In general. and (a)(3) Reimbursement.
“Written valuation” is broader than a traditional appraisal from a licensed appraiser. It covers any estimate of the dwelling’s value developed in connection with your application, including:3Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (b)(3) Valuation. and Official interpretation of (b)(3) Valuation.
- Automated Valuation Models (AVMs) that use statistical data
- Broker Price Opinions (BPOs) prepared by real estate agents
You get these copies whether the loan is approved, denied, or you withdraw the application.4Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(1) In general. and (a)(4) Withdrawn, denied, or incomplete applications.
Which Loans the Rule Covers
The rule applies to credit secured by a first lien on a dwelling. That includes home purchase mortgages, refinances, and home equity lines of credit when the HELOC sits in first position. It applies whether the credit is for personal, family, or business purposes. A dwelling is a residential structure of one to four units, which includes condominium and cooperative units and manufactured homes.5Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (b)(2) Dwelling.
Second mortgages and other subordinate-lien loans are not covered. Neither are loans secured only by bare land without a residential structure.6Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(1) In general. and (b)(2) Dwelling.
How the Three Business Days Are Counted
The clock runs to consummation, which is the moment you become legally obligated on the loan. For an open-end product like a HELOC, delivery must happen before the account is opened.1Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(1) In general. and (b)(1) Consummation.
If the lender mails the reports, delivery is treated as occurring three business days after mailing, unless there is proof you received them sooner. Electronic delivery is allowed, but the lender has to meet the E-Sign Act requirements, which includes getting your consent to receive the documents digitally.7Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(5) Copies in electronic form. and Official interpretation of (a)(1) In general. (Comment 14(a)(1)-4.i Timing.)
What Happens When No Traditional Appraisal Is Ordered
Lenders increasingly use automated tools and decide a full appraisal is not necessary. That does not switch the rule off. If the lender develops or obtains any other written valuation to help decide your application, that document is covered too, and the same three-business-day timeline applies.8Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(1) In general. and Official interpretation of (b)(3) Valuation.
Waiving the Three-Day Wait
You can waive the advance-delivery requirement, but a waiver is narrower than it sounds. You are not giving up the right to receive the reports; you are only agreeing to receive them later than three days before closing. The waiver generally must be given at least three business days before consummation. With a valid waiver, the lender can hand you the copies at or before closing or account opening. If the deal never closes, the lender still has to send the copies within 30 days of deciding the transaction will not go forward.9Consumer Financial Protection Bureau. 12 CFR § 1002.14 – Section: (a)(1) In general.