Federal rule requiring applicants to receive appraisals and other written valuations for covered first-lien dwelling applications.
The appraisal and valuation copy rule requires a creditor to provide applicants with copies of appraisals and other written valuations developed for a covered application secured by a first lien on a dwelling.
The rule is part of Regulation B under the Equal Credit Opportunity Act. It covers more than a full appraisal report and can include automated, broker-price, or other written value estimates developed in connection with the application.
A value conclusion can change the maximum loan amount, LTV, mortgage insurance, rate pricing, or cash needed to close. The borrower needs the actual valuation, not only a verbal statement that the value was “too low.”
The copy allows the applicant to review property facts, comparable sales, adjustments, assumptions, and the final reconciliation. It also gives the applicant a basis for identifying a factual error or requesting a Reconsideration of Value.
Providing a copy does not transfer ownership of the report’s lending use to the borrower or require the creditor to accept the value. It gives the applicant access to the valuation developed for the credit decision.
For a covered first-lien application, the creditor must provide each appraisal or other written valuation promptly after completion or at least three business days before consummation for closed-end credit or account opening for open-end credit, whichever is earlier.
| Event | General rule |
|---|---|
| Valuation completed well before closing | Provide the copy promptly upon completion |
| Valuation completed near closing | Provide it at least three business days before consummation or account opening |
| Applicant waives advance timing | Copy still must be provided no later than consummation or account opening |
| Application denied, withdrawn, or incomplete | Copies still must be provided for valuations developed in connection with the application |
The applicant may waive the advance timing requirement under specified conditions, but the creditor cannot make the waiver a condition for receiving credit.
The creditor may charge the applicant a reasonable fee for the cost of the appraisal or valuation when otherwise permitted. It cannot charge an additional fee simply for providing the required copy.
Electronic delivery can be used with the applicant’s consent under applicable electronic-disclosure rules. The borrower should preserve the final report and any revised versions because later underwriting questions may refer to a specific valuation date or conclusion.
A borrower applies for a first-lien purchase mortgage. The creditor obtains a full appraisal and a separate automated valuation used in collateral review. Both are written valuations developed in connection with the application.
The creditor provides the completed appraisal promptly and supplies the other covered valuation within the required period. The appraisal is below the contract price, so the borrower uses the report to identify a property-description error and follows the lender’s reconsideration process.
The copy rule differs from Appraisal Independence because the copy rule concerns applicant access to written valuations. Independence concerns coercion, alteration, and conflicts in valuation work.
It differs from an Appraisal because appraisal is one form of valuation. The copy rule can also cover other written estimates of value.
It differs from Appraisal Review because review is the creditor’s quality or collateral analysis. A review product can itself be a written valuation if it provides an estimate of the property’s value.
It also differs from a Reconsideration of Value because reconsideration is a process for raising specific concerns. Receiving the valuation copy gives the applicant the information needed to decide whether such a request is appropriate.