NCUA REGULATORY ALERT: CFPB’s New Rule on Real Estate Appraisals and Other Written Valuations under ECOA
The Regulatory Alert 13-RA-07 reminds credit unions receiving applications for first-lien loans secured by a dwelling on or after Jan. 18, 2014, that they must:
- Notify applicants in writing within three days of receiving the application that they have the right to receive copies of all appraisals and written valuations; and
- Provide a free copy of these appraisals and written valuations developed in connection with the loan application, promptly after they are completed, or three days before the loan closes, (whichever is earlier) regardless of whether credit is extended, denied, incomplete, or withdrawn.
As part of the new ECOA Valuations Rule, the Regulatory Alert goes on to provide:
- background information on the ECOA and its implementation of Regulation B,
- what types of loans are covered under the rule, what the specific requirements are
- what constitutes an appraisal or “other written evaluation”
- how to comply with the rule
- when and how to deliver valuation copies to applicants
- how the new rule relates to the high-priced mortgage loan appraisal rule and available guidance
Specifically within the Regulatory Alert, the NCUA included a link to the CFPB’s Small Entity Compliance Guide on the ECOA Valuations Rule for credit union reference.