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A recent change to the Equal Credit Opportunity Act made by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 will help to enlighten millions of home buyers regarding the appraisal. Before January 18, 2014, lenders were not required to provide the buyer with an appraisal and any other relevant home valuation data before closing unless it was requested.
Now, this new rule will give buyers and their support team the time and information to challenge appraisals that they suspect may contain errors. Lenders must notify the buyers within three days after receiving the mortgage application that they are entitled to get a free copy of the appraisal and supporting valuations documents. In order to help keep the lender compliant, at the client’s request PEMCO Limited will provide delivery of the appraisal to the borrower as an additional service to them.
Home buyers, mortgage applicants and sellers are required to have access to this data either immediately after it is available or up to three days before the closing. Although the buyer can waive receiving the appraisal early on and instead receive it three days before closing; this may not be a wise move considering the buyer may need ample time to assess the appraisal and request corrections if needed.
Jennifer Egbert Real Estate. “Home Appraisals: New Federal Law” 26 March 2014. http://www.jenniferegbert.com/home-appraisals-new-federal-law/
The Washington Post. “New federal rule on appraisals will be useful to home buyers” 26 March 2014. http://www.washingtonpost.com/realestate/new-federal-rule-on-appraisals-will-be-useful-to-home-buyers/2014/01/15/9ca6c556-7c6c-11e3-93c1-0e888170b723_story.html