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ECOA Valuation – Mixed Use Property

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  • #5631
    rcooper
    Keymaster

    A question we received from a member:

    Do the ECOA appraisal rules apply to mixed-use property that is both business and residential?

    The loan in question is a commercial loan and I understand that 1002.14 applies to both consumer and business purpose loans. To my way of thinking, because it is partly residential, there is no exemption for mixed use.
    Your thoughts?

    #5632
    rcooper
    Keymaster

    In my opinion, if the property securing the loan meets that definition of a dwelling in 1002.14(b)(2), even though it may also be used for business purposes, the ECOA valuation rules will apply.

    #5650
    MarieR
    Participant

    Just to add to this. We had the same question so I contacted the CFPB and they agreed that if there were 1-4 dwellings, even if there was retail space, then the ECOA valuation rules apply.

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