ECOA Valuation – Mixed Use Property

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    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?


    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.


    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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