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ECOA Valuation Rule – Foreclosure

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  • #5597
    rcooper
    Keymaster

    A question we received from a member:

    Must we comply with this rule when doing appraisals or valuations on loans that are in foreclosure or in a workout repayment?

    #5598
    rcooper
    Keymaster

    If a valuation or appraisal is developed for reasons other than in connection with an application for credit 1002.14 would not apply.

    The regulation states: 1002.14(a) Providing appraisals and other valuations. (1) In general. A creditor shall provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling.

    The preamble to the final rule has a discussion on this specific topic. You can find it here, pages 23-28: https://files.consumerfinance.gov/f/201301_cfpb_final-rule_ecoa-appraisals-preamble.pdf

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