15 Oct Appraisal Reports Could Be Complimentary from Lenders
Under a new rule, consumers would be informed of their right by creditors to a free appraisal report and home estimate within three days of applying for a loan. Currently, consumers are normally charged for appraisal costs, but the Consumer Financial Protection Bureau (CFPB) recently proposed a new rule that would require mortgage lenders to provide free appraisal reports to applicants. The report would offer a deeper look at how the value of the property was determined.
The final rule is expected to take effect in January 2013 and will still allow lenders to charge a reasonable fee to conduct the appraisal and assist them with their lending decision. The change is that they would no longer be able to charge for providing a consumer with a copy of their own report.
Adds CFPB director Richard Cordray, “When looking to buy a home or refinance a mortgage, consumers need the best available facts and data. This rule would guarantee consumers receive important disclosures on how a lender determines the value of the home, making it easier for loan applicants to make informed decisions.”
The hope is that consumers would be given these reports as quickly as possible in order to make a sounder decision. The report would be required irrespective of whether credit was extended, denied, incomplete, or withdrawn no later than three days before closing.
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