8/16/2012 CFPB proposes rule to improve access to appraisal reports
American Bankers AssociationIn related news, the Consumer Financial Protection Bureau yesterday issued a separate Dodd-Frank Act-mandated proposed rule that would require creditors to inform consumers of their right to receive a free copy of appraisal reports and home-value estimates within three days of applying for a mortgage loan.
Creditors then would be required to provide the reports to consumers as promptly as possible, but no later than three days before closing -- regardless of whether credit is extended, denied, incomplete or withdrawn.
The CFPB explained that consumers are typically charged for costs related to conducting an appraisal. But currently they must request appraisal reports from creditors, and they may be charged a fee to obtain those reports.
Under the proposed rule, creditors could still charge reasonable fees associated with conducting appraisals and home value estimates. However, the rule would prohibit creditors from charging consumers fees for obtaining the reports.