The Consumer Financial Protection Bureau (CFPB) has adopted a new rule that requires mortgage lenders to provide applicants with free copies of all appraisals and other home-value estimates.
The new rule also requires that creditors inform consumers within three days of receiving an application for a loan of their right to receive copy of all appraisals. Creditors will then be required to provide the copies of appraisal reports and other written home-value estimates to consumers promptly, or three days before closing, whichever is earlier.Â
‘This rule will guarantee consumers can receive important information on how a lender determines the value of the home,’ says CFPB Director Richard Cordray. ‘Having this information available promptly makes it easier for loan applicants to make informed decisions.’
The new rule will go into effect in January 2014 and will apply to first-lien mortgages.