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Does putting the “Appraisal Notice” on the personal financial statement satisfy Regulation B's appraisal disclosure requirement?

Section 1002.14(a)(2) of Regulation B (Equal Credit Reporting Act) requires creditors to provide a notice of the applicant's right to receive a copy of all written appraisals developed in connection with an application for credit that is to be secured by a first lien on a dwelling. My bank does not take commercial loan applications. Rather, the bank's personal financial statement, completed and signed by the customer, starts the commercial loan process. Does putting the "Appraisal Notice" on the personal financial statement satisfy the appraisal disclosure requirement?

Section 1002.14(a)(2) of Regulation B requires creditors to provide the notice “not later than the third business day after the creditor receives an application for credit that is to be secured by a first lien on a dwelling.” There is nothing in the Commentary or Supplementary Information to prohibit creditors from providing the information prior to application. The regulation merely provides the latest date that it may be provided.

However, to avoid any customer confusion, any notice should make clear that it only applies if the loan is to be secured by a first lien on a dwelling. For example, if the loan is to be secured by a lien on a commercial building or a second lien on a residence, no notice is required. If you advise customers they have that right, then you must provide it, even though not required. (October 2017)

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