Waiving the borrowersâ€™ right to receive an appraisal

Jul 20 |09:37

Â Â Under the new HOEPA, HERA and HVCC Acts of Congress (explanation of acronyms not necessary here) , a homeowner must receive a copy of their appraisal at least 3 business days before the closing. So, how do they count thy days? Â

The lender snail mails the appraisal to the borrower at their current mailing address
US postal service should deliver this in three business days (assume it is not Christmas or Motherâ€™s Day)
Begin counting the day after the mail is picked up- not the day it is mailed
Saturdays count, Sundays and holidays do not
Appraisal should be there on the third day
This is the day it is received
Borrower has three days to check it out
Can close three days after it is received by the borrower

Â Problems:

Counting on the bank to remember to mail it
Counting on the Postal Service to deliver it on time
If it is not received cannot close
Might lose rate lock
Might have to cancel the movers!

Solve problem:

Â Create a form the borrower may sign to waive the right to receive the appraisal. Spend millions creating a system and spend five minutes figuring out how to get around it.

Â Done! Dale Siegel

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