Acknowledgement of Receipt of Appraisal is a letter signed by the loan applicants to acknowledge their receipt of the appraisal report or any other written valuation on the date mentioned in the letter. The letter is used by the mortgage lender as an evidence of the actual receipt of the appraisal by the applicant on the date mentioned in the letter.
Regulation B requires a lender to deliver a copy of an appraisal or other written valuation promptly upon completion, or three business days prior to consummation of the transaction (for closed-end credit) or account opening (for open-end credit), whichever is earlier. Delivery occurs three business days after mailing or delivering the copies to the last-known address of the applicant, or when evidence indicates actual receipt by the applicant, whichever is earlier.
The Acknowledgement of Receipt of Appraisal helps a lender to document the actual receipt of the appraisal by the applicant. If the applicant had received the appraisal within the three business days after mailing and the lender obtains an acknowledgement of receipt, then the loan closing can occur sooner.
A lender delivers the appraisal on Tue, April 1, 2014. Typically, the lender has to assume three business days for delivery and then wait another three business days before scheduling loan closing. In this case, delivery occurs on April 4 and closing can take place on April 10. Now assume the lender overnights the appraisal on April 1, 2014. The applicant received the appraisal on April 2 and sends an acknowledgement of receipt of appraisal to lender the same day. The closing can now take place on April 8.
The Acknowledgement of Receipt of Appraisal should contain the following information.
As a best practice, you should retain a copy of the letter in the loan file for as long as the loan is open. However, to demonstrate compliance for Regulation B, you should retain a copy of the letter for at least 25 months from date of notifying an applicant of action taken. For business loans, Regulation B retention period is 12 months from the date of notifying an applicant of action taken.
The Regulation B rules on providing appraisal are meant to provide you with enough time to review and inspect the appraisal before closing. If there is a need to close the loan early then the lender may ask you to complete the acknowledgement. When completing the form, it is in your best interests to enter the actual date when you of receipt of appraisal. Do not feel pressured to sign the form with an earlier date. Also, do not feel pressured to provide the form even before you have received the appraisal.
Updated: Jun 14, 2014