Mortgages Analyzed
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Acknowledgement of Receipt of Appraisal

What is Acknowledgement of Receipt of Appraisal?

Acknowledgement of Receipt of Appraisal

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.

Using Acknowledgement of Receipt of Appraisal for Regulation B Purposes

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.

Source :www.MortgagesAnalyzed.com

Example

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.

Source :www.MortgagesAnalyzed.com

Contents of Acknowledgement of Receipt of Appraisal

The Acknowledgement of Receipt of Appraisal should contain the following information.

  1. Date Prepared. The date when the letter was generated.
  2. Application Number
  3. Applicant(s) Name
  4. Lender Name
  5. Lender Address
  6. Subject Property
  7. Date of Receipt of Appraisal. This date should not be pre-filled; instead the applicants should enter this date.
Source :www.MortgagesAnalyzed.com

Lender’s Consideration

Recordkeeping

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.

Source :www.MortgagesAnalyzed.com

Borrower’s Consideration

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.

 
Source :www.MortgagesAnalyzed.com

Document Summary

 
Acknowledgement of Receipt of Appraisal
Purpose
The letter provides an acknowledgement of the receipt of appraisal or other written valuation that was developed in connection with the mortgage loan application.
Use in Mortgages
The letter is used as an evidence of the actual receipt of the appraisal by the applicant on the date mentioned in the letter.
Other Names
None
Type
Letter
Provided By
Loan applicants
Provided To
Lender
Notarization Required
No
Signed By
Loan applicants
Life Cycle Stage
Origination
Recordkeeping
For consumer loans, retain for at least 25 months from date of notifying an applicant of action taken.
Model Form
None
Applicable Laws
CFPB Regulation B, 12 CFR 1002.14
Source :www.MortgagesAnalyzed.com

Updated: Jun 14, 2014

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Letter signed by the loan applicants to acknowledge their receipt of the appraisal report
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