Can lenders withhold sharing a copy of the appraisal?

Question

Can lenders withhold sharing a copy of the appraisal? So if I am the one that pays for the appraisal why should a Lender give me a hard time about turning over the appraisal to me? Is this common practice among lenders? Do they have a legal standing to make it difficult for the person that purchased the appraisal to receive a copy of the appraisal?

Jesse Rivera · Answer

The lender owns the appraisal report, as they are the actual client not the buyer. But they still make you pay for it.

Now most lenders will give you a copy of the report, I don't know why they wouldn't. It's not like you could just take it to another lender, there is an official process for that and the old lender has to sign off on it.

Be the squeaky wheel and make a fuss, and they may eventually give you the report. Go over the loan officer's head, it just may be the loan officer being a d$#k, and trying to keep you from going somewhere else.

Jay Hinrichs · Answer

Every state has their banking and lending laws.. So its not a one size fits all..  But all the banks I work with happily give me mine upon request or I get an e mail..  Hey Jay your apprasial just came back see attached for you files.. we are ready to fund NeXT week  LOL.

Jay Hinrichs · Answer

it was much more prevalent a few years back.. I know my bank must give me my appraisals.   But that's a commercial bank not conventional lending..

Jeff S. · Answer

Please clarify the use of the loan, @Joe S.  If this is for a first position lien on a dwelling, both ECOA and Dodd-Frank changed this in 2014.

Within three days of application, your lender must provide you with a disclosure notifying you of your right to a copy of your appraisal.  As a result, the Bureau of Consumer Financial Protection provided the following recommended language for the disclosure:

“We may order an appraisal to determine the property’s value and charge you for this appraisal. We will promptly give you a copy of any appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost.”

If not a first position lien on a dwelling, before you agree to apply for the loan, I’d stipulate with the lender up-front that you expect them to provide you with a copy of any and all valuations. Get their agreement in writing.

Jay Hinrichs · Answer

Well the new lenders generally CANT use that appraisal anyway or wont since it was not made for them and they have no recourse to the appraiser for fraud or E and O..

AS for shopping rates I would not know about that. for me I would never do that in a million years.. unless the bank told me to leave or it got untenable I am not going to move for 25 bips or 50 bips  pricing is the last thing I look at.  ( Within Reason of course)  But my commercial banks are pretty competitive. Its all about service ..

Christina Zimmerman · Answer

@Joe S.

This is a common misconception among buyers- because they pay for the appraisal report they assume it belongs to them. Unfortunately, the lender is the appraiser’s client as they hired them, and the lender can do what they wish with the report. Nobody is legally obligated to provide it to you. Ive never had an issue from my lender receiving it, though.. Weird that they are withholding it. It’s typical for them to share it with the borrower. Id just keep asking your lender for it or to at least provide an explanation for why you can’t look at it

Account Closed · Answer

@Joe S.

Happens up north all the time. I try and insist on a copy but even then all they will give me is a printed/ hard copy. No paper trail.

Adam Odom · Answer

@Joe S. as a banker the other question I would have is was it a "full" appraisal or an internal valuation done by the bank? On commercial deals where I've worked we wouldn't give out an internal valuation (even though you pay for it - although less than a full appraisal by a lot) because they don't want you to take that as a valuation to try to dispute with the assessor. They are much less in depth and only used to cover the underwriting requirements.

Bob Reinhard · Answer

@Joe S.

Please read carefully.

A creditor shall provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling. A creditor shall provide a copy of each such 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. An applicant may waive the timing requirement in this paragraph (a)(1) and agree to receive any copy at or before consummation or account opening, except where otherwise prohibited by law. Any such waiver must be obtained at least three business days prior to consummation or account opening, unless the waiver pertains solely to the applicant's receipt of a copy of an appraisal or other written valuation that contains only clerical changes from a previous version of the appraisal or other written valuation provided to the applicant three or more business days prior to consummation or account opening. If the applicant provides a waiver and the transaction is not consummated or the account is not opened, the creditor must provide these copies no later than 30 days after the creditor determines consummation will not occur or the account will not be opened.

Ask your attorney if INVESTMENT property falls into this.

Bob

Taken from

12 CFR Part 1002 - Equal Credit Opportunity Act (Regulation B)

Bill B. · Answer

Must be a state by state issue a well. In MN and NV I’ve received a copy of the appraisal directly from the appraiser. Usually the day of or the day after the on-site visit.

Can lenders withhold sharing a copy of the appraisal?

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