Both Cx15224 and the non-higher risk mortgage version of Cx18182 contain paragraphs which explain to the borrower that they are entitled to a free copy of their appraisal report at least three business days prior to closing, though they may waive the waiting period and receive the report at closing. It further stipulates that the lender may still require the borrower to pay for the actual appraisal.
There are also sections in which the borrower may indicate whether they would like to receive a copy of their appraisal report three business days prior to closing or to receive it at closing. The first of these sections states the following:
“I/We the undersigned hereby acknowledge that I/we choose to receive free of charge a copy of any and all appraisal reports concerning the property listed above, no less than three business days prior to the closing of my/our mortgage loan.”
We have received feedback from some clients that the term “free of charge” is leaving borrowers with the impression that they do not need to pay for the appraisal on the property – even though a clear reading of the section indicates that “free of charge” applies only to the copy of the appraisal report, not the cost of conducting the appraisal itself.
For purposes of mitigating this issue, we will be removing the phrase “free of charge” from this section of both documents, particularly since the first paragraphs indicate more clearly that the borrower will receive a copy of the appraisal report free of charge, but that they may still be required to pay for the appraisal itself.
This change will take effect on March 14, 2014. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
March 10, 2014