According to California Financial Code §22317.2, an Automated Valuation Model result may be used in lieu of an appraisal. The rule reads:
(a) A licensee may collect a fee for use of an automated valuation model result prepared by a third party not to exceed the actual cost paid to the third party for a written automated valuation model result in lieu of the appraisal provided for in Section 22317. The borrower shall not be charged for both an automated valuation model result and an appraisal as defined in Section 22317 for the same property in a single transaction. Only one fee for providing an automated valuation model result or an appraisal for the same real property may be collected unless the borrower has obtained a new or additional loan and more than one year has elapsed since the prior delivery of an automated valuation model result or an appraisal. However, if a fee for an automated valuation model result has been paid, an appraisal fee minus the amount that has been paid by the borrower for the automated valuation model result may be charged for an appraisal for the same real property within one year if the borrower has obtained a new or additional loan. The fee is not included in charges as defined in this division or in determining the maximum charges that may be made under this article.
Accordingly, Docutech is updating the configuration of our existing “upon-request” CA Automated Valuation Model Notice (Cx11978) to make it available for all loans that satisfy the following print conditions:
- State Code (2279) = California
- Document Package Type (18215) = Initial Disclosure
- California License Type (51790) = CA Finance Lenders Law OR Not Selected
- Appraisal Valuation Method (52005) = Automated Valuation Model OR Home Value Explorer (HVE) OR RELS-AVM
This document will be made generically available on July 2, 2016. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 117322