“One misguided CFPB regulation is ‘for the best interest of the consumer’ is the 3-day appraisal rule.”, Mortgage Industry Newsletter

Excerpt from August 2014 Mortgage Industry Newsletter:

“One misguided CFPB regulation is ‘for the best interest of the consumer’ is the 3-day appraisal rule. I have client traveling out of state. When they left we were just getting loan approval and the final u/w (underwriting) condition was for the appraiser to correct the spelling of the HOA (HomeOwners’ Association). This triggered the 3 day rule and my client had to sign the acknowledgment of receiving the revised appraisal. It took us 3 days for client to get to a place where they could receive the document, sign it and send it back. This means from the appraisal correction received by the u/w (underwriter) to getting the signed acknowledgment back from the client to the end of the 3 day rule added six days to our process, and caused a (mortgage interest rate) lock extension—one that we could charge to the client making the rule not a benefit to the consumer but a detriment and financial liability.”

Posted on August 4, 2014, in Postings. Bookmark the permalink. Leave a comment.

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