Q: When can the applicant waive the timing requirements of the ECOA Valuations Rule?
A: An applicant may waive the timing requirement of the ECOA Valuations Rule and agree to receive copies of valuations at or before consummation or account opening, except where otherwise prohibited by law.
You must get the applicant’s waiver at least three business days prior to consummation or account opening unless a clerical error is involved. (See “What happens if there is a clerical error in a valuation?” on page 21.)
The applicant can give you the waiver in writing or orally.
When an applicant has provided a waiver and you do not consummate or open the account, you must send the applicant the valuation no later than 30 days after you determine the closing will not occur.
Note that if the transaction is a higher-priced mortgage loan covered by the 2013 Appraisals for Higher-Priced Mortgage Loans Rule, then under that rule, you must provide copies of written appraisals no later than three business days before consummation. There is no waiver option for appraisals covered by that rule. See http://www.consumerfinance.gov/regulations/appraisals-for-higher-priced-mortgage-loans/for
more information about this rule.
This Q&A was located in the CFPB's ECOA Valuations Rule Small Entity Compliance Guide (which may be updated from time to time) that can be found by accessing the Bureau's Mortgage Resources webpage, which may be found here: