Q: What happens if there is a clerical error in a valuation?
A: To avoid interrupting transactions at the last minute, when a clerical correction is made in an appraisal or other written valuation that you have already given the applicant, you can have the applicant waive the right to receive the revision three business days before consummation or account opening. As noted above, the waiver can be oral or written.
To use this exemption, you must meet five criteria:
1. The revisions must be solely to correct clerical errors in that appraisal or other written valuation.
2. The revisions must have no impact on the estimated value.
3. The revisions must have no impact on the calculation or methodology used to derive the estimate.
4. The applicant receives the revised appraisal or other written valuation at or prior to consummation or account opening.
5. The applicant must have already received the valuation that is being corrected (pre-correction) either promptly upon completion or three business days before consummation or account opening, whichever is earlier.
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: