When the Applicant Must Receive an Appraisal Copy

Appraisal delivery is a timing rule, not just a closing checklist. Regulation B gives applicants access to valuations early enough to review them and address errors before the transaction is completed.

The general timing rule

Under 12 CFR 1002.14(a)(1), a creditor must provide a copy of each appraisal or other written valuation promptly upon completion or three business days before consummation, whichever is earlier, for the covered first-lien dwelling applications. The requirement can apply to valuations prepared internally or by a third party.

Applicant-requested waiver

An applicant may waive the timing requirement, but not the right to receive a copy. The waiver may be oral or written and generally must be obtained at least three business days before consummation or account opening. A narrow exception allows a later waiver for a version containing only clerical changes when the prior version was already provided at least three business days before closing.

Know the scope and exceptions

Regulation B contains defined transaction coverage and exceptions, including certain temporary or open-end credit circumstances. Separate rules may apply to the type of valuation and transaction. Do not automatically apply the three-business-day rule to every mortgage-related report without checking § 1002.14 and the facts.

A practical timeline

1. Track the completion date for each appraisal or written valuation.
2. Deliver promptly once complete.
3. Confirm delivery is no later than three business days before consummation unless a valid waiver applies.
4. Retain evidence of delivery and any applicant waiver.
5. Provide later versions and revised valuations as required.

Correct timing and waiver rules

For a covered first-lien dwelling application, provide each appraisal or other written valuation promptly on completion or at least three business days before consummation for closed-end credit (or account opening for open-end credit), whichever is earlier. A waiver can change timing, but not eliminate the right to receive the copy. The waiver is not limited to a written form: the applicant may make an affirmative oral or written statement under the rule.

Ordinarily, the waiver must be obtained at least three business days before consummation or account opening. A narrow exception permits a later waiver for a revision containing only clerical changes when the earlier version was already provided at least three business days beforehand. Document the interaction and deliver the waived copy at or before consummation or account opening.

What counts as a valuation and completion

The rule covers appraisals and other written valuations developed in connection with the application, including certain internal staff valuations, automated valuation model reports, and broker price opinions. “Completion” generally occurs when the last version is received or when the creditor has reviewed and accepted it, including required corrections, whichever is later.

If the creditor receives a revised version after already giving the applicant an earlier version, the revised version must also be provided. If multiple drafts existed but no version was sent yet, the rule generally requires the latest version rather than every draft. The creditor cannot avoid delivery by calling a valuation something other than an appraisal.

Example and coverage traps

A lender receives a valuation and completes its review on Monday. The transaction will close the following Friday, leaving enough time for prompt delivery and the three-business-day cutoff; the creditor should deliver promptly rather than wait until closing. If it sends the copy by mail, delivery timing and deemed receipt rules matter.

The rule applies to covered first-lien dwelling credit whether the purpose is consumer or business. It applies even if the application is incomplete, denied, or withdrawn. Keep separate the initial written notice of the right to copies, due within three business days of application, from delivery of the valuation itself.

Delivery means receipt under defined rules

For the timing requirement, “provide” means deliver. Delivery is generally three business days after mailing or delivery to the applicant’s last-known address, or when there is evidence the applicant actually received it, whichever is earlier. Electronic delivery must meet E-SIGN consent requirements. A creditor should build transit time into its process instead of dropping the copy in the mail three days before closing.

If the transaction will not close, the applicant still must receive the valuation promptly upon completion. If a valid timing waiver applies, the creditor must provide the copy no later than 30 days after it determines the transaction will not be consummated or the account will not be opened.

Written notice and copy are separate deliverables

The creditor must provide written notice of the applicant’s right to receive appraisals within three business days after receiving a covered application. That notice does not replace delivery of each completed appraisal or valuation. Keep proof for both the notice and actual copies.

An applicant generally does not need to request the copy. The creditor’s duty applies in covered transactions even if credit is denied, incomplete, or withdrawn. For multiple applicants, providing the material to one applicant may suffice, but if the primary applicant is readily apparent, the rule directs delivery to that person.

Worked waiver examples

The borrower receives an appraisal copy four business days before closing and gives an affirmative oral waiver for a revised copy that contains only a clerical correction. The narrow late-waiver exception may permit receipt of the revised version at or before consummation. If the revision changes the value or valuation method, it is not merely clerical and the exception does not fit.

If the applicant gives a general waiver only one day before closing, outside the clerical-revision exception, the creditor may not rely on it to cure a missed three-business-day deadline. A valid waiver changes timing prospectively under the rule; it does not erase a prior violation. Record the statement and its scope.

Exam takeaway

Deliver promptly upon completion or three business days before consummation, whichever is earlier. A valid waiver changes timing, not the applicant’s right to receive the copy.