United States
Hong KongAppraisal rules you must know
Coercing an appraiser is prohibited under 12 CFR 1026.42. An applicant must be told within 3 business days of application that they may receive a copy, and copies must be delivered promptly or 3 business days before consummation, whichever is earlier.
Three separate rules about appraisals, from two different regulations, and all three get asked.
Appraiser independence
Coercing, bribing, intimidating or otherwise attempting to influence an appraiser to reach a particular value is prohibited under 12 CFR 1026.42.
This came out of the crisis, where pressure on appraisers to hit contract price was routine.
What is permitted is asking an appraiser to consider additional information, to correct a factual error, or to provide further detail. The line is between information and pressure.
Telling an appraiser they will not be used again unless a value comes in is prohibited even if nothing is said about the specific number. Conditioning work on outcomes is the violation.
Notice of the right to a copy
Within 3 business days of application, the applicant must be told they may receive a copy of any appraisal, under 12 CFR 1002.14(a)(2).
Same three-day count as the Loan Estimate, from the same trigger, which is why the two are easy to blur.
Delivery of the appraisal
Copies must be delivered promptly on completion, or 3 business days before consummation, whichever is earlier.
The applicant may waive the three-day timing but not the right to the copy itself.
Appraisal against inspection
| Appraisal | Home inspection | |
|---|---|---|
| For whom | The lender | The buyer |
| Purpose | Estimate market value | Assess condition |
| Required by | The lender | Nobody, it is optional |
| Who pays | Usually the borrower | The buyer |
Both are paid for by the buyer and they answer different questions. An appraisal is not a condition report and does not protect the buyer from a bad roof. Information, not pressure.
Common questions
What is appraiser independence?
A prohibition on coercing, bribing or influencing an appraiser to reach a particular value, under 12 CFR 1026.42.
When must an applicant be told about the appraisal copy?
Within 3 business days of application, under 12 CFR 1002.14(a)(2).
When must the appraisal be delivered?
Promptly on completion, or 3 business days before consummation, whichever is earlier.
Can a lender ask an appraiser to reconsider?
Yes, by providing additional information or correcting an error. Applying pressure or conditioning future work on the outcome is prohibited.
What is the difference between an appraisal and an inspection?
An appraisal estimates market value for the lender. An inspection assesses condition for the buyer and is optional.