As a part of several appraisal rules released last week, the Consumer Financial Protection Bureau will require mortgage lenders to release free copies of home appraisals to borrowers.
The CFPB, created under the Dodd-Frank reform law, will allow lenders to charge borrowers "a reasonable fee" for performing the appraisal, but the copies to the applicant must be free. This includes all appraisals and any home value estimates.
"Lenders typically charge applicants for an appraisal but are not required to give a copy of it to borrowers unless they request it. Under the CFPB's rule, lenders can still charge for performing the appraisal but must give copies for free," writes American Banker's Rachel Witkowski.
CFPB Director Richard Cordray stated in a release, "This rule will guarantee consumers can receive important information on how a lender determines the value of the home. Having this information available promptly makes it easier for loan applicants to make informed decisions."
For the full piece see "CFPB Mandates Free Appraisal Reports for Borrowers" (may require subscription).