CFPB Mandates Free Appraisal Reports for Borrowers
January 22, 2013
Mortgage lenders will be compelled to offer free copies of home appraisals to borrowers as part of several new appraisal rules released by the Consumer Financial Protection Bureau (CFPB). The free appraisal rule, solely a CFPB effort, follows one issued earlier in the week by all six federal financial regulators on high-priced mortgages. In the bureau's independent rule, the agency allows lenders to still charge borrowers "a reasonable fee" for conducting the appraisal; however, the copies to the applicant must be provided at no charge. This includes all appraisals and any home value estimates. "This rule will guarantee consumers can receive important information on how a lender determines the value of the home," according to CFPB director Richard Cordray. "Having this information available promptly makes it easier for loan applicants to make informed decisions."
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