Right now we're able to negotiate 2% of your down payment from Fannie Mae, meaning you only have to put 1% down, but you end up with 3% equity and you do not have to take a higher rate to get this credit. Only at So EZ, do we waive your Mortgage Insurance and still deliver an incredibly low rate for no cost. This will make your payment so much lower, that you will be able to afford, so much more.
Last and maybe least important, right now we are able to issue appraisal waivers on purchases in California. Meaning literally no appraisal is done. To find out if you qualify for this, apply online right now and find out.Or call Michael Hansen direct (714) 253-7868
What is Appraisal Waiver Letter
Appraisal Waiver Letter is a notice to the lender where the loan applicant waives his/her right to receive the appraisal at least three business days prior to loan consummation or account opening, whichever is earlier. Appraisal refers to appraisal report and any other written valuation that is developed in connection with a loan application that is secured by a first lien on a one to four unit residential property.
CFPB Regulation B (12 CFR 1002.14) requires a lender to deliver the appraisal or other written valuation at least three business days prior to the loan consummation or account opening, whichever is earlier. In case there is not enough time for consummation, the lender may obtain a waiver from the borrower. Appraisal Waiver Letter documents the waiver received by the lender. The waiver allows the lender to deliver the appraisal at or before consummation. The waiver is only for the timing of delivery of appraisal; it does not waive the requirement to deliver the appraisal itself.
Borrower’s Consideration
You Are Waiving Your Rights
By executing the Waiver Letter, you waive your right to receive the appraisal at least three business days prior to loan consummation. However, you will still receive the appraisal at or before consummation. You should provide a waiver for your rights only if sufficient time is not available for you to receive the appraisal and still have three days prior to closing. This generally occurs in purchase transactions where the purchase contract may expire if the transaction is not completed by a set date. In case of refinance transactions, unless you have an emergency for the money, you should consider delaying the closing date instead of providing the waiver.
Lender’s Considerations
Format and Content Requirements
Regulation B does not prescribe any format or content requirements for the waiver. Accordingly, you will have to draft your own format for the waiver letter. Our recommendation is to include:
- Loan information such as loan application number, applicants' names, property address, and other key loan information.
- A statement that the applicants understands that they have a right to receive a copy of the appraisal at least three business days prior to loan consummation or account opening, whichever is earlier.
- A statement that that the applicants are waiving their right and are willing to receive the appraisal at or before loan consummation or account opening.
- Space for the signature and date of the loan applicants.
Timing
It is important to note the date when you receive the signed waiver from the applicants. If the waiver is received three business days prior to the consummation, then the appraisal may be provided at or before consummation.
Delivery
The waiver may be received electronically through email or fax, or through postal mail.
Recordkeeping
As a best practice, you should retain a copy of the letter in the loan file for as long as the loan is open. However, to demonstrate compliance for Regulation B, you should retain a copy of the letter for at least 25 months from date of notifying an applicant of action taken. For business loans, Regulation B retention period is 12 months from the date of notifying an applicant of action taken.
Document Summary
Appraisal Waiver Letter
Purpose
Appraisal Waiver Letter is a notice to the lender where the loan applicant waives his/her right to receive the appraisal at least three business days prior to loan consummation or account opening, whichever is earlier.
Use in Mortgages
Appraisal Waiver Letter allows a lender to close the loan without waiting for three days after providing an appraisal.
Other Names
Appraisal Waiver Form
Type
Letter
Provided By
Loan applicants
Provided To
Lender
Notarization Required
No
Signed By
Loan applicants
Life Cycle Stage
Origination
Recordkeeping
For consumer loans, retain for at least 25 months from date of notifying an applicant of action taken.
Model Form
None
Applicable Laws
CFPB Regulation B, 12 CFR 1002.14
