What's the law on getting copy of bpo's

 I have seen somewhere that bpo's are covered by the same law as  appraisals. And if the lender is given a written request have to supply a copy of the bpo. Can anyone give me the law name? is it a respa? frank-dodd? I need paticular code/law. Chase is  giving me the run around and claiming  "work product doctrine". 

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Comment by Karin Cannon on February 17, 2014 at 3:14pm

The ECOA Valuations compliance guide on page 9 section III states: "loss mitigation transactions, such as loan modifications, short sales and deed-in-lieu transactions, if they are credit transactions covered by Regulation B."

The applicant (homeowner) can request a copy of the appraisal or BPO from their lender. The lender has 3 business days to notify the applicant of the right to receive a copy of the appraisal.

Comment by Drew Ludlow on February 10, 2014 at 10:35am

Unless, of course, it is an FHA Preforeclosure sale.  The MLs specifically state that they must provide a copy upon request.

Comment by Smitty on February 10, 2014 at 9:42am

Sorry guys.  Anyone here telling you that you can get a copy of the BPO or appraisal is wrong.  If you got it, it was a fluke.  Only if the transaction falls within ECOA guidelines, will you get a copy of the short sale valuation.  I spoke to someone directly at the CFPB last week and there has to be three things that take place:
1) an application for credit
2) An extension of Credit
3) A creditor

The rules are vague and I know we all wanted them to apply to short sales but the CFPB made it clear that anything they publish on this subject is unofficial and NON-Binding as well. Fannie Mae already has a publication out that it only applies to loan mods and not short sale.  Anyone here telling you that you can get a copy of the appraisal or bpo hasn't done their homework or research.  If you have questions, call Evan White at the CFPB.  He is the attorney there who I spoke to.

Comment by Helena Kaucheck on February 7, 2014 at 10:08pm
I had a few provided by lenders when I requested last year. Haven't needed one yet this year.
Comment by Celeste ODea on February 7, 2014 at 2:09pm

Does this apply only to BPOs and appraisals that were done after January 10, or can we now ask the servicer for a copy of the BPO/Appraisal that they currently have in their file and are using to establish the value of the property?

Comment by Pat M on February 7, 2014 at 1:47pm

What type of loan is it?

Comment by Drew Ludlow on February 7, 2014 at 1:11pm

FHA/HUD Preforeclosure Short Sales: The lender is required to give the borrower (or agent) a copy of the appraisal.  I have never had a problem getting the appraisal in those cases.  All others: nada!

Comment by Brian McFedries on February 7, 2014 at 12:47pm

It will be interesting to see how this plays out. 

Comment by Andrew Coppo on February 7, 2014 at 12:44pm

Here is the language from the CFBP Regulation B as it applies to short sales: 

"With regard to the types of transactions that are covered by the final rule, the Bureau considered industry comments seeking clarification on whether loss mitigation activities, such as loan modifications, short sales, and deed-in-lieu transactions, are covered. These comments implicate provisions of ECOA and Regulation B that turn on whether there is an ‘‘applicant’’ or ‘‘application’’ for an ‘‘extension of credit.’’ 30 While some loan modifications can be subject to the provisions of Regulation B,31 including the existing § 1002.14 disclosure-upon request regime, there is variation between different types of loss mitigation programs; the particulars of the program at issue are important to understand in evaluating whether there is an application or applicant for an extension of credit within the meaning of Regulation B. Accordingly, the Bureau believes that questions on coverage of these types of transactions are best addressed with reference to the existing provisions of Regulation B.32 To the extent a loss mitigation transaction is covered by Regulation B, the transaction is covered by the final rule, including its requirement of providing copies of appraisals and other written valuations. Consumers generally will benefit from receiving information."

I've referenced the law a few times since it went into effect on 1/18/14 and have been successful in getting the BPO valuation figures. 

Andrew N. Coppo, Esq. 

Greater Boston Short Sales, LLC

Comment by Brian McFedries on February 7, 2014 at 12:42pm

The rule is vague and in general deals with loan applications. Short sales and modifications may not fall under the guideline.

here is how it reads

Lenders will be required to provide mortgage applicants
with free copies of all appraisals and other home-value
estimates under final rules officially issued on Jan. 18 by
the Consumer Financial Protection Bureau (CFPB).
Consumers are typically charged for the costs related
to conducting an appraisal; however, current law does
not require that consumers receive a copy of the appraisal
unless they request it and does not require that consumers
receive a copy of any other estimates of the home’s value.
The Dodd-Frank Act requires lenders to give consumers
a copy of each appraisal or other estimate free of charge.
However, a lender generally may still charge the consumer
a reasonable fee for the cost of conducting the appraisal
or other estimate. The CFPB’s final rule implements
these requirements.
The rule clarifies what constitutes a “valuation” for the purposes
of the disclosure requirement. The CFPB commentary clarifies
that if a creditor receives multiple versions of a particular
appraisal or other written valuation, then the creditor is required
to provide a copy of only the latest version it received.
The rule requires that creditors inform consumers within three
days of receiving an application for a loan of their right to receive
a copy of all appraisals. Creditors are then required to provide
the copies of appraisal reports and other written home-value
estimates to consumers promptly, or three days before closing,
whichever is earlier.
Like the CFPB’s proposal, the final rule scraps provisions
of the Federal Reserve’s 1993 final rule on providing appraisal
reports that exempted credit unions from certain appraisal
delivery requirements.
The new rules apply only to first-lien mortgages.
The rules go into effect on Jan. 18, 2014.



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