When are appraisals required under 12 CFR 1002.14 and ECOA rules (e.g., 2015, 2020 updates)?

1. What triggers the appraisal/valuation disclosure: “first lien on a dwelling” and definitions

The statutory trigger is an application for credit that will be secured by a first lien on a dwelling; Regulation B adopts the ECOA statutory language and defines “dwelling” as a residential structure with one to four units, which brings typical consumer mortgage applications squarely within §1002.14’s reach ^{[2] [4]}.

2. Timing: “promptly upon completion” or three business days before consummation/account opening

A creditor must provide copies “promptly upon completion” of the appraisal or other written valuation, or at least three business days prior to consummation for closed-end credit (or account opening for open-end credit), whichever is earlier; CFPB commentary explains that “promptly upon completion” is fact-specific and that completion occurs when the creditor receives the last version or it is apparent there will be only one version ^{[2] [6] [5]}.

3. Notice and applicant rights: the three‑business‑day notice and no charge for copies

Creditors must mail or deliver a written notice of the applicant’s right to receive copies no later than the third business day after receiving the application, and they may not charge applicants for providing the required copies (though they may seek reimbursement for appraisal costs where law permits) ^{[2] [1] [7]}.

4. Scope, exceptions, and special rules (denials, withdrawals, motor vehicles, HPMLs)

The rule’s obligations apply even if the application is denied, withdrawn, or incomplete — there are no general carve-outs for adverse outcomes — but limited exceptions exist (for example, motor vehicles are excluded) and some transactions are governed by other rules: higher‑priced mortgage loans are subject to a no‑waiver rule that prevents consumers from waiving the three‑business‑day pre‑consummation delivery requirement for appraisal copies under §34.203 ^{[4] [7] [8]}.

5. Waivers, revisions, and automated valuations: tight conditions

Applicants can waive the timing requirement in many cases, but any waiver must be obtained at least three business days prior to consummation or account opening (with narrow exceptions for purely clerical revisions to previously delivered appraisals that meet strict criteria and are delivered at or prior to closing); the rule also treats automated valuation models and reused appraisals carefully — publicly available valuations alone may be excluded unless incorporated into an analysis of value, and reused appraisals must meet the rule’s conditions ^{[2] [4] [5]}.

6. Rule history and clarifications (2013–2020): implementation and CFPB factsheets

The rule flows from Dodd‑Frank amendments to ECOA and the CFPB’s 2013 Regulation B implementation; subsequent CFPB factsheets and staff guidance (including 2020 factsheets) clarified timing, the definition of terms like “application” and “credit,” and the non‑waivable aspects in certain loan classes, updating operational expectations for creditors after the 2013–2015 rollouts and later clarifications ^{[3] [4] [6]}.

7. Practical implications and limits of the reporting

In practice, lenders must embed these timing and notice requirements into loan workflows, log delivery dates, and treat appraisal copies as consumer rights even when loans fail to close; the sources reviewed document the rule text and agency interpretations but do not provide empirical enforcement statistics or litigation outcomes, so this account focuses on the regulatory obligations as written and explained by CFPB and implementing materials ^{[1] [9] [6]}.