I have some questions about the Reg B timing rules for appraisal delivery. I am working on a couple of assumptions. First is that delivery occurs 3 business days after mailing or delivery or when evidence indicates that an applicant actually received the copies. Second, the day of closing/consummation is not included in the 3 business day cooling off period.
So my question is if we mail on Monday (Day 0) and delivery occurs on Thursday (Day 3), can we count Thursday twice, both as Day 3 of Mailing and Day 1 of Cooling? Or Would Friday be Day 1 of Cooling period?

What if the customer is in front of you at 9am on Monday and you hand them the appraisal? Can Monday count as Day 1 of cooling so that you could close on Thursday? What if they are in front of you at 2pm?

From the CFPB small entity guide:

When processing an application for a closed-end loan, you must deliver copies of appraisals and other written valuations “promptly upon completion,” or three business days before consummation, whichever is earlier. For example, if a loan will close on Friday, April 4, you must deliver the valuation no later than Tuesday, April 1.

Virtually immutable rule of counting days: When counting forward from the occurrence of an event (delivery of disclosures, for example), always assign "Day 0" to the date the triggering event occurs.

Thank you for your guidance!

I want to bring this back up as I am second guessing myself. Specifically when the appraisal is mailed. The comment 14(a)(1)-4 states that "provide" means "deliver", and "deliver" occurs 3 business days after mailing, so if you mail the appraisal today Monday 1/6, it's considered provided/delivered Thursday 1/9, and it says we have to provide/deliver it with 3 business days prior to consummation, we can't close for 3 more business days? Am I right on this? Would that make the soonest we could close 1/14?

I'm sorry if I am being dense on this, but my brain is fried.

Yes, that would be correct. (keeping in mind that the rule doesn't go into effect until January 18, but your math is correct)

Or possibly 1/13 if you elect to count Saturdays as a "Business day" per the small entity guide:

The ECOA Valuations Rule does not provide a definition of “business days” for purposes of the timing of the consumer notice and for providing copies of appraisals and other written valuations. For loans covered by the HPML Appraisal Rule, consult the Bureau’s Small Entity Compliance Guide: TILA Higher-Priced Mortgage Loans Appraisal Rule. For other loans, you can apply your own reasonable definition, which may include counting Saturdays – as provided, for example, in the alternative definition in Regulation Z, § 1026.2(a)(6).

Thank you Sinatra & bike - yes keeping in mind the rule isn't in effect yet & we we're not open on Saturdays. I don't know why I was being so dense on this.

Thanks again.

We just listened to a webinar from Mary Beth and Jack about the new appraisal guidelines. They made mention that when providing the appraisal that promptly after completion includes the review being done as well. Can someone give me the place to look that states that the review has to be done before we can mail the copy?

I think the idea behind that is if you have to go back to the appraiser because something is wrong (or they violated USPAP or something), then the copy you sent to the applicant is useless in the transaction. They only need the 'final' appraisal--the one you are using. I hope that made sense the way I explained it.

As manimal stated, you would only want to give them the last version.

Commentary to 14(a)(1) ii. The application and meaning of the "promptly upon completion" standard depends upon the facts and circumstances, including but not limited to when the creditor receives the appraisal or other written valuation, and the extent of any review or revision after the creditor receives it.

iii. "Completion" occurs when the last version is received by the creditor, or when the creditor has reviewed and accepted the appraisal or other written valuation to include any changes or corrections required, whichever is later.

Thank you for the cite, ahou. That explains it very nicely.

I am being asked if there is an appraisal delivery calendar similar to the ROR calendar some title companies provide.
I am not locating anything. I appreciate you sharing if you know of one.

Do you have a preliminary CD delivery calendar.