On Page 1 of the LE, there is a place for Est. Prop. Value for transactions where there is no seller, such as in refinancing or Home Equity Loans. Is this required? Thinking of situations where there may not be an estimate available at the time this disclosure is prepared?

Yes, a value will be required, and unless you plan on disclosing an LE before you receive an "application" (which I wouldn't recommend) the customer will have given you a dollar amount you can use. See comment 37(a)(7)-1.

See 1026.37(a)(7)(ii) and it's commentary. One snip from that commentary: "The creditor may use the estimate provided by the consumer at application, or if it has performed its own estimate of the property value by the time the disclosure is provided to the consumer, use that estimate.."

From 1026.37

(7) Sale price. (i) For transactions that involve a seller, the contract sale price of the property identified in paragraph (a)(6) of this section, labeled “Sale Price.”

(ii) For transactions that do not involve a seller, the estimated value of the property identified in paragraph (a)(6), labeled “Prop. Value.”


Thinking of situations where there may not be an estimate available at the time this disclosure is prepared?

The only time this should happen would be for applications submitted on-line or by mail.

If this information is missing on an on-line or mail in app then you do not have an appl subject to the LE until that information is obtained. Review the 6 informational pieces required for an app to be an app in 1026.2.

Reviving this thread for a specific reason. The OP referred to "Est. Prop. Value" on the LE. You will find that label in the model form H-24(D). The only problem with that is that there is no such label allowed under the regulation. Unfortunately, one major LOS has adopted that label and if you are using them, you should contact them and tell them that it is not correct.

1026.37(a)(7) only allows either "Prop. Value" or "Sale Price".

38(a)(3)(vii) requires it if the creditor has not obtained an appraisal, however it is only allowed to be labeled "Estimated Prop. Value".

RL, I have seen this in LP test transactions and am assuming that is the LOS you were referencing. I do see that the regulation and the model form appear to conflict and this appears to have been an oversight from the CFPB. I wonder if they are aware of this issue and would question whether the true intent of what they wanted to require is reflected in the reg or the model form?

Based on my reading of the Closing Disclosure requirement I am under the impression that the true intent was to have it shown as "Prop. Value" on the LE and then differentiate between "Estimated Prop. Value" and "Appraised Prop. Value" on the CD.

Thanks, Randy. We've notified our vendor about the discrepancy.