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Truth in Lending: 35(c)(3)(ii) Safe Harbor.

Editor’s Note531

1. Safe harbor.532 A creditor that satisfies the safe harbor conditions in § 1026.35(c)(3)(ii)(A) through (D) complies with the appraisal requirements of § 1026.35(c)(3)(i). A creditor that does not satisfy the safe harbor conditions in § 1026.35(c)(3)(ii)(A) through (D) does not necessarily violate the appraisal requirements of § 1026.35(c)(3)(i).

Truth in Lending: 35(c)(4)(i) In General.

Editor’s Note538

1. Appraisal from a previous transaction.539 An appraisal that was previously obtained in connection with the seller’s acquisition or the financing of the seller’s acquisition of the property does not satisfy the requirements to obtain two written appraisals under § 1026.35(c)(4)(i).

Truth in Lending: 35(c)(4)(iii) Relationship to General Appraisal Requirements.

Editor’s Note547

1. Safe harbor.548 When a creditor is required to obtain an additional appraisal under § 1026(c)(4)(i), the creditor must comply with the requirements of both § 1026.35(c)(3)(i) and § 1026.35(c)(4)(ii) through (v) for that appraisal. The creditor complies with the requirements of § 1026.35(c)(3)(i) for the additional appraisal if the creditor meets the safe harbor conditions in § 1026.35(c)(3)(ii) for that appraisal.

Truth in Lending: 35(c)(4)(v) No Charge for Additional Appraisal.

Editor’s Note551

1. Fees and mark-ups.552 The creditor is prohibited from charging the consumer for the performance of one of the two appraisals required under § 1026.35(c)(4)(i), including by imposing a fee specifically for that appraisal or by marking up the interest rate or any other fees payable by the consumer in connection with the higher-priced mortgage loan.

Truth in Lending: 35(c)(5)(i) In General.

Editor’s Note565

Editor’s Note566

1. Multiple applicants.567 When two or more consumers apply for a loan subject to this section, the creditor is required to give the disclosure to only one of the consumers.

Truth in Lending: 35(c)(6)(i) In General.

Editor’s Note569

Editor’s Note570

1. Multiple applicants.571 When two or more consumers apply for a loan subject to this section, the creditor is required to give the copy of each required appraisal to only one of the consumers.

Truth in Lending: 35(c)(6)(iv) No Charge for Copy Of Appraisal.

Editor’s Note575

1. Fees and mark-ups.576 The creditor is prohibited from charging the consumer for any copy of an appraisal required to be provided under § 1026.35(c)(6)(i), including by imposing a fee specifically for a required copy of an appraisal or by marking up the interest rate or any other fees payable by the consumer in connection with the higher-priced mortgage loan.

Truth in Lending: Amendment History

[73 Fed. Reg. 44,613 (July 30, 2008); 76 Fed. Reg. 11,324 (Mar. 2, 2011); 76 Fed. Reg. 79,772 (Dec. 22, 2011); 78 Fed. Reg. 4754 (Jan. 22, 2013); 78 Fed. Reg. 10,444 (Feb. 13, 2013); 78 Fed. Reg. 30,745 (May 23, 2013); 78 Fed. Reg. 60,382 (Oct. 1, 2013); 78 Fed. Reg. 78,585 (Dec. 26, 2013); 78 Fed. Reg. 79,286 (Dec. 30, 2013); 79 Fed. Reg. 77,855 (Dec. 29, 2014); 79 Fed. Reg. 78,296 (Dec. 30, 2014); 80 Fed. Reg. 59,944 (Oct. 2, 2015); 80 Fed. Reg. 73,943 (Nov. 27, 2015); 80 Fed. Reg. 79,674 (Dec. 23, 2015); 81 Fed. Reg. 16,074 (Mar. 25, 2016); 81 Fed. Reg. 84,369 (Nov. 22, 2016); 81 Fed.

Truth in Lending: 36(d) Prohibited Payments to Loan Originators.

1. Persons covered.607 Section 1026.36(d) prohibits any person (including a creditor) from paying compensation to a loan originator in connection with a covered credit transaction, if the amount of the payment is based on a term of a transaction. For example, a person that purchases an extension of credit from the creditor after consummation may not compensate the loan originator in a manner that violates § 1026.36(d).