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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)(4)(vii) Exemptions From the Additional Appraisal Requirement.
Editor’s Note560
Paragraph 35(c)(4)(vii)(C)561
1. Non-profit entity.562 For purposes of § 1026.35(c)(4)(vii)(C), a “non-profit entity” is a person with a tax exemption ruling or determination letter from the Internal Revenue Service under section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)).
Truth in Lending: 35(c)(6)(ii) Timing.
Editor’s Note572
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(b) Scope.
Editor’s Note594
Truth in Lending: 36(c) Servicing Practices.
Paragraph 36(c)(1)(i)
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).
Truth in Lending: 36(d)(2)(i) Dual Compensation.
Editor’s Note618
Truth in Lending: 36(d)(3) Affiliates.
1. For purposes of § 1026.36(d), affiliates are treated as a single “person.” The term “affiliate” is defined in § 1026.32(b)(2). For example, assume a parent company has two mortgage lending subsidiaries. Under § 1026.36(d)(1), subsidiary “A” could not pay a loan originator greater compensation for a loan with an interest rate of 8 percent than it would pay for a loan with an interest rate of 7 percent. If the loan originator may deliver loans to both subsidiaries, they must compensate the loan originator in the same manner.