By U.S. Notary Authority — Nationwide Online Notarization & Loan Signing Services
Let’s clear this up immediately.
When you apply for a mortgage, the lender orders an appraisal.
But here’s the important part:
They cannot keep it from you.
The Appraisal Delivery Disclosure exists to make sure you receive a copy of your appraisal — whether the loan closes or not.
This isn’t courtesy.
It’s federal compliance.
And it protects borrowers more than most people realize.
Let’s break it down properly.
What Is an Appraisal Delivery Disclosure?
An Appraisal Delivery Disclosure informs borrowers that they have the right to receive a copy of:
The property appraisal
Any other written valuation developed in connection with their mortgage application
This requirement comes from the Equal Credit Opportunity Act (ECOA) and its implementing Regulation B.
In plain terms:
If a lender evaluates the value of your property to make a credit decision, you are entitled to see that valuation.
Why This Rule Exists
Before this requirement, borrowers often:
Paid for appraisals
Were denied loans
Never saw the valuation
That created information imbalance.
Lenders had the data.
Borrowers did not.
Now, federal law requires:
Automatic delivery of the appraisal
Delivery at least three business days before closing
Delivery even if the loan is denied
Transparency is mandatory.
When You Receive It
The Appraisal Delivery Disclosure typically appears early in the loan process — often within three business days of application.
It explains:
You will receive a copy of the appraisal
You do not need to request it
You may waive early delivery if you choose
Later, the appraisal itself must be delivered promptly.
The 3-Day Rule
For loans secured by a first lien on a dwelling:
The lender must provide the appraisal:
At least three business days before closing.
This gives you time to:
Review the value
Ask questions
Raise concerns
You may waive this timing requirement if you want to close sooner — but the appraisal must still be provided.
What Counts as a “Valuation”?
It’s not just the full appraisal report.
The rule applies to:
Traditional appraisals
Automated valuation models (AVMs)
Broker price opinions (in some contexts)
Any written estimate used to evaluate the property’s value
If the lender uses it to make a credit decision, you’re entitled to it.
Why This Matters for Borrowers
The appraisal impacts:
Loan approval
Loan-to-value ratio
Interest rate eligibility
Cash-out amounts
Down payment requirements
If the property appraises lower than expected:
You may need to bring more cash
The deal may need renegotiation
The loan terms may shift
Having access to the appraisal empowers you to respond.
What If the Appraisal Comes in Low?
You have options, including:
Requesting reconsideration of value
Providing comparable sales
Renegotiating purchase price (in purchase transactions)
Adjusting loan structure
But you can’t respond intelligently if you never see the valuation.
That’s why delivery is required.
What This Disclosure Does NOT Mean
Let’s clear up confusion.
It does not guarantee the value will match expectations.
It does not require the lender to change the appraisal.
It does not allow the borrower to select the appraiser.
It does not override underwriting standards.
It guarantees access to the valuation.
Not control over it.
If You’re a Borrower
When you see this disclosure:
Understand it’s there to protect you.
Review your appraisal carefully:
Confirm property details
Check comparable sales
Verify square footage
Confirm condition descriptions
If something looks inaccurate, address it promptly with your lender.
Time matters.
If You’re a Signing Agent
Your explanation should be neutral and concise:
“This is your Appraisal Delivery Disclosure. It confirms that you have the right to receive a copy of the appraisal and other written valuations related to your loan.”
No valuation analysis.
No advice on challenging the appraisal.
No market commentary.
Identify. Move forward.
The Bigger Principle
Mortgage lending relies on:
Collateral value
Risk calculation
Transparent documentation
The Appraisal Delivery Disclosure ensures borrowers are not operating in the dark.
Information symmetry protects trust.
Final Boss Summary
The Appraisal Delivery Disclosure:
Guarantees you receive your appraisal
Applies under federal lending law
Requires delivery at least three business days before closing
Applies even if the loan is denied
Promotes transparency in valuation
You pay for the appraisal.
You get to see it.
That’s not optional.
That’s regulated transparency — and it protects you before you sign.