What type of loan is included in the scope for Reg B's appraisal delivery requirements?

Regulation B establishes the rules and requirements regarding the Equal Credit Opportunity Act (ECOA), which aims to promote fair lending practices. One key aspect of Regulation B pertains to appraisal delivery requirements, which specifically apply to loans secured by residential dwellings.

First lien loans secured by a dwelling are included in the scope of these appraisal delivery requirements because they typically involve significant sums of money and carry a higher degree of risk for lenders. These requirements ensure that the client receives an appraisal report that reflects the true market value of the property, promoting transparency and fairness in the lending process.

Contrarily, unsecured loans, subordinate lien loans, and personal loans not secured by a dwelling do not trigger the same appraisal delivery requirements under Regulation B because they lack the same level of security provided by a dwelling. This distinction is critical, as it emphasizes the necessity of rigorous appraisal standards in the context of loans where the lender's financial stake is directly linked to the value of the underlying property.