Final answer:
The false statement about appraisal and valuation requirements is that both consumer and commercial applicants must be notified in writing of their right to a copy of appraisals. Regulation B of the ECOA applies to consumer credit, not commercial credit, meaning the right to appraisals does not extend to commercial applicants.
Step-by-step explanation:
The statement that is false regarding the requirements for appraisal and other valuations is: You must notify both consumer and commercial applicants in writing of their right to receive a copy of appraisals. The regulation commonly referred to as the Equal Credit Opportunity Act (ECOA), and its implementing regulation, Regulation B, applies to consumer credit and not directly to commercial applicants. Therefore, commercial applicants are not typically entitled under this regulation to receive a copy of appraisals.
Specifically, the regulation requires that:
- Applicants must automatically be provided with a copy of all appraisals and other written valuations.
- Applicants must be notified of their right to receive a copy of appraisals for credit that is to be secured by a subordinate lien on a dwelling.
- Applicants must be notified of their right to receive a copy of appraisals within three business days after receiving an application.
However, these requirements do not extend to notifying commercial applicants. This is a critical distinction as it affects the rights of different types of credit customers.