There’s a misconception out there among some lenders that the Regulation B appraisal requirements do not apply to business purpose applications. This is not true. Regulation B applies to both consumer and commercial credit. While there is no exemption based on a loan’s “purpose”, the collateral does matter. Specifically, the appraisal rules apply to …an application for credit that is to be secured by a first lien on a dwelling. An application to buy a 1-4 family rental home is a perfect example of when the appraisal requirements would apply. Similarly, a loan for business operating expenses that will be secured by a first lien on the borrower’s primary dwelling would also fall under the requirements.
Jerod explains more in the video.
Published
2025/07/23
