What is a core requirement of the ECOA Valuations Rule regarding appraisals?

The core requirement of the ECOA Valuations Rule regarding appraisals is to notify borrowers about their right to a copy of appraisals. Under the Equal Credit Opportunity Act (ECOA), lenders must communicate with borrowers transparently, ensuring that they are aware of their rights, particularly regarding the valuation process. This requirement is designed to enhance consumer protection, promoting trust and accountability in lending practices. It empowers borrowers by informing them that they are entitled to receive copies of appraisals used in the underwriting process, ensuring they have full access to information that may impact their loan decisions.

By making borrowers aware of their rights to receive appraisals, lenders can foster a more informed consumer base. This also serves to limit potential discrimination by ensuring all borrowers are treated equitably regarding access to their appraisal information.