We agree with your analysis, but with the proviso that for higher-priced mortgage loans, a different definition of “business day” will apply which may require a different mailing date.

Based on the ECOA appraisal regulation and staff commentary, if you are mailing an appraisal to a borrower, it must be placed in the mail six business days before the loan closing. The rules state that you must provide a copy of the appraisal or valuation “promptly upon completion, or three business days prior to consummation of the transaction (for closed-end credit) or account opening (for open-end credit), whichever is earlier.” 12 CFR 1002.14(a)(1). To that three-day period, you must add another three business days if mailing the appraisal — the staff commentary states that if you are mailing the copy of the appraisal, you can assume that it will be provided to the borrower “three business days after mailing or delivering the copies to the last-known address of the applicant.”  Official Interpretations, 12 CFR 1002.14, Paragraph 14(a)(1), Comment 4(i).

The hiccup in interpreting this rule is the lack of a definition of “business day,” as the CFPB points out in its Small Entity Compliance Guide for the rule (on page 15). The guide states that you may use any reasonable definition of “business day,” including the Regulation Z definition of “business day” that includes Saturdays (which is one of several definitions of “business day” that could apply under Regulation Z):

The ECOA Valuations Rule does not provide a definition of ‘business days’ for purposes of the timing of the consumer notice and for providing copies of appraisals and other written valuations.

For loans covered by the HPML Appraisal Rule, consult the Bureau’s Small Entity Compliance Guide: TILA Higher-Priced Mortgage Loans Appraisal Rule.

For other loans, you can apply your own reasonable definition, which may include counting Saturdays — as provided, for example, in the alternative definition in Regulation Z, § 1026.2(a)(6).

Consequently, we agree that if a loan is closing on a Friday, April 4, the appraisal should be placed in the mail by Friday, March 28.

However, if the loan is a higher-priced mortgage loan (HPML), then the delivery requirements in Regulation Z will instead apply (as explained in the Small Entity Compliance Guide for the HPML appraisal requirements (page 15)). Under the HPML requirements, a “business day” is defined as a day when “the creditor’s offices are open to the public for carrying on substantially all of its business functions.” 12 CFR 1026.2(a)(6). If your institution is not open to the public on Saturdays, that would require you to mail a HPML appraisal on an earlier date.