(a) A licensee may collect a fee for use of an automated valuation model result prepared by a third party not to exceed the actual cost paid to the third party for a written automated valuation model result in lieu of the appraisal provided for in section 852. The borrower may not be charged for both an automated valuation model result and an appraisal as defined in section 852 for the same property in a single transaction. Only one fee for providing an automated valuation model result or an appraisal for the same real property may be collected unless the borrower has obtained a new or additional loan and more than one year has elapsed since the prior delivery of an automated valuation model result or an appraisal. However, if a fee for an automated valuation model result has been paid, an appraisal fee minus the amount that has been paid by the borrower for the automated valuation model result may be charged for an appraisal for the same real property within one year if the borrower has obtained a new or additional loan. The fee is not included in charges as defined in this chapter or in determining the maximum charges that may be made under this chapter.
(b) A licensee in a loan transaction secured by real property must provide notice as described in this section to a borrower of the borrower’s right to receive a copy of the automated valuation model result, if the borrower has paid the fee for the automated valuation model result. A borrower’s written request for a copy of an automated valuation model result must be received by the licensee no later than 90 days after the licensee has provided notice of the action taken on the application, including a notice of incompleteness, or the application has been withdrawn.
(c) The licensee shall mail or deliver a copy of an automated valuation model result no later than 15 days after receiving a written request from the borrower, or no later than 15 days after receiving the automated valuation model result, whichever occurs later.
(d) If the loan is proposed to be secured by real property, the notice of the borrower’s right to a copy of the automated valuation model result must be given in at least 10-point boldface type, as a separate document in a form that the borrower may retain, and not later than 15 days after the licensee receives the written application. The notice must include an address to which the request must be sent and specify that the borrower’s request for the automated valuation model result must be in writing and must be received by the licensee not later than 90 days after the licensee provides notice of the action taken on the application or a notice of incompleteness, or in the case of a withdrawn application, 90 days after the withdrawal. The notice must also include the following statement: “An automated valuation model is not an appraisal. It is a computerized property valuation system that is used to derive a property value.” Release of the automated valuation model result to the borrower may be conditioned upon payment of the fee.
(e) This section does not apply to automated valuation model results obtained by licensees on property owned by the licensee, nor to automated valuation model results obtained by the licensee in anticipation of modifying any existing loan agreement if the licensee does not charge for the use of the automated valuation model result.
(f) For purposes of this section, an “automated valuation model” is a computerized property valuation system that is used to derive a real property value.
(g) Nothing in this section authorizes the use of an automated valuation model result instead of an appraisal that is required under territorial or federal law.