We are looking at financing a loan for a commercial customer. The peer bank who holds the loan ordered an appraisal in September '08, for purposes of renewal which they did, and are now looking to reduce their overall exposure, so have offered our mutual customer the option to move on at no penalty.
Our commercial market has remained relatively stable in the last year, the appraisal the current bank ordered puts the loan at about 65% ltc, we are looking at straight refi, no new money, and would like the appariaser to review and reassign the 09/08 appraisal.
Someone on the higher up though feels he recalls seeing someplace, of course does not recall where, that we should not be doing this with any appraisal over 6 months old. I am digging and cannot seem to find anything along these lines.
Is anyone aware of what this senior officer may have seen?? or thoughts on this appraisal being reassigned (the appraiser is one of our commercial appraisers already).
...all the right junk in all the right places...