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#724717 - 05/01/07 03:19 PM Appraisal Requirement
stormie Offline
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Joined: Nov 2004
Posts: 102
According to 12 CFR 225.63 an appraisal performed by a State certified or licensed appraiser is not required if the transaction value is $250,000 or less.

We are currently in the process of underwriting a loan in the amount of $200,000 in which we will be in 2nd lien position. However, we are also in first lien position for another loan in an amount of $1 million. This loan has an appraisal but is not current.

Do we need to have another appraisal done or can we exclude it due to the transaction value? I am not sure if transaction value includes only this extension of credit or combines all extensions of credit.

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#725223 - 05/01/07 09:23 PM Re: Appraisal Requirement stormie
bannad1 Offline
New Poster
Joined: Apr 2006
Posts: 23
I'm certainly more of a student than teacher when it comes to these forums, but here's my 2 cents.

The appraisal requirements in 12 CFR 323.3 say the same thing as in 225.63, but 323.2 actually defines transaction value:

m) Transaction value means: (1) For loans or other extensions of credit, the amount of the loan or extension of credit;

It says nothing about aggregating loans, so I believe you're okay.
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bannad1, CRCM

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