Appraisal Change – Counteroffer Letter Required?
Answer by Dan Persfull, BOL Guru Guru Bio
Question: A consumer real estate loan was approved based on estimated value of the property. The appraisal came back with a lower value and, as a result, the loan amount changed. Does this situation require a counteroffer letter to be issued?
Answer: If the applicant accepts the verbal counteroffer, the loan is consummated, there is no requirement for a written counteroffer. If the applicant rejects the counteroffer, then you need to send the applicant an adverse action notice with the specific reason why the request was not approved for the terms applied.
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