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#1192228 - 05/28/09 10:38 PM Letter Appraisal
tjbanker Offline
Gold Star
Joined: Jun 2002
Posts: 310
I am reviewing a loan file for a loan greater than $250,000. Does an appraisal letter (two pages) suffice with the USPAP standards? It appears to be a shortened version of an appraisal stating what the subject property consists of, two comparables and what the estimated value is. My question is, is this sufficient? It is on bare land. Any help is appreciated. Thank you.

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#1192262 - 05/29/09 02:12 AM Re: Letter Appraisal tjbanker
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,643
Galveston, TX
Not knowing what type of report was ordered (there are three types), I would suggest you review the report content requirements of the USPAP:

http://commerce.appraisalfoundation.org/html/USPAP2008/USPAP_folder/standards/Standards_Rule_2_2.htm
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#1192974 - 05/29/09 07:22 PM Re: Letter Appraisal tjbanker
Frodo2 Offline
100 Club
Joined: Aug 2004
Posts: 168
Missouri
It doesn't sound like what you have ( a two page letter) would be sufficient to meet the regulatory requirments for appraisal content. SR 94-55 from the Federal Reserve contains the following statement: (note-It may be somewhat outdated but it does provide some guidance on the regulatory thinking in terms of what is sufficient support to constitute an appraisal).

"The Restricted Report provides a capsulized report with the supporting details maintained in the appraiser's files.

The agencies believe that the Restricted Report format will not be appropriate to underwrite a significant number of federally related transactions due to the lack of sufficient supporting information and analysis in the appraisal report. However, it might be appropriate to use this type of appraisal report for ongoing collateral monitoring of an institution's real estate transactions and under other circumstances when an institution's program requires an evaluation."
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