The bank is rewriting the Appraisal Policy in order to comply with the changes with the Dodd Frank Act. An area that we are unsure of what the bank is required to do is for the loans that are under $50,000, such as Home Equity or home improvement loans. Prior to this we used the tax statement to determine the value. What does the bank do to be in compliance for these loans?

A tax statement, by itself, is not sufficient to establish a value. It could, however, be used as a supporting document for an evaluation. All loans need to have the collateral evaluated. If you aren't doing an appraisal, you should have an evaluation in the file. Among other things, your policy should outline when each method is needed. We rewrote our policy earlier this year and it was a big overhaul! A lot more detail went in there. Good luck to you.

I have done alot of research on this and it appears there is no threshold as to loan amount. ALL loans either have to have an Appraisal or an Evaluation. If you do an evaluation make sure to follow all the new evaluation content rules.

I have done alot of research on this and it appears there is no threshold as to loan amount. ALL loans either have to have an Appraisal or an Evaluation. If you do an evaluation make sure to follow all the new evaluation content rules.