n this given market, how old is considered "too old" of an appraisal to be relying on for subsequent loans?
In our area an appraisal 12 to 18 months would still have a fairly accurate value.
In certain areas of Northern IN a day old appraisal could very well be outdated.
What type of documentation is required? Just a memo in the file or should an appraisal review checklist be completed
A note to the file is not sufficient. How did you determine the market value has not decreased, how did you determine the building's condition has not deteriorated?
An exert from the interagency guidelines.The documentation in the credit file should provide the facts and analysis to support the institutionís conclusion that the existing appraisal or evaluation may be used in the subsequent transaction. A new appraisal or evaluation is necessary if the originally reported market value has changed due to factors such as: