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#1661602 - 02/07/12 05:53 PM Appraisal Question
La. Lady Offline
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La. Lady
Joined: May 2001
Posts: 1,873
Sorry, I'm asking so many questions today...My brain is in a fog and I'm doubting everything I respond to.....

I don't know the process and I'm only trying to clarify..because something just doesn't seem to add up here...


The bank engages an appraiser and that appraiser said that he didn't need to perform another appraisal because he had just completed one the week before for another institution on a particular piece of property. What happens? I thought that the proper procedures was that we would have to send a letter to the other bank requesting a copy of the appraisal. But is that what generally happens. Does that only happen if the borrower states he has had an appraisal performed the prior week?

I've already ruled stated to our employees that you can't use a readdressed appraisal. That employees can not accept an appraisal from the hands of the borrower.

One person is mentioning re-addressing and a $100 fee (in one sentence) that the appraiser is charging and wanting to know if we can we pass that fee on to the customer. When I asked what the charge was for, he said it was to get the appraisal. Again I said that we could not use a "readdressed" appraisal...This person then agreed saying that he wanted the other institution's name on the appraisal....OMG!!! I'm confused.

If we can only request it from the other bank, then what is the appraiser charging a fee for?

Have I just totally lost my marbles...


What gives here?
Last edited by Queenof--Concern; 02/07/12 05:57 PM.
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Lending Compliance
#1661623 - 02/07/12 06:17 PM Re: Appraisal Question La. Lady
Matt_B Offline
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Matt_B
Joined: Sep 2011
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A CU, Where Regs Don't Apply
It seems like you get different answers for this question from different appraisers and different financials.

I have seen it done many ways, but as the original financial purchased the report from the appraiser, it stands to reason that you cannot use it without authorization from both parties.

How we handle it is to approach the other financial and the appraiser to request the use of the report from both. Then the appraiser will re-do the report and generally charge a nominal fee (often around $100). The justfification behind this is that they are to review the report and update it for any changes or new comps available since the original completion, then note that they have previously appraised the property on the applicable date and briefly summarize any changes (or lack thereof) since the original report.

Because it is updated and reviewed, it is not simply a re-addressed report. We have been fortunate in that the very few times this has happened, it has been an appraiser that is also on our approved list. If it were an appraiser we were not familiar with, we have in our policy that we would have to obtain a new report.
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#1661659 - 02/07/12 06:57 PM Re: Appraisal Question Matt_B
La. Lady Offline
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La. Lady
Joined: May 2001
Posts: 1,873
Thanks Matt, that was very clear
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