I've been thru the interagency guidelines and I've searched these threads..... and I know one of you will post a link to the answer immediately, so here goes.....

We have a piece of commercial real estate that secures a commercial loan for an existing borrower. We ordered a new appraisal earlier this year as a part of a refinance. The existing customer is currently selling that property to another borrower of ours. Borrower B came in to inquire about a smaller loan to cover what he isn't paying in cash.

We could order a new appraisal, but we have one in our hands that could mean our borrowers can complete their transaction a good 2 months earlier.

Our thinking is that we could validate the use of the existing appraisal through our regular validation process. Any direction from my fellow bankers? Funny thing is that I think I would have just requested the report from the other bank if Borrower A didn't bank with us. Why does it seem so much harder with both borrowers in our portfolio?

No other considerations...no distress, workouts, etc. Just a rough time of year to get a timely appraisal report.

The appraisal is related to the property and not to a specific loan or borrower. If the re-use of the appraisal passes your internal requirements for re-use, you are good to go. I'm not sure you are going to find a specific citation. The best you could do is say, no where in the guidance regarding the re-use of an appraisal does it say it has to be a transaction for the same borrower.

Good to know I can stop reading these appraisal guidelines and move onto something else!

I agree. I thought there was a comment about that long ago, but I can't find it now.