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#2077838 - 05/10/16 03:46 PM Appraisal
Joanna Offline
100 Club
Joined: Sep 2013
Posts: 102
A consumer went to another FI three months ago and received an appraisal for land and construction of a home. They have come to us to borrow strictly on the land. They did not build. Can we use the FI appraisal to pull just the land part for our loan or do we need a new appraisal?

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General Discussion
#2077876 - 05/10/16 05:10 PM Re: Appraisal Joanna
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Don't hate me - - - but I think it depends. Our policy would allow us to use an appraisal from another FI under certain circumstances. Gotta get it from the other bank, see how they ordered it, contact the appraiser so we can be an intended user, etc, etc. Then we'd have to validate the use of it as time has gone by. That is, is the value still the same now as it was three months ago? For us, policy requires completion of a form. And then.... finally .... review the appraisal report to make sure we are getting the value we want. Did the appraiser give us a market value of just the lot, as is, today. Sometimes they don't do that.

May be simpler to get a new valuation.

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#2077902 - 05/10/16 06:14 PM Re: Appraisal Joanna
Joanna Offline
100 Club
Joined: Sep 2013
Posts: 102
Thank you...

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#2078487 - 05/12/16 09:19 PM Re: Appraisal Cornfed Turtle
AmieeM Offline
Junior Member
Joined: Jan 2016
Posts: 32
I have a similar question. Our borrower did the construction loan at a bank, should be getting the completion appraisal in about a month, they want to do the refi at my organization. Can we use that appraisal to save them money so they don't need to order a new one with us? Would we treat that like a transferred appraisal?

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#2078513 - 05/13/16 12:55 PM Re: Appraisal AmieeM
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
And I'll have to give you a similar answer, MTI! smile Our policy allows it, but make sure yours does. Gotta get it from the other bank or the appraiser. The customer can't walk in with it. See how it was ordered and make sure it fits with what your bank needs. If the engagement letter isn't in the appraisal report, ask the other bank. Since the appraisal is still in process, now would be the time to make sure the appraisal report will be what you need. Trust me....I've gotten appraisals from other banks and just had to shake my head. You don't want to wait a month to find out the other bank didn't order the value that you need!

Contact the appraiser and have the intended user section updated so that your bank can use the report. That may require a letter of assignment from the first bank. When we call to get the engagement letter, we usually get an assignment letter, too. Saves a second call after you've talked to the appraiser.

When you get the report, send it through your regular channels.

This feels like too much info....hope it helps without overwhelming.

And welcome to BOL!

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#2078520 - 05/13/16 01:19 PM Re: Appraisal Cornfed Turtle
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,323
Galveston, TX
I just have a couple of comments:

You don't want to wait a month to find out the other bank didn't order the value that you need!

If the other bank is ordering a value, you have big problems.


Contact the appraiser and have the intended user section updated so that your bank can use the report.


If appraisers are doing this, then they are in violation of USPAP. They can't add you if they were engaged by the other bank. They can't even talk to you about the engagement.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2078598 - 05/13/16 05:01 PM Re: Appraisal rlcarey
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Oh, Randy....I didn't mean value as in dollar amount....I meant value as in what type of value of are you getting back. Is it a current market value, as is, real estate only, etc? I'm always amazed at what other banks order that won't meet our lending needs. Better to look at that engagement letter now to make sure you are getting what you would have ordered for a your loan.

Sorry to both posters above if I confused the question/answer.

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#2078609 - 05/13/16 05:25 PM Re: Appraisal Cornfed Turtle
AmieeM Offline
Junior Member
Joined: Jan 2016
Posts: 32
Thank you! I wasn't sure if there would be an issue, but as long as we follow our transfer policy I think we will be okay.

thanks for welcoming me too smile I am finding this site to be a very useful tool.

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