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#2107722 - 11/17/16 03:42 PM Investor reduces appraisal amount
jmm Offline
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Joined: Mar 2015
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If an investor indicates that they do not agree with the appraisal amount and feel the value instead is a certain amount, what should be listed in the "Appraised Property Value" on the closing disclosure? My thought is the amount should match the actual appraisal not the amount the underwriter indicated.

Any input would be great.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2107723 - 11/17/16 03:44 PM Re: Investor reduces appraisal amount jmm
rlcarey Online
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rlcarey
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Galveston, TX
Then I say you have a defective appraisal and need to start over again. Most investors are subject to the same appraisal guidelines as banks - it does not involve personal opinions. What do they disagree with and why?
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#2107727 - 11/17/16 03:52 PM Re: Investor reduces appraisal amount jmm
jmm Offline
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They indicated they did not feel the property was worth what the appraisal indicated and decreased the amount that they allow for the 80%.
Ex: appraisal was $300000, but they thought it should be $290000, so we had to decrease the loan amount. It was a refinance.

I wondered if we needed to get a new appraisal, but they did not require this.

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#2107769 - 11/17/16 06:14 PM Re: Investor reduces appraisal amount jmm
tuma Offline
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Was this due to a review appraisal that was obtained? Or just that the underwriter did not feel the value was supported?

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#2107771 - 11/17/16 06:19 PM Re: Investor reduces appraisal amount jmm
jmm Offline
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The underwriter did not feel the value was supported.

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#2107773 - 11/17/16 06:24 PM Re: Investor reduces appraisal amount jmm
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,649
Galveston, TX
Then they need to kick it back to the appraiser or assign a review appraiser to it. Underwriters don't get to make this call on their own and arbitrarily reduce an appraisal value. Someone needs to go up the food chain at the investor on this one.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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