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#2111056 - 12/15/16 08:55 PM Appraisal Required for 2nd lien?
CSB98 Offline
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Joined: Dec 2003
Posts: 1,337
Wisconsin
If a borrower has a 1st lien for $200,000 (no appraisal ordered, evaluation done), and then comes in for a 2nd lien of $75,000, is an appraisal now required because the aggregate is over $250,000? Or is it based on the transaction amount for that specific loan that determines whether an appraisal is required? I can't find anything in the regs that points to this scenario specifically.

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#2111062 - 12/15/16 09:02 PM Re: Appraisal Required for 2nd lien? CSB98
#Just Jay Offline
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#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
In the situation you describe, transaction amount.
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#2111068 - 12/15/16 09:10 PM Re: Appraisal Required for 2nd lien? CSB98
CSB98 Offline
Diamond Poster
Joined: Dec 2003
Posts: 1,337
Wisconsin
Is there a different situation where it would be based on the aggregate?

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#2111070 - 12/15/16 09:22 PM Re: Appraisal Required for 2nd lien? CSB98
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
Not on the aggregate, but there is a situation where if you had multiple properties securing one loan, then the determination between an evaluation or an appraisal for each property is determined by the value of the property. This is usually in a commercial situation.

In most cases for most of us, the transaction value will be the driver.
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