Our Mortgage business line ordered an appraisal for a jumbo loan and the value came in lower than expected. The seller is asking for a second appraisal. The business line indicated that it is common practice to order a second appraisal for jumbo loans. Because they already mentioned the value of the appraisal, what other reason would they order a second appraisal if not to value shop? Validate the accuracy of the first appraisal? Don't they have to dispute the value of the original appraiser first?

In addition, they are asking if they can charge the borrower for the second appraisal. Thoughts?

Any help shedding some light on appraisal practices with jumbo loans would be greatly appreciated.

Thanks!

For those instances that multiple appraisals are required, you always have to use the lower value. Especially if you have no reason the question the first one, except that the seller is unhappy. That act alone has jeopardized any independence at this point regarding the second appraisal.

Charing the borrower for both appraisals - not on your life.

Thanks Randy!