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#2186410 - 07/23/18 02:32 PM loan disbursed
Compliance Action Subscriber 1226 Online
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We disbursed a loan 5 days ago on 65 acres, we had a verbal appraisal for the land. When the written appraisal came back, we found there is a barn on one of the parcels. We have now done a flood determination, but what would be our options for this loan as the funds have been disbursed without us knowing about the barn.

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#2186417 - 07/23/18 02:52 PM Re: loan disbursed Compliance Action Subscriber 1226
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,649
Galveston, TX
Options? - You mean besides paying the flood CMP if the building is in a flood zone? Verbal appraisal, what it that? Without an written appraisal or evaluation in your hand, you have a safety and soundness violation. There are some serious breakdowns in policy and procedure here that need to be corrected.
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#2186426 - 07/23/18 03:17 PM Re: loan disbursed Compliance Action Subscriber 1226
Compliance Action Subscriber 1226 Online
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Joined: Sep 2015
Posts: 151
Agree with what you have said. But, should we do a refinance on the loan, so we can include the barn? The land has appraised out at over half a mil, and the loan is only for $130,000. Or do a release on the parcel that has the barn on it?

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#2186433 - 07/23/18 03:33 PM Re: loan disbursed Compliance Action Subscriber 1226
Rocky P Online
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Florida
That would appear to be a bank decision, based on policy and risk.
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#2186436 - 07/23/18 03:39 PM Re: loan disbursed Compliance Action Subscriber 1226
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,649
Galveston, TX
I am confused, why do you care if there is a barn? Or are you saying it is in a flood zone? If it is, get insurance or force place or release - bank decision.
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