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#2211334 - 04/17/19 02:27 PM First appraisal not accepted/ordered second
HRH Okie Banker Offline
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Oklahoma
This bank ordered a valuation and the reviewer doesn't accept it. We ordered a second (upon approval of the borrower) which valuation was accepted by the reviewer. The bank went back to the first company that stands by their value and that is why the bank accepted the value. Can the bank just move on with using the value of the second appraisal and disregard the first like it never happened? What do you think?
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Lending Compliance
#2211337 - 04/17/19 02:38 PM Re: First appraisal not accepted/ordered second HRH Okie Banker
Adam Witmer Offline
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Who is the reviewer and why did they not accept it?
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2211339 - 04/17/19 02:52 PM Re: First appraisal not accepted/ordered second HRH Okie Banker
HRH Okie Banker Offline
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Oklahoma
The evaluator came in at $9,000 under sales price. At sales price, the price per square foot is $138.63. That is below the price per square foot of Resale Comp 1 and Comp 2. Resale Comp 3 is the lowest price per square foot at $112.28, but was the oldest sale and smallest property. The sold price per sq footage for the subject is between the sold price per sq foot of Resale Comp 1 and 2.
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#2211345 - 04/17/19 03:03 PM Re: First appraisal not accepted/ordered second HRH Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
I guess I am confused. Why would you need approval from the borrower. You don't plan on charging them for both do you. The evaluator is your vendor. If the evaluator did not produce an acceptable product, that has nothing to do with the borrower.
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#2211346 - 04/17/19 03:08 PM Re: First appraisal not accepted/ordered second HRH Okie Banker
HRH Okie Banker Offline
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Oklahoma
This is a commercial loan. The borrower was made aware of the issue because of the length of time it was taking to put the valuation issue to bed. The borrower agreed to pay for a new one independently ordered by the bank to get the ball rolling again.
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#2211359 - 04/17/19 03:41 PM Re: First appraisal not accepted/ordered second HRH Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
Then I am unsure of your question. If you receive an unacceptable evaluation or appraisal, your board approved appraisal and evaluation policy should outline the steps that the bank will follow when you get an unacceptable evaluation or appraisal, including whether or not you continue to carry that person/company on your approved list.

Commercial borrower or not, you plan to charge the borrower because your vendor failed you. I still do not follow that logic.
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