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#2215386 - 06/11/19 01:21 PM New Appraisal Required
Web Offline
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Joined: May 2005
Posts: 316
we are refinancing a $700K loan amount and have a 2 year old certified appraisal. I think that regardless because we are doing a new loan we need to obtain a new certified appraisal bc the loan amount is over $500K and we can't just do an evaluation. Is this accurate?

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Lending Compliance
#2215388 - 06/11/19 01:51 PM Re: New Appraisal Required Web
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Depends on your board approved appraisal policy - what does it say about the reuse of existing appraisals.
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#2215389 - 06/11/19 01:59 PM Re: New Appraisal Required Web
Web Offline
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Joined: May 2005
Posts: 316
policy indicates an evaluation may be used in this instance.

• Business loan with a transaction value $1.0 million or less, and is not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment.

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#2215722 - 06/13/19 10:53 PM Re: New Appraisal Required Web
terpsfan Offline
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Joined: Feb 2007
Posts: 2,058
You should have a policy on how to validate existing appraisals for use on subsequent transactions. The process established should be separate of loan production.

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#2215735 - 06/14/19 01:03 PM Re: New Appraisal Required Web
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I agree with Randy & terpsfan. The policy should stipulate how your FI will validate the information in the existing appraisal is still reliable.

What you quoted above is your policy for when you will require an appraisal vs an evaluation. Not your procedures for reusing an existing appraisal.
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The opinions expressed are mine and they are not to be taken as legal advice.

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