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#2262486 - 11/15/21 04:50 PM Evaluation or Appraisal
Nicole Offline
100 Club
Joined: Nov 2018
Posts: 127
Hello,

iI we have a small dollar amount loan request to purchase a rental property, can we do an evaluation or do we have to get an appraisal?

Thank you!

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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#2262503 - 11/15/21 06:52 PM Re: Evaluation or Appraisal Nicole
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,618
Galveston, TX
If it is under the interagency threshold for requiring an appraisal, an evaluation is fine. Your institution should already have extensive board approved appraisal and evaluation policies addressing this,
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#2262506 - 11/15/21 07:10 PM Re: Evaluation or Appraisal Nicole
Nicole Offline
100 Club
Joined: Nov 2018
Posts: 127
we normally would require and appraisal on all new loans, however with the timeframe these appraisal are taking we are thinking of changing our policies to allow evaluations under a certain threshold. Thank you!

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#2262856 - 11/23/21 09:45 PM Re: Evaluation or Appraisal Nicole
Oursisnottoreasonwhy Offline
Gold Star
Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 488
Central Illinois
Have you compared the definitions of Appraisal and Evaluation...in my opinion they are nearly identical as to what is required to come up with a value.

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