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#337048 - 03/22/05 05:55 PM Appraisals ordered for FNMA QC review

Our bank has a policy of always providing a customer with a copy of an appraisal ordered in connection with a mortgage loan application in accordance with ECOA. However, I don't believe that appraisals ordered in connection with FNMA QC reviews qualify for this purpose. Agree or disagree? If you disagree can you please point me to a reference to support providing one?

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Lending Compliance
#337049 - 03/22/05 09:12 PM Re: Appraisals ordered for FNMA QC review
D2Xs Offline
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Joined: Jan 2002
Posts: 2,706
If it falls under "other reports" you are not required to supply it.

202.14 Interpretation

14(c) Definitions.
1. Appraisal reports. Examples of appraisal reports are:
i. A report prepared by an appraiser (whether or not licensed or certified), including written comments and other documents submitted to the creditor in support of the appraiser's estimate or opinion of the property's value.
ii. A document prepared by the creditor's staff that assigns value to the property, if a third-party appraisal report has not been used.
iii. An internal review document reflecting that the creditor's valuation is different from a valuation in a third party's appraisal report (or different from valuations that are publicly available or valuations such as manufacturers' invoices for mobile homes).
2. Other reports. The term "appraisal report" does not cover all documents relating to the value of the applicant's property. Examples of reports not covered are:
i. Internal documents, if a third-party appraisal report was used to establish the value of the property.
ii. Governmental agency statements of appraised value.
iii. Valuations lists that are publicly available (such as published sales prices or mortgage amounts, tax assessments, and retail price ranges) and valuations such as manufacturers' invoices for mobile homes.
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