Our bank is establishing Appraisal Procedures regarding selecting the appraiser, ordering the appraisal, and reviewing the appraisal, etc. Would anyone be willing to share their procedures as a guide for us?

Thank you!

I don't mind to share ours, although it is on a very large scale (centralized lending process across 7 states)

-We have an approved appraisers list, in other words, underwriting will not order or consider an appraisal unless it is from one of our "approved appraisers"

-An appraisal can be used as long as it is within 12 months from the appraisal and is from one of our approved appraisers, even if the appraisal was not done for XYZ bank.

-The loan processor simply orders (by calling or emailing) the appraisal and lets the appraiser know the specifics of the job, the appraiser will then accept the order or reject the order.

-Once the appraisal is in the u/w will review it and proceed accordingly.

This is quite simple but does this help?

I hope so!

Absolutely!

Thank you!

Squirrel - your bank covers 7 states and you haven't been told you need to have an appraisal engagement and review function outside the lending arena? I can't imagine a regulator not having a hissy-fit over that!! Even if your under the radar on that, if the lender is engaging the appraiser s/he needs to be using a rotation to ensure appraiser independence, and if the underwriter is reviewing, s/he cannot have a 'vote' on the credit decision.

Appraier Lady, you assume too much.

There is an appraisal engagement and review outside the lending arena.

Who said a rotation wasn't used?

The u/w reviews the appraisal in conjunction with the loan conditions that are set forth by underwriting, ie. the value is sufficient for the amount requested, the LTV is adjusted based on the final value etc.

The original questions asked for procedures, my answer was not all inclusive.

Thanks.

My apologies...did I wrongly assume you were a FRFI?

When I get the chance I do indeed....Fight Racism Fight Imperialism

FRFI all the way around babe!