Can a committee of the bank, such as a loan committee or appraisal review committee (which is made up of lenders and credit analysts) change the value of an appraisal? This seems to me like it would diminish the purpose of the appraisal, but the argument in favor is there are no comparables for an appraiser to use so they want to calculate the value based on sales within the development. This just seems like a no-no to me. What do you think?

If the loan falls below the $250M limit, I suppose they could use the value of a well-supported internal evaluation.

Otherwise, I would say no. If they do not agree with the appraiser, another appraisal needs to be ordered.

I think they are violating the spirit of the independence of the appraisal from the approval process. Don't like the value the appraiser arrived at? Make one up! Because that is exactly what they are doing, making it up to suit their expectations.

I agree. Would it make a difference if this had to do with the amount to allot for ALL?

Is this an impaired loan?

Yes.

Then the appraisal on file should be final. Or order a new one from a different appraiser?