We are ordering a FIRREA appraisal on a large income producing property for a million dollar loan. We are taking 3 residential properties as additional collateral. They really are not an abundance of caution since they are providing the equity for the loan. Do we also have to get appraisals on those properties or can we use evaluations.

You can use evaluations. I am trying to locate the Interagency materials on that but just can't put my finger on it. One of the guidances that weren't rescinded like the 05 FAQs?

I 'assumed' due to the dollar amount of the loan that you would need full appraisals (>$250,000.00).

Thanks Okie. I actually found what you were referring to in Appendix A of the December, 2010 guidelines. Thanks for the help.

The guidelines allow some leeway here. If you have a $500,000 loan secured by 5 properties valued at $135,000 each you are allowed to obtain evaluations. If one property is loosly valued at $275,00 and three at $125,000 you would need a full appraisal on the higher with eval on the three smaller properties. Whether to order appraisals or evals would be based on best guesstimate of what the properties are worth at the time of ordering.