New appraisal required for side note

Posted By: Dodge

New appraisal required for side note - 10/23/12 04:30 PM

Have a loan secured by a piece of property with the value of $600,000. Our current loan is in the amount of $225,000. The borrower wants to do a small loan for $50,000 secured by the same property. Can we do a evaluation or is a new appraisal required?
Posted By: ComplianceNerd

Re: New appraisal required for side note - 10/23/12 06:32 PM

The appraisal exemption is based on the transaction value and not on the toal of liens.