The 2010 InterAgency Appraisal and Evaluation Guidelines allow evaluations in lieu of an appraisal in the following situations:
- A transaction value equal to or less than the appraisal threshold of $250,000
- A business loan with a transaction value equal to or less than the business loan threshold of $1 million, and is not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment.
- Involves an existing extension of credit at the lending institution, provided that:
- There has been no obvious and material change in market conditions or physical aspects of the property that threaten the adequacy of the institution’s real estate collateral protection after the transaction, even with the advancement of new monies; or
- There is no advancement of new monies other than funds necessary to cover reasonable closing costs.
- Other: See Federal Register Vol. 75., No. 237, pgs. 77465-77468
If you are unsure if a loan file would qualify under the appraisal exemption, please contact TrueValuation USA for a free consultation.
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