Mortgage Blog

New Appraisal Issues

October 1st, 2010 8:29 AM by Eric Fang

I have one borrower appraisal with the value of 360k. And the loan was 288k for 80% LTV.

But the underwriter countered the value as 350k with the new loan amount of 280k. This is the first case for me, and we had another similar case for my friend's client.

It seems like that the underwriter can "lower" the appraisal value.We are planning to fight about this now. And will let you know the status later.

Posted in:General
Posted by Eric Fang on October 1st, 2010 8:29 AM

what lender is this? AMTRUST or Provident?
Posted by Kaiyu on October 1st, 2010 10:41 AM

I can not disclose the lender in this blog. I will send you the email about this lender. Anyway, here is the updated status: we escalated this case to the senior management about this value issue. And we did not get the approval of higher value. So the underwriter has the right of lowering the value for the property according to the comps. The borrower decided to go ahead and paying down to get LTV 80%, so we will close the deal next week. Talked to one underwriter from one of the top 5 banks in usa. She told me that she did the same thing for the loans. So it seems like more common now. At least I heard from two lenders.
Posted by Eric Fang on October 2nd, 2010 8:54 PM



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