CUES Member Community

  • 1.  AVMs/Appraisals

    Posted 22 days ago

    We have a process where we order an AVM and then either use it for a home equity or then order an appraisal which is the valuation used for the application. Our practice has been to release a copy of the appraisal to the member but not the AVM since we didn't use it for the valuation part of the underwriting. We also have then been disclosing just the appraisal cost if we didn't use the AVM value for underwriting.

    Further research seems to indicate both valuations should be release to the borrower since they were both "developed" as part of the application review and both fees should be disclosed.

    I'm checking to see if others have this same situation and handle it as I described in the second paragraph or differently. This presents several challenges such as:
    Can we manage this in our loan origination system?
    Timing of the release to borrower as we are now potentially sending valuations out twice.
    Explaining to an applicant why one value is being used and not the other. For example, the AVM could be a higher value.

    Thanks!

     

    Roger H. Cooper

    Home Equity Lending Manager

    SEFCU

    700 Patroon Creek Blvd.

    Albany, NY 12205

    rcooper@sefcu.com

    518-464-5393

    518-464-5272

     

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