Our real
estate department utilizes the appraisal report to
assist in the determination of the property value.
However, MortgageMac Real Estate Analysts arrive at a
valuation based on their review of the appraisal report
and it is the MortgageMac valuation that is utilized to
compute the LTV. All appraisals are subject to review by
MortgageMac's real estate department.
Appraisal Review
In
cases where there are questions concerning the appraisal
report, the MortgageMac real estate department will
contact the appraiser for clarification. The Real Estate
Department will review existing appraisal reports that
are submitted with an application, but all new appraisal
orders should be ordered by MortgageMac or its
designated third party. MortgageMac reserves the right
to determine that a submitted appraisal is unacceptable.
Appraisal Ordering
It is
important that appraisers be engaged by MortgageMac or
its designated third party so that they are aware of
MortgageMac's appraisal requirements before the
appraisal is started. MortgageMac uses Mercury Real
Estate Services, LLC to administer its appraisal
ordering process. Appraisers will be provided with
complete details about our process and requirements via
an Engagement Letter and the current Valuation
Guidelines. An executed Engagement Letter must be
included with each new appraisal.
Appraisal Review - General Guidelines
Appraisal Formats and Contents
Appropriate formats and the required contents of each
appraisal will be provided to the appraiser via the
standard Engagement Letter and Valuation Guidelines.
Some "form" reports are acceptable for specific property
types, while Complete or Limited Summary narrative
reports are more appropriate for most property types.
Any questions regarding the format or content of a
report will be discussed with MortgageMac's real estate
department before the appraisal process begins.
Supporting Documents
The appraisal should be accompanied by appropriate
documentation (i.e. agreement of sale, rent roll,
commercial lease, etc.) as described on the Engagement
Letter and our Valuation Guidelines. The lack of
relevant documents will delay the review process.
The appraiser may request
additional information at the time of inspection,
depending on the property type. Effective Dates
The effective date of an appraisal must be within six
(6) months of the date of closing. If the effective date
is between six and nine months of the date of closing,
the appraisal may be updated by the original appraiser,
but an MortgageMac Real Estate Analyst must review the
original appraisal report before an update of that
report is authorized. If the effective date of the
appraisal is more than nine months from the date of
closing, a new appraisal is required, but may be more
limited than the original report.
The appraiser may request
additional information at the time of inspection,
depending on the property type.
Effective Dates
The effective date of an appraisal must be within six
(6) months of the date of closing. If the effective date
is between six and nine months of the date of closing,
the appraisal may be updated by the original appraiser,
but an MortgageMac Real Estate Analyst must review the
original appraisal report before an update of that
report is authorized. If the effective date of the
appraisal is more than nine months from the date of
closing, a new appraisal is required, but may be more
limited than the original report.
Selection of an
Appraiser
MortgageMac will select the appraiser for all new
assignments. Appraisers will be selected from our
database unless no coverage is available, in which case
MortgageMac will research the appropriate appraiser. The
appraiser must be General-Certified and have experience
with the type of property being analyzed. These
guidelines are described on the Engagement Letter.
Selection of an Appraiser
MortgageMac will select the appraiser for all new
assignments. Appraisers will be selected from our
database unless no coverage is available, in which case
MortgageMac will research the appropriate appraiser. The
appraiser must be General-Certified and have experience
with the type of property being analyzed. These
guidelines are described on the Engagement Letter.
For information on how
MortgageMac selects an appraiser who is appropriate for
an assignment, a broker should rely on the MortgageMac
Loan Officer or Real Estate Analyst; the Loan Officer
has constant access to the Real Estate department.
For information on how
MortgageMac selects an appraiser who is appropriate for
an assignment, a broker should rely on the MortgageMac
Loan Officer or Real Estate Analyst; the Loan Officer
has constant access to the Real Estate department.
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