C-001 Appraisal Risk Review
Appraisal Risk Review
FLCBank is issuing this bulletin to stress the importance of properly addressing and documenting the lender’s determination of acceptable collateral (appraisal report). Care should be exercised when reviewing appraisals to evaluate the comparable sale selection, and the appraisal adjustments and confirm data integrity by utilizing Collateral Underwriter (CU) or other third-party property tools.
Effective immediately, FLCBank is implementing the following requirements when the SSRs denote a CU risk score ≥ 4 and/or an overvaluation flag is noted, in an effort to prevent delays during the pre-purchase loan review:
- The Uniform Underwriting and Transmittal Summary Form 1008 must include commentary addressing the underwriter’s rationale for the reconciliation of value being supported, and
- A CDA-Desk Review supporting the conclusion of value.