Industry NewsMortgage

Lenders get appraisal smart

Experts urge clarity on type of report, who will see it

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SAN FRANCISCO – Ordering an appraisal? You can limit your liability if you know exactly what to ask for and you explain clearly who will see it. That was an important lesson 130 mortgage brokers and lenders learned Thursday from a session on appraisals at the California Mortgage Association's spring seminar, which continues today. During "Appraisals: What you know vs. what you need to know," Paul Chandler, founder of Property Sciences Appraisal Group, and Mitchell Feinstein, chairman of the board of Budget National Finance, focused primarily on commercial property appraisals, but the ideas they presented applied to residential real estate lending as well. Chandler and Feinstein urged attendees to know the different types of appraisals that are available and to make sure they order the correct one. They also should state clearly in an appraiser's retention letter how the appraisal will be used and everyone who may see it. For example, if the lender plans to fund the loan initiall...