Banks, Examiners, Appraisers, Updates THINK in-house NOT fannie mae or secondary market, but even there the implication is the lender, if a regulated bank, is in the hot seat over this issue. What next? I have alluded to problems with Examiners telling bankers that they need to have "updates" of appraisals done when a loan is renewed, and telling those bankers that their appraisers can do something much shorter than an appraisal (and do so competitively with bank evaluations). They argue that you can just do a few comparable sales and update the value from an older appraisal. Today, local appraisers for a bank were asked to meet with the QC appraisal reviewers of the bank. About 12-15 appraisers were there. They were not talking about appraisals but rather how to ‘update’ an existing appraisal which might be 6 mo. - 2 years old. They are doing so under pressure from the FDIC / State bank examiners. The form they held out as the ‘correct’ form was alamode’s Update Appraisal form... one page, no certs, and they asked only to support our value with a minimum of a single comparable....They read AO-3 btw, a whole lot differently than most appraisers here would do. We pointed out that none of us was comfortable gauging whether the market was up or down based solely on one sale...nor was anyone happy about the implication that a single page was adequate for a report even if attached to a prior appraisal. The bank doesn’t care if the value is the same or higher. They don’t need that value. BUT to calculate a new LTV (loan to value) IF the value is less than the original report, they have a problem. The value drop has to be small enough that the LTV is still adequate, no problem and no big expense to the borrower. But if it is lower, and most of the properties will be lower, much lower could trigger a full blown appraisal. The real problem is the frequency (annual that the Examiners want) and cost...especially for commercial properties. The bank’s concern, particularly on commercial and large properties, is not sticking their customer with full appraisal fees annually or bi-annually. They want a short form...read cheap. The meeting stirred quite a hornets nest and they withdrew the proposal to have a Update form and a single comp for residential property. But the issue of land, agri, and commercial remained unresolved. However, a couple of well respected appraisers did say they were providing restricted reports to a "limited scope" [at this point, my tongue was already bloodied and too swollen to even groan] for all but the most complex properties. I give up. How can you provides such a service? Is someone teaching a step by step course on how to "update" a report without calling it an update, using much less data, arriving at a value estimate, and doing so for say 25% of the original fee? Just shoot me. 95% of the properties appraised in 2007 will be lower this year. That triggers at a minimum that we get enough data to support a lowering of the value and write a compliant report...It is more wordsmithing and how can it take less time and be cheaper? The moderator noted that they got negative feedback on this and "updates were from $75 - $350 so $350 ones were unacceptable and they quit using those appraisers!