Define: Transaction Value?

[Em Tee]

Here's what my state says about transaction value:

First, transaction value limits pertain only to federally related transactions, that is those transactions involving the Office of Thrift Supervision, Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Controller of the Currency, and the National Credit Union Administration. These organizations regulate most lending institutions.
Second, the transaction value varies from assignment to assignment depending on the intended use of the appraisal. In most assignments, the transaction value is the loan amount, but not always. For example, if the assignment involves estimating the value of a foreclosed property, the transaction value is the market value.

We recommend that appraisers subject to limits imposed by their license level expand on their intended use statement when the appraisal is to be used in a federally related transaction. The statement should qualify the limitation of the transaction value (e.g., the intended use is not for loan amounts, or extensions of credit, of a million dollars or more).

 

[The Warrior Monk]

Ah, but if the loan amont were not known on a refinance or home equity appraisal, which is often the case, it remains a licensed appraiser's call whether or not to accept the assignment. Often times the loan amount will be determined based on the outcome of the appraisal.

If there is any question as to whether the assignment will fall under the scope of practice of one's license, then the appraiser must discuss the situation with the client, and must have this point clarified. What ifs and assumptions will not suffice.

 

[Fred]

Steven, I do not know who you are refering to, and no appraisal question is ever 'ignorant' to me.

No. Your Zaio colleague did not say questions were ignorant. He said people who post here are ignorant and he posted that I personally am ignorant. If you don't know who that is, and that person has created some bad will for you, then you might consider figuring out who that is for yourself.

 

[Michael Tipton]

Transaction value is defined as the amount of the loan or extension of credit under consideration. For a pool of loans or a mortgage-backed security, the transaction value is the amount of each individual loan. In determining transaction value, the senior and junior debt are considered separate transactions under the appraisal rule. However, a series of related transactions will be considered one transaction if it appears that an institution is attempting to avoid the appraisal requirement by structuring the transactions below the appraisal threshold.






2231.0.2 TRANSACTIONS NOT REQUIRING THE SERVICES OF A

LICENSED OR CERTIFIED APPRAISER - footnote 4.​