Entrepreneurial profit/incentive

[Russ Kitzberger]

Time goes on, reported value remains static while inflation widens the gap, creating increasing underinsurance exposure.
Borrower makes improvements without reporting increased values to agent, further increasing the underinsurance exposure.

It was a bad situation when inflation was low.

Isn't it only issue for lender if it is negative amortization loan.

More evidence appraisal is for benefit of lender not borrower?

Now with construction costs increasing rapidly, the aggregate underinsurance exposure is getting uglier by the day.

As a value diminution expert witness; I agree, I see this being an issue in the future.

 

[PNW RE]

Sweet verbiage.

Feel free to use it as needed