Home Equity Line of Credit Appraisal

[scooper74]

Do any other appraisers have clients that need appraisals for home equity lines of credit? The appraisal requests go through an AMC for a bank. They are not refinance transactions, but lines of credit based on the appraisal. The borrowers are adding pools and paying off credit cards... I have not encountered this before and hope I am compliant with USPAP. On the URAR other is marked for transaction type and collateral assessment is added. Please let me know if any other appraisers have seen this. Thank you.

 

[Doug Meyer]

We do home equity appraisals for a credit union. Evry 5-7 years the homeowner has to renew their line of credit and an appraisal is ordered. We do not work through an AMC on this. You would need to know what the SOW is and of course what type of form is permissable with the lender. Some want 1004s, while in my case the CU want the older desktop underwriter quantitative analysis appraisal report. form 2055 9/96.

 

[incognito]

Other than properly identifying the intended use, it is just another mortgage related transaction. A 1004 form report is acceptable. Absolutely nothing unusual or different here. Just do it and get on.

 

[AnonApprsr]

Seen 'em and done 'em. They want the FNMA market value, and probably on a 1004.

 

[PropertyEconomics]

Seen 'em and done 'em. They want the FNMA market value, and probably on a 1004.

Please provide the definition of "Fannie May Market Value"????????

You do realize that not every loan is sold to Fannie Mae right?????

 

[JSmith43]

Ask them if they have a particular form/format or if they are open to suggestions.

It would be nice if they didn't mind if you use some general form & certs. Have an example in mind for them. The 3/'05 certs in the 1004 form set are not appraiser friendly.

There's that Cert 23 fiasco & a few others that should have given everyone a lump in their throat in 2005 when the current 1004 form package went live for GSE work.

 

[Terrel L. Shields]

We don't use fannie mae format for LOC appraisals. We use a generic format. Fannie is not a typical buyer of such loans and they don't need to be identified as an "intended user"...because they are not.

 

[Mike Garrett RAA]

HELOC appraisals should be done just as you would any other. I use the 1004.

 

[AnonApprsr]

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Relax bro.

This would be the FNMA Market Value:

Most times even when it's not FRT they still want it on the 1004, at least in my experience.

 

[Peter LeQuire]

"Most times even when it's not FRT they still want it on the 1004, at least in my experience."

It is interesting that the banks for which I do work require the current 1004 for every loan transaction, including construction loans, HELOCs, routine monitoring, ehatever. These "sophisticated" users of appraisals give whatever the e-mail equivalent of a blank stare is when you try to discuss that the 1004 and its evil cousins are intended for a relatively narrow type of loan. I would guess that their review matrices can't handle forms other than Fannie's.