Appraisal and valuations rule explained

Valuations that are sent

Appraisal 2nd appraisal Desk review Field review

Any review of an appraisal

Compliance inspection

AU findings if a value is given (LP Open Access loans will still have the valuation, DU

findings will not)

AVM (Automated Valuation Model)

ECOA / RESPA disclosure

The top box only is checked

on your cert

The borrower WAIVED

appraisal

The bottom box only is checked on

your cert

We consider that as NOT WAIVED

Both boxes are checked on your cert

Borrower WAIVED appraisal

If NO boxes are checked

The borrower did NOT waive

appraisal.  Basically they would have to check the top

box at minimum to

waive.

Please NOTE:If the loan is a Rebuttable Presumption loan, the borrower CANNOT exercise the waiver and we must send the appraisal 3 days prior to closing.

What conditions can I expect to see?

• Loan is a RP loan – make sure appraisal has interior inspection, flipping rule is reviewed, escrow is required, income and assets are verified as submitted

“U” condition

• Loan is a RP loan and the flipping rule applies. Please provide a 2nd appraisal supporting the market value or re-price the loan to avoid being a higher priced mortgage loan (RP). This appraisal fee cannot be charged to the borrower.

“U” condition

• Electronic Certification that borrower received a copy of the Valuation Report a minimum of 3 days prior to closing date because loan is RP loan (rebuttable presumption), waiver is NOT allowed

“U” condition

• Electronic Certification that borrower received a copy of the Valuation Report a minimum of 3 days prior to closing date since borrower didn’t waive their right

“U” condition

• Must close on or after _________ due to date that the Valuation Report was received by the borrower“C” condition

When will the appraisal be sent if it wasn’t waived?

Valuation Reports need to be sent out no less than 3 days

prior to closing

We need confirmation in our file that the valuation was sent and then received by

the borrower. The Valuation will be sent through

DocuSign so that we have an electronic certification that the valuation was sent

and received.

A Compliance Specialist will send all valuations. Once the Underwriter enters

a valuation “Accepted Date” on the Appraisals & Valuations screen, the

valuation type and date will fall onto a report.

The Compliance Specialist will pull this report twice daily and send out any

valuations that were accepted the prior business day and same day.

When will underwriting “accept” the valuation?

Underwriting will accept the appraisal or

valuation if there are no appraisal conditions.

If there are appraisal conditions the

underwriter will need to clear those prior to

accepting the appraisal.

Please note:A report is being worked on that will exclude the

multiple appraisal submissions to

underwriting from the total submissions on

files.

How will I know when the electronic cert is back? If the appraisal was

delivered via DocuSign, we will upload the borrower’s acknowledgement to BP once it is received.  The

borrower’s acknowledgement is done when the customer opens the email from DocuSign. 

It will be labeled as “Electronic Signature Cert

– VALUATION”.   

If the loan is a RP loan or waiver is not in file, we must have the proof of the actual receipt of the valuation – the

borrower’s full DocuSign acknowledgement.

(Acknowledgement always required on RP loans)  

Once the DocuSign certification has been received, Katie will upload to

Blueprint and forward the email to the processor.  Processing, this is your FYI

that the appraisal certification is now in BluePrint. This will help you to not have to keep looking for it and wasting time.

  If all other conditions have been cleared you still have to submit to

underwriting to have the cert cleared

Lastly, if you are wondering whether or not

the appraisal has been sent to the borrower you can check the notepad in

Mortgage Builder:

Once the electronic cert is back when can we close?

Appraisal being delivered via

DocuSign

Appraisal accepted on Monday, Feb 3rd.  Sent to borrower Tuesday, Feb

4th.  Can close on Friday, Feb 7th.

Appraisal accepted on Thursday, Feb 6th.  Sent to

borrower on Friday, Feb 7th.  Can close on Tuesday, Feb

11th.

Appraisal being delivered via mail (this hardly ever

happens!)

Appraisal accepted on Monday, Feb 3rd.  Mailed on Tuesday, Feb

4th.  Borrower considered to have received on Friday, Feb 7th.  Can

close on Tuesday, Feb 11th. 

Appraisal accepted on Thursday, Feb 6th.  Mailed on Friday, Feb 7th. 

Borrower considered to have received on Tuesday, Feb 11th.  Can close on Friday, Feb 14th. 

**Please keep in mind that you can request that Compliance sends the accepted appraisal right after the file comes out of UW.

You don’t have to wait until it falls onto our report.

Questions?

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