Appraisal Age and Use Requirements

When an appraisal is obtained, the property must be appraised within the 6 months prior to the date of the note and mortgage.

When the effective date of the original appraisal report is more than four months but less than 6 months from the date of the note and mortgage, the appraiser must perform an appraisal update that includes inspecting the exterior of the property and reviewing current market data to determine whether the property has declined in value since the date of the original appraisal report. This policy applies regardless of whether the property was appraised as proposed or existing construction. The appraisal update must occur within four months prior to the date of the note and mortgage.

The original appraiser should complete the appraisal update; however, Homium may use substitute appraisers. When updates are completed by substitute appraisers, the substitute appraiser must review the original appraisal report and express an opinion about whether the original appraisers opinion of market value was reasonable on the date of the original appraisal report. The AMC must note in the file why the original appraiser was not used.

The inspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D).

• If the appraiser indicates on the Form 1004D that the property value has declined, then Homium will obtain a new appraisal for the property.

• If the appraiser indicates on the Form 1004D that the property value has not declined, then the underwriter may proceed with the loan in process without requiring any additional fieldwork.

When the effective date of the original appraisal report is more than 6 months from the date of the note and mortgage (with or without an appraisal update) a new appraisal report is required.