Credit union technical review Case Study
A credit union with a lending footprint in mostly rural areas was loaning on a small, but unique property type, in a town hundreds of miles from any metro area. The credit union ordered an appraisal report from a local appraiser. However, the commercial lending executive was unsure if the appraisal met required guidelines. Dart Appraisal was contacted by the credit union to perform a review of the commercial appraisal report.
The Dart commercial reviewer completing the review assignment discovered that the appraisal report did not meet USPAP Standard 2 for an appraisal report in several areas. Also, data was presented, but there was little analysis within the report to support the final conclusion. The reviewer was able to explain the insufficiencies of the appraisal report to the credit union, who in turn was able to share the review concerns with the appraiser. The appraiser was then able to refer to the review comments and USPAP Standard 2, in order to offer a revised report for secondary review by the Dart commercial appraisal reviewer. The revised report was determined to meet USPAP and include all necessary support and thorough analysis of the data. The methodologies were appropriate for the property type and the reader could now follow the data analysis to the conclusion.
The credit union could have been at risk with relying on the first version of the appraisal report. By employing Dart Appraisal to complete a review assignment of the appraisal report, the client was able to secure a solid, compliant appraisal report along with a technical review form citing the credibility of the second report. Dart Appraisal prides itself on the commercial appraisal knowledge of its team members. When utilizing our robust review process, our clients can feel assured that they have a full understanding of the appraisal report in hand.
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