This is a single-family/residential course.
An appraisal is an estimate or an opinion of the fair market value of a property. The purpose of the appraisal is to establish the current market value of the property and to determine if it is adequate collateral for the loan amount being requested. For this reason, the appraisal is perhaps the most important document in the loan package. It enables mortgage bankers to assess their financial risk in the event of default.
Property Appraisal for Processors focuses on the traditional Uniform Residential Appraisal Report (URAR), the standard appraisal form used in the industry. It begins with a look at the processor's role in ordering, monitoring, and reviewing the appraisal. It then examines the components of the appraisal itself. The course then looks more in-depth at the property description section of the report, including the subject section, the contract, the neighborhood, the site, and the improvements to the property. Next, it reviews the property valuation section, talking about the sales comparison approach and analysis, the cost approach, the income approach, and reconciling the three methods. Finally, the course discusses appraisal considerations for planned unit developments and condominiums.
Steps in the Appraisal Process
The Appraisal Report
Property Description Section
Planned Unit Developments
Seat time approximately one (1) hour.