This is a single-family/residential course.
Evaluating collateral is an important part of an underwriter's task of examining overall risk assessment. To this end, underwriters must be able to evaluate different types of properties and appraisals.
The mortgage application may indicate the collateral will be a two-unit property, or the subject's address and legal description may be indicative of a property in a rural setting. Sometimes market conditions have an adverse impact and result in a declining market. How do these attributes change the underwriting of the loan?
Whatever the case, the underwriter must carefully consider the appraisal data and assess challenges that may accompany the appraisal report. It is the underwriter's responsibility to interpret the appraisal data presented to determine whether the value is supported and the collateral represents a good risk.
Appraisal Issues-Beyond the Basics reviews some considerations for reviewing appraisals for special situations. It begins with a discussion of the challenges of rural markets. Next, it describes the documentation and income approach for two- to four-family evaluation. Toward the end of the course, underwriting rationale for properties in declining markets are presented.
Two- to Four-Unit Appraisals
Value Trends and Declining Markets
Seat time approximately one (1) hour.