Used primarily by banks, credit unions, and mortgage companies for collateral assessment purposes to determine the current market value of a specific property.

Generally required by lenders when the loan to value ratio (LTV) is between 75% to 100%.

Includes physical (interior & exterior) inspection of the subject, photos of the subject property and comparable sales, sketch with exterior dimensions, comparable sale location maps, and full narrative addendum.

Used primarily by banks, credit unions, and mortgage companies for collateral assessment purposes to determine the current market value of a specific property.

Used primarily when the loan to value ratio (LTV) is below 50%; when the borrower has a good credit rating; and when there are ample recent, *similar settled sales in the subject's neighborhood.

Fannie Mae has recently developed a program called Desktop Underwriting (DU) which is a computer assisted program that collates the borrower's credit or FICO score, current debt obligations, income, work history, etc. Then this DU program recommends the type of appraisal assignment that should be ordered for each particular borrower. Some of the reasons for implementing this program is to speed up the loan process and reduce fees. When the borrower has a good credit score and a low (LTV), below 75%, then the Lender is permitted to order some type of Drive-By or Limited-Summary Appraisal Report. One goal is to pass along the cost savings to the borrower.

Report is typically based on information gathered through a telephone interview with the property owner or agent, their description of interior amenities of the subject property, an exterior (front only) photo of the subject, comparable location map, and abbreviated addendum.

Used primarily by banks, credit unions, and mortgage companies to assess the completeness, accuracy and supportability of a prior appraisal report.

A review is typically ordered on high value properties; Oddball or Complex properties; Properties  with an unusual (non-typical) style or amenity; and appraisal reports with unusual or excessive adjustments.

Some lenders have a requirement that they review a certain percentage their appraisals.