Property Condition Reports

All Financial Institutions Are Advised to Review Appraisal and Evaluation Procedures

The Interagency Appraisal and Evaluation Guidelines (Guidelines) require financial institutions to verify the collateral suitability via a detailed property condition and evaluation report to support value conclusions on all subject properties. Automated Valuation Models (AVM), Tax Assessment Values (TAV) or a Broker Price Opinion (BPO) are no longer acceptable alone. Institutions must have a verified physical condition of the subject premises. And Xiris Valuations can help.

Loan File Requirements

According to the Guidelines, the loan file should  contain, at a minimum:

• The location of the property
• Description of the property and its current and projected use
• Estimate of the property’s market value
• Indication of all source(s) of information used in the analysis, as applicable, to value the property, including:
• External data sources
• Property-specific data
• Evidence of a property’s current condition
• Photos of the property
• Description of the neighborhood
• Local market conditions