If a new appraisal is obtained for the Refi Plus transaction, is the lender responsible for the representations and warranties of the existing appraisal in the file?
The lender is responsible for the standard representations and warranties related to the value, marketability, and condition of the property as reflected in the property valuation used to support the refinance transaction. For Refi Plus, this could be the original appraisal used to support the existing mortgage loan, or a new property valuation, whichever is used to support the refinance transaction. If a new property valuation is obtained, the lender is relieved of the standard representations and warranties related to any prior appraisal obtained for the mortgage loan being refinanced. Q23. For Refi Plus, if the lender is relying on the original appraisal to support the value of the refinance transaction, it must represent and warrant that the current value is not less than the value reflected in the appraisal obtained for the existing mortgage loan. How can a lender assess the current property value to determine whether the existing appraised value meets this standard? To determine
Related Questions
- At the time a lender originates a Refi Plus transaction, is it responsible for ensuring that the original mortgage loan file met all eligibility and underwriting requirements?
- What condominium or cooperative project review must be completed by the lender originating a DU Refi Plus loan?
- How does a lender know if a DU Refi Plus property fieldwork waiver is offered on a loan casefile?
