My lender never got an appraisal for my $500,000 real estate loan and made the loan anyway. Did they break Federal Banking Law? Can they be prosecuted? Do I have to repay the loan that should not have been made in the first place?
The bank will have its own internal policy on when an appraisal is or is not required, and whether they need a formal appraisal, a market analysis, an internally generated appraisal, or if they just accept the taxable value. The accuracy of their policy is a matter between them and their regulator. You borrowed the funds and most certainly have an obligation to repay the debt as agreed.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The bank will have its own internal policy on when an appraisal is or is not required, and whether they need a formal appraisal, a market analysis, an internally generated appraisal, or if they just accept the taxable value. The accuracy of their policy is a matter between them and their regulator. You borrowed the funds and most certainly have an obligation to repay the debt as agreed.
