On March 21st, I closed a loan with a financial institution and it was funded three days later. I paid for an appraisal and it was performed. On April 5th, I received a call stating that they wanted another appraisal. Nothing was said initially that two appraisals were needed. How could this loan have closed? I'd like to cooperate but it involves taking more time off from work which isn't possible at this time and, quite frankly, I don't see why all of a sudden after a loan closed that this is necessary. The only answers I get are that it would be a favor to the loan officer and that the loan can't be sold without it. Shouldn't someone have realized this before the loan closed?
It sounds like the lender is completing a "Quality Assurance" step that is often required of lenders who sell all or some of their loans in what is called the "Secondary Market." Investors in the Secondary Market keep pumping funds into lending institutions by purchasing loans from them. The lender can then use those funds to make more loans.
Secondary market investors need assurance that the loans they invest in are legitimate, so they normally require lenders to submit all or a part of their loans to a Quality Assurance process that involves third parties in a complete re-evaluation of the property, the credit-worthiness of the borrower, etc. There is no added cost to the borrower -- it's built into the mortgage lending margin for the lender.
HOpefully, you are able to find a way to accommodate the appraisal appointment. It will help ensure that your lender can continue to make loans in your area.
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It sounds like the lender is completing a "Quality Assurance" step that is often required of lenders who sell all or some of their loans in what is called the "Secondary Market." Investors in the Secondary Market keep pumping funds into lending institutions by purchasing loans from them. The lender can then use those funds to make more loans.