Many of the findings that result from performing an appraisal review are important to include in the credit write-up and in making a decision on the loan. These are features of the appraisal that may impact underwriting but are not necessarily addressed by the appraiser. Key areas to consider include:
- Valuation of the property
- Is the term of the loan within the remaining economic life of the property
- Are there other unique features of the property that increase the potential viability of the value
- Are actual rents significantly different than market rents
- Comment on features that may create credit or loan structure issues
CUBG takes a conservative view of unique properties, taking into account the difficulties that arise in working out a loan where those properties need to liquidated or resold.