Property Valuation
What is an 'appraisal review' in Illinois mortgage lending?
AA second appraisal required by IDFPR for all properties over $1 million
BAn evaluation of an existing appraisal for completeness, accuracy, and compliance with USPAP standards✓ Correct
CThe borrower's right to dispute an appraisal under federal law
DThe AMC's (appraisal management company) quality control process
Explanation
An appraisal review is an evaluation of an existing appraisal report to assess whether it is adequate, accurate, and complies with the Uniform Standards of Professional Appraisal Practice (USPAP). Lenders, AMCs, and secondary market investors use appraisal reviews to ensure compliance.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Math Concepts
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