Sacramento Report
April 20, 2010
Using Existing Appraisals
Lenders could be required to accept previously completed appraisals of residential real property under SB 1000 (Correa). The bill is scheduled for hearing in the Senate Banking and Finance Committee later this month. SB 1000 provides that when considering a loan application where the appraisal was completed less than three months before the loan application, then a new appraisal is not required. The bill also prohibits lenders from requiring borrowers to obtain a new appraisal as a condition of approval of the loan. The bill was recently amended to allow lenders to opt out of this requirement by not charging for a new appraisal of the property.
