Loan Officer APB: Subordinating? Lender AVM’s may trip up LTV’s
Received in a subordination from Bank of America which utilized their automated valuation program to calculate CLTV. Unfortunately, they are using the actual appraised value or the automated valuation program whichever comes in less. While this may not be new news, when the AVM is significantly less than the appraised value, well, the results can potentially trip up a loan.
Just keep this in mind.
