APPRAISAL APPEAL RETAIL CHANNEL(S) All Retail Channels

Appraisal RETAIL MOP PROCEDURES

Note: Not all products and programs are necessarily available to all channels. Consult the Mortgage Policy Manual (MPM) for confirmation of eligibility. REVISIONS EFFECTIVE Immediately OVERVIEW As a service to our borrowers, CitiMortgage offers a process to appeal the appraised value determined by the appraiser. The review process was developed to ensure that any borrower concerns about the appraisal are addressed. The Collateral Risk Management (CRM) Department reviews the borrowers request along with the appraisal and makes a decision to approve or dismiss the appeal. The borrower is notified of the decision, and documentation is made to the originations system comments and/or the loan file. If the borrower believes the appraiser made errors concerning the material facts or physical characteristics of the property being appraised (for example, incorrect square footage), the concern must be documented in writing and supporting information must be provided. If the borrowers concerns pertain to the value conclusion, additional comparable sales to support the borrowers position must be provided. A maximum of five [and a minimum of three] closed sales can be provided. The closed sales provided by the borrower must be verifiable (via MLS or public record) and at least as proximate as the sales presented in the appraisal report. The closed sales must have been available to the appraiser as of the date of value and at least as recent as the sales presented in the original appraisal report. If the value appeal is warranted, CRM submits the data to the appraiser for consideration and communicates the final decision to the appropriate individuals as soon as possible. The borrower should be informed that the value appeal is a one-time process; therefore, all relevant data should be provided the first time. Note: Due to concerns over appraiser independence, the production staff (including Sales and Operations) is not allowed to contact appraisers or appraisal management companies directly to discuss any value-related issues. All value-related issues must be resolved through Collateral Risk Management. Drive-by Appraisal Upgrade Review From time to time, a value dispute may occur when CMIs value is established by an appraisal based solely on an exterior inspection. In these situations, an upgrade to a full appraisal that includes an interior and exterior inspection may be approved by CRM after proper written documentation has been provided by the borrower. This documentation should include details of recent updates, renovations, expansions, or items not visible from the street that would warrant consideration in a valuation of the property. If no change in the appraised value occurs, the revised report or addendum should state why in detail. Again, it should be stressed to the borrower that this is a one-time process. For First Mortgages Only Refer to Appraisal Documents in the Underwriting section of the Mortgage Policy Manual (MPM) for additional requirements (a link is provided at the end of this document).
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For Standalone Home Equity Only All upgrades must be approved by CRM prior to ordering. The upgrade hierarchy is as follows: BPOE BPOI 2055 Drive By

For Standalone Home Equity Only Per Home Equity policy, Retail Home Equity (including channels that originate products on CFI) does not accept off-us appraisals for valuation purposes; however, an off-us appraisal can be used in an appeal situation to support the borrowers case about errors in the new appraisal report or additional sales information. PROCEDURES Sales The Mortgage Consultant (MC) will receive the borrowers verbal request or e-mail to have the appraisal reviewed. Contact the borrower to discuss the low value and determine the borrowers intent to either move forward with the low-value appraisal or to dispute the low-value and pursue the appraisal appeal. Make sure the borrower understands that we cannot order a second appraisal report solely because the value is lower than expected. Additionally, make the borrower aware that if a second appraisal is completed and comes back with a lower value than the first, the lower of the two appraisals will be used.

If the borrower intends to dispute the appraisal, or if the borrower contacts CitiMortgage and requests to appeal an appraisal, you or the Mortgage Loan Coordinator (MLC) will send the Appraisal Appeal form to the borrower. The borrower must complete the form and fax it along with supporting documentation within 10 business days. (The fax number is provided on the Appraisal Appeal form) Note: Appraisal Appeal is a form (MB4986) in the Customer Correspondence Package in LPM.

For First Mortgages Only Provide a copy of the appraisal report to the borrower.

Processing Once the Appraisal Appeal form has been received by the MLC, the loan origination system should be documented. If the borrower believes gross errors in the valuation were made, the MLC (or MC) must inform him/her that the request for a review must include support for the correct information such as a listing sheet, survey, photos, plot plan, assessors card, list of recent repairs or updating, detailed cost figures for new construction or updates, etc. is strongly recommended. If the additional value is not warranted, an appeal is not needed unless the borrower insists. If a change is warranted, forward the information to the CRM mailbox (RAD East) Inform the underwriter that the appraisal has been sent to CRM. Enter an AR note in LPM describing what has been sent to CRM.
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Appraisal RETAIL MOP PROCEDURES

If the borrower has concerns about the valuation process, inform him/her that additional recent comparable sales are required. Provide the borrower with the requirements for additional comparable sales as outlined above. Sales data provided must include full details of the property, sale price, closing date, address, etc. For Standalone Home Equity Only Doc Review must review comps for acceptability against policy before forwarding the appraisal and comps to CRM for determination. Upon receipt of the appropriate documentation, forward the appraisal along with the documentation to CRM via e-mail (RAD East) for review. Notify the underwriter that the appraisal has been sent to CRM and enter an AR note in LPM describing what has been sent to CRM.

Upon receipt of CRMs decision, notify the borrower. Update the originations system with the appropriate information.

Upgrade Review If a value dispute has occurred on a valuation product that is not a full appraisal and CRM has approved the upgrade, do not generate a new order in the Vendor Management screen. Instead, send an e-mail to Vendor Management at appraisalfup@citi.com to have the order for the upgrade assigned to the original appraisal management company. (You can select appraisalfup in the Global e-mail list.) Make sure an explanatory addendum is received from the appraiser and forwarded to the CRM email box (RAD East). Notify the underwriter that the appraisal has been sent to CRM. Enter a P note in LPM with the details. If no change is made to the value conclusion, make sure the new valuation or addendum states the reason why. Inform the borrower of the decision and update the originations system with the appropriate information.

RELATED POLICY IN THE MORTGAGE POLICY MANUAL (MPM) Appraisal Documents (under Property & Appraisal Guidelines in the Underwriting section of the MPM) RELATED FORMS/JOB AIDS IN THE MOP None

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