Bank and credit union collateral valuation
Residential Portfolio Lending Appraisals
Comprehensive Narrative Appraisals for Non-GSE Portfolio Lending
Berkson Appraisal Service provides residential narrative appraisal reports for banks, credit unions and other financial institutions when the appraisal is intended for portfolio lending, collateral underwriting or another lending purpose that does not require standardized GSE appraisal delivery.
Reporting policy
Narrative Reports — Not Standardized Form Appraisals
Berkson Appraisal Service does not provide standardized residential form appraisals.
Residential lender assignments are accepted when the client confirms that a comprehensive narrative Appraisal Report is acceptable for the intended use and that the assignment does not require:
- Uniform Appraisal Dataset 3.6 reporting
- The redesigned Uniform Residential Appraisal Report
- Uniform Collateral Data Portal submission
- Fannie Mae appraisal delivery
- Freddie Mac appraisal delivery
- GSE XML appraisal data delivery
If one of these products is required, the lender should retain an appraiser providing the required UAD 3.6 reporting capability.
Appropriate collateral
When a Narrative Residential Appraisal Is Appropriate
A narrative appraisal can be particularly useful in portfolio lending when collateral is atypical or the credit decision warrants additional valuation explanation.
- Luxury and custom residential property
- Large acreage or excess land
- Multiple improvements
- Guest houses or ADUs
- Significant accessory buildings
- Mixed zoning or unusual access
- Easements or flood influences
- Exceptional views or unique construction
- Limited comparable-sale data
Deliverable
What the Lender Receives
The appraisal is developed around the specific collateral and credit decision rather than a predetermined residential form.
- Property identification and property rights
- Intended use and intended users
- Scope of work
- Market-area and neighborhood analysis
- Site characteristics
- Zoning and highest and best use
- Improvement description
- Comparable-sale selection and verification
- Adjustment methodology and reconciliation
- Photographs, maps and supporting exhibits
UAD distinction
UAD 3.6 and Portfolio Loans
UAD 3.6 is a separate standardized appraisal data and reporting framework associated with GSE appraisal delivery.
A narrative portfolio-lending appraisal prepared by Berkson Appraisal Service is not represented as a UAD 3.6 appraisal, a URAR or a report eligible for UCDP submission.
Before accepting the assignment, Berkson Appraisal Service requires the lender to determine that a narrative Appraisal Report is acceptable for its intended use and secondary-market requirements.
Measurement
Residential Measurement
Where applicable, residential building areas are measured and classified generally consistent with ANSI Z765-2021 methodology.
Above-grade finished area, below-grade finished area and significant accessory improvements are separately identified where relevant to valuation.
When direct ANSI measurement is not feasible or applicable because of property configuration, inaccessible areas, architectural plans, retrospective conditions, third-party measurements or other assignment circumstances, the appraisal identifies the source of the reported area and discusses relevant limitations.
Ordering information
Ordering a Portfolio-Lending Appraisal
- Property address and parcel number
- Borrower or property-owner name
- Client and intended users
- Intended use
- Property type
- Requested effective date
- Requested delivery date
- Inspection contact
- Engagement requirements
- Confirmation that a narrative report is acceptable
- Confirmation that UAD 3.6, URAR and UCDP delivery are not required
Discuss a Lender Assignment
Send the property and engagement requirements so the reporting format and scope can be confirmed before acceptance.