Legal Question in Banking Law in New Jersey
Mortgage Banking in NJ
Can you please tell me what NJ statute requires an appraisal to be completed and reviewed by the lender's underwriter before a written mortgage commitment is issued?
Asked on 1/04/08, 4:01 pm
1 Answer from Attorneys
John Corbett
Corbett Law Firm LLC
Re: Mortgage Banking in NJ
There is no statute that requires that. It is simply a matter of good banking practice. Banks are not in the habit of taking risks. So, they will not issue a mortgage commitment unless there is documentation to show that the foreclosure value of the property plus any other collateral offered is at least equal to the amount to be loaned. No appraisal, no mortgage.
See also: http://info.corbettlaw.net/lawguru.htm
Answered on 1/04/08, 4:21 pm
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