It sounds as though you want to keep the equity line active? Or subordinate the equity line to the new first.
If that is the case, the equity line lender should be willing to take the appraisal that the broker is providing. Although I have never ecountered a subordinating second lender requesting their own appraisal, I am certain that somewhere in the Equity Line Agreement that was originally signed there may be verbage that addresses the need for appraisal on the subordination.
I am currently processing both a HARP refi and a straight rate and term refi. The HARP loan does not even have an appraisal to offer the subordinating second.
The subordinating lender should be pleased that the fist loan is reducing payments. . They may reduce the line, but still unclear on why new appraisal.
Wells Fargo has their own appraisal department. If they are the lender perhaps that is why you are running into this problem.
Very odd. But then again, our industry has had some oddities of late!... more