Guidelines on a Rate Reduction

[Danielle D.]

I'm currently working with two banks to lower payments on my commercial mortgage. The first is offering to refi our loan at a 75% LTV against an appraisal done a month ago. The second, our existing bank, is offering a loan rate reduction with no out-of-pocket. They only have an appraisal done in May 07, which values our property 12% higher. Against the old appraisal our LTV would be 75% but against the new one (done for the refi) it's 85%. Our current bank has not asked for a new appraisal.

My question is: Is our current bank in violation of any regulations in offering us a rate reduction without a current appraisal? IE., If auditors tag our account as too high an LTV, could we be forced to pay out-of-pocket costs on the rate reduction after the fact?

I can't find ANY info on the web discussing rate resets on commercial mortgages.

Thanks for any insights!
Danielle