My view is that the financial system/process for origination and loans is completely separate from the regulatory jurisdiction with regards to permitting.... With a couple caveats.
- First, if the work is so BAD, or cobbled together that it's obvious to an appraiser (mostly untrained eye with regards to construction, code, etc) then yes of course an appraiser might raise a red flag to that effect. Of course, all that might mean functionally is that your appraisal value would be a lot lower than you might want, OR - that they put something on the file indicating that an item or two needs to be corrected before it would be appropriate to use the property for collateral.
- The other caveat is that yes many counties / jurisdictions maintain a system for documenting what's been permitted or not, as well as the obvious assessor's pages that usually show number of bedrooms, square footage, among other things... Sure, some appraisers may check this vs what they see but the reality is that 90% probably will not - as they are time strapped and there's some tribal knowledge in just knowing where these databases are and how to access them online...….
Hope this is helpful!