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Fannie Mae and lead-based paint

Discussion in 'Urgent - Help Needed' started by Pam Wyant, Apr 6, 2009.

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  1. Pam Wyant

    Pam Wyant Member

    31
    Feb 12, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    West Virginia
    I have tried to find info on Fannie Mae's stand on peeling paint for 1978 homes, and have not had any luck. Does anyone have a reference to a source for their requirements in specific regard to this issue? Or guidance on what you do as far as requiring it as a repair since the possiblility exists it is lead-based, or simply addressing it under condition/effective age?
     
  2. Mike Kennedy

    Mike Kennedy Elite Member

    38
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
  3. Pam Wyant

    Pam Wyant Member

    31
    Feb 12, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    West Virginia
    Thank you very much Mike. As I interpret it, I should be safe disclosing it, adjusting for it based on the market and commenting that it doesn't appear to adversely affect buyer reaction other than the cost of correcting the paint, since peeling paint on older homes is relatively common in the area.

    Appreciate your help!

    Pam
     
  4. Mike Kennedy

    Mike Kennedy Elite Member

    38
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
  5. Mike Kennedy

    Mike Kennedy Elite Member

    38
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Suggested comment, feel free to edit / revise

    The Appraiser is not a Licensed Roofing, Siding, Window, Foundation, Electric, Plumbing, Heating, Insulated Window, Fireplace, Mason, Contracting, Engineering, nor Environmental Substance Expert. The Final Value Opinion herein assumes the absence of adverse foundation, electrical, plumbing, and /or structural conditions which may be revealed during Expert Inspection. In that event, Re-Appraisal may be required as this would have negative impact on marketability and market value. The Dwelling and Garage were built, per Assessor, prior to 1978 when lead-based paint and asbestos were common building materials that have subsequently been found to present Health Issues. The Appraiser is not qualified to detect those, or other possibly hazardous substances or materials, and necessarily assumes the Site is not negatively impacted by Environmental Substances. Should the Client have concern in this regard, Experts in the Environmental Field should be consulted.
     
  6. ZZGAMAZZ

    ZZGAMAZZ Senior Member

    0
    Jul 23, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Pam: Mike is implying that your interpretation is incorrect. It's an interesting and provocative gambit that the local market doesn't react negatively to a distinct health & safety hazard that goes directly to the primary impetus--if one exists--of the Forum, that absolutes don't exist in our industry, only relatives, e.g., "market reaction." This issue would appear to be an exception possibly because a potential borrower might be deign to repay the loan if deceased from lead poisoning????

    --zzgamazz, Hancock County born
     
  7. Pam Wyant

    Pam Wyant Member

    31
    Feb 12, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    West Virginia
    ZZGAMAZZ,

    While the possibility of lead poisoning is very real, typically homeowners around here don't go around chewing on the exterior of their homes, although I guess there might be small children who might do so. ;^)

    I think that most home purchasers around here believe the risk of lead poisoning from peeling paint on older homes is rather minute in the overall scheme of things, and is something that can be taken care of at minimal risk.
     
  8. ZZGAMAZZ

    ZZGAMAZZ Senior Member

    0
    Jul 23, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Pam,

    I'm echoing what I presume is the sentiment of the Forum rather than arguing with you. I grew up sucking graphite fumes from the steel mill in Weirton and been none the worse for the wear-&-tear. Those individuals who write government standards typically hail from more sophisticated origins from which their lofty ideal emanate regardless of whether the common man is actually represented...
     
  9. Mike Kennedy

    Mike Kennedy Elite Member

    38
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    http://www.legis.state.wv.us/wvcode/Code.cfm?chap=16&art=35 :icon_idea:
     
  10. Pam Wyant

    Pam Wyant Member

    31
    Feb 12, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    West Virginia

    Good link Mike. The key to Fannie Mae still seems to be market reaction though.

    Still, this makes one wonder:


    (a) It is unlawful for any individual to carry out any lead-risk assessment, inspection or abatement activity for which he or she does not hold an appropriate lead discipline license.

    By stating in our reports that peeling paint could be lead-based due to the age of a home, are we carrying out a lead-risk assessment?

    One more thing to worry about. I was chewed up one side and down the other this week for calling for a deck inspection on a home where the deck moved when it was walked upon, and had support posts that could be pushed a good 2" to the side with one hand. The realtor and purchaser both claimed I was over-stepping my role as appraiser and acting as an 'inspector'.

    The vindication at least came in the structural engineer's report - the support posts were undersized, the deck needed a band board, and the deck railings were improperly attached.

    The purchaser was still mad. Go figure.

    More and more I am getting the feeling we cannot win - we can't even tie. :^(

    Pam
     
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