1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Form 216 Operating Income Statement

Discussion in 'Urgent - Help Needed' started by Ahcandy, Mar 11, 2008.

Thread Status:
Not open for further replies.
  1. Ahcandy

    Ahcandy New Member

    0
    Oct 30, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    Hi all--I received my first request to do an operating income statement. On the form (216) it states that "if the appraiser is retained to complete the form instead of the applicant, then the lender must provide to the appraiser the aforementioned operating expenses, mortgage insurance premiums, HOA dues, etc". Is this required from the lender before the form can be completed? Thanks for any help!
     
  2. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    60
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    They should, they will not, leave that stuff blank and maybe they will comply.
     
  3. Thomas Fiehler

    Thomas Fiehler Senior Member

    2
    Jun 2, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    Don't believe I've ever received a completed form from the lender in 33+ years! (So-don't hold your breath). What I normally do is complete it as best as I can from data in file and just disclose that Client has not provided you with any expense data so it was estimated by using data in office files. Also, be sure to have the data that you reference!
     
  4. StephHigdem

    StephHigdem Member

    0
    Jan 5, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Idaho
    Marshall & Swift are a nice tool for this. You have to dig a little, but it will show replacement cost, typical lifespan, etc. Then you can say "No actual expenses or operation costs were provided to the appraiser. Data source for costs & economic life is the Marshall & Swift Residential Cost Handbook. All quality was considered average, all equipment & structure is estimated to be 5 years old." or something of that ilk.
     
  5. Mike Boyd

    Mike Boyd Elite Member

    0
    Jan 18, 2002
    Professional Status:
    Retired Appraiser
    State:
    California
    Ditto........................
     
  6. Chris Colston

    Chris Colston Elite Member

    0
    Jul 24, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Yep, same here (only a little less time, 20+ yrs). Don't even now why those instructions are on the form.
     
  7. incognito

    incognito Senior Member

    0
    Jul 14, 2005
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Me either, except of course actual rent and terms of lease. Pretty hard to overlook those two items! If you have a 10 year lease, market rent is pretty irrelevant! :)
     
  8. ghrousseau

    ghrousseau Member

    0
    May 5, 2006
    Professional Status:
    Licensed Appraiser
    State:
    Virginia
    I have completed many of them but I verify the data with the property owner or management agent. I always noted an EA in the addendum because I could not necessarily review the leases or actual expenses. Most lenders typically ask for them because they are a Fannie/Freddie condition. Underwriters don't even look at them. They are only concerned with the market rents on the rent survey. Underwriters by-pass the 216/op-income by discounting the market rent to 75% of the gross rent when they are calculating ratios. Like I noted...........I've never seen an underwriter ever use one to make a credit decision on the loan. They are pretty much a useless bs loan condition someone asks for because it in the Fannie/Freddie seller guide or because it popped up as a condition on the DU/LP findings. Make sure you charge for it :)
     
  9. Brian Weaver

    Brian Weaver Senior Member

    5
    Apr 16, 2005
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Illinois
    I've found that most appraisers don't know how to properly complete this form. They tend to underestimate expenses, throw in token numbers to fill in spaces...and especially ignore how the form is to be filled out depending on whether there's an owner-occupied unit as opposed to a complete tenant-occupied structure.
     
Thread Status:
Not open for further replies.

Share This Page