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  #1  
Old 03-11-2008, 02:58 PM
Ahcandy Ahcandy is offline
 
Join Date: Oct 2007
State: Tennessee
Professional Status: Certified Residential Appraiser
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Default Form 216 Operating Income Statement

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!
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Old 03-11-2008, 03:13 PM
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Tim Hicks (Texas) Tim Hicks (Texas) is offline
 
Join Date: Jan 2002
Location: Crowley
State: Texas
Professional Status: Certified Residential Appraiser
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Quote:
Originally Posted by Ahcandy View Post
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!
They should, they will not, leave that stuff blank and maybe they will comply.
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  #3  
Old 03-11-2008, 03:19 PM
Thomas Fiehler Thomas Fiehler is offline
 
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Location: Cincinnati,OH
State: Ohio
Professional Status: Certified General Appraiser
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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  
Old 03-11-2008, 03:42 PM
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StephHigdem StephHigdem is offline
 
Join Date: Jan 2004
Location: Twin Falls, ID
State: Idaho
Professional Status: Certified Residential Appraiser
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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  
Old 03-11-2008, 04:00 PM
Mike Boyd Mike Boyd is offline
 
Join Date: Jan 2002
Location: Santa Rosa, CA
State: California
Professional Status: Retired Appraiser
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Quote:
Originally Posted by Thomas Fiehler View Post
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!
Ditto........................
  #6  
Old 03-11-2008, 08:17 PM
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Chris Colston Chris Colston is offline
 
Join Date: Jul 2003
Location: East Central Florida, Space Coast
State: Florida
Professional Status: Certified Residential Appraiser
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Quote:
Originally Posted by Thomas Fiehler View Post
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!
Yep, same here (only a little less time, 20+ yrs). Don't even now why those instructions are on the form.
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  #7  
Old 03-11-2008, 08:58 PM
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incognito incognito is offline
 
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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!
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  #8  
Old 03-11-2008, 10:08 PM
ghrousseau ghrousseau is offline
 
Join Date: May 2006
Location: Virginia Beach, VA
State: Virginia
Professional Status: Licensed Appraiser
Posts: 865
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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  
Old 03-11-2008, 10:15 PM
Brian Weaver Brian Weaver is offline
 
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Location: Chicago area
State: Illinois
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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.
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