Fannie Mae Pud Definition

[Tim Hicks (Texas)]

If you have a project that is going that has common areas and will have mandatory HOA fees once 75% of the project is sold, then that project is a PUD.

But, if there are no HOA dues on the effective date, then it is not a PUD by Fannie Mae definition because they are not currently mandatory. What if it takes ten years to get to 75% or never?

 

[Tim Hicks (Texas)]

I did not say I agree with the definition, I just am stating that is the definition and marking it differently does not meet Fannie Mae guidelines with regard their definition of a PUD. Fannie forms, Fannie rules.

I only run into problems when there are no current HOA dues and they have documents stating it is a PUD.

Lets say the property forecloses in the future and the appraisal report gets sent to Fannie Mae NUC, having an appraisal marked PUD with zero HOA dues would be an error under review. Hopefully, the only error or omission in the entire report.

 

[timd354]

But, if there are no HOA dues on the effective date, then it is not a PUD by Fannie Mae definition because they are not currently mandatory. What if it takes ten years to get to 75% or never?

Sometimes, you need to use a little common sense even if the definition is not as tight as it should be. I can tell you that when I worked for Freddie that we would have expected to see the box checked in that situation.

 

[residentialguy]

I agree with you Tim Hicks. Words mean something. It's their words, go by them. If they don't like it, have their lawyers call FNMA and tell them to change the words.

 

[Tim Hicks (Texas)]

In honor of Game of Thrones, you know nothing Appraiser's Forum. And Winter is coming!

 

[Tom D]

love this thread. to the purists hear who live by strict reading of this guideline, what do you do with the current FNMA appraisal that says "summary appraisal report" at the top when we are doing an "appraisal report" as stated by USPAP. as they say in animal farm "all guidelines are equal, but some guidelines are more equal".

 

[residentialguy]

love this thread. to the purists hear who live by strict reading of this guideline, what do you do with the current FNMA appraisal that says "summary appraisal report" at the top when we are doing an "appraisal report" as stated by USPAP. as they say in animal farm "all guidelines are equal, but some guidelines are more equal".

FNMA has granted exception to the title on the form. They have not given exception to PUD, however.

But I agree, there are many double edged swords on the FNMA form...and don't think for a second that it is by mistake.

 

[timd354]

But I agree, there are many double edged swords on the FNMA form...and don't think for a second that it is by mistake.

Really? Believe it or not, when I was working at the GSE's we did not sit around trying to come up with ways to screw over appraisers. When is the last time that you heard of either GSE suing an appraiser or doing much of anything to an appraiser except for the very small hand full of appraisers on their exclusionary lists who (at least in the case of Freddie) were only added to the exclusionary list after multiple bad appraisals were found and the appraiser (and his or her attorney if they had one) was given notice in writing and given every opportunity to rebut what Freddie had found before a final decision was made to add them to the exclusionary list.

 

[residentialguy]

Timd, their def of market value itself is an appraiser's hangman's loose. Just look at the comments made. "it's typical in the market, therefore it is our judgement that we don't adjust" "buyer's don't have the money to buy without a seller concession" . So, instead of the bank saying, we'll cover the 3% needed, liability is placed on the backs of the appraiser. All good....till it goes bad.

 

[Tom D]

Really? Believe it or not, when I was working at the GSE's we did not sit around trying to come up with ways to screw over appraisers.

timd guy, you are arguing with the "purists" on this thread. does not matter if found guilty, you are guilty for not following the letter of the wording.

and residential guy, did USPAP "grant" an exception to the wording "summary appraisal report". i haven't read that anywhere.