Curling Comp Shingle Roof Question For Conventional Loan

[glenn walker]

You know the roof is done so I would not go with any assumptions and nobody is getting a new roof for $2,500 so my assumption is the agents probably assumed since it's conventional it's OK- In reality very few lenders today especially if they plan on selling the loan to Fannie or Freddie will fund unless they have at minimum a Roof Certification From A Licensed Contractor - If the roofer comes back and states the roof is beyond repair and won't last another 2-3 years then a new roof is going to be installed prior to close of escrow. When I describe the condition of the roof I simply state that I did or did not see water stains in the interior and that based on a visual observation from the ground only the roof had missing-curling or weathered shingles and therefore The Appraiser Recommends the Lender Have A Licensed Contractor Inspect And Certify The Roof Is Water Tight.

** Note: I never make my report Subject to a new roof and if the lender wants a new roof they can make it a prior to funding condition based on the licensed contractors inspection because once I say it needs replaced if anything goes south it's open season for some buyer or seller to hang me out to dry for playing contractor and killing their transaction.

1- Are you a licensed contractor or roofer- No
2- Did you complete a physical inspection of the roof -No
3- How did you determine the roofs remaining-economic life - I use the Big-Blue -Cost Estimator.
4- Do you have any insurance - yes for appraisals but not for construction.
5- Your estimated a cost to cure ( install a new roof ) $30,000 to $35,000 -Yes
6- Do you still stand on the $30,000 to $35,000- Yes
7- Mr Appraiser we have no more questions .

 

[residentialguy]

An appraiser can specify repairs or replacements be done in a workmanlike professional manner, and/or done by a licensed contractor. We work for the lender, not the homeowner. Lender wants to lend on houses without safety or security issues and expects them to be repaired in a professional manner, not a flimsy patch job. Nobody can "force" an owner to do anything. Owner can decide not to repair and thus not get the loan. Their choice.

I agree. Not sure why you posted that. Never said anything to the contrary. Replacing bad shingles is not a "flimsy patch job". If you have bad socket, you don't have to replace all the sockets in the house.

 

[Deleted member 130081]

Very nice....someone finally actually bothered to look up the actual requirements

So look, I am not trying to start something here...lol...famous last words right...but let me ask you something Mr Smarty Pants

The Selling Guide is written for whom (who? - whatever - my dead mother is rolling right now)

So when you say requirements...

Exactly which party is required to comply?

 

[residentialguy]

So look, I am not trying to start something here...lol...famous last words right...but let me ask you something Mr Smarty Pants

The Selling Guide is written for whom (who? - whatever - my dead mother is rolling right now)

So when you say requirements...

Exactly which party is required to comply?

Selling guide is our guide as well as the lender's.

 

[timd354]

So look, I am not trying to start something here...lol...famous last words right...but let me ask you something Mr Smarty Pants

The Selling Guide is written for whom (who? - whatever - my dead mother is rolling right now)

So when you say requirements...

Exactly which party is required to comply?

When an appraiser agrees to perform an appraisal that meets GSE requirements as part of the assignment conditions (which is typical of the majority of mortgage lending related appraisals, otherwise most appraisers would not use the UAD), then appraisers need to comply with the GSE requirements and better be familiar with the appraisal requirements listed in the Fannie Mae Selling Guide. Like it or not USPAP requires an appraiser to perform an appraisal in compliance with agreed upon assignment conditions and numerous appraisers have been sanctioned by state boards for not meeting GSE appraisal requirements when one of the assignment conditions was to produce a GSE compliant appraisal report.

 

[Deleted member 130081]

When an appraiser agrees to perform an appraisal that meets GSE requirements as part of the assignment conditions (which is typical of the majority of mortgage lending related appraisals, otherwise most appraisers would not use the UAD), then appraisers need to comply with the GSE requirements and better be familiar with the appraisal requirements listed in the Fannie Mae Selling Guide. Like it or not USPAP requires an appraiser to perform an appraisal in compliance with agreed upon assignment conditions and numerous appraisers have been sanctioned by state boards for not meeting GSE appraisal requirements when one of the assignment conditions was to produce a GSE compliant appraisal report.

And yet...you have dodged the question my friend. This is your opportunity to play lawyer - come on, I know you love to! Who is required to comply? Put on that lawyer hat and give it a go.

Now, before you answer, keep in mind that I agree it is helpful for an appraiser to be familiar with the Selling Guide. I am also aware how assignment conditions put on some extra layers. I am also aware a state board is not the same thing as a courtroom.

So when it comes to strong language like the word required, who is required to comply with the selling guide?

And lets assume for arguments sake, all parties have the best lawyers ever.

 

[Deleted member 130081]

Selling guide is our guide as well as the lender's.

I dunno...I don't originate and sell loans.

 

[Terrel L. Shields]

The key & unaddressed issue is the OP didn't disclose the lender program. FHA? GSE? Private money? Arguing over fannie regs is meaningless for many in house lenders.

 

[timd354]

If the appraiser agrees to perform an appraisal that is GSE compliant as an assignment condition, then an appraiser is required to comply with the GSE appraisal guidelines per USPAP. This is USPAP 101 stuff and if you don't understand that, then you are in immediate need of a refresher course.

The USPAP Scope of Work Rule requires the appraiser to identify applicable assignment conditions and to determine and perform the scope of work necessary to develop credible assignment results. The Scope of Work makes it clear that the SOW is not acceptable when it does meet or exceeds the expectations of parties who are regularly intended users for similar assignments. USPAP Standards Rule1-2 requires the appraiser to identify the intended use of the appraiser's opinions and conclusions and determine the scope of work necessary to produce credible assignment results in accordance with the SCOPE OF WORK RULE.

Given these requirements of USPAP, it is a clear an unarguable violation for an appraiser to accept an appraisal assignment with an intended use to evaluate a property for a GSE-related mortgage transaction and then not perform the appraisal in compliance with GSE appraisal requirements. Further, it would be a violation of the USPAP competence rule for an appraiser to perform GSE related appraisals with being familiar with the GSE appraisal guidelines and having access to those guidelines and the competence to able to research those guidelines as needed.

I suggest that you read Advisory Opinion #30, in which you will find the following language:
USPAP creates an obligation for appraisers to recognize and adhere to applicable assignment conditions. The
appraiser’s identification of the intended use and intended users drives the applicable assignment conditions.

Failure to Adhere to 70 Assignment Conditions
Failure to recognize and adhere to applicable assignment conditions violates one or more of the USPAP
requirements previously identified.
• An appraiser who represents that an assignment is or will be completed in compliance with applicable
assignment conditions and who then knowingly fails to comply with those assignment conditions
violates the ETHICS RULE.
• An appraiser who unintentionally fails to comply with or fails to recognize those assignment
conditions violates the COMPETENCY RULE.
• An appraiser who fails to develop assignment results in accordance with the assignment conditions
necessary for credible assignment results violates the SCOPE OF WORK RULE and STANDARD 1.
• An appraiser who fails to report assignment results in accordance with the assignment conditions that
are necessary to enable intended users to understand the report properly violates STANDARD 2.

Also, see the last comment to USPAP FAQ #163, which states:
It should be noted that some assignment conditions, such as Fannie Mae appraisal guidelines,
specify how sales or financing concessions are to be addressed in assignments that are subject to
their guidelines. Appraisers performing assignments of this type should become familiar with all
applicable guidelines in order to satisfy the requirements of the COMPETENCY RULE.

 

[timd354]

I dunno...I don't originate and sell loans.

"I dunno" is the wrong answer.

If you perform mortgage lending related appraisal that are intended to evaluate collateral for loans sold into the secondary market and don't know the Fannie Mae Selling Guide requirements applicable to appraisals, then you simply lack the requisite competence to perform such appraisals. Sorry to sound harsh, but that is simply the truth. If you are performing such appraisals, you need to immediately study the applicable portions of the Fannie MAe Selling Guide and familiarize yourself with the applicable requirements.