1004 Re-write: To Include Different Sow (hybrids)

[George Hatch]

The use of the existing Fannie forms or a one-size-fits-all format for all assignments regardless of the SOW concerns me because I think it will lead to readers not being to readily distinguish between the different SOWS. Thereby prompting them to equate one with the other as if they're the same thing.

 

[J Grant]

The use of the existing Fannie forms or a one-size-fits-all format for all assignments regardless of the SOW concerns me because I think it will lead to readers not being to readily distinguish between the different SOWS. Thereby prompting them to equate one with the other as if they're the same thing.

Agree. But isn't that the very reason they are doing it? So they can charge borrower the same and investors not realize the difference? After all, Fannie and the lenders have shown so much trustworthy behavior over the years ....( sarcasm intended)...

 

[J Grant]

Per my reading of what Denis posted USPAP FAQ, if the inspector makes any judgments such as quality, then the appraiser must name them in report as contributing professional assistance. But if the inspector just records "facts" , such as roof, comp tile , then they do not need to be named.

Crystal ball prediction: The inspectors will be instructed to fill out checklists and not offer opinions such as roof in poor condition, that way inspector won't have to be named as contributing, and all the hapless borrower or investor will see is a hybrid checkbox and not think much of it. That way the difference between a hybrid and non hybrid can be smoke and mirrors, aka the way C and R was handled....teams of lawyers will get you everywhere!

Who was the mystery "inspector" and what exactly did they do....don't ask don't tell.

 

[hastalavista]

Per my reading of what Denis posted USPAP FAQ, if the inspector makes any judgments such as quality, then the appraiser must name them in report as contributing professional assistance. But if the inspector just records "facts" , such as roof, comp tile , then they do not need to be named.

Re-read the second Q&A; especially the last paragraph. At this time, only if the assistance is provided by appraisers is when that assistant need to be specifically named in the report. There is nothing prohibiting an the signing appraiser of the certification to provide more information, but the minimum (and current) requirement for identifying the assistant is limited to appraisers. However, the Q&A leaves it open that this item might be revisited in the future.

But isn't that the very reason they are doing it? So they can charge borrower the same and investors not realize the difference? After all, Fannie and the lenders have shown so much trustworthy behavior over the years ....( sarcasm intended)...

Sarcasm noted!

The representations and warranties that underlie MBSs offered to investors are very specific. I don't think a pension fund is going to be hornswaggled into thinking that just because an appraisal form attached to a specific loan contained within a security of 5,000 loans is called a 1004, that it means the inspection was what we think of as the traditional-format.

Nonetheless, I'd rather have this product on some form that is distinctively different in name/title than a 1004.
The hybrid form I talked about in the other thread is distinctively different from the 1004. The only reason not to create a new form (as I posted, as I see it) is for ease, simplicity, and making a new appraisal product fitting into an existing delivery-process. Those may be reasons, but they aren't good enough for me (Question: How hard is it to make a new form with a different form number? Answer: Not hard at all ).

 

[TRESinc]

If the hybrid is a 1004 form, main difference box checked /, it is easier to charge a borrower the same fee as for a regular 1004 and mix hybrid appraisald with non hybrids appraisals to package loans to investors. The "confusion" aka mistaking one for the other to borrowers and users is deliberate imo, since it would be easy for Fannie to develop a separate hybrid form if they chose to do so.

why exactly would FHFA have any interest in what a lender charges a borrower for their application for a mortgage? short answer - they don't, and don't care. they are not even a part of the transaction until the borrower has been approved and the appraisal completed. take off the fee-related tinfoil hat for a few minutes...

 

[residentialguy]

How about this one?

Please, this is a family forum...do not post horror photos.

 

[DWiley]

At Val Expo last week Fannie and Freddie both said there would be no interim forms developed. That question was asked directly during the Q&A. They have a theee year plan and we are in Q1 of Y1

 

[Terrel L. Shields]

if the inspector makes any judgments such as quality, then the appraiser must name them in report as contributing professional assistance. But if the inspector just records "facts" , such as roof, comp tile , then they do not need to be named.

That's my reading of USPAP, so the mystery inspector is assumed competent to do a complete job. Without a checklist, how do you know you get sufficient information? Can you send them back for more info?

As for forms, there is little doubt in my mind that the "form" will be on-line, in the cloud and you may not even have a real copy available to you, especially without some specialized software which you will have to subscribe to for the following five years after you retire. Deal killer for me.

 

[hastalavista]

At Val Expo last week Fannie and Freddie both said there would be no interim forms developed. That question was asked directly during the Q&A. They have a theee year plan and we are in Q1 of Y1

Thank you, Danny.
I'm relieved to hear that because (as I've written) I think modifying the existing 1004 form so that it could be appraiser/non-appraiser inspect is a mistake.
Now, that doesn't mean it won't happen... it sounds like if it does happen, it won't be for another 3-years!

 

[djd09]

That's my reading of USPAP, so the mystery inspector is assumed competent to do a complete job. Without a checklist, how do you know you get sufficient information? Can you send them back for more info?

Yep. 'committing substantial errors' is not a joke. They better hope that realtor is good.