Reverse Mortgage Question

[Ariba]

Received the following request "Appraiser to confirm the "Flex Room" in the basement with bed has adequate egress to the exterior of the home. If not, will need 1004D with photos to confirm that bed has been removed."

The flex room does not have adequate egress to the exterior of the house therefore it was called a flex room. Are appraisers now interior decorators and telling owners how they can use rooms in their house?

How would you handle this request that the bed has to be removed?

 

[glenn walker]

Received the following request "Appraiser to confirm the "Flex Room" in the basement with bed has adequate egress to the exterior of the home. If not, will need 1004D with photos to confirm that bed has been removed."

The flex room does not have adequate egress to the exterior of the house therefore it was called a flex room. Are appraisers now interior decorators and telling owners how they can use rooms in their house?

How would you handle this request that the bed has to be removed?

If there is no access to the exterior or no windows large enough to escape in a fire the UW has considered it's use as a bedroom as a health & safety issue - And the lender is the one that is requesting it be removed- So just go back out and take a photo , charge $100 bucks and be done.

 

[Elliott]

I would tell the borrower/homeowner to remove the bed in the basement and call me so I can do a final inspection. If they want to keep the bed in the basement they can, but they won't get the loan.

 

[J Grant]

Received the following request "Appraiser to confirm the "Flex Room" in the basement with bed has adequate egress to the exterior of the home. If not, will need 1004D with photos to confirm that bed has been removed." The flex room does not have adequate egress to the exterior of the house therefore it was called a flex room. Are appraisers now interior decorators and telling owners how they can use rooms in their house?
How would you handle this request that the bed has to be removed?

Be professional, do not get borrower involved at this point.

Respond to lender the "flex room" in basement does not have adequate egress to ext of house. Let them order a 1004 D form with bed to be removed and THEN call borrower and explain it.

PS, why did you call it a flex room? A basement is either finished, semi finished or unfinished. calling it a flex room started this whole thing....

 

[Ariba]

PS, why did you call it a flex room? A basement is either finished, semi finished or unfinished. calling it a flex room started this whole thing....

That is like saying the GLA is finished and not identify, living, dining, bedrooms, baths, family room. In my market finished basement have individual rooms, including family room, laundry room, bath, bedrooms, utility room, hobby room, fireplace, etc.

I would tell the borrower/homeowner to remove the bed in the basement and call me so I can do a final inspection. If they want to keep the bed in the basement they can, but they won't get the loan.

Are you suggesting that the bed has to be moved? So you are saying that a homeowner cannot store a bed in the basement?

 

[RSW]

What is a flex room? Is that an exercise room?

 

[James Micozzi]

That is like saying the GLA is finished and not identify, living, dining, bedrooms, baths, family room. In my market finished basement have individual rooms, including family room, laundry room, bath, bedrooms, utility room, hobby room, fireplace, etc.



Are you suggesting that the bed has to be moved? So you are saying that a homeowner cannot store a bed in the basement?

The owner's can do whatever they want. Doesn't mean the lender will go forward with the loan if they do not remove the bed. The lender obviously considers the room in the basement as a bedroom due to the fact there is a bed in it. By you labeling it a flex room, some underwriter probably thinks you are trying to "slip one past the goalie" so to speak. Not saying you are but that is probably the thought process of the underwriter.

 

[Ariba]

What is a flex room? Is that an exercise room?

Could be if it had exercise equipment. How about a hobby room, toy room, study, office, kids room, collectible room, etc. The point, they could be any of those and therefore flex room.

 

[Vermonter]

Never heard of a flex room either, but I would ask the client to cite their source for this requirement.

The owner's can do whatever they want. Doesn't mean the lender will go forward with the loan if they do not remove the bed. The lender obviously considers the room in the basement as a bedroom due to the fact there is a bed in it. By you labeling it a flex room, some underwriter probably thinks you are trying to "slip one past the goalie" so to speak. Not saying you are but that is probably the thought process of the underwriter.

The lender still has TILA to deal with and cannot make up FHA guidelines forcing additional costs to the borrower.

 

[James Micozzi]

Could be if it had exercise equipment. How about a hobby room, toy room, study, office, kids room, collectible room, etc. The point, they could be any of those and therefore flex room.

I assume that this is an FHA reverse mortgage. Right out of the handbook

Bedrooms
The Appraiser must not identify a room as a bedroom that cannot accommodate ingress or egress in the event of an emergency, regardless of location above or below grade.

The OP did not identify it as a bedroom but most likely showed a photo of this room with a bed in it. So the lender, who is free to even go beyond FHA guidelines if they want, will have the borrower remove the bed.