FHA-new purchase agreement amendment

[Mike Ault]

Here is Fannie Mae's guidance on the issue as well –

Contract Changes After the Appraisal is Completed​

If the contract is amended after the effective date of the appraisal in a way that does not affect the description of the property, then the lender is not required to provide the amended contract to the appraiser nor obtain a revised appraisal. Some examples of amendments that do not require the lender to provide the amended contract nor obtain revisions to the already-completed appraisal report include:

• sale price,
• transaction terms,
• financing concessions,
• seller-paid closing costs,
• names or initials,
• closing date, and
• correction of minor clerical errors such as misspellings.

B4-1.1-05, Disclosure of Information to Appraisers (12/06/2016)

selling-guide.fanniemae.com

​

 

[Tom4value]

I would copy and paste USPAP FAQ 153 and send it on to the AMC.

View attachment 63145

You did it correctly. Stick to your guns.

 

[Mike Ault]

The appraiser did just what I would have done. Addressed the contract price change, post effective date, in the addendum but just didn't change the first page of the URAR. Now all parties to the transaction are blaming the appraiser. My throw it in thier Fing face comment was out of pure frustration. Sure you can go along.

wouldn't the date of contract being after the effective date in the contract section hardstop the EAD?

View attachment 63146

One would think it would however I just went through all of those EAD hard stops and didn't see that particular one listed.

https://www.HUD.gov/sites/documents/SFH_EAD_HARDSTOPSFS.PDF

 

[RSW]

The VA is adamant that page 1 not be changed.

 

[CGinMN]

If the contract is amended after the effective date of the appraisal in a way that does not affect the description of the property, then the lender is not required to provide the amended contract to the appraiser nor obtain a revised appraisal.

Yes, Fannie does not require it from the lender, but that does not mean the lender can't ask the appraiser to do it. They might have their own internal policies on appraisal compliance. This is an FHA order, but the same rationale applies. So long as it doesn't result in a hard stop, why fight the folks sending you a check?

 

[Mike Ault]

Yes, Fannie does not require it from the lender, but that does not mean the lender can't ask the appraiser to do it. They might have their own internal policies on appraisal compliance. This is an FHA order, but the same rationale applies. So long as it doesn't result in a hard stop, why fight the folks sending you a check?

Because you might run afoul of some forensic "Checkbox Charlie" down the line who says, "it doesn't matter how well you explain why your market area doesn't match your 1004 MC, that is a defect worthy of a repurchase." Many investor overlays set the loan amount as a certain percentage of the sales price or the appraised value, whichever is lower. When you raise the sales price to meet the appraised value on page one you can be accused of colluding with the loan officer and the realtor to conceal the original sales price from the ultimate investor in the loan. Too many addendum's get lost & some appraisers do a purposefully lousy job of explaining list price adjustments after the contract is signed as well. I personally believe that particular customer service is "a bridge too far" in too many cases. What did the highly esteemed Stephen Santora say on here? "An appraisal is not a living document".

 

[Terrel L. Shields]

many appraisers have no sense of customer service.

The solution is to force FNMA, FHA, VA etc to have one SINGLE standard of conduct and that to be either integrated seamlessly with USPAP or allow the appraiser to choose between the secondary market standard or USPAP... which begs the question of what would be the appropriate name for that and I suggest it should be Conforming Requirements for Appraisal Practice - CRAP for short..

 

[DWiley]

The solution is to force FNMA, FHA, VA etc to have one SINGLE standard of conduct and that to be either integrated seamlessly with USPAP or allow the appraiser to choose between the secondary market standard or USPAP... which begs the question of what would be the appropriate name for that and I suggest it should be Conforming Requirements for Appraisal Practice - CRAP for short..

That is one possible solution. Another possible solution is for appraisers to know the requirements that apply to assignments, and act in accord with those requirements, while at the same time thinking of things like a business owner rather than as a technician with a checklist.

 

[Mejappz]

Conforming Requirements for Appraisal Practice - CRAP for short..

Lol it’s being incorporated by reference as we speak.

 

[glenn walker]

Let's face it 90% of appraisers problems are self inflicted . In a rising interest rate environment if a borrower loses a rate lock because of a stubborn appraiser that borrower may have a case against that appraiser . Also a seller needing to move out that week end etc. There will be a lot of law suits coming up in the future and these appraisers better be well prepared as some do cause monetary damage to a borrower due to their stubbornness.