1004 vs non 1004

[David S]

One question: Is lender or reviewer more strict for 1004, 1073 and 1025 since these loans will be sold to FF? I was heard for 1007, 2055 or any non interior inspection assignment will be more relax since these loans will be HELOC, investment loan, either bank keep them or sold to private investor. Any thought? Thanks!

 

[J Grant]

One question: Is lender or reviewer more strict for 1004, 1073 and 1025 since these loans will be sold to FF? I was heard for 1007, 2055 or any non interior inspection assignment will be more relax since these loans will be HELOC, investment loan, either bank keep them or sold to private investor. Any thought? Thanks!

I have no idea - I do every appraisal as if it might be reviewed or scrutinized at some point.

 

[sputnam]

The form you are reporting on has just about nothing to do with how thoroughly your appraisal will be scrutinized. Whether the loan will be sold to a GSE on the secondary market certainly can impact your Scope of Work and the reporting requirements. That's something that you have to determine through discussions with your Client.

I agree completely with J Grant. Do every appraisal and appraisal report as if your Appraisal Board is going to go over it with a fine tooth comb.

 

[Tom4value]

One question: Is lender or reviewer more strict for 1004, 1073 and 1025 since these loans will be sold to FF? I was heard for 1007, 2055 or any non interior inspection assignment will be more relax since these loans will be HELOC, investment loan, either bank keep them or sold to private investor. Any thought? Thanks!

“Strict”?
Any appraisal we do, regardless of form, regardless of scope, regardless of lender risk, needs to be “credible“. Period.

 

[OSU Beavers]

I just completed an appraisal on a form 1004C for a Home Equity loan and the report was rejected for "Fannie Mae: there are two occurrences where the word desirable is used to describe a residence. This was flagged as a possible code word or potential bias word that cannot be used within that context. Please revisit and revise by removing the two occurrences of this word." In my narrative about the sold comps I stated that site-built home are more desirable to buyers in this market than factory built manufactured homes.

I am really getting tired of this BS!

 

[Tom4value]

I just completed an appraisal on a form 1004C for a Home Equity loan and the report was rejected for "Fannie Mae: there are two occurrences where the word desirable is used to describe a residence. This was flagged as a possible code word or potential bias word that cannot be used within that context. Please revisit and revise by removing the two occurrences of this word." In my narrative about the sold comps I stated that site-built home are more desirable to buyers in this market than factory built manufactured homes.

I am really getting tired of this BS!

Actually, I see their point. What do you mean by, "desirable"?

A better response is, "'stick-built' homes generally have shorter marketing times and sell for higher prices than manufactured homes". This is a more "data supported" analysis.