1007 & 216 - without the full Appraisal

[CraigAVC]

So apparently, ordering just the 1007 and the 216 without a 1004 or a 1073 on a property seems to be "a thing", now. In the 20 years I appraised, I've never done anything like that. Have you been asked to prepare these forms for a property site unseen? If so, do you do them? Do you go out and do the inspection? Do some sort of desktop analysis?

Just looking to see how active Appraisers deal with this issue.

Thanks!

 

[J Grant]

So apparently, ordering just the 1007 and the 216 without a 1004 or a 1073 on a property seems to be "a thing", now. In the 20 years I appraised, I've never done anything like that. Have you been asked to prepare these forms for a property site unseen? If so, do you do them? Do you go out and do the inspection? Do some sort of desktop analysis?

Just looking to see how active Appraisers deal with this issue.

Thanks!

I've done a couple as stand alone orders and not had a problem with it. Just disclose if you have or have not performed a service on the subject property in the past 3 years, you have not inspected, etc etc.

 

[JeffSH]

It's rare, but I've received these orders before. There's no issue unless you don't feel competent or there's not enough information to produce a credible report. If there's a recent MLS listing, then I just assume condition is similar and that's good enough for me. Just state everything in the report.

Edit: To clarify, I do not inspect the subject. It's a desktop assignment unless the client has specific requirements.

 

[DeConstricted]

So apparently, ordering just the 1007 and the 216 without a 1004 or a 1073 on a property seems to be "a thing", now. In the 20 years I appraised, I've never done anything like that. Have you been asked to prepare these forms for a property site unseen? If so, do you do them? Do you go out and do the inspection? Do some sort of desktop analysis?

Just looking to see how active Appraisers deal with this issue.

Thanks!

I thought the responses to your question have been good.
I would add that, the loan product would primarily be to support the borrower's income rather than the property as collateral. It might not even be the property associated to the loan, but just supportive of the borrower.

 

[JeffSH]

I thought the responses to your question have been good.
I would add that, the loan product would primarily be to support the borrower's income rather than the property as collateral. It might not even be the property associated to the loan, but just supportive of the borrower.

Yeah, these assignments are easy because the property is usually owned by a typical investor and the rent is near market. Always get the rent from the owner.

Our job isn't to validate the current rent, and if market rent is higher/lower than say so, I'm just talking based on experience.

 

[RSW]

Don't forget to provide the definition of Market Rent and the source for the definition.

 

[J Grant]

I thought the responses to your question have been good.
I would add that, the loan product would primarily be to support the borrower's income rather than the property as collateral. It might not even be the property associated to the loan, but just supportive of the borrower.

?? Why would you say such a thing?
We have no business commenting about the loan product or saying it is primarily to support the borrower's income.

If we are engaged to provide an opinion of rent about the subject property, then that is what we are engaged for. If you are not comfortable with it, then decline the assignment.

 

[Terrel L. Shields]

Curious if the lenders actually provide you with the data that FNMA says they must

If the appraiser is retained to complete the form instead of the applicant, the lender must​

provide to the appraiser the aforementioned operating statements, mortgage insurance premium, HOA dues, leasehold payments, subordinate​

financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the​

projections.​

Asking for a friend. I wonder if the fee is adequate.

 

[OSU Beavers]

1) Lender and borrower conspire to commit occupancy fraud;
2) The original appraiser plays ball;
3) The underwriter catches the fraud and orders the rental forms from another appraiser.

 

[OSU Beavers]

I got a call today for a 1007 only on a 3500sf luxury home at the top of snob hill. Not your average rental. I asked for the original appraisal and was told that there was none. The caller said that the borrower was using the estimated income from the subject property to secure a loan on another property. According to county assessor records, he bought the place a year and a half ago, the tax statement is mailed to that same address and he does not own any other property in our county. So I assume that he lives there.

I told the caller that this is not the type of rental that local property management companies have in their inventory, so I would not have any rental comps.