1974 Singlewide

[OSU Beavers]

I am reviewing a report on a 1974 Singlewide non-HUD mobile home. Everything on the report looks good and honest including the value. The only fault is that the report is written on a 1004C form which is for HUD only manufactured homes. This may have been at the lenders request or the appraiser may not be aware that non-HUD manufactured homes do not go on the 1004C.

Should I downgrade the report from Good because of the wrong form type or just mention it in closing?

 

[Restrain]

The form is not the issue so long as all the data was accurately described. As you do not know the lender requirements, comment and move on.

 

[CANative]

Where on the form or the certs does it state that the manufactured home must be built to the HUD code? Fannie Mae calls all factory built homes on non-removable steel chassis' manufactured... they just won't lend on manufactured homes not built to the HUD Code.

 

[OSU Beavers]

Just checking. I know that there are some real form nazis in here that get all OMG up in your face if you use the wrong form.

The report is also missing the:

"Clarification of Intended Use and Intended User:
The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser."

Maybe he just forgot after two and a half full pages of narrative description and analysis. Wow he really did a through job, not just slapped together in his car while eating a happy meal!

 

[Michigan CG]

Mr. Beaver,

I think that if everything is good then mention it and maybe somehow let the appraiser know the problem...how to do that, I don't know.

There are so many who have been trained badly, or not trained, and then there are some who are trained well but not exposed to every form available.

Personally, I would have no clue what form to use. Until I met this forum I thought everything was on a 1004, and the rest was on a 2055 which I was not allowed to use per my mentor who did not (and I do not) believe in except in certain circumstances.

Except for the form, you have a good appraisal. Now if it were a court case, that might be different.

 

[Mary Tiernan]

Now, I thought the use of the new forms indicates the report should be completed in accordance with fannie mae supplemental standards, and as I understand it Fannie will not buy these boogers - so now there is a report, labeled Summary, on a Fannie form that could get bundled up into a big pile and end up in Fannie's hands.

Ok, so the client asked that the new 1004C form be used, does the report state that this report is not prepared in accordance with fannie mae supplemental standards and may not be eligible for purchase on the secondary market?

Also, because the report is not eligible for Fannie, I don't think the Fannie approved intended user statement is necessary, in fact, my intended user statement would specifically rule out Fannie and Freddie Mac, maybe even make this a restricted use report.

 

[CANative]

Mary, let's work through this.

I don't think the forms state anywhere that the appraisal must conform to Fannie Mae appraisal requirements. Fannie Mae is saying that if the lender expects them to securitize the loan the appraisal must meet their requirements which includes reporting the appraisal on the forms they have designed.

If the collateral does not meet Fannie Mae property requirements then the loan and the appraisal report are not going to Fannie Mae.

 

[OSU Beavers]

It is a "Summary Appraisal Report."

Other than the Lender/Client line there was no Intended Used or Intended User stated, however the 1004C form DOES state:

INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this
appraisal for a mortgage finance transaction.
INTENDED USER: The intended user of this appraisal report is the lender/client.

So does the appraiser need to repeat that in his narrative?

He did state throughout the report "Pre Certification Construction".

 

[CANative]

I'd point it out so no one could say I was asleep at the switch.

 

[Mary Tiernan]

I think the Intended Use/User statement is not a requirement - it is provided to appraisers as a way around cert. #23, but it is not required to be in the report.

Ok, so I guess the HUD Data Plate section of the new 1004C just gets ignored? It is only there just in case the manufactured house is HUD approved? Just put Not Applicable and all is well.

So, I do not have to attempt to comply with Fannie Mae Supplemental Standards when utilizing the new forms?

When my clients want something done that is not ok with Fannie, I won't use the new forms. I have some clients who will order on the old forms when they know they are not complying with Fannie in their orders - older S/W is one of them, usually ordered on the old 2055/interior or old 1004.

I know USPAP does not dictate the form used, but I thought if you used the new forms you were expected to follow Fannie's rules.