A new one on me, Marshall and Swift on Comps.

[John M. Parker]

I received a fax last week with an underwriting requirement I've never seen before. Marshall and Swift calculations for the whole appraisal.

We did the Marshall and Swift for the subject and now per contact they want us to Marshall and Swift on the Comps. I can't see why it would be a requirement and I don't see how it would be possible to do.

By the way this is an FHA new construction that was 95% done when we got the assignment. All comparables are in the same new subdivsion and none are built by the subject property's builder.

I want the underwriter to explain and can't get a straight answer just a run arround.

Any thoughts :?:

 

[wyecoyote]

You might want to post this is the FHA/VA forum.

 

[xmrdfghap]

I would be happy to acceed to their request.....however, as this is outside the normal appraisal process and is not typically done for a residential appraisal, there will be an additional fee of $300, and as soon as payment by certified funds is received you will get right to work.

 

[John M. Parker]

We see a lot of strange request coming out of inexperienced, ill-trained underwriters and staff but can't figure what the purpose of this request is. :?

As far as fees are concerned, you can bet your life if I go to the amount of work in order to satisfy this request I will charge them full fee. But assuming that I try to accomplish what they want I can not figure the proper place to put it (don't say it :twisted: ), explain it and how to keep FHA from questioning it.

My goal is to get this fixed, no matter what it takes within legal means, get this closed and never do business with this company again.

As a side note it took me 2 weeks to get a FHA case number, so this entire process has not been a money maker or good experience. I feel sorry for the poor borrower who is as confused as me.

 

[larryhaskell]

John:

You also have the option to do nothing at all because what they are asking you to do is not required by HUD. It is our responsibility to determine what goes into a report and what doesn't. Just because an underwriter asks for something doesn't mean it's necessary or appropriate. I'm sure many people that post in this forum have been asked to do something by an underwriter that was not only not necessary but would have violated USPAP, HUD guidelines or Fannie Mae. I don't necessarily believe that the underwriter is the most knowledgeable individual in this whole process.

 

[larryhaskell]

John:

One final thought. It's always a good idea to ask them to provide you the documentation that supports their request. This request usually puts a stop to their nonsense.

 

[jtrotta]

In addition to Larrys two great posts I would like to add;


"Please provide a copy of your "Appraisal License and/or Certification" so that we may review your satisfactory standing with our State Commissioner:lol: :lol: 8O


8)

 

[Karl]

Request way out of the ordinary & two weeks to get a case # DID U check to see if they are on the FHA list qualified to do FHA Mortgages. 2 week delay looks to me like they needed to get a number from a qualified FHA Lender YES Folks this is done. So maybe we should check to see if lender is FHA qualified.

 

[larryhaskell]

John:

I checked with the FHA guidelines on All Regs to confirm something before I posted again. The Cost Approach isn't even required for the subject property by FHA for properties more than a year old unless the appraiser believes its relevant. Its strictly up to you. I do remember not completing the Cost Approach in the past. I do believe that you are required to provide a site value however. Check in your copy of 4150.2 for you own interpretation. Hope this helps.

 

[John M. Parker]

The continuing saga.

Read my post in Good Bad and Ugly about RBC Mortgage.

You all know the story to date. Yesterday I received an 8 page fax from the LO who advised me that now that we have not agreed to provide M&S on all comps. the underwriter wants us to complete Marshall and Swift form 1007 per the attached guidelines from FHA. I read the info. thinking that perhaps I'm not as smart as I think I am and found that the information was from 4150.1 which as we all know was replaced with the more liberal 4150.2 which has nothing about M&S Form 1007.

I brought this to the LO's attention and fax copies of the pages 4.4,4.5 to her.

Two hours later received fax with Recommended Methodologies 4.7 and 4.8 and was instructed to issue an addendum with the date and page numbers. I called the LO and told, ENOUGH :!: This underwriter has now been proven wrong or mis-informed three times, no more I am not playing this game anymore.

I doubt this is the last I hear.