April Fool’s Joke Or More Unnecessary Delays Of The Appraisal Report

[Wayne Henry]

April fool’s joke or more unnecessary delays of the appraisal report.

Client revision request -

Per lender guidelines: Appraiser to provide a comment on any impact on the value and marketability recent storms/disasters had on subject property (due to no counties officially being declared by FEMA).

Is this an April fool’s joke? There were no recent storms or disasters, and FEMA did not declare any disaster areas in my market. I am confused. I will add a comment stating this in the report; I guess that is what they want if this is not an Aprils fool’s joke. Since this is not in the order instructions, I suppose I am the fool.

Also, why are lender/clients still asking for appraisals to be revised when buyers and sellers change the contract after the effective date of the report and Fannie Mae released an update to their guidelines stating directly this practice should stop.

Per Fannie Mae selling guide Announcement SEL - 2016-09 dated December 06 2016

Disclosure of Information to Appraisers

Currently, we require the lender to provide the appraiser with all amendments made to a sales contract, including amendments that are made after completion of the appraisal. With this update, we have clarified when the appraiser must be provided with updates to the sales contract and circumstances that warrant updates to the appraisal. For example, if the contract is amended in a way that affects the description of the real property used by the appraiser, then the lender must provide the updated contract to the appraiser and the appraisal should be updated. However, minor updates to the contract, such as changes to seller paid closing costs or changes to the contract price, do not require an updated appraisal. In addition, we have updated the policy to require disclosure of changes to financing information (such as loan fees and charges, and subordinate financing provided by interested parties) to the appraiser only for purchase transactions.

Effective Date

This policy update is effective immediately.

 

[Mike Kennedy]

However, minor updates to the contract, such as changes to seller paid closing costs or changes to the contract price, do not require an updated appraisal.

It's about time. Excellent first step.

Both Contract Prices (mutable) or a Revised Contract Price (mutable) are Irrelevant to developing an "independent and objective" opinion of market value determined by the actions of OTHER buyers of OTHER competitive properties based on the Principle of Substitution.

Demanding "Bull$eye" review is unmistakable Coercion sanctioned by parties with vested interest in "doing the deal".

Intended Use - provide the named Client with an independent, objective competitive market indicated Opinion of Market Value for use in a Mortgage Financing Transaction (sale, HELOC, Refi etc.) Is entirely sufficient.

End the Charade.

 

[djd09]

The "Bullseye" is just a conspiracy theory. lol

How would the dums dums know what number is needed.

 

[Wayne Henry]

April fool’s joke or more unnecessary delays of the appraisal report.

Apparently, per one of my client's that I argued this change with Freddie Mac has not adopted the change in contract price procedures. I thought they would but I searched all over and I can not locate any Freddie Mac commentary on the contract price change. Does anyone have any information on this issue with Freddie Mac.

 

[TRESinc]

Also, why are lender/clients still asking for appraisals to be revised when buyers and sellers change the contract after the effective date of the report and Fannie Mae released an update to their guidelines stating directly this practice should stop.

because lenders can do what they want, to a degree. i have 2 clients who still require commentary if adjustments exceed 15%/25% despite FNMA retiring that. the same clients still send over changes to the contract and require my response in the report just like the percentages. i have personally sent everyone in their appraisal depts. the FNMA release about this but it falls on deaf ears as they both said the same thing - our UW dept. still wants it addressed. they are very good clients so they get what they want.

Apparently, per one of my client's that I argued this change with Freddie Mac has not adopted the change in contract price procedures. I thought they would but I searched all over and I can not locate any Freddie Mac commentary on the contract price change. Does anyone have any information on this issue with Freddie Mac.

not sure about freddie but don't hold your breath waiting for the client to change.