C1 or C2?

[residentialguy]

Good idea. I include them in every report and can flip to the page and read them.

I personally don't do that. When a lender orders something in a particular language, it is a reasonable assumption that they understand it. FNMA invented the language, why would they need the definitions? Definitions are given to us so that we understand. You adding them tells me is that you think someone else is going to use the report than your intended user, thereby making a strong argument that they are also an intended user.

I see no benefit to adding them to the report and only more liability if you do....and I called LIA and they agreed.

 

[Mike Garrett RAA]

The VA requires them to be included in EVERY report.

 

[residentialguy]

The VA requires them to be included in EVERY report.

That's fine...then it's added due to it being a requirement, not because you intend someone else to use the report. I would also tack it on to the very backside of the report stating that adding it is a requirement for the client's purposes and nothing is to be inferred that another user is intended.

 

[moh malekpour]

I got the word from a FNMA insider . . and All of us were wrong.
The new FNMA CU will accept C1 condition for homes up to 1 year old.

I was also told that the definitions will not matter anymore.

The FNMA insider might be right but we have to follow the definitions not word of mouth. These Definitions have been there for a long time and if they don't matter,why they forced us to swallow them? The new FNMA CU is not out there yet and util it comes out and discredit or disqualify the current definitions, we have to follow the old definitions.

Per Merriam Webster Dictionary on-line, the word Previously is synonyms with word Already. If a home is occupied one day, one week, one month or one year; we consider the home is already occupied that means is previously occupied.

If FNMA wants to call up to one year occupancy as a C1, then it should change the phrase ( has not been previously occupied) to (has not been occupied for more than one year). What is wrong with that? Why they didn't say it? problem with one year occupancy as a C1 is that some may ask, why one year occupancy should be C1 and one year and one day should be C2? But these are for FNMA or FNMA insider to answer.