C5 Condition Rating

[J Grant]

http://www.gmaronline.com/resources/appraisal resources/uad quick reference guide.pdf

Note it refers to safety and soundless of the improvements ( not the occupants)

 

[residentialguy]

http://www.gmaronline.com/resources/appraisal resources/uad quick reference guide.pdf

Note it refers to safety and soundless of the improvements ( not the occupants)

Safety applies to safety of the occupants, not the improvements. You don't put a railing up to keep the sink from falling off.

 

[J Grant]

http://www.gmaronline.com/resources/appraisal resources/uad quick reference guide.pdf

Note it refers to safety and soundless of the improvements ( not the occupants)

Safety applies to safety of the occupants, not the improvements. You don't put a railing up to keep the sink from falling off.

MPR for FHA is about occupant safety. The verbiage for condition ratings refer to safety and soundness of the structure/dwelling (which would ultimately affect occupants but the C ratings are about the property )

 

[residentialguy]

Note it refers to safety and soundless of the improvements ( not the occupants)

Of course it is of the improvements, but the safety and soundness is for the occupants...it must be in safe and sound shape so that the occupants can be safe and sound. If there is large hole in the floor, it is a safety hazard. The structure itself is safe...the hole won't hurt the structure, but it is a safety hazard for occupants walking around the structure.

 

[timd354]

http://www.gmaronline.com/resources/appraisal resources/uad quick reference guide.pdf

Note it refers to safety and soundless of the improvements ( not the occupants)

You should look directly in the Fannie Selling Guide as opposed to looking at something put together by someone else that may or may not be exactly correct or which may be an abbreviated reference.

Here is what the Selling Guide actually states regarding C6:

C6 The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.
Note: Substantial repairs are needed to the improvements due to the lack of adequate maintenance or property damage. It reflects a property with conditions severe enough to affect the safety, soundness, or structural integrity of the improvements.


Identifying Property Condition

As previously noted, the Condition rating selected for the property must reflect a holistic view of the condition of the property improvements. It would be inappropriate to select either a lower or higher overall rating on the basis of one or two minor inferior or superior areas of the property improvements. However, the C6 rating is an exception because it indicates that the property is impacted by one or more deficiencies that negatively affect the safety, soundness, or structural integrity of the property. As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6.


Properties with a Condition Rating of C6 are eligible for sale to Fannie Mae provided any deficiencies that impact the safety, soundness, or structural integrity of the property are repaired prior to delivery of the loan. See Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property in this topic for information related to completing appraisals on properties with safety, soundness, or structural integrity deficiencies.

I would hope that you don't believe that a hole in the roof does not affect soundness or structural integrity of the property even if somehow you don't think it affects safety How a hole in the roof that would allow the entry of water and vermin into premises is not also a safety issue is beyond me, but clearly a hole in the roof affects the soundness of the property and may also indicate a problem with structural integrity.

See Fannie Mae Selling Guide, sec. B4-1.3-06: Property Condition and Quality of Construction of the Improvements for additional information

 

[residentialguy]

Bottom line, if it affects the safety of the occupants or structure, it's an issue that must be cured. It can cross over into Quality as well whereas the quality is such that it may impact the safety, soundness, or structural integrity of the property, as well.

 

[Deleted member 130081]

I like what Notrav and others have said, you do not need to make a list of repair items because C4 is defined. The other reason is, it is not your job to play rehabber - leave that up to the borrower. I made that mistake a bit ago and lost a good client over it when I made a list of repairs, then the client forwarded that to the borrower, except they edited my list and took some stuff off, then got upset with me when I would not sign off on the 1004D. While I don't think its impossible or unethical to make a list of repairs that COULD bring the property to a different rating, I think the way the lender is likely to play it just asks for headaches. Like Notrav and others have said, send them the UAD sheet if they dont know what C4 is.

 

[J Grant]

TMD you have never even done an appraisal with UAD have you, correct? Regardless of whether you helped write it, observing a property condition is done on site. A hole in the roof of course can be C 6, and a hole big enough to allow water or vermin for infestation is C 6. However if it is a tiny hole with only a small leak at that point in the cycle it is a C 5- affecting a small area in the home. ( the one area in one room).

 

[timd354]

TMD you have never even done an appraisal with UAD have you, correct? Regardless of whether you helped write it, observing a property condition is done on site. A hole in the roof of course can be C 6, and a hole big enough to allow water or vermin for infestation is C 6. However if it is a tiny hole with only a small leak at that point in the cycle it is a C 5- affecting a small area in the home. ( the one area in one room).

You are simply incorrect.

Please re-read sec. B4-1.3-06 of Fannie Mae Selling Guide, more carefully this time (especially the part in Red Font). ere is part of the relevant verbiage:H

Identifying Property Condition

As previously noted, the Condition rating selected for the property must reflect a holistic view of the condition of the property improvements. It would be inappropriate to select either a lower or higher overall rating on the basis of one or two minor inferior or superior areas of the property improvements. However, the C6 rating is an exception because it indicates that the property is impacted by one or more deficiencies that negatively affect the safety, soundness, or structural integrity of the property. As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6.

If you think that a hole in the roof that allows water into the structure is not something that affects soundness and structural integrity, then you should not be doing GSE-related appraisals.

I suggest that you also read sec. B4-1.2-03 of the Fannie Mae Selling Guide, which states, among other things, that if the home has an active roof leak (and please don't try to argue that a hole in the roof is not an active roof leak), then the appraisal must be completed "subject to" repairs - Note, that Fannie's Selling Guide specifically lists this as an issue that affects the safety, soundness or structural integrity of the property.

 

[TJSum]

Given enough time, a small leak can cause massive damage. Typically the small or slow leaks lead to mold issues because the problem is not discovered right away.