Can you do a 216 without a 1007

[hastalavista]

Aren't expenses supposed to be market based? For example an owner can claim artificially low expenses but that is not typical or realistic of what it costs to maintain the property

Yes, but the process is: the borrower is supposed to provide the actual expenses. From there, it is supposed to go to the appraiser to analyze and adjust (with comments) if necessary. From there, it is supposed to go to the UW for final analysis and adjustments.

I now provide a blank 216 Form to the property owner, and ask them to fill in the numbers. Then I say in the one I use in the report that the details came from the owner.

I think that is a very good process.

 

[Peter LeQuire]

Aren't expenses supposed to be market based? For example an owner can claim artificially low expenses but that is not typical or realistic of what it costs to maintain the property

The owner/prospective borrower provides the income and expense information to the lender to qualify rental income as effective toward the loan applied for. If the form instructions were followed, the information given the lender by the applicant would be passed along to the appraiser, who would opine whether they were reasonable, and, if different, what market expense and reserves were.