Conventional Site Condo from on 1004, lender wants changed to 1073

[Kristina Ledesma]

I know this can be a regional thing, but 100% of the time I've seen site condo's done on a 1004. I put a nice lengthy comment in and everyone is happy.

Now, I know there is some verbiage both FNMA have and FHLMC about the site condo going on a 1004 form. Of course, now that I have a lender that is adamant they want it changed to a 1073 I can't find it.

I know of the one below...BUT there is one that more directly discusses the use of a site condo on a 1004 form and NOT a 1073 form.

Again, this is not FHA and it is not a detached condo, but a site condo where land ownership is involved.

"See Fannie Mae Selling Guide April 9, 2013

Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Document Standards,
Report, and Property Inspections

B4-1.2-06, Appraisal Forms and Report Exhibits (06/26/2012)

Uniform Residential Appraisal Report (Form 1004)

Purpose - For appraisals of one-unit properties and units in PUDs (including those
that have an illegal second unit or accessory apartment) based on interior
and exterior property inspections. Form 1004 also may be used for twounit
properties, if each of the units is occupied by one of the co-borrowers
as his or her principal residence or if the value of the legal second unit
is relatively insignificant in relation to the total value of the property (as
might be the case for a basement unit or a unit over a garage). In addition,
appraisals for units in condo projects that consist solely of detached
dwellings may be documented on Form 1004, if the appraiser includes an
adequate description of the project and information about the homeowners’
association fees and the quality of the project maintenance. Appraisals
reported on Form 1004 must be completed in accordance with the UAD
Specification.""

 

[J Grant]

So if you have a lender that wants it on the 1073 form and this is a client you care about, just merge the content on your software and put it on a 1073 form. You won't be in violation of anything and you are not changing the value...maybe there is a client in house preference for the 1073 in this case.

You are spending more time not doing it then doing it...should take about 15 minutes to convert.

 

[Kristina Ledesma]

In my experience converting a completed report over to another form takes a lot longer than 15 minutes, the fields do not always transfer properly, data is lost.
The bigger issues is often the request comes from someone across the country that has no clue what a site condo is. The 1004 is the most relevant form, the subject sits on a privately owned site. I am not usually in the practice of doing something solely because a lender wants it done. They ask for a lot of things that shouldn't be done, doesn't mean we should always do them to make them happy...we should do what is most relevant. I have personally never seen a conventional site condo put on anything other than a 1004 (to clarify this is not a "detached condo").

 

[J Grant]

KL,
Do what you want. I would never change a value or SOW to "make a client happy", however , if a particular lender had a requirement , what form to use and using that form was in compliance, I would probably do it if it were a good client in interest of long term relationship.

 

[Don Clark]

In my opinion a Condo always belongs on a Condo Form. And, a Condo does not necessarily mean it is in a PUD. We have many large PUD's that have a variety of houses styles as well as condo developnents in the pUD and an owner pays seperate PUD and Condo fees.

Condo is a form of ownership, not an archetectural style. As such, it belongs on a Condo form.

 

[Restrain]

A 1073 is used for a condo where there is not an individual site (no site section for the individual unit). The 1004 is used for a site condo because of the individual site.

 

[Doug Wegener]

There are lots of other features besides site in a condo that are not addressed in the 1004 form. As Don mentioned ä condominium is form of ownership. I vote for the condo form.

I believe if you do a search on the forum for "landominiums" you will find some discussion on the matter.

 

[sputnam]

If it's a good client, you'll want to make the change and move on. If it's an okay client, make the change and charge them. If you don't want to do business with them again...refuse.

 

[VolcanoLvr]

Out here, inside the ring of fire, a significant regional lender wants 'site condos' reported on the 1073 Form. Appraisers, other than me, do it.

In reviewing the 1073 Form for a prior order like this, it became very obvious that lots of the 1073 assumptions had to be modified or added-to by extra commentary on the form and within an attached Addendum. (I declined the assignment due to the extra time it would have required for the offered fee.)

Can a 'site condo' be put on a 1073? Yes.

But is it also a pain in the toosh? Absolutely.

 

[Deleted member 128537]

I do site condos on the 1004. It's the only form that makes sense. Wells Fargo does it on a 1004. I just did two in the last month that way. Then all you need to do is modify the 1004 a bit. But the 1073 has no place for the site description etc. I would charge $75 extra if they demanded it on the 1073. But in my opinion that 1073 is misleading when it comes to a site condo.