Curling Comp Shingle Roof Question For Conventional Loan

[glenn walker]

I can see the pressure from the moderator telling us to be nice to each other is about to explode -so let's make this easy for the OP - Just simply State in your report what you observed and recommend the lender obtain a roof certification by a licensed contractor - After that it will either get certified- repaired and certified or the lender will require either a new roof prior to close of escrow or X-amount of $$- to be held back into a repair escrow account. Now boys and girls wasn't that easy

 

[Deleted member 130081]

I can see the pressure from the moderator telling us to be nice to each other is about to explode -so let's make this easy for the OP - Just simply State in your report what you observed and recommend the lender obtain a roof certification by a licensed contractor - After that it will either get certified- repaired and certified or the lender will require either a new roof prior to close of escrow or X-amount of $$- to be held back into a repair escrow account. Now boys and girls wasn't that easy

Really? Except for my Mr Smarty Pants crack, and c'mon that aint all that bad, I thought we were playing nice!

But you have a point, the threads been hijacked a bit.

 

[Mike Kennedy]

https://www.fanniemae.com/content/guide/selling/b4/1.2/03.html

Requirements for Existing Construction


When There are Incomplete Items or Conditions that Do Affect the Safety, Soundness, or Structural Integrity of the Property
When there are incomplete items or conditions that do affect the safety, soundness, or structural integrity of the property, the property must be appraised subject to completion of the specific alterations or repairs. These items can include a partially completed addition or renovation, or physical deficiencies that could affect the safety, soundness, or structural integrity of the improvements, including but not limited to, cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, or inadequate electrical service or plumbing fixtures. In such cases, the lender must obtain a certificate of completion from the appraiser before the mortgage is delivered to Fannie Mae. Although the original appraiser should complete any required certification of completion, the lender may use a substitute appraiser.
See B4-1.2-02, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers.

The certification does not need to include photographs of the property unless those that accompanied the original appraisal report are no longer representative of the completed property.

 

[timd354]

https://www.fanniemae.com/content/guide/selling/b4/1.2/03.html

Requirements for Existing Construction


When There are Incomplete Items or Conditions that Do Affect the Safety, Soundness, or Structural Integrity of the Property
When there are incomplete items or conditions that do affect the safety, soundness, or structural integrity of the property, the property must be appraised subject to completion of the specific alterations or repairs. These items can include a partially completed addition or renovation, or physical deficiencies that could affect the safety, soundness, or structural integrity of the improvements, including but not limited to, cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, or inadequate electrical service or plumbing fixtures. In such cases, the lender must obtain a certificate of completion from the appraiser before the mortgage is delivered to Fannie Mae. Although the original appraiser should complete any required certification of completion, the lender may use a substitute appraiser.
See B4-1.2-02, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers.

The certification does not need to include photographs of the property unless those that accompanied the original appraisal report are no longer representative of the completed property.

Apparently some people in this thread either cannot read or don't think they are subject to Fannie Mae appraisal requirements for an appraisal done for a GSE related loan, which is pretty sad. Some of these same people probably wonder why the GSE's are eliminating appraisals on some transactions

 

[residentialguy]

Just simply State in your report what you observed and recommend the lender obtain a roof certification by a licensed contractor - After that it will either get certified- repaired and certified or the lender will require either a new roof prior to close of escrow or X-amount of $$- to be held back into a repair escrow account. Now boys and girls wasn't that easy

well, that's kind of like plans and specs. You have to place the appraisal on hold you wait to find out what they're doing to that roof before you proceed so that your report reflects the completed project.

 

[Rick Stillman]

Just did an appraisal with this exact issue. Here is how I handled it:

"This appraisal is made subject to the subject being certified from a qualified roofing inspector for the wood shake shingles being usable, as well as having an adequate remaining life span. The roof wood shakes are severely cupped and weather worn in many areas. The appraiser is not qualified to determine the condition of the roof. See photo addendum for accompanying photos of sample views of the roof shake shingles."

Notice that I REQUIRED an inspection to ascertain the condition of the roof. Since it is my appraisal, the lender does NOT get to make the decision of how I handle an issue of repair and/or condition. They, and the lender, do get to decide on what repairs are deemed necessary.

I also included the roof inspection report in the 1004D. That is my job. What they decide to DO after the *required* inspection is out of my control. But I am not going to be put on the spot while trying to explain that the lender MADE me SUGGEST the roof MIGHT want to be, or SHOULD be inspected. No maybes, and no excuses. It looks bad - and it's going to be dealt with by a QUALIFIED professional.

I do NOT think it is up to me to require a roof to be replaced. I am not qualified to make that decision. I am qualified, AND expected, to deal with any issues that I should discover during the appraisal inspection. I am sure not going to allow anyone to tell me to ignore such issues. I make the call, knowing my limitations, because I am the professional.

Simple. I did my job correctly, not "leaving it up to" anyone else to decide. I'm covered. No misunderstandings. If an error is made, it will not be because of something I did, or did not do.

 

[residentialguy]

Just did an appraisal with this exact issue. Here is how I handled it:

"This appraisal is made subject to the subject being certified from a qualified roofing inspector for the wood shake shingles being usable, as well as having an adequate remaining life span. The roof wood shakes are severely cupped and weather worn in many areas. The appraiser is not qualified to determine the condition of the roof. See photo addendum for accompanying photos of sample views of the roof shake shingles."

Notice that I REQUIRED an inspection to ascertain the condition of the roof. Since it is my appraisal, the lender does NOT get to make the decision of how I handle an issue of repair and/or condition. They, and the lender, do get to decide on what repairs are deemed necessary.

I also included the roof inspection report in the 1004D. That is my job. What they decide to DO after the *required* inspection is out of my control. But I am not going to be put on the spot while trying to explain that the lender MADE me SUGGEST the roof MIGHT want to be, or SHOULD be inspected. No maybes, and no excuses. It looks bad - and it's going to be dealt with by a QUALIFIED professional.

I do NOT think it is up to me to require a roof to be replaced. I am not qualified to make that decision. I am qualified, AND expected, to deal with any issues that I should discover during the appraisal inspection. I am sure not going to allow anyone to tell me to ignore such issues. I make the call, knowing my limitations, because I am the professional.

Simple. I did my job correctly, not "leaving it up to" anyone else to decide. I'm covered. No misunderstandings. If an error is made, it will not be because of something I did, or did not do.

I agree
So did you put the appraisal on pause until you found out what they were going to do?

 

[Rick Stillman]

I agree
So did you put the appraisal on pause until you found out what they were going to do?

No, I completed it, subject to the inspection. After the inspection, I prepared the 1004D completion report, which included the roofing certification. Done deal.

I never pause an appraisal when I find issues. They are made subject to being repaired or inspected. The worst one I have encountered was a concrete floor that was heaved in the middle to such a point that the doors on that level could not be closed or opened. I made that subject to an engineering report for cost of repair. The loan did go through, and it was fixed easily by the new homeowner. They did buy it for a substantial discount. I'm not going to pause my work to see what happens or to find out what someone thinks. Been doing it that way for 17 years - no issues.

 

[residentialguy]

I never pause an appraisal when I find issues. They are made subject to being repaired or inspected.

Do you appraise it with as an house with a older repaired roof on it's last years or a house with a brand new expensive wood shake roof on it that significantly contributes to the value? Those would be two completely different values.

 

[Mr Rex]

Reading is fundamental:

subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: