Current version of 1025 for Drive By reporting

[Marcia Langley]

So, yes. I think you violate their own guidelines if you make such an EA. And if you do not, do you not feel a wee bit queasy about doing one?

I don't do them. My Point was that Fannie Mae's REO department requires the appraiser to violate their own (Fannie's) guideline when they require the appraiser to do a driveby on a multiunit property using the 2005 multiunit form, 1025.

I take it from your last post that you do, after all, agree with me.

 

[Carnivore]

I don't do them. My Point was that Fannie Mae's REO department requires the appraiser to violate their own (Fannie's) guideline when they require the appraiser to do a driveby on a multiunit property using the 2005 multiunit form, 1025.

I take it from your last post that you do, after all, agree with me.

Marcia,

The entity who wrote the rule can change the rule. That is much different then someone who is not the rule maker asking you to violate a rule.

Fannie Mae has the power to make rules per USPAP. It has the power to change its own rules per USPAP. Read the Supplemental Standard Rule.

Brad,

My logic is the forms are an extension of the selling guide. Your correct they have have guidelines and requirements within them.

 

[Marcia Langley]

The entity who wrote the rule can change the rule. That is much different then someone who is not the rule maker asking you to violate a rule.

Andrew,

Agreed. That is why I wrote:

Tony,

It does make sense to do an exterior only on a preforclosure. What does not make sense is that Fannie Mae did not accommodate this sensible need in their new forms or that they require breaking guidelines for their own work but demand adherence from others.

The need for the drive by makes sense to me.

Even though I understand and accept the rest (that Fannie can reserve that flexibility for only her own use) I still find it to not be sensible.

 

[Otis Key]

Marcia,

I do not think Fannie is asking anyone to violate their own guidelines as they see them. They believe that the sale of the REO is still part of the mortgage finance transaction but I disagree. Based on their requirements, however, a report could be done in compliance but one must add a definition of liquidation value and its source at a minimum.

Brad

Brad, that's in conflict with Fannie's REO appraisal instructions. The want market value and NOT liquidation value.

 

[Carnivore]

Brad, that's in conflict with Fannie's REO appraisal instructions. The want market value and NOT liquidation value.

correcto mundo!!

 

[Brad Ellis]

Otis and Andrew,

Hold your horses folks. You said they want market value only.

Well, there are four lines at the bottom of the REO addendum that ask for 4 different values:

1) market value as is
2) market value as repaired, and then

Value both as is and as repaired under a greatly restricted marketing time- greatly restricted.

When that happens, it cannot be market value unless that period would both equate to exposure time and to a similar period; hence it is- liquidation value, quick sale value or disposition value- no matter what they want to call it.

Now, I do not believe that is actually a Fannie form but I always had to give it to them.

Has that changed?

Brad

 

[Carnivore]

Brad,

We dont use the Standard REO addendum that I think you are talking about.

I attached what many lenders use, but Fannie does not for their own reasons. FTR, their REO appraisal procedures are very good and work very well for the Scope of work they need and to meet the needs of their REO department.

They dont use this:

 

[Brad Ellis]

Andrew,

Well if they are not asking for that addendum then that is new- but I still get them on virtually every REO appraisal (including ones I get from them). Never once have I seen a definition of liquidation value in one of them.

So, you think it works well, eh? Might that be because when the loan goes bad they froce back down our throats with virtually no regard for the facts?

I had one a few years ago from them. Valued at $60K by the REO appraiser- as market value. I found the guy who sold us the loan and he bid on the foreclusre at $69K and lost out to the 16th higher bidder- right 16 above him. I never found out what it sold for but do know it was immediately placed back on the market for $179K- I had the listing sheet and it sold near that.

Fannie never backed off.

It always works well when someone else has to cover your losses.

Brad

 

[Tony in Ohio]

Brad,

Been doing them for Fannie for about 8 years and have never used that form for them.

That sounds like somebody messed up on that apparaisal. I wonder if he got much more work from them.

I gotta say it have been reading comments for years about how everybody just dumped crap down to the secondary market, this is the first time I have seen anyone complain about some of it being pushed back out.