Current version of 1025 for Drive By reporting

[Shane Trotta]

Scan into your report the letter from FNMA (on letterhead with a signature)asking you to do it this way, write an addendum regarding it, and do it...it's requested from FNMA for you to do it this way. If it was a request from anyone else I would be concerned.

 

[Marcia Langley]

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

I also disagree but, like you, I accept their right to claim that it is still part of the finance transaction.

But the driveby issue is a separate issue.

So, you don't think using the 1025 as a driveby violates the guidelines?

 

[Mike Kennedy]

Suggest the 1025_05 form does not allow for Exterior only inspection by the Appraiser...... only a Supervisory Appraiser. (see check boxes on right).

pro-forma appraisal report form for interior/exterior inspection only.


Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted.

 

[Michael Tipton]

FNMA asked for input when the current forms were developed. They opted not to release a multi-family drive-by form. I am not willing to be a "sacrificial lamb" by completing a drive-by inspection report on a form that requires an interior inspection.

 

[Carnivore]

No, it's just a fax of description of products being requested with the forms required. This was from one of their regional offices, dated 1/2005. I've E mailed them asking for clarification, as this is the first I've heard of it, but was curious if anyone else was aware of this. The section in question looks like this:

Property Type Report Form

2-4 Family Fannie Mae 1025 (revised March 2005)
Complete Full Inspection Form 1025
Exterior Inspection Only Form 1025
Interior Inspection (Update) Form 1025

We will not accept appraisals that are not on the proper forms

Joe,

I am pretty postive that this is ONLY for internal use in regards to REO. I have specific instructions authorizing my use of the forms in this manner.
This is strictly REO work. This is not a change to the selling guide for origination.

I have it here somewhere in my office. As soon as I find it I will post it.

Having said that, I dont believe this applies to you or any of your clients.
My thinking goes to the USPAP Supplemental Rule. Since this is not published for wide dissemination then I lean twoards this is not being allowed.

I have attached the appropriate link https://www.efanniemae.com/sf/formsdocs/forms/1025.jsp

and file

 

[Brad Ellis]

Marcia,

Yes I do.

I am assuming here that the instructions on the form actually constitute guidelines and the 2055 at least requires adequate knowledge of the subject and the forms all require that no other EAs are used so I suppose that is what causes the problems.

Brad

 

[Marcia Langley]

Marcia,

Yes I do.

I am assuming here that the instructions on the form actually constitute guidelines and the 2055 at least requires adequate knowledge of the subject and the forms all require that no other EAs are used so I suppose that is what causes the problems.

Brad

But we were talking about the 1025. Am I not following you?

 

[Carnivore]

Marcia,

Yes I do.

I am assuming here that the instructions on the form actually constitute guidelines and the 2055 at least requires adequate knowledge of the subject and the forms all require that no other EAs are used so I suppose that is what causes the problems.

Brad

Brad,

I believe the instructions on the form are not just guidelines, but some are actual requirements. Since these are published Fanni Mae/Fredie Mac forms that in my mind has always meant the Supplemental Standard Rule Applies.

 

[Tony in Ohio]

I am not a legal expert but I have assumed that since their REO orders clearly state that the 2-4 family's are to be done on that form, which they developed, and given that they are clearly a knowledgeable client, It seems to me that their requested reporting format supersedes the preprinted language on their forms.

While I wish they would have developed a drive-by form as it would save me time making explanations and clarifications about the actual scope, I can understand why they would not.

It is just my thought here, not anything I have heard from them, but I think if they had developed a multi-family drive by form, that might have implied that they would accept such limited scope appraisals for origination purposes, and I do not think any of us think that would be a good idea.

Add in the extra cost and bureaucracy needed for each form, and it seems like a much more elegant solution (for them, not necessarily the appraisers or other users.) to just do it that way.

 

[Brad Ellis]

Marcia,

If you uswe the 1025 for a driveby does it still not say that EAs are not allowed (except for what Fannie put in the forms)? If so, how can you make an EA about interior condition (or that of the rear or even sides sometimes) without violating their guidelines?

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?

Andrew- not sure if you are correct or not. I'm thinking some are and some are not. Fannie has decliend (to me anyway) to publish the differences so everyone can know.

Brad