Does Absence of Owner-Tenant Occupancy Data Affect MPR?

[J Grant]

JG, your comments are spot-on, and appreciated as always, but isn't it silly & inefficient to report data that we know is meaningless to the extent that we disclose that fact????

It serves a purpose because it lets the client go forward with the apprasial and the loan. They can't do that with the spaces for rentals left blank or NA

 

[Fernando]

So I called the management company and the rep gave me a number of rentals verbally over the phone.
Next day I got the condo cert and the rental is more by 6%. Condo Cert based it on mailing address.
That's my point, you can get a close enough number from a large data sample. It's too difficult to determine exact number.

 

[ZZGAMAZZ]

So I called the management company and the rep gave me a number of rentals verbally over the phone.
Next day I got the condo cert and the rental is more by 6%. Condo Cert based it on mailing address.
That's my point, you can get a close enough number from a large data sample. It's too difficult to determine exact number.

Generic question: Would appraisal data based upon statistical inference require an Extraordinary Assumption, or is that implication baked into the calculations ???

 

[J Grant]

Generic question: Would appraisal data based upon statistical inference require an Extraordinary Assumption, or is that implication baked into the calculations ???

Consider that the URAR form does not allow the appraiser to add any additional EA , such as about rental data estimates.

 

[ZZGAMAZZ]

Consider that the URAR form does not allow the appraiser to add any additional EA , such as about rental data estimates.

JG: This is the second recent thread in which you made that reference. Please clarify because I don't understand. And, aren't EA's baked into the reconciliation section of FNMAE forms?

 

[Zoe]

Folks are way over thinking this
No matter how much time you spend trying to get an accurate idea of rentals vs owner occupied, when the lender orders the condo questionnaire ( also called an estoppel letter) the numbers from the HOA is going to be different anyway. And the client is going to ask you to change it anyway

Get an approximate idea by looking up on the MLS ,rentals in the subject condo, and/or a few pages of tax records, how many of the names have a different address. Extrapolate results of a fwe pages to the whole. What are the condo's rental rules ?That information is usually on MLS listings. Condos that allow unlimited rentals usually have a higher ratio of rented units. Condos that have some rental restrictions, such as no leasing allowed the first 2 years of ownership, typically have a lower ratio of leased units.

State that the information is an estimate since the HOA would not disclose the information, and that the number of rentals/owner occupied units might differ in the estoppel letter. Do not make an EA, because as has been stated forever , no additional EA is permitted in URAR form appraisals.

Yeah, HUD is not going to let it go through without what they need. Like you said, the management company on any given day can almost tell you that off the top of their head because they have to keep up with for HUD. They have to keep up with for their own bylaws as well.

 

[J Grant]

JG: This is the second recent thread in which you made that reference. Please clarify because I don't understand. And, aren't EA's baked into the reconciliation section of FNMAE forms?

This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted.

Above is on page 4, the first page of pre printed addendum.

The appraisal is subject to a list of assumptions, in the assumptions and limited conditions section of the P4 URAR printed addendum. We all should refresh read them from time to time, they offer us a lot of protection! That said, the bolded statement does not allow the appraiser to add any additional assumptions, such as an extraordinary assumption,

(On P2 of form where we check the appraisal was made "as is" or "subject to", there is a pre printed EA about inspection )
An EA, imo is not baked into the reconciliation section of the form. I can't understand why you think it would be baked in there or apply ...

 

[Dublin ohio]

. And, aren't EA's baked into the reconciliation section of FNMAE forms?

The reconciliation section has the EA's that are allowed. No other EA's are allowed. Too many confuse EA's with just plain assumptions. Such as the assumption that our data sources are reliable.

 

[Zoe]

Now you could say I am trying to get in touch with management but have not been able to contact them yet and that would buy you a little time. Everybody connected to the transaction would help you contact management. You would be getting contact numbers and probably a call from management.

 

[J Grant]

JG: This is the second recent thread in which you made that reference. Please clarify because I don't understand. And, aren't EA's baked into the reconciliation section of FNMAE forms?

Beside the fact that we are not allowed to make an EA on a URAR form, why would you want to? Stating an EA makes you responsible for an estimate that you actually don't know how reliable it is.

Just state it is an estimate, based on MLS and public record (or other )sources since the management would not disclose the information, and that the actual number of rentals or owner occupied units might differ in an estoppel letter.