Enough evidence to call BS on owner occupied?

[CANative]

30th or 40th review I've done on reports by this skippy. Original client is a broker, review client is a national lender. Property is marked owner occupied. Tax record shows tax billing address for another location. The other location is a residence owned by the borrower. The borrower also owns 4 other properties. Tax billing address for everthing is the same address.

While inspecting the property (located down an easement road with 4 other houses) the neighbor comes out and asks "can I help you?" You know the drill. I just tell her I'm an appraiser and I ask if anyone lives at this property. She says yes, "Dave" lives there. The owners name is Bruce.

Think that's enough to call the owner occupied status as at least questionable? Or is this just something to let go and assume information in the work under review is credible?

 

[TJSum]

I would just reveal what the tax records state for the subject, that the billing address is located elsewhere. They can take it from there, this way you are sticking to info that is a known fact.

 

[Pamela Crowley (Florida)]

I would simply state what you know, what the neighbor said, and let the review client know that the true identity of the current occupant should be verified by the client as it appears it very well might not be the current owner.

 

[Smokey Bear]

Which of his properties has a homeowner exemption on it? They can only have one, and they are stating that's their residence by having one.

 

[Michael Tipton]

Greg,

Was the appraisal completed for a purchase transaction or a refinance? My question would relate to the occupancy status as of the effective date of the appraisal.

When I was in lending, non owner properties had different down payment requirements, loan program options and interest rates. FNMA listed occupancy fraud as accounting for 13% of mortgage fraud thru 03/08.

https://www.efanniemae.com/utility/legal/pdf/fraudupdate0408.pdf

 

[CURT VAN HOOSER]

I'm not going to comment because I sent Greg and email asking about the fishing up in his part of the world and he didn't answer me.

 

[CURT VAN HOOSER]

OK then... I concur with TJ and Pam. I wonder though if it would be a foul to look up the appraisers phone number on the OREA website then call him/her and educate him/her on how to properly verify this information.

 

[CANative]

Teach him how to properly verify the information? How could he not know? Oh wait, I wonder if he is still sending "Steve" to do his inspections for him?

I never got a fishing email from you. I keep getting Phishing emails about a non-existent pay-pay and ebay account, but nothing from you. The Russian River is across the street and it's still great for steelhead.

 

[CURT VAN HOOSER]

Well...not as much to teach him but more to let him know you are on to him. And thanks for the steelhead tip. I never thought of that. It's always been about salmon...until this year that is.

 

[CANative]

He knows I'm on to him and he keeps doing this stuff anyway. He is a great appraiser... in mortgage broker's opinions.

He used to state that his RCN in the cost approach came from more than 100 new construction appraisal per year. I doubt if there are more than a dozen new builds in this county each year and he's not the only appraiser here. After I pointed this out a few times in various reviews he has changed the verbiage to more than 25 new construction appraisals per year. :laugh: