Fannie 3 Season Home

[AnonApprsr]

Any particular guidelines/regulations for a "Fannie 3 Season Home"? I've performed appraisals on cottages before, but they stayed in-house.

Thanks.

 

[JSmith43]

Any particular guidelines/regulations for a "Fannie 3 Season Home"? I've performed appraisals on cottages before, but they stayed in-house.

Thanks.

As long as the home is good to go for Winter & Summer, it's not an issue

There used to be niche products briefly available in MN, but not from the GSE's. I bet it is hard money lender all the way right now, if the property is not suitable for all season occupation up to prevailing community standards (heat pump only in warmer climates probably OK, for example).

 

[AnonApprsr]

I went to the property. It had a fireplace, and the oven/range also acted as a space heater. But there was no insulation on the floor, which above 3 feet+- of crawl space. In the closets you can see the ground through the floor (sigh).

This is a fun one for sure.

 

[JSmith43]

I went to the property. It had a fireplace, and the oven/range also acted as a space heater. But there was no insulation on the floor, which above 3 feet+- of crawl space. In the closets you can see the ground through the floor (sigh).

This is a fun one for sure.

A semi-typical "vacation" home, but probably not suitable for year around occupancy, hah? It is easy for a LO to miss that distinction at application.

LO's can wear out customers with all the bs required now to successfully originate a loan, yet getting a rundown of a home's condition and suitability over the phone is worth the effort.

Call the mother ship, get a trip fee?? It isn't a value issue, but I think the SOW needs to be renegotiated I wonder how many boo's and hisses that comment will receive?

 

[timd354]

A semi-typical "vacation" home, but probably not suitable for year around occupancy, hah? It is easy for a LO to miss that distinction at application.

LO's can wear out customers with all the bs required now to successfully originate a loan, yet getting a rundown of a home's condition and suitability over the phone is worth the effort.

Call the mother ship, get a trip fee?? It isn't a value issue, but I think the SOW needs to be renegotiated I wonder how many boo's and hisses that comment will receive?

Bullsh*t, the appraiser should complete the appraisal per the original SOW and disclose exactly what the physical characteristics of the proeprty are and collect his full fee.....to now change the SOW based upon the inspection of the property in order to lower the fee would violate the management section of the USPAP ethics rule which prohibits making the fee contingent on the results of the appraisal assignement.

 

[JSmith43]

Bullsh*t, the appraiser should complete the appraisal per the original SOW and disclose exactly what the physical characteristics of the proeprty are and collect his full fee.....to now change the SOW based upon the inspection of the property in order to lower the fee would violate the management section of the USPAP ethics rule which prohibits making the fee contingent on the results of the appraisal assignement.

What if the appraiser found a vacant lot at the address given at the assignment? Per the logic of the reply, the appraiser should just complete the report, maybe add an EA or two, if he sees dead grass and smells fuel oil or notes cracked lead-acid battery casings.

Also, what if the subject turns out to be incredibly more complex than indicated by the order or other communications about the assignment? I guess it would be a violation of the management section of USPAP ethics rules for the appraiser to negotiate a higher fee? In each case, the initial SOW rests upon a premise discovered to be faulty.

 

[timd354]

What if the appraiser found a vacant lot at the address given at the assignment? Per the logic of the reply, the appraiser should just complete the report, maybe add an EA or two, if he sees dead grass and smells fuel oil or notes cracked lead-acid battery casings.
This is a completely different situation as the OP was hired to appraise a property improved by a residential structure and that is what the property actually is. In your example, the property is a vacant lot, the appraisal of which is completely different from an improved property (in my case, I would turn down the assignment at that point since I do not appraise vacant lots - they are simply too much liability for what clients here want to pay). Regarding finding potential environmental hazards, yes, I would complete the appraisal report subject to inspection of the property by the local/state environmental agency or an environmental engineer as long as that was acceptable to the client. If the client insisted on an "as is" appraisal in that situation, that would be an unacceptable assignment condition at that point and I would decline to complete the assignment, but would still bill them my full fee and send them a written report as to what I had observed about the property.
Also, what if the subject turns out to be incredibly more complex than indicated by the order or other communications about the assignment? I guess it would be a violation of the management section of USPAP ethics rules for the appraiser to negotiate a higher fee? In each case, the initial SOW rests upon a premise discovered to be faulty.

The appraiser should investigate the assignment, including information regarding the property, before accepting the assignment and once he agrees to a certain fee, should not attempt to renegotiate that fee.

Come on... you are just being a typical loan officer now (which I must say is not typical of most of your postings on this forum) and you simply don't want the applicant to pay for an appraisal that he "can't use"....we all know that is what it is really all about.

 

[Mary Tiernan]

Oh, I don't know about that.

First of all, the OP knows the loan is bound for Fannie, and the property is not eligible for Fannie.

If you receive an order for 1004 and find out the property is HUD manufactured, do you revisit with the client for a new SOW or do you complete on a 1004?

 

[AnonApprsr]

The appraiser should investigate the assignment, including information regarding the property, before accepting the assignment and once he agrees to a certain fee, should not attempt to renegotiate that fee.

Come on... you are just being a typical loan officer now (which I must say is not typical of most of your postings on this forum) and you simply don't want the applicant to pay for an appraisal that he "can't use"....we all know that is what it is really all about.

I told them it had no heat prior to the appointment, they said "It's a Fannie 3 Season Home", go for it.

I asked them if there were any 3 Season Home guidelines and didn't get a response (ha).

So I come to you fine folks....

 

[JSmith43]

I told them it had no heat prior to the appointment, they said "It's a Fannie 3 Season Home", go for it.

I asked them if there were any 3 Season Home guidelines and didn't get a response (ha).

So I come to you fine folks....

That is exactly the right way to have handled it. So, they are sticking to the story, hah? Is this a processor's opinion or the LO's?

Finish the report, take the money. However, I would send the person you talked to an email thanking them about tipping you off to the new Fannie Mae 3 season home financing program

A thought goes through my mind to watermark and number every page of your report like this Page 15 of 23, etc.

Was this ordered prior to HVCC implementation?

Shucks! I was going to add this little tidbit HUD still has in their manual:

Properties in Poor Condition: If the subject property is in such poor condition that it may be cost prohibitive or impractical to bring it up to FHA's minimum property requirements, the appraiser should recommend rejecting the property and contact the Lender before continuing with the assignment.

Also, how should an appraisal handle it if going to what looked like a 4 unit assignment based upon the order and preliminary research, turns out to be a 5 unit? Assume appraiser is a CG. The loan ain't going to the GSE's without some serious misrepresentation being committed along the way.