• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Fannie funded on frame mod

Status
Not open for further replies.

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Interesting assignment yesterday. Retro from 2004. Turns out its a on frame modular (I peeked under the unocupied house). The current owner is Fannie Mae, after foreclosure. They sent me a copy of the original appraisal, no mention of the frame. Wonder what Fannie is going to do when they find out they funded this HUD-ular?
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Interesting assignment yesterday. Retro from 2004. Turns out its a on frame modular (I peeked under the unocupied house). The current owner is Fannie Mae, after foreclosure. They sent me a copy of the original appraisal, no mention of the frame. Wonder what Fannie is going to do when they find out they funded this HUD-ular?


Just out of curiosity, where would you look to see if the appraiser mentioned it was on a frame or not. I anticipate getting some of these types of reviews too. Clearly I wouldn't miss anything by reading the entire document, which I will, but where would you hone in to in order to quickly see that the appraiser didn't disclose it was on a frame, as Fannie requirements clearly obligate every appraiser to do.
 

Offshore

Senior Member
Joined
Dec 25, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
That’s interesting. I had a similar assignment which also involved a mod they foreclosed on. From what I gathered from the listing co and Fan, they felt they were duped by about 40K on the original loan and were going on the warpath. It was the usual story, a belt line fee shop with a T on the signature page. Maybe they’re enough properties out there for them to go after individuals and E & O policies.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Just did a little checking.

Are you sure that in 2004 an on frame mod had been recognized as different from an off frame?

Seems like the comments about a permanent chassis didn't surface until 2007...Not sure, as I must admit, I didn't research things as well in 2004 as I do now. My memory doesn't serve if it was a distinction they made at the time.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
The Fannie edict was in June of 2003. Letter 06-03 or 03-06, whichever way the number system works.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
That’s interesting. I had a similar assignment which also involved a mod they foreclosed on. From what I gathered from the listing co and Fan, they felt they were duped by about 40K on the original loan and were going on the warpath. It was the usual story, a belt line fee shop with a T on the signature page. Maybe they’re enough properties out there for them to go after individuals and E & O policies.

E & O does not cover fraud.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
The Fannie edict was in June of 2003. Letter 06-03 or 03-06, whichever way the number system works.

XI, 304.01: Manufactured Homes (06/15/07)
Any dwelling unit built on a permanent chassis and attached to a permanent foundation system is a “manufactured home” for purposes of Fannie Mae’s guidelines. Other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, is not considered manufactured housing and continues to be eligible under the guidelines stated in this Guide.





XI, 304.02: Other Factory-Built Housing (08/24/03)
A. Modular home. It must be built under the Uniform Building Code that is administered by the state agency that is responsible for adopting and administering building code requirements for the state in which the modular home is installed.
B. Factory-built home that is any other type of prefabricated, panelized, or sectional housing. It does not have to satisfy either HUD’s Federal Manufactured Home Construction and Safety Standards or the Uniform Building Codes that are adopted and administered by the state in which the home is installed. The home must conform to local building codes in the area in which it will be permanently located.
We do not have minimum requirements for width, size, roof pitch, or any other specific construction detail for modular homes, or any other types of factory-built homes. Rather, each home must have sufficient square footage and room dimensions to be acceptable to typical purchasers in the subject market area. Since quality can account for large differences in the values of factory-built homes, it is important for the appraiser to become familiar with the features that affect the quality of a factory-built home so that the information can be included in the appraisal report (if needed) to support his or her opinion of value.
The process of selecting comparable sales for factory-built housing is generally the same as that for selecting comparable sales for site-built housing. We require the appraiser to address both the marketability and comparability of modular homes and other types of factory-built housing. When the subject property is modular, prefabricated, panelized, or sectional housing, we do not require that one or more of the comparable sales be the same type of factory-built housing (although using comparable sales of similar types of homes generally enhances the reliability of the appraiser’s opinion of value). We do expect the appraiser to include in the appraisal report the most appropriate comparable sales data to support his or her opinion of value for the subject property.



XI, 304: Factory-Built Housing (08/24/03)
Factory-built housing includes manufactured homes, modular homes, and other types of prefabricated housing. We purchase mortgages secured by factory-built housing that is designed as a one-family dwelling, assumes the characteristics of site-built housing, and is legally classified as real property. We require the factory-built home to be permanently affixed to a foundation system that is appropriate for the soil conditions of the site and designed to meet local and state codes.
The appraiser must identify the type of factory-built housing that is to be appraised since that is an important criterion in defining the appropriate market area and in selecting comparable properties.

This is all I am finding...

I don't see any mention of the chassis prior to 07. I don't have an older copy to see what may have been replaced. How do I find that?
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
E & O does not cover fraud.

Not so sure this would be fraud. It is possible to be ignorant to this statute, no?

How would E&O react to that? Does their definition of fraud include intent?
 

Offshore

Senior Member
Joined
Dec 25, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
True, but maybe the trainee could plead incompetence and hide behind the policy. If it goes to court it could get intriguing depending on which boxes the supervisor checked, toss in not being an MLS member in the area and it could get even more interesting. I’m sick of the long range fee shops and their stunts.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Announcement 03-06 June 3, 2003
Amends these Guides: Selling and Servicing​
Morgage Eligibility and Servicing Procedures for Morgages Secured by Manuactured Homes

Definition of a Manufactured Home
[FONT=CBGLNA+Garamond,Garamond]Any dwelling unit built on a permanent chassis and attached to a permanent foundation system is a "manufactured home" for purposes of Fannie Mae’s guidelines. Other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, is not considered manufactured housing and continues to be eligible under the guidelines stated in the Selling Guide


Property Eligibility
[FONT=CBGLNA+Garamond,Garamond]Manufactured homes must meet the following conditions:
• The manufactured home must be built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976 (as amended and in force at the time the home is manufactured) and that appear in HUD regulations at 24 C.F.R. Part 3280. Compliance with these standards will be evidenced by the presence of a HUD Data Plate that is affixed in a permanent manner near the main electrical panel or in another readily accessible and visible location.
[/FONT]
[/FONT]
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks