FHA-new purchase agreement amendment

[Debra]

Good Afternoon,

I recently did a FHA purchase appraisal. The Final Value Estimated was less than the purchase contract. They changed the purchase contract with an amendment after the appraisal. The AMC tried to get me to change the purchase contract date and $. I did not. I did add the purchase contract addendum and comments. They tried again and I added the FNMA B4-1.1-05 and commented and sent it back in. The Realtors are now at closing and leaving nasty messages because they said they can't close without my changing these things. Am I missing something? Tia!

 

[redfish]

I would copy and paste USPAP FAQ 153 and send it on to the AMC.

 

[redfish]

Its fun when everyone blames the appraiser. Its even more fun to have something to throw back in thier Fing faces.

 

[DWiley]

This scenario has been playing out form a long time. To me, it was a simple business decision.

USPAP says that I must analyze the contract in place as of the effective date. So, I cannot delete that from my report.

Having said that, USPAP does not require my analysis of the current contract to be on page 1 of the URAR.

So, I would put it wherever they wanted, with the appropriate disclosure regarding the change in the contract, make sure I also still included the analysis of the contract in place on the effective date, update the signature date, and move on.

Others are free to take another approach. Some do draw a hard line that page 1 of the URAR is somehow sacrosanct and not to be changed. I never understood that, but to each his own. In the current environment I would not be looking for things that I knew would tick off my clients, especially when there is such an easy solution that makes them happy and keeps me in compliance

 

[DWiley]

Its fun when everyone blames the appraiser. Its even more fun to have something to throw back in thier Fing faces.

If I was the client and you "threw that in my F'ing face" my response would be - Can you read? They are outlining how you can do it (just as I described in my other post above), so why won't you do it?

 

[CGinMN]

I would do a “See addendum” in the contract analysis section on page 1, change the contract price on Page 1, then lay it all out in the narrative including dates and possibly even quotes from the client if it helps the reader understand.

Your primary obligation here is to summarize and not mislead.

 

[redfish]

The appraiser did just what I would have done. Addressed the contract price change, post effective date, in the addendum but just didn't change the first page of the URAR. Now all parties to the transaction are blaming the appraiser. My throw it in thier Fing face comment was out of pure frustration. Sure you can go along.

wouldn't the date of contract being after the effective date in the contract section hardstop the EAD?

 

[J Grant]

The appraiser is not changing their value opinion, so acting stubborn about not changing the contract price on page one is misplaced concern. If lender/client needs it on page one, put in see addendum under contract comments and explain what happened.

 

[DWiley]

The appraiser is not changing their value opinion, so acting stubborn about not changing the contract price on page one is misplaced concern.

It is "drawing a hard line" about this kind of stuff (that really doesn't matter) that reinforces to clients that many appraisers have no sense of customer service.

To be clear, being asked to do something unethical is one thing. Being asked for a simple business accommodation is something else. Revising the contract info on page 1 is in the latter category.

 

[Mike Ault]

This guy has a different take on the issue –

1. However, if the request has to do with ‘change the sale price’ in the report due to a re-negotiation AFTER your original report was submitted, DO NOT change the sale price on the form page. Instead, write a description of what occurred, and also include the PRICE CHANGE ADDENDUM (usually supplied with these requests) as the page following the new Addendum discussed above. FNMA has issued a notice that they do not want original reports changed when this occurs. So this process complies, and it will also satisfy other users such as FHA, VA, etc.
   
   
   

   Appraisal Report Corrections Protocol - Appraisers Blogs

   For some time, appraisers have written or called me, asking about how to do report corrections, or respond to client requests – after an original report

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