FHLMC/FNMA Guidelines on Quality of Construction

[Robert Dunkle]

Got a call from a UW. She says that my report will not fly with FHLMC/FNMA because I indicated the house was of FAIR quality of construction. I believe she is incorrect as many of the lower income (protected minority) housing would fall into that category. I know the CONDITION has to be AVERAGE ( or so they claim), but I think that a FAIR quality should fly.

Anyone out there have information? Thanks, in advance.

 

[rtubbs]

Have to educate the UW, Robert. There is a big difference between quality and condition.

Ron in Alabama

 

[Larry Lyke]

Robert --

All things are relative -- in love, life and religion:

If the comps you are using from the same or similar neighborhood(s) are of similar quality, then they are all average.

Likewise, condition is different than quality.

I'm sure you know all of this, but have to slow down to be reminded.

Ain't it true, the Enterprises leave it to the appraiser to educate the UWs.

 

[Joe Birrell (NY)]

What the UW is really saying is that they will not accept any report with
the word "Fair" in it.

Check Marshall & Swift (or others) for technical description of fair quality.
The reality is that many homes are "fair" quality.

 

[Farm Gal]

Robert:
We once solved a similar problem by faxing two or three pages from different sources (including Marshall & Swift) to the UW in question.

Twas an education.

Worked.

 

[David S. Roberson]

Joe Birrell is right. Most all the houses built in my area before 1980, and a lot of the FmHA houses that are still being built fall into the Fair Quality category as defined by M & S.

 

[Robert Dunkle]

I agree that many houses are of FAIR quality per M&S and other cost guide providers! I have checked M&S, that is the reason I listed it as FAIR quality. The question is whether FHLMC/FNMA have guidelines to not loan on FAIR quality houses. I have used the FAIR quality in several previous reports, without question. However, this UW has the question and I have not been able to find UWing guidelines on the FHLMC website.

Does anyone know how I can get a definitive word from an authority so I can get this UW off my back? It is with one of my best clients, so I want to work with them, but an addendum saying that " FAIR quality is the "average" for the neighborhood" is the best solution I have come up with to this point.