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HLMC Form 465 ADDENDUM A and B

ipari21

Thread Starter
Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
Hello everyone,
I performed an appraisal for a new condominium 2 months ago and just received a condition to provide the HLMC Form 465 ADDENDUM A and B ('Project Analysis' and 'ANALYSIS OF ANNUAL INCOME AND EXPENSES - OPERATING BUDGET').
I have no experience with these addenda. So tried to search on the internet, no reference file/textbook/sample file(s) found.
Anyone know/have the reference file/textbook/sample file(s), please advise or send me to my email [email protected]
Any information would be helpful.
Much appreciated.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Hello everyone,
I performed an appraisal for a new condominium 2 months ago and just received a condition to provide the HLMC Form 465 ADDENDUM A and B ('Project Analysis' and 'ANALYSIS OF ANNUAL INCOME AND EXPENSES - OPERATING BUDGET').
I have no experience with these addenda. So tried to search on the internet, no reference file/textbook/sample file(s) found.
Anyone know/have the reference file/textbook/sample file(s), please advise or send me to my email [email protected]
Any information would be helpful.
Much appreciated.
Seriously! The HOA/Managment Company has all this information...or I should say they better.

I have always said that most Residential Appraisers are not qualified to do this. In my area there are a number of companies that provide this type of Service to Condo and SFR HOA's. They charge Big Bucks for this type of work.

I looked onLine this is the Lenders Responsibility to get this from the Project Devloper/Condo HOA etc NOT YOU

They going the Fast N Cheap Route Again.

Your subject must be in a NEW complex
 

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Last edited:

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
i agree, it's an appraiser land mine. what do you know, or have, that will tell you that anything about it is typical, common, or adequate. can't wait for the state to look at your empty work file. you have a legal right to say you are not qualified to do this form. and how big, or small, is the project. who figured out the original hoa fee, is the builder still in charge. maybe the management co of the hoa knows about these things. what rabbit hole did my brain go into if i'm asked a technical question, after i do it?
 

Tawfik Ahdab

Senior Member
Joined
Feb 19, 2003
Professional Status
Certified Residential Appraiser
State
Oregon
Invariably I write: The condominium project budget was not made available to the appraiser. The appraiser is not competent to analyze the project budget and expenses.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Hello everyone,
I performed an appraisal for a new condominium 2 months ago and just received a condition to provide the HLMC Form 465 ADDENDUM A and B ('Project Analysis' and 'ANALYSIS OF ANNUAL INCOME AND EXPENSES - OPERATING BUDGET').
I have no experience with these addenda. So tried to search on the internet, no reference file/textbook/sample file(s) found.
Anyone know/have the reference file/textbook/sample file(s), please advise or send me to my email [email protected]
Any information would be helpful. Much appreciated.
2 months later they ask for this...and it was a new condo, so why are they concerned now- was this part of original engagement letter ? In any case they are now imposing an assignment element you are not competent to do - per above no experience with these addenda, ( they are probably on your appraisal software, not on the internet, ), and no experience with this type of analysis -a level of analysis beyond most peers since we are not attorneys nor trained to analyze a condo budget in depth other than a working review of reserves and debt. A new condo can be a landmine if it has financial issues so why even go there.

first, look these forms up in your software/call tech support of your software if unable to find them, so you can see them. They might ask a set of detailed questions beyond expertise . If it is a simple set of questions you feel comfortable with, then fill it out, If not, tell client the truth, that you are not qualified to review the budget in detail the forms demand, (it is a new assignment condition (if not on original engagement )
 
Last edited:

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I just read the OP first post over again and caught something that is germane to his question and the solution.

He stated a NEW Condominium! If this is a NEW Condo, then its very possible this is a NEW Project. If so then the Project may not be approved yet for FNMA and other Lenders. The process is way more involved and complicated than that form.

How long does it take to get FHA approval for a condo?
2-3 weeks


After the eligibility criteria are met, we will build and submit your application to the FHA for Condo Approval. The FHA generally responds to us within 2-3 weeks; however, it may take up to 30 days


Fannie Mae’s Project Risk Overview

The quality of mortgages secured by units in condo, co-op, and planned unit development (PUD) projects can be influenced by certain characteristics of the project or by the project as a whole. Before delivering a loan secured by an individual unit in a project, the lender must determine that the project meets Fannie Mae's eligibility requirements.


Freddie Mac

Project Review and General Project Eligibility Requirements
Sellers must determine compliance with Freddie Mac’s condominium project review and eligibility requirements. See Section 5701.2Opens in a new window, Condominium Project review and general Condominium Project eligibility requirements, in the Single-Family Seller/Servicer Guide (Guide) for these requirements. Included within Section 5701.2 is an easy to follow table with an overview of the condominium project review and eligibility requirements and our project review types.

 
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J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
the lender must determine that the project meets Fannie Mae's eligibility requirements.

The LENDER must determine ( not the appraiser ) - large sections of the selling guide apply to lenders, not appraisers.

Sounds like the client is trying to palm off their job to the appraiser, and if appraiser makes a mistake in the analysis , leading to a loan decline , guess who is liable...same thing if appraiser makes a mistake or simply lacks competence in the analysis and it leads to a loan approval that later turns out to be problematic.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Per WinTotal both of those forms are obsolete and I do not see a replacement.
 

ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
the lender must determine that the project meets Fannie Mae's eligibility requirements.

The LENDER must determine ( not the appraiser ) - large sections of the selling guide apply to lenders, not appraisers.

Sounds like the client is trying to palm off their job to the appraiser, and if appraiser makes a mistake in the analysis , leading to a loan decline , guess who is liable...same thing if appraiser makes a mistake or simply lacks competence in the analysis and it leads to a loan approval that later turns out to be problematic.
My 2 cents: agree.
"The appraiser is not an expert in the respective field with regards to forming opinions or conclusions to development budgets, expense ratios, management duties, ________etc. etc. etc...
The lender-client should obtain and approve all documents applicable for compliance to lending criteria.
The appraiser provides market value reactions where applicable documents were assumed to have been acceptable prior the settlement date.
Subject Property: It is assumed all parties to the transaction are knowledgeable and agreeable to mandatory dues, special assessments, __________etc."

SOW assignment engagement instructions: The lender-client did not provided attachments for review including _______PUD, HOA, phases, survey, _____ etc.
 
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