HUD requirement

[DeKay Bayliffe]

Does anybody know if HUD requires a 4th additional comparable that has sold within the last 12 months for a reverse mortgage? The property is on a remote island with no sales since 2004. Underwriter states this is the requirement and there are no exeptions.

 

[ROBERT JONES]

HUD doesn't underwrite loans,lender/underwriters do. The 4150.2 explains appraisal procedure, and that is not mentioned in the guidelines that we are to abide by (at least I don't see it under reverse mortgage). This may very well be an investor stip, or a client stip - either way they could have let you know prior to accepting the deal. If it does not exist, say so in a prof. manner, and move on to the next headache!

 

[Mr Rex]

HUD requires 3 within 12 months, comments if over 6 months. Dated beyond 12 months are OK for comps 4,5 & 6 with expalnation. See the revised appendix D.

 

[Mike Boyd]

If no other comps, tell 'em! It will probably go away. Or, if there are any actives or pendings you could use one or more of them. I'm sure it is a lender guideline...not FHA.

 

[Don Clark]

Use a 4th comp on the nearest point of land on the mainland. We have a similar problem here in Virginia on Tangier Island. it sit's in the middle of the Chesapeake Bay. A friend of mine did one there. He used 2 comps from the eastern shore of Virginia, 2 comps from the estaren shore of Maryland, 1 5 year old sale on Tangier. I asked if that was sufficient. he said no, the UW was still concerned about marketability. So, he asked the market. The market is 200+- people who live on tangier. he went around and asked about 20% of them what they thought it was worth and put that in the report. The UW bought it, hook,line and sinker.