Hybrid Appraisal Extraordinary Assumptions

[TRESinc]

Sales contracts, if we read them, have the interest rate in there!

incorrect. per the florida realtor site there is a provision for the interest rate but it is not mandatory and states:

at an initial interest rate not to exceed _______ % (if left blank, then prevailing rate based upon Buyer’s creditworthiness)

so even with a contract an appraiser may never know the interest rate unless they make a call to someone who does not believe that information in confidential and is willing to divulge it.

 

[BRCJR]

I was just about to post that myself. Does BRDJR's lender black it out????

Stating something about a prevailing rate or a high end rate is not the same as stating a specific rate to a specific borrower.

 

[residentialguy]

Stating something about a prevailing rate or a high end rate is not the same as stating a specific rate to a specific borrower.

I'm talking about specific rate to the buyer of the subject, not market rate. The appraiser will figure out whether or not it's a special rate that affected the price.

 

[BRCJR]

I'm talking about specific rate to the buyer of the subject, not market rate. The appraiser will figure out whether or not it's a special rate that affected the price.

With all due respect, I think my opinion is swayed by a Compliance Officer for a regulated lender and not an Appraiser or two on an open forum.

 

[residentialguy]

You just said "Stating something about a prevailing rate or a high end rate is not the same as stating a specific rate to a specific borrower."
So, unless it's normal, which wouldn't affect value, then you would state it, which is clearly FNMA's requirement. What am I misreading here? You still wouldn't state it?
Is that contract finance portion not ever filled out on the contract?
In regards to your "compliance officer"...with all due respect, they don't always know everything.

 

[BRCJR]

You just said "Stating something about a prevailing rate or a high end rate is not the same as stating a specific rate to a specific borrower."
So, unless it's normal, which wouldn't affect value, then you would state it, which is clearly FNMA's requirement. What am I misreading here? You still wouldn't state it?
Is that contract finance portion not ever filled out on the contract?
In regards to your "compliance officer"...with all due respect, they don't always know everything.

Yes, but that is an agreement the buyer and seller have agreed to. That is not necessarily the interest rate the buyer and lender will have negotiated. It is simply a stipulation placed in a contract.
Do this, call a bank and ask what the interest rate is that they are charging a "specific person" for a "specific loan".
Let me know the answer you get.

 

[Terrel L. Shields]

How would that impact the value opined?

If I knew the credit score of the borrower I might want to bypass someone with a low score or charge more (just like the bank does) because it is a riskier appraisal for me.

 

[residentialguy]

Do this, call a bank and ask what the interest rate is that they are charging a "specific person" for a "specific loan".
Let me know the answer you get.

I have. After explaining to them as to why I needed it, they sent it. It's not a big deal. As soon as it closes, it's public info anyway. What is a big deal to them is when their decision results in a dead deal on a half million dollar or more transaction.

 

[BRCJR]

I have. After explaining to them as to why I needed it, they sent it. It's not a big deal. As soon as it closes, it's public info anyway. What is a big deal to them is when their decision results in a dead deal on a half million dollar or more transaction.

I agree, after it closes is key. It is not public record beforehand.
I still go with the CO on this one.

 

[residentialguy]

I agree, after it closes is key. It is not public record beforehand.
I still go with the CO on this one.

I suggest you be your own man and stop following titles. FMNA is crystal clear that you are to report to the appraiser things that may affect value. Maybe after a HO sues you for killing the deal, you might have a bit more clarity.