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I did not know & it killed the loan

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Kevin A. Spellman

Thread Starter
Senior Member
Joined
Aug 30, 2003
Professional Status
Certified Residential Appraiser
State
Massachusetts
I did not know the appraisal I was doing was for a reverse mortgage. The client orders an appraisal as a refinance. I always state the occupancy of the subject and it use in the body of the report.

My subject’s home was shut down for the winter (heat & water is off) and is on a summer resort island. The tax bill is mailed to an address 80 miles away. This is my statement: “The subject’s home is a one-owner home used as a second home during the summer months and has experienced minimal physical depreciation since it was built in 1993". The loan broker told me I couldn’t state this in the report.

The loan was denied because I stated the subject is a second home. Reverse mortgages are for primary residences only. He submitted the loan as a primary residence. This was a big loan and now there are two million reasons why this LO does not like me. He complained I talked too much to the owners/applicants also; he flew up from PA with his assistant to meet the applicants at the subject to secure documents and signatures. I guess the commissions are enough to pay for a couple of plane tickets in the reverse mortgage arena.

So am I the only appraiser who states second home on appraisal reports. 90% of the homes in my subject’s area are second homes.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Truth is truth .. do not let this bother you. YOu didnt commit fraud .. the homeowner and loan officer may have been trying to.

Do not beat yourself up. Truth is Truth ... always remember that.
 

hastalavista

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Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
So am I the only appraiser who states second home on appraisal reports. 90% of the homes in my subject’s area are second homes.

No, you are not.

And sounds like the property's occupancy killed the deal, not the appraisal report. :)

BTW, did they give you an FHA case number? That would be one tip-off that it wasn't a regular refi (not that it would or should change your practice of accurately reporting what exists!)
 

Narkissos

Junior Member
Joined
Jan 9, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
The loan was denied because I stated the subject is a second home. Reverse mortgages are for primary residences only. He submitted the loan as a primary residence.

Not your problem!!!
 

Colorado Guy

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Joined
Feb 9, 2003
Professional Status
Certified Residential Appraiser
State
Colorado
It is what it is! Do not try and make chicken soup from chicken poop (thanks Mike).

Yes - if it is a second home - I get some of those in mountian properties - you need to call it out.

Getem tiger!
 

Kevin A. Spellman

Thread Starter
Senior Member
Joined
Aug 30, 2003
Professional Status
Certified Residential Appraiser
State
Massachusetts
Not a FHA assignment, It was order through an AMC that is quite "safe" and it was a four digit appraisal fee.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
A four digit appraisal fee???????? AMC and Four Digits ... something isnt right about that story.


And you can make chicken soup from chicken poop ... it just tastes Sh**ty .....
 
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hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Not a FHA assignment, It was order through an AMC that is quite "safe" and it was a four digit appraisal fee.

Kevin-

I do these reverse-mortgages for FHA products from time to time.
Are private lenders now doing non-FHA reverse mortgages? Otherwise, where is the case #? (Just curious- or did the AMC simply not provide it to you? And if it was an AMC, why is the broker calling you direct? As you can probably tell, I don't do any work for AMCs.).

Thanks!
 

Kevin A. Spellman

Thread Starter
Senior Member
Joined
Aug 30, 2003
Professional Status
Certified Residential Appraiser
State
Massachusetts
I have to place the lenders name and the AMC name as the client and the lender’s address and not the AMC address on the report they are technically co-clients. There are four digit appraisal fees out there in the AMC arena. Most appraisers here in MA hate my service area, limited sales and data. Most appraisers typically refuse the assignment or place high quotes and make me look cheap "in price only".
 

tjcou812

Junior Member
Joined
Aug 17, 2007
Professional Status
Certified Residential Appraiser
State
Connecticut
Ditto Denis, If is was a reverse mtg you must have a case #. Its a FHA loan. I wonder how old the owners are.(must be at least 62 yrs. old)
 
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