- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
- North Carolina
Exactly!! Those former Guidelines were designed to enable a LENDER to make an Informed Decision for the Loan approval. It is simply Loan Risk Analysis. Credit is King Collateral is 2nd fiddle. A long time ago Interest Rate was used to mitigate Risk. We all remember when Lenders Loan Officers became apoplectic if you stated the Subject was in a Rural Area as opposed to Suburban! Rural would result in a higher APR. This made the Borrower Unhappy enough to Change Lenders.Yeah, if it was not for lending, the lawyer is going to rake him over the coals, and deserves it.
Been there, seen it. Dumb appraiser used the URAR and stated the typical 15 25% language for a divorce EDA. Guideline appraising typically results in a less accurate opinion of value.
First things I pointed out. Idiot. What does secondary market or lender guidelines/requirements have to do with a ED appraisal?
The whole point is in the form of a Question. Can the Lender sell the REO property without taking a major Hit or face Buyback from the GSE? If you have major Line adjustments it was likely the subject is in a market area of little conformity. In other words, the subject was not located within the Proverbial FHA Grade on Slab Vinyl Village Subdivision. This tells the Lender a potential higher risk Category. It does not always do that... It might also tell the lender the Subject is an over/under Improvement. Blah Blah
Now everyone with Good Credit gets the lowest APR even though the collateral is located in Urban/Suburban/Rural area.
I guess the major point(and probably all of you also) goes to Intended Use/Intended User.
Thats my position and I am sticking to it! LOL