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I know I exceeded Gross adjustment guidelines. It was necessary to write a credible report!

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
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?
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.

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
 

TMG

Member
Joined
Jul 28, 2007
Professional Status
Certified Residential Appraiser
State
California
If you have to go over 15% net and/or 25% gross on one or two comps, a comment will usually suffice....no? It's impossible to never exceed net / gross preferred guidelines.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
I have seen a LOT of pure litigation reports where the appraiser left in lender-related commentary that really was not applicable to the assignment
I had one of those 5-6 years ago where the appraiser talked about guidelines and FNMA and etc for a tax appeal. It did not go well for him.
 

ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
AND what Form was it ON? If not for Fannie then HOW about the GP Forms? If SOW was a "court process" then it is NOT under Fannie Mae guidelines.

AND to any Reviewer be very careful.

Fresh out of CE class on 2021 USPAP Appraisal Review course.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
And once a "guideline" is removed from "the guidelines"

it no longer is a "guideline" but rather is a point of incompetency.


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