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Is It Shady That The Client

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JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
....orders an FHA appraisal but fails to tell me it's a reverse mortgage? It was disclosed by the homeowner when I called to schedule. News to me.

I'm not real happy about it, and wanted to check before I get out the pitchforks.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Imo they should have told you, but look again at the order, maybe it is in there. Still, what difference does it make to your value? The value of the house is the same no matter what type mortgage loan they apply for.
 

CGgonnabee

Member
Joined
Apr 10, 2008
Professional Status
Certified General Appraiser
State
Virginia
Yes, it is shady. I made a decision several months ago to never complete another reverse mortgage assignment due to the scope creep (always).
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
The FHA reverse is completed the same way a regular FHA appraisal is done. The reverse part has nothing to do with the way you complete it. You simply mark the refinance box because its not a purchase. So calm down there is no shady.
 
D

Deleted member 130081

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....orders an FHA appraisal but fails to tell me it's a reverse mortgage? It was disclosed by the homeowner when I called to schedule. News to me.

I'm not real happy about it, and wanted to check before I get out the pitchforks.

Easy now, nothing shady about a typo. Also, pretty sure it is the obligation of the appraiser to inquire the need for appraisal no? Just because we make assumptions on this score on a regular basis does not relinquish our role. Clients are not appraisers, they do not know our rule book, nor are they obligated to follow it.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
No worse than the order I got that said refi, but had a contract attached.
Client changed the order to purchase when I pointed it out. :shrug:
 

VolcanoLvr

Senior Member
Joined
Oct 30, 2003
Professional Status
Certified Residential Appraiser
State
Washington
JTip......do you inspect the FHA Reverse Mortgage loan properties differently than you do standard FHA properties using a typical FHA refi or purchase loan program?

I'm not sure why you have your knickers in a twiddle.

As the other poster said, these are REFINANCE loans, which is the box checked for Assignment Type. The client should have put that on the assignment order form, along with the FHA case #.

(Maybe that's the real reason you're ticked off? That the case # was not provided up front, which should have been done.)

So, just slowly walk out to the barn, carefully put the pitch fork in the hand you throw with, and heave it into a bale of hay. Don'tja just feel better now?!
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Late night infomercials. "Broke? Retired? Well a reverse mortgage is for you! Keep you house and get paid every month!"

I would have like to have known before I accepted the assignment that I'm contributing to this 'lukewarm' deal the homeowner is getting. That's all.

Thanks for the comments.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Late night infomercials. "Broke? Retired? Well a reverse mortgage is for you! Keep you house and get paid every month!"

I would have like to have known before I accepted the assignment that I'm contributing to this 'lukewarm' deal the homeowner is getting. That's all.

Thanks for the comments.
It's the owner's decision, and not all reverse mortgages are "shady"...they really can help a HO get extra income out of their house. That said, some lenders/clients are sleazy, and if you get that vibe from a client, may want to turn down work from them. This is a refinance assignment, purpose market value. you can ask the client directly why a reverse mortgage was not specified, the way they respond to your inquiry may put your mind at ease, or make you leery about accepting/this or future assignments.

There is nothing wrong per se with reverse mortgages. But they can be marketed agressively, and the problem usually comes in with the heirs...the HO dies, heirs, thinking they will inherit $ with the house, find there is suddenly little to no equity left because of the reverse mortage. Heirs in this situation may get upset, challenge whether the HO was comptent to make the decision and or challenge the appraisal.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
It's the owner's decision, and not all reverse mortgages are "shady"...they really can help a HO get extra income out of their house. That said, some lenders/clients are sleazy, and if you get that vibe from a client, may want to turn down work from them. This is a refinance assignment, purpose market value. you can ask the client directly why a reverse mortgage was not specified, the way they respond to your inquiry may put your mind at ease, or make you leery about accepting/this or future assignments.

There is nothing wrong per se with reverse mortgages. But they can be marketed agressively, and the problem usually comes in with the heirs...the HO dies, heirs, thinking they will inherit $ with the house, find there is suddenly little to no equity left because of the reverse mortage. Heirs in this situation may get upset, challenge whether the HO was comptent to make the decision and or challenge the appraisal.

Doesn't matter.

You have a right to decline any type of work.

not disclosing the type of work is underhanded.

.
 
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