Judge Rules Appraiser/Lender Owe no duty of care

[Huds_Harm]

By the description none of the health and safety requirements had emerged as of the date of the appraisal. The tank's location may be out of compliance with current development criteria but that doesn't mean the location poses an inherent risk to health and safety. Or structural integrity. I'm not saying that to be argumentative or to suggest that the appraiser met FHA requirements, but by itself a 10ft distance actually exceeds the minimum 5ft distance requirement that I have previously seen in certain jurisdictions So not everyone agrees a 10ft distance is an inherent risk to health and safety.

The point I was trying to make is that non-compliance with the lender's underwriting criteria doesn't automatically equate to the property having a risk to health and safety that the appraiser should have noticed.

This is what was required

6Does the report indicate that the water is private? If yes, does the appraiser provide a comment on the availability of public water and if the subject is required to connect? Also, does the appraiser comment if private utilities are common for the area and if there is any impact on the subject's marketability?

8Does the report indicate that the sewer is private? If yes, does the appraiser provide a comment on the availability of public sewer and if the subject is required to connect? If also on private water, is there a comment noting if the subject meets the minimum FHA distance requirements from the well to the storage tank, drain field, and property? Also, does the appraiser comment if private utilities are common for the area and if there is any impact on the subject's marketability?

 

[George Hatch]

They're program requirements, but they aren't actually health and safety requirements as such.

Where would you be if you hadn't financed via FHA? Because basically what I'm getting out of your argument is that FHA should have declined your loan application and sent you back out into the mortgage market for other lenders - which don't have these requirements.

In no case would your seller have ever paid to move these systems around. They would have just gone on to the next buyer.

 

[Huds_Harm]

They're program requirements, but they aren't actually health and safety requirements as such.

Where would you be if you hadn't financed via FHA?

They are absolutely FHA health and safety requirements.

I did not qualify for anything but FHA so we won’t do hypotheticals.

 

[Huds_Harm]

They are absolutely FHA health and safety requirements

I did not qualify for anything but FHA so we won’t do hypotheticals.

 

[Tiffany Gibbons]

They are absolutely FHA health and safety requirements

How come your agent didn't help you? And how did you pick your lender?

 

[Dublin ohio]

The judge ruled and she lost. Now, my guess is she's appealing the decision. She purchased it in "as is" condition.

Even if the appraiser had done everything "to the book". The only result would have been FHA rejecting the loan. It would not have resulted in the discovery of any current defect or the possibility of future failure.

 

[chad hampton]

The combo of class and rocket is a bad mix. No way for borrowers to know when they’re going through it, but those are two names I would run from.

I haven’t read this whole thread, but there’s no real estate agent that should ever recommend not getting a home inspection. There’s no level of appraisal inspection that matches a home inspection. I would never buy a home without getting one. Lenders should make them mandatory on purchase.

 

[Huds_Harm]

Even if the appraiser had done everything "to the book". The only result would have been FHA rejecting the loan. It would not have resulted in the discovery of any current defect or the possibility of future failure.

That is exactly my point. I would not have purchased the home!

 

[Mejappz]

Isn't class the one that brags to lenders about how much pressure it applies to appraisers?

They sure are.

Class Valuation Maximizing ROV Conversion Rates - Appraisers Blogs

It’s truly mind-boggling that a company would brag about their higher ROV conversion rates as if it’s some kind of badge of honor.

appraisersblogs.com

 

[Mejappz]

That is exactly my point. I would not have purchased the home!

HUD could care less because they can insure as many loans as possible and when it all goes down they will get bailed out again . Rocket Mortgage under Dan Gilbert is laughing as he fleeces the American people. And Class well they’re just the modern day mafia.