Judge Rules Appraiser/Lender Owe no duty of care

[Huds_Harm]

Although rare, I have seen FHA veer off-center from its minimum property standards. The underwriter, employed/contracted by the lender, owns the deal and can override anything the appraiser states or requires. The bold print in your post is the lender's burden, not the appraiser's. Maybe this thread should spend time beating up the lender and AMC (if involved).

APPENDIX D: VALUATION PROTOCOL The appraisal process is the lender’s tool for determining if a property meets the minimum requirements and eligibility standards for a FHA-insured mortgage. Underwriters bear primary responsibility for determining eligibility; however, the appraiser is the on-site representative for the lender and provides preliminary verification that the General Acceptability Criteria standards have been met.

 

[Fernando]

It was an estate sell therefore there was no sellers disclosure in the previous transaction.

The buyer agent should have protected the buyer in getting inspections.
Was the buyer agent a part timer?
My sister had her husband's engineer friend who had a real estate license.
She had problems with the house afterwards. Owner was do it yourselfer, own contractor. Good thing insurance helped her pay for the roof problems damaging the interior.

 

[Surf Cat]

It was an estate sell therefore there was no sellers disclosure in the previous transaction.

All the more reason for extreme due diligence.

Once again, I didn't read all the posts. Was the property inspected by a home inspector? That would be the bare minimum for checking a property out.

 

[Fernando]

All the more reason for extreme due diligence.

Once again, I didn't read all the posts. Was the property inspected by a home inspector? That would be the bare minimum for checking a property out.

OP never said so no home inspection.
Over here, listing agent would get a home inspection report prior to listing. This way all info given to propspective buyers and lessen agent's liability.
In report, if any concerns, buyer suppose to investigate more.

 

[Fernando]

FHA buyers don't have that much money and most lilkely skip on crucial home inspections.
Buyer's agent should have done an inspection even at agent's cost to avoid these situations.

 

[Raven59]

APPENDIX D: VALUATION PROTOCOL The appraisal process is the lender’s tool for determining if a property meets the minimum requirements and eligibility standards for a FHA-insured mortgage. Underwriters bear primary responsibility for determining eligibility; however, the appraiser is the on-site representative for the lender and provides preliminary verification that the General Acceptability Criteria standards have been met.

Still the underwriter. Do you know if the contract stipulates you asked for a home inspection? If so, was that provided to the underwriter or did that underwriter ask for it? If not, why? If so, did the underwriter condition any of those repairs?

In discovery, did the appraiser's workfile have the subject listing? Would you happen to know if it was available and reviewed? Where is your agent in all this? If you are newer to the buying market, did that agent exercise sufficient standard of care? Their duty is to guide you through the process.

 

[Fernando]

Still the underwriter. Do you know if the contract stipulates you asked for a home inspection? If so, was that provided to the underwriter or did that underwriter ask for it? If not, why? If so, did the underwriter condition any of those repairs?

In discovery, did the appraiser's workfile have the subject listing? Would you happen to know if it was available and reviewed? Where is your agent in all this? If you are newer to the buying market, did that agent exercise sufficient standard of care? Their duty is to guide you through the process.

I believe all lenders should give a copy of a home inspection report if available to the appraiser.
When I get access to it, knowing the condition, it helps in my condition adjustments and search for appropriate comps.

 

[Dublin ohio]

I believe all lenders should give a copy of a home inspection report if available to the appraiser.
When I get access to it, knowing the condition, it helps in my condition adjustments and search for appropriate comps.

Do you also get the home inspection for your comps?

 

[Fernando]

A buyer agent would tell the buyer that an appraiseer does not replace a home inspector even though FHA forces appraisers to do the basic minimal home inspection observation.

 

[George Hatch]

I have included this blurb or similar in every appraisal report I've completed over the last 20 years. It appears 3 times in different sections of my reports. This is the one I cite in my final reconciliation. I always identify the client by name.