Judge Rules Appraiser/Lender Owe no duty of care

[Raven59]

Were you able to review the appraisal report before closing? I assume the court determined there was no legal duty to you by the appraiser/appraisal, as well as the lender.

 

[Huds_Harm]

Were you able to review the appraisal report before closing? I assume the court determined there was no legal duty to you by the appraiser/appraisal, as well as the lender.

I received a copy and like any other borrower are only looking for the fact it met value. I was not aware I should have proofed it for competence.

The court listed no basis for their ruling although required, but yes that was the appraiser/lender argument that "they did everything they could" to say I was not an intended user which does not negate the fact "they also did everything they could to conceal anything that required the appraisal to be subject to."

 

[Huds_Harm]

I remember the FHA disciplinary matrix using this scenario as an example of reasons for possibly being removed from doing FHA work.

Do you still have this for reference?

 

[Dublin ohio]

Anyone who signs on the dotted line to make the purchase of a home with a septic system, without vetting it by a qualified, licensed, septic professional, (no, I'm not talking about a "home inspector") is just asking for it.

Bingo. Even with being an appraiser that was doing FHA at the time. When we bought our house we knew it was on a septic. Had the county inspector come out. No problems except he recommended filling in some low spots in the leach field area to avoid ponding.

 

[Raven59]

I received a copy and like any other borrower are only looking for the fact it met value. I was not aware I should have proofed it for competence.

The court listed no basis for their ruling although required, but yes that was the appraiser/lender argument that "they did everything they could" to say I was not an intended user which does not negate the fact "they also did everything they could to conceal anything that required the appraisal to be subject to."

It's a tough argument to dodge Certification 23. My experience with damages has revolved around the cost of a cure and whether that cure leaves the entity whole. That's why I asked the question, would the cost be different if you were not trying to comply with FHA distances? The appraiser will claim carelessness or neglect rather than ethics (fraud). Insurance will not cover fraud.

 

[Huds_Harm]

Bingo. Even with being an appraiser that was doing FHA at the time. When we bought our house we knew it was on a septic. Had the county inspector come out. No problems except he recommended filling in some low spots in the leach field area to avoid ponding.

Being an appraiser that was doing FHA have you ever notated a property was public water and sewer when the listing stated it wasn't the sellers disclosure stated it wasn't and the OSSFF stated it wasn't? Did you also crop items out of pictures and check that they did not exist if they did not meet MPR?

 

[George Hatch]

Thats not what happened so we won't use hypotheticals for deflection.

The purpose of drawing parallels is to suss out the consistency of the principles being asserted.

Your septic (most likely) didn't develop a problem - 3 months after your purchase - because of it's non-conforming location.

If your tank or the fittings have a leak you might be able to DIY. They have YouTubes for that. Got friends/family, or are you handy on your own?

 

[Fernando]

We already said the intended user is the client/lender.
Not sure if OP is a lawyer trying to get support info from AF in suing the appraiser.

 

[Huds_Harm]

Its not the profession, its Clear Capital and Rocket Mortgage.

Also, I think a listing agent, who in this case was the seller's wife, should have some sort of knowledge of what will and won't qualify for FHA so to not waste anyone's time or money with an offer.

 

[Mejappz]

What this thread shows is how badly outdated HUD's underwriting guidelines are. But what do you expect when you put stupid people in charge? The same for the GSEs, you give them advice that they should remove forms like the 1004MC or that their condition and quality are critically flawed, and they basically give you the finger. The only thing that might solve all this is a good old-fashioned financial meltdown. Something this Country is well accustomed to having.