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Lender comp guideline requirement.

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ken351

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Joined
Jun 8, 2007
Professional Status
Certified Residential Appraiser
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California
Does anybody have documentation from a lending institution or mortgage company that provides the appraiser with guidelines when doing a SFR or PUD appraisal (ie. Don’t use marketing adjustments; use an additional comp outside the development; the sale comps cannot be more then 6 months old.) Thank you for your assistance.
 

jay trotta

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Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Over the years I have had many various Lender developed guidelines, but that ended during the last fiasco. Haven't seen any of late, so if there is something "specific" they are in search of, ask for a copy of that "particular" section of their guidelines.

Most of em can't produce didly - it's made up BS, as they are now required to abide by FNMA/USPAP/HUD-FHA guidelines and I believe that covers just about everything they Need to follow in order for Them to be in compliance. I would suggest a quick review of what FNMA/HUD-FHA require and not go outside those guidelines unless they can provide what I noted above. We are required to comply with what is factual guidelines, not made up random BS.

Good Luck
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Over the years I have had many various Lender developed guidelines, but that ended during the last fiasco. Haven't seen any of late, so if there is something "specific" they are in search of, ask for a copy of that "particular" section of their guidelines.

Most of em can't produce didly - it's made up BS, as they are now required to abide by FNMA/USPAP/HUD-FHA guidelines and I believe that covers just about everything they Need to follow in order for Them to be in compliance. I would suggest a quick review of what FNMA/HUD-FHA require and not go outside those guidelines unless they can provide what I noted above. We are required to comply with what is factual guidelines, not made up random BS.

Good Luck

I agree. These are the guidelines I use:

http://www.allregs.com/efnma/index....FNMA/selling/part-xi/xi-ch-4/xi-406/xi-406.03


http://www.HUD.gov/offices/adm/hudclips/letters/mortgagee/05-34ml.doc

The only other guidelines I use are the VA Handbook for VA appraisals.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Does anybody have documentation from a lending institution or mortgage company that provides the appraiser with guidelines when doing a SFR or PUD appraisal (ie. Don’t use marketing adjustments; use an additional comp outside the development; the sale comps cannot be more then 6 months old.) Thank you for your assistance.

Keon,

What is a "marketing" adjustment?

Webbed.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Does anybody have documentation from a lending institution or mortgage company that provides the appraiser with guidelines when doing a SFR or PUD appraisal (ie. Don’t use marketing adjustments; use an additional comp outside the development; the sale comps cannot be more then 6 months old.) Thank you for your assistance.

An important part of one's SOW to be determined at the time the assignment is accepted, yes?
 

Jon Liberatore

Junior Member
Joined
Nov 15, 2004
Professional Status
Certified Residential Appraiser
State
Maryland
I had a client provide me a list of guidelines that thye required if the subject was located in a declining market. I cant remember all of them but here are a few....

All comparables must be sold within 90 days
Appraiser to provide atleast 1 active and 1 pending sale

They all made sense but in this market you cannot always find comps within the last 90 days
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I had a client provide me a list of guidelines that thye required if the subject was located in a declining market. ...

...All comparables must be sold within 90 days

Assuming a traditional Fannie Mae 1004, they can ask, but you can not comply with this requirement except maybe by coincidence.

This is an unacceptable assignment condition.
 

Em Tee

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Assuming a traditional Fannie Mae 1004, they can ask, but you can not comply with this requirement except maybe by coincidence.

This is an unacceptable assignment condition.

I don't understand why this is an unacceptable assignment condition - could you please explain? Thanks.
 

Artemis Fowl

Senior Member
Joined
Mar 16, 2004
Professional Status
Certified Residential Appraiser
State
Michigan
Guidelines schmidelines. Just pick the best comps and explain. Solve the problem first. Satisfy the box-checkers after.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
I had a client provide me a list of guidelines that thye required if the subject was located in a declining market. I cant remember all of them but here are a few....

All comparables must be sold within 90 days
Appraiser to provide atleast 1 active and 1 pending sale

They all made sense but in this market you cannot always find comps within the last 90 days

Mr. Liberatore,

Then the REAL problem is any real estate appraisers accepting such assignments without demanding payment for the research needed in order to determine if the assignments have acceptable or unacceptable conditions attached to them. This may be a grey area interpretation of USPAP, as it would appear such stringent demands are not a USPAP violation. However, if I try hard enough I am sure I can come up with something that suggests demands for the impossible are a leading cause of resulting misleading appraisal reports. Just like demanding a 24 hour turn time when the subject is a complex property and meeting such a demand, without being misleading, is just impossible. These demands continue to ignore that fact that there are such things as complex market conditions that prohibit meeting the requirements of USPAP with a 24 turn time demand.

These are all part of the sweeping problems going on. Real estate appraisers, as a group, are not holding these clients accountable for making often impossible demands. The accountability part is requiring payment for services rendered even when no appraisal can be completed due to the impossible demands.

As a group, we remain our own worst enemys. I will continue to hope to obtain copies of appraisal reports by appraisers that ignore my above message, knock out misleading appraisal reports in order to meet unreasonable demands or just due to stupidity, and keep filing board complaints against them. It's my patriotic duty!

Webbed.
 
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