Lender forced to buy back loan from fannie mae

[kakarotto]

The underwriter funded the loan, ignoring my disclosures on the property. Fannie mae audited the loan and is forcing the lender to buy it back. Now they are contemplating making a claim against my E&O, and want a full copy of my policy. They have my dec page already. Am I obligated to give them my full copy? Thanks in advance

 

[VegasWayne]

Call your E&O provider immediately and do what they tell you. Don't discuss the case on a public forum.

 

[kakarotto]

Call your E&O provider immediately and do what they tell you. Don't discuss the case on a public forum.

Will do, thanks

 

[Terrel L. Shields]

Years ago I pointed out that those fannie mae appraisals were higher risk than any other. These clawbacks are why. Fannie does not intend to be left holding the bag. They foist it back on the funder and the deus ex machina for that is the appraisal. They can always find a flaw in a fannie mae report. Why? Because imho, if you read the requirements carefully, it's unlikely anyone could really write such a report without an error or questionable judgment. That is especially true for 2055s where the appraiser has caveated the interior condition away.

 

[CANative]

My son in law drives a beer truck. One day he was pulling out of a golf course onto the highway and the top of his trailer snagged a utility wire and pulled the pole down onto the cab. He had to wait for the FD and the utility company to come out and get the pole and wires off before he could get out.

The law about wire height implies that any vehicle can pass under them. So it wasn't his fault.

But PG&E sent him a bill for thousands of dollars. No problem. His employer told PG&E to f-off and they did.

I think making a demand is just part of the legal process.

 

[Deleted member 128537]

Another reason many are leaving the profession. The risk has become too high for the compensation.

 

[factsandtruth]

Another reason many are leaving the profession. The risk has become too high for the compensation.

I agree with you...that's why you have to demand a higher fee or don't do the work. Who want's to get blacklisted, revocked or sued for 300 something dollars?

 

[Mile High Trout]

If I'm getting sued, I make sure to have billed at least $350. LOL.

It's all about UAD, hard stops, and other mandatory fail points, when it comes to caveating condition.

If an appraiser states that anything is seriously wrong or in question, they should either impose a low C5 or C6 rating, check the box for there were habitability concerns, mark the subject to box, and that's it. Those three points of automatic review check are key for forcing recognition of issues.

Otherwise, the proof is in the price, and if you've valued it appropriately, you've got nothing to worry about.

Terell, that's what I'm on about, what you said. Except I aspire to write them in a compliant fashion. They laughed when I said I include 100 pics in every report. They laughed when I said that except for the cover page and a few standard paragraphs, my report was completely hand written. They laughed when I said that I don't use auto import functions, and manually data enter and verify everything as I go. They laughed all the way to the bank in fact. The laughter can be over so quickly though, which is why I put together a 45+ page report every time. Don't forget your standard 2 page environmental addenda checkbox form. That covers almost everything else for typical residential.

Repurchases are sort of random as well. The worst report ever won't get worrisome scrutiny, if only that borrower keeps on a paying.

 

[23Degrees]

GSE work is a checkbox world in the end in terms of liability. If the condition of the subject was enough to cause a buy back there's a good chance that nothing short of a C5 or C6 condition rating or having one of the ugly boxes checked would have stopped the current situation. No one knows what happened here and the OP should not post details but how many times have appraisers been asked to keep it C4 and "as is" with NO checked under adverse conditions while relying on text disclosure and cost to cure in the grid to make it slide thru the system.

Of course the underwriter ignored "disclosures". Many underwriters encourage disclosures in the text and on the grid if it helps them have all the right boxes checked. And Fannie might care what's in the text but is under no obligation to read it as they can throw all the liability back on the lender for a report that should have had a hard stop in it but didn't.

And that is good stuff MHT but let's be clear - in GSE land the client's often don't care about how good the report is and the increased fee, while well earned, is for work done primarily to protect you. Protect you from this kind of stuff if clients won't drop you after the first necessity for a "subject to" and to protect you from any board inquiry that puts your SOW under the microscope. Finding clients willing to pay for work ultimately designed to protect the appraiser is great if you can do it but generally speaking they want the right boxes checked and "disclosures" kept out of those check boxes that would be the cause of a hard stop.

 

[Mile High Trout]

When those types start providing me free legal representation, I'll start paying attention to what they want.

I'm all about sticking with this failed enterprise.

It may not pay better than flipping burger, but I get a heck of a lot more freedom than a fry bin supervisor.

https://i.chzbgr.com/maxW500/7892854016/h2D6F10EF/