Lender Suggested Comps

[Cob]

It is possible CU is telling the underwriter the property is at significant risk of overvaluation, so they are asking you to consider the sales CU suggests without first vetting the sales.

Fannie Mae does not instruct or suggest to lenders that they ask the appraiser to address all or any of the 20 comparables that are provided by CU for most appraisals. (See Q10.)

▪ Users should carefully review the appraisal report before seeking additional clarification from the appraiser based on CU findings.

▪ The risk analysis performed by CU is for use by the lender in that lender’s analysis of the appraisal report; information may be shared with the appraisers in proper context upon completion of the lender’s due diligence review.

*Are lenders and appraisers expected to address all 20 alternative comparable sales that may be identified by CU? No. CU generates up to 20 alternative comparables for the purpose of providing context for the appraisal report reviewer. Fannie Mae’s expectation is not that all alternatives be addressed or that only the CU top-ranked comparables be used. A lender may examine the alternative comparables in the course of reviewing an appraisal report to determine if their use may result in a different conclusion about value from that provided by the appraiser.*

 

[Cob]

CU runs an automatic review of sales and if they find close proximity sale of a property of similar size they send the list back to lender , and the lender then has an option to pass it on to the appraiser to look at. Or your client uses an auto "review" of reports. I do get sales from CU occasionally but not often - if it happens often look at what comps you are using /not using and your commentary.

I might include a statement like this : "Additional sales were considered. There are area sales found within a mile (or within subdivision) that sold for higher prices. These sales tend to be new homes or homes with a pool (or whatever reason ) There are also sales of similar sf that sold for lower prices. These sales tend to be homes in original, dated condition or much smaller houses. The appraisal used the more similar comps in condition and size as the subject "

That might cut down the sends, but even if client still sends sales to you, at least you made the comment wrt why you used some and excluded others, making it easer to address.

Fannie Mae does not instruct or suggest to lenders that they ask the appraiser to address all or any of the 20 comparables that are provided by CU for most appraisals. (See Q10.)

 

[Zephyr999]

A GSE “desktop” is only for purchases and requires a floorplan, so it wouldn’t miss an entire level of the home. A GSE “hybrid” for refi requires an interior inspection and also wouldn’t have missed an entire level of the home. It sounds like you got a desktop for an in-house loan that used an EA that the information in public records was acccurate. So, the loan product does determine the SOW, assignment conditions, assumptions made, and ultimately the reported size of the improvements.

No sorry your line of reasoning is flawed but good effort in finding a way to argue your belief that loan type matters in determining GLA as part of SOW.
The 3rd party drive by restricted report was a bank decision, I was told it could be ordered as either exterior only or typical standard interior and exterior inspection. I believe our strong credit worthiness and low LTV drove the exterior only decision.

No EA invoked, which is odd. Reliance on assessor data was used, which appears to have been misinterpreted. I don't need the extra SF to make the loan...I do believe the next appraiser upon future sale will have to reconcile false facts given the sharing of appraisal data.

 

[KYLECODY]

This happens often enough for me to be a little suspicious.

I currently have a property under contract for $475,000 and we appraised it for $488,000. It is an older two story home but with new siding, new roof, and completely renovated inside with new kitchen/baths and so on.

The lender comes back with a revision request saying "why didn't you use/consider these three sales"
Of course all three sales sold $375,000-$425,000 and are old and not updated whatsoever. Just looking at the photos makes it extremely obvious.

It's an easy, albeit annoying, revision request to take care of with simple commentary but this happens often enough that it really makes me wonder who signs off on this, why waste our time with something so obviously incorrect, and so on. Anyone else experience this?

Lol, We get wrecked if the appraisal comes in low and questioned if it comes in "high". I forget which AMC did this to me a few times but the lower "comps" must of been auto generated because they had no relevance to the property.

 

[Deleted member 80407]

This happens often enough for me to be a little suspicious.

I currently have a property under contract for $475,000 and we appraised it for $488,000. It is an older two story home but with new siding, new roof, and completely renovated inside with new kitchen/baths and so on.

The lender comes back with a revision request saying "why didn't you use/consider these three sales"
Of course all three sales sold $375,000-$425,000 and are old and not updated whatsoever. Just looking at the photos makes it extremely obvious.

It's an easy, albeit annoying, revision request to take care of with simple commentary but this happens often enough that it really makes me wonder who signs off on this, why waste our time with something so obviously incorrect, and so on. Anyone else experience this?

Sounds to me the origination company is looking for a way not to loan on the property.