Lender Wants Cost Information

[KenAZ]

This is a refi VA loan on a manufactured home

On the above appraisal report - can you please complete the section that breaks down the values of the home, land, dwelling, ect (page 3) ....the homeowners insurance agent needs this information to determine the insurance coverage.


Thank you and please let me know if you have any questions...I appreciate you and your help in this matter.

I need a polite way to say no.

 

[Randolph Kinney]

Not part of the scope of work and not the intended use and not the intended user.

 

[KenAZ]

Not part of the scope of work and not the intended use and not the intended user.

I need a more simple way to explain it, that even a loan pr0cessor would understand

 

[Hondo]

I tell them that the cost approach is not required for VA appraisals.

Send them this if you want;

 

[BRCJR]

Dear Lender,

My Scope of Work, for credible results, did not require me to develop and report the Cost Approach to Value. I was able to present credible and reliable results without the Cost Approach. I alluded to this fact in my report.

If the Insurance Agent would like for me to provide an insurable value opinion please have them contact me. You may provide them with my contact information if you desire.

Thanks,

Appraiser

 

[Deleted member 128537]

I include a statement in my report that cost analysis is not for determining insurance coverage, but is only for the intended purpose of the appraisal.

Problem is that you can't make someone (lazy insurance agent) not use it. All the homeowner has to do is just give them the report.

But if the client is asking for it for insurance purposes I wouldn't provide it since that is not part of the purpose of the appraisal.

 

[George Hatch]

The answer to scope creep is (almost) never "no". It's "Sure, I can do an insurable value opinion for this assignment. What's the fee?"

 

[JTip]

The cost approach is required on 1004C reports.

I can't quote a source but nightmares remind me it was an AI class. The teacher repeated it 7 times, each followed by a swift smack of the knuckles with an engineering ruler.

Regardless what they do with cost approach, it still must be completed for manufactured homes. I would politely remind the emailer that this (additional client) is not in the scope of work and request for them to revise/resend an email to cover your behind (and their posterior).

 

[residentialguy]

If someone wants to ride along for the same destination, then they can use it as is. But when that other person wants to go somewhere else, they'll have to pay for that separate taxi ride.

 

[Mr Rex]

The cost approach is required on 1004C reports.

I can't quote a source but nightmares remind me it was an AI class. The teacher repeated it 7 times, each followed by a swift smack of the knuckles with an engineering ruler.

Regardless what they do with cost approach, it still must be completed for manufactured homes. I would politely remind the emailer that this (additional client) is not in the scope of work and request for them to revise/resend an email to cover your behind (and their posterior).

For Fannie Mae yes. For FHA only if its new construction.