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Lenders responsibility to disclose facts

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Jay Wolfson

Thread Starter
Sophomore Member
Joined
Jul 19, 2002
Professional Status
Licensed Appraiser
State
Arizona
I’m working with a lender who resents being asked to provide disclose of sale terms (contract, counters, sellers concessions, contractual repair requests, etc)

My question to you all, is there something in FANNIE MAE or FREDDIE MAC guidelines regarding a lenders responsibilities to an appraiser?

The guys not hostile or indignant about my requests but I always get this “none of the other appraisers I work with ask for this stuff”.

Thanks for you help,
Jay W.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Lazy or stupid lenders always use the excuse: "your the only appraiser that asks for that information." You are required to review the purchase agreement to check on items like verifying the sale price, determining if there are concessions or if personal property is included in the sale price. Copy the pages from Fannie Mae & fax them to him.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Jay:

Due to a senior moment, I just thought of something. Just completed an appraisal a couple of weeks ago @ Lake Tahoe and included with the purchase agreement was a disclosure included by the realtor indicating a pending law suit in the area regarding access to a private beach area. First we get a call from the processor asking how we knew about the law suit. Told her it was included in the purchase agreement she sent us. Two days later, the LO calls about the pending law suit and wants of to remove the statement from the report. We say no way. Then he asked us how we found out about the law suit. Told him it was in the information his processor provided to us along with the purchase agreement. Don't know or care what happened after that.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
We just cancelled an order that has been bouncing around the office for about 6 weeks. It involved a house on a lake and two additional large acreage parcels one of which is a one third fractional ownership. The legals are long metes and bounds. Since there was some prime waterfront involved, I asked for a survey or mortgage report so I could tell how much waterfront we were dealing with. Raw acreage is about $2500 per acre but the waterfront is about $1500/front foot. Nobody would give me what I needed so that I knew what I was appraising. So we finally just sent the lender a notice that we were canceling the order due to lack of information on the property. I don't have time to play detective and certainly not with the possibility of a couple of hundred thousand dollars of lake front property involved.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Pamela posted the info in Fannie Mae's guidelines issued 6/30/02 under Reporting Prior Sales heading--those paragraphs would also apply. And check the first section of Chapter 2 Appraisal Documentation

"The lender must disclose to the appraiser any an all information about the subject property that is aware of, if the information could affect either the marketability of the property or the appraiser's opinion of the market value of the property. Specifically, the lender must make sure that it provides the appraiser with all appropriate financing data and sales concessions for the subject property that will be, or have been, granted by anyone associated with the transaction. Generally, this can be accomplished by providing the appraiser a copy of the complete, ratified sales contract for the property that is to be appraised. If the lender is aware of additional pertinent information that is not included in the sales contract, it should inform the appraiser. Information that must be disclosed includes:
. settlement chares:
. loan fees or charges:
. discounts to the sales price:
. payment of condominium / PUD fees;
. interest rate buydowns, or other below market rate financing;
. credits or refunds of the borrower's expenses;
. absorption of monthly payments;
. assignment of rent payments; and
. non-realty items that were included in the transaction.

The lender must also disclose to the appraiser any information about an environmental hazard in or on the subject property or in the vicinity of the property that it obtains from the borrower, the real estate broker, or any other party to the transaction so the appraiser can consider any influence the hazard may have on the value and marketability of the property.

Have you downloaded a copy of the 6/30/02 Fannie Mae guidelines? If not you can at http://www.srappraisal.com/FNMA

Then print out Chapter 2 as quoted above and fax to your client!
 

Jay Wolfson

Thread Starter
Sophomore Member
Joined
Jul 19, 2002
Professional Status
Licensed Appraiser
State
Arizona
Thanks for the Chapter & Verse. Shot a copy off to the lender and R/E agent.

It bothers me when I get this run around. It's not very gratifying when you feel like a hoop the lender has to jump through rather than allies.
 

Alan Gertner

Member
Joined
Nov 1, 2002
Professional Status
Certified Residential Appraiser
State
Texas
You might want to scan the related post: "Required/Desired Info from a Client". It contains recommendations on what a client should provide.

cheers.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Thank you, Jo Ann, for spelling it out clearly like that. I really do feel that much pertinent and helpful info is NOT SHARED with us as we are engaged in varied assignments. We then go out and apply our bloodhound-nose and Sherlock Holmes magnifying glass and get the facts and suggest the possibilities. More then once I have worded addenda to also suggest the "the Client speak to so-and-so....or look into such-and-such....concerning this-or-that" as appraiser had limited access to the complete information nor a return comment from a certain individual. I'll mention a name and sometimes give a phone number. The report must be completed in reasonable time....and if that means the client has to do some legwork......to mutually protect their investment.....then they can pick up the ball and run with it. --- It is amazing how some intermediary clients, ie. AMC's between us and the true user of the report, are sometimes totally in-fear of asking questions of their clients that come back from us. That's why one of my leading questions in any phone contact from prospective assigner is always...."Tell me about the property ! ....to which it is learned in short time that they know virtually "nothing" about the place. All this lack of full communication falls right in the lap of how we unravel and re-define our new friend, the Scope of Work issue. It is partly why I would like to see a standardized appraiser order / engagement contract created by our "industry" to create a "uniform standard" for the information we receive about a property and an assignment such that our work progress can leave "no stone un-turned".
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
If it's a 1004 or even the 2055 have the lender read the form. There is a selection titled "Analysis of any current agreements of sale, option or listing ....." You might as the lender to explain how you are suppose to complete this section if they don't provide you with the information. Then explain that your only alternative is a comment that the lender client was uncooperative and that they assume complete liablity. You might throw a little salt in the wound and with a comment that they are the "Only lender that doesn't provide you with the necessary documentation." If it's an FHA you aren't even suppose to start the assignment until the LENDER provides you with the contract.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
You might throw a little salt in the wound and with a comment that they are the "Only lender that doesn't provide you with the necessary documentation."

:2gunfire:

:lol: :lol: :lol:
 
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