New FNMA condo/co op guidelines: “Appraising and Underwriting Condo and Co-op Projects”

[Tom D]

i am very curious as to how easy, or hard, it is to get the specific answers to the condo questions as follows, understanding i have never seen this on a condo questionnaire, and rarely get one to see.
they also want "Every effort should be made to obtain information about special assessments and significant deferred maintenance — the appraisal is not complete without it." i know some of the perfectionists here already do this. i'm not a fan of doing condos, may stop. how does the group feel? thanks for your replies.
Appraisers are required to enter any special assessment applicable to the subject property in the Special Assessment field located in the subject section of the appraisal report. This must be expressed as an annual or annualized amount.

• If there is more than one special assessment, appraisers should enter the annualized sum of all special assessments.
• If there are no special assessments applicable to the subject property, enter the numeral zero (0).

We expect appraisers to:

• Report the annual assessment in the Special Assessments field.
• State the following in the body of the report:
• The outstanding balance.
• The payment plan, including duration.
• What the assessment is being used for.

 

[shrubberyvaluation]

If the lender gives me that information I have no problem reporting it with my source. However how does this effect the appraisal? If they need this information can't the lender get it? If market participants react to this it is already reflected in unit prices.

 

[jay trotta]

i am very curious as to how easy, or hard, it is to get the specific answers to the condo questions as follows, understanding i have never seen this on a condo questionnaire, and rarely get one to see.
they also want "Every effort should be made to obtain information about special assessments and significant deferred maintenance — the appraisal is not complete without it." i know some of the perfectionists here already do this. i'm not a fan of doing condos, may stop. how does the group feel? thanks for your replies.
Appraisers are required to enter any special assessment applicable to the subject property in the Special Assessment field located in the subject section of the appraisal report. This must be expressed as an annual or annualized amount.

• If there is more than one special assessment, appraisers should enter the annualized sum of all special assessments.
• If there are no special assessments applicable to the subject property, enter the numeral zero (0).

We expect appraisers to:

• Report the annual assessment in the Special Assessments field.
• State the following in the body of the report:
• The outstanding balance.
• The payment plan, including duration.
• What the assessment is being used for.

It does not have to be supplied to us; we have no fight in that game (IE: Owner/Purchaser or Any Interest) so How do you force that information from the Management Company ??) They have no obligation to provide us that.
So is FNMA now acting as an Agent for the IRS ?? After all, the IRS now has the ability to look at the Complexes Bank Account.....whats that peeking number ? This is going sour real fast

 

[Fernando]

I don't like to do condos and if I do, it's usually condo projects I'm familiar with.
I remembered seeing some condo projects where some HOA fees are higher and some lower because the owner paid off the thousands of dollars in assessments.
Those who can't afford the one time assessments had option to spread out the payments with higher HOA fees.
Condos can be a pain to do.

 

[ramrcdk]

If the lender gives me that information I have no problem reporting it with my source. However how does this effect the appraisal? If they need this information can't the lender get it? If market participants react to this it is already reflected in unit prices.

Via the Form instructions, I request the lender to provide that source info', asap. Due Date: the majority of management companies do not respond to requests and also by the lender's DD.
I have a paragraph explaining: market value estimated does include known Buyer reactions to HOA documents, declarations, etc. via use of reported closed sales. There are no known or resulting impact to the: HOA, numbers of phases, units, parking spaces, etc.
Duties performed by an Attorney, CPA, or Budget Review are not within the Appraiser's field of expertise.

Always I do describe Special Assessments OR my diligent attempts to divulge. Do always report document: "The lender was contacted for use of their mortgage required documents, the current-HOA/Condo' Letter information."
(Law Suit where the buyer was not informed of an unpaid Special Assessment. Buyer won. Appraiser was not found liable. Attorney-lender-title company were.)