Not sure about a revision request

[Artemis Fowl]

The second parcel was not mentioned in the original version of the report. When the lender asked for a revision of the address, I mentioned in the comments that the owner owns 2 parcels and the second parcel had the address they were asking for and that the CAD didn't know where that address came from and that the 911 addressing authority showed that the address didn't exist. I may have overexplained but they were absolutely insistent about me changing the address.

Ahh. I see now. So the second parcel that has nothing to do with the assignment has a user applied address that is not recorded with local authorities. See this happen when people empower themselves to do stuff without knowing there is actually a municipal authority tasked with doing it and informing all interested parties. Sounds like the loan applicant provided this theoretical address to the lender and it's causing problems...which is what usually results from this. Yup...lender needs to get the story straight. This is a communication problem.

 

[lostinthezone]

I completed an appraisal for a refinance for Newrez in October. There are 2 parcels that are contiguous that make up the total property. One parcel is the house and one acre and the second parcel is 13.279 acres with a barn and is considered excess land. It is buildable and has road frontage and it is not part of the appraisal. Only the parcel with the house and one acre was appraised. The lender has made a revision request that the appraisal be made subject to each parcel being on its own deed. I asked why and the CRT Risk Manager, who is an appraiser, said they can't sell it to the GSE's "because they don’t buy property with multiple parcels where the highest and best use is no." I called Fannie Mae and was told to submit a question form, which I did today. I've asked 3 experienced appraisers in my area as well as a loan officer at the local bank. All four said they have not heard of this stipulation. The loan officer stated that he has made loans like this without the parcels being deeded separately. Has anyone run into this? Is she correct? Do they have to be deeded separately? I'm not trying to be difficult but I want the appraisal to be accurate. If I should revise it, based on Fannie Mae guidelines, I will. If I shouldn't, I would like to be able to tell the lender why. I'm sorry to ramble. Thank you all for your time.

The issue is most likely that the second parcel (vacant) is buildable. If that is true, the loan is ineligible for sale to Fannie Mae. See the Fannie Mae Selling Guide and this section; B2-3-04, Special Property Eligibility Considerations (10/04/2023) for more information. You can't simply exclude that second parcel from the appraisal because it's all on one deed and the loan needs to encumber the entire deeded property, not just a part of it. The only way they can make the deal work for sale to the secondary market is by separating the two parcels onto separate deeds. That way they can do the loan by just encumbering the house and it's parcel on the loan docs.

 

[TerryRohrer]

The issue is most likely that the second parcel (vacant) is buildable. If that is true, the loan is ineligible for sale to Fannie Mae. See the Fannie Mae Selling Guide and this section; B2-3-04, Special Property Eligibility Considerations (10/04/2023) for more information. You can't simply exclude that second parcel from the appraisal because it's all on one deed and the loan needs to encumber the entire deeded property, not just a part of it. The only way they can make the deal work for sale to the secondary market is by separating the two parcels onto separate deeds. That way they can do the loan by just encumbering the house and it's parcel on the loan docs.

A past deed with two tracts on it doesn't combine the two tracts into one tract in perpetuity. A mortgage is to include the legal description of the collateral for the loan. When the second tract is not included in the mortgage, it is not collateral. The deed simply transfers ownership of property, it doesn't serve as a subdivision and doesn't serve to vacate existing subdivisions. In this case, the second tract was not part of the appraisal and was correctly excluded from the appraisal.

 

[Artemis Fowl]

The issue is most likely that the second parcel (vacant) is buildable. If that is true, the loan is ineligible for sale to Fannie Mae. See the Fannie Mae Selling Guide and this section; B2-3-04, Special Property Eligibility Considerations (10/04/2023) for more information. You can't simply exclude that second parcel from the appraisal because it's all on one deed and the loan needs to encumber the entire deeded property, not just a part of it. The only way they can make the deal work for sale to the secondary market is by separating the two parcels onto separate deeds. That way they can do the loan by just encumbering the house and it's parcel on the loan docs.

This makes sense of some of what wasn't making sense.
EDIT: or not

 

[JLR]

The issue is most likely that the second parcel (vacant) is buildable. If that is true, the loan is ineligible for sale to Fannie Mae. See the Fannie Mae Selling Guide and this section; B2-3-04, Special Property Eligibility Considerations (10/04/2023) for more information. You can't simply exclude that second parcel from the appraisal because it's all on one deed and the loan needs to encumber the entire deeded property, not just a part of it. The only way they can make the deal work for sale to the secondary market is by separating the two parcels onto separate deeds. That way they can do the loan by just encumbering the house and it's parcel on the loan docs.

Thank you for providing this consideration. I really appreciate your time.

 

[Artemis Fowl]

The issue is most likely that the second parcel (vacant) is buildable. If that is true, the loan is ineligible for sale to Fannie Mae. See the Fannie Mae Selling Guide and this section; B2-3-04, Special Property Eligibility Considerations (10/04/2023) for more information. You can't simply exclude that second parcel from the appraisal because it's all on one deed and the loan needs to encumber the entire deeded property, not just a part of it. The only way they can make the deal work for sale to the secondary market is by separating the two parcels onto separate deeds. That way they can do the loan by just encumbering the house and it's parcel on the loan docs.

I don't do secondary market stuff. Is this actually how FNMA works? I didn't see this in that reference...it talks about encumbering multiple parcels which is not what's happening here. This interpretation is basically the same as saying you need to return everything on the receipt...actually doesn't surprise me if true.

 

[J Grant]

The issue is most likely that the second parcel (vacant) is buildable. If that is true, the loan is ineligible for sale to Fannie Mae. See the Fannie Mae Selling Guide and this section; B2-3-04, Special Property Eligibility Considerations (10/04/2023) for more information. You can't simply exclude that second parcel from the appraisal because it's all on one deed and the loan needs to encumber the entire deeded property, not just a part of it. The only way they can make the deal work for sale to the secondary market is by separating the two parcels onto separate deeds. That way they can do the loan by just encumbering the house and it's parcel on the loan docs.

However Fannie will loan on a house together with excess land , - this client wants only the one acre plus house in the loan assignment so it simplifies matters -

 

[TerryRohrer]

However Fannie will loan on a house together with excess land , - this client wants only the one acre plus house in the loan assignment so it simplifies matters -

And you are still wrong. The appraiser doesn't dictate what collateral is included in a mortgage. The appraiser was asked to appraise one parcel. They did. The second parcel, under different ownership that is recognized by a different deed than the parcel appraised, was excluded from the appraisal. The lender is lost and the appraiser can't fix it by reducing the quality and clarity of their appraisal by bringing in references to other parcels that are not part of the appraisal.

 

[JLR]

What did USPS say about the address since that is the required format

I provided a document from the 911 governing authority that stated "Please be advised, this is the official address for emergency response and the United States Postal Service."

 

[Tim Hicks (Texas)]

I provided a document from the 911 governing authority that stated "Please be advised, this is the official address for emergency response and the United States Postal Service."

UWM? Underwriters there are extremely stubborn and will call you wrong all the way to the end until they are proven wrong.

If the assignment was for just the house and one acre and that tract is only one acre. You have done your job.