Rent survey

[Ken B]

True,

However it may be necessary for...........


THE INTENDED USE.


:new_all_coholic:


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Which kind of explains the second part of my comment.

 

[Meandering]

It's not that they don't want to know it's that they don't need it and don't want pay for something they don't need.

And you know what loan package the borrower has applied for, without speaking to the underwriter how?

I was assigned a 1004 as owner occupied but discovered it was tenant occupied at inspection. I reported this to lender and requested a rent survey be added to report. They said to complete report as 1004 only and would let me know if they wanted to spend money on rent survey. Since I usually use the rent survey in part to determine the income approach to value: I would like to know if anyone has ever done something like this? I could in part use sales that have rental histories but wouldn't I just be doing a rent survey of sorts without the payment for my time? Maybe they are thinking if the sales approach doesn't not come in why find about the income approach. Who knows these days?

An investment property is owned but not occupied by the borrower. An LLPA applies to all mortgage loans secured by an investment property. These LLPAs are in addition to any other price adjustments that are otherwise applicable to the particular transaction. See the Loan-Level Price Adjustment (LLPA) Matrix and Adverse Market Delivery Charge (AMDC) Information.


https://www.fanniemae.com/content/guide/selling/b2/1/01.html


Income Approach to Value
The income approach to value is based on the assumption that market value is related to the market rent or income that a property can be expected to earn. The income approach to value is required in the valuation of two-unit to four-unit properties and may be appropriate in neighborhoods that consist of one-unit properties when there is a substantial rental market.

The income approach to value may not be appropriate in areas that consist mostly of owner occupied properties because adequate rental data does not exist for those areas. However, USPAP requires the appraiser to develop and report the result of any approach to value that is necessary for credible assignment results. If the appraiser believes the income approach is necessary for credible assignment results, then the income approach must be included. Appraisals that rely solely on the income approach as an Indicator of market value are not acceptable.

When the income approach to value is used, the appraisal report must include the supporting comparable rental and sales data, and the calculations used to determine the gross rent multiplier.

If the appraiser has completed the income approach, the lender must thoroughly review the information provided to confirm that the appraiser’s analysis and comments for the income approach are consistent with comments mentioned elsewhere in the report.

Related Announcements
The table below provides references to the Announcements that have been issued that are related to this topic.
Announcements Issue Date

Announcement SEL-2014–03 April 15, 2014
B4-1.3-11, Valuation

https://www.fanniemae.com/content/guide/sel041514.pdf#page=471

rut ro.


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[CANative]

And you know what loan package the borrower has applied for, without speaking to the underwriter how?

Why do you debate/argue like this. I provided one reason they might not need it and your take away is that I think I know what loan program they are considering?

Just stop.

 

[Meandering]

Why do you debate/argue like this. I provided one reason they might not need it and your take away is that I think I know what loan program they are considering?

Just stop.

Because you give advice based on something you are guessing about.

Kind of like how JGrant does sometimes.


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[Meandering]

And your advice does not address:

Since I usually use the rent survey in part to determine the income approach to value:

How the OP is performing rent surveys, if the Income Approach is not credible, simply because the client did not ask for it.


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[CANative]

Because you give advice based on something you are guessing about.

Kind of like how JGrant does sometimes.


.

You're certifiable. The OPs client said they didn't want the stinkin' 1007 so that's the end of it. He should just proceed merrily along and finish the job. You're the one that thinks they must have one and that an income approach is necessary.

Sheesh.

 

[CANative]

And your advice does not address:



How the OP is performing rent surveys, if the Income Approach is not credible, simply because the client did not ask for it.


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More of your silliness. I didn't say the IA was not credible. If you do one, whether or not it's necessary it MUST be credible.

 

[Mr Rex]

Maybe the client has market rent data out the wazoo and doesn't need any more. Maybe this is one house out of pool of a investment properties the borrower owns, so that the mortgage of any particular house in their portfolio is not dependent on that particular houses rent. At least as many reasons that they might not want or need the IA. Heck around here doublewide REOs are selling for $35k and rent from $650-800. Talk about a GRM that sounds like a no brainer...

 

[CANative]

What does a similar size site built house rent for?

 

[Mr Rex]

Roughly the same thing, depending on location.