Resubmit on a 1025 with a 216???

[Jill Kinnaird]

Lender orders an appraisal of a Mixed Use property; two apartments up (family occupied, no rental) and Beauty Salon on the first (arms length rental). HBU is as utilized though zoning would allow residential on the first. Prior to acceptance of request Lender had approved a narrative format report. Delivered report 3/23. This am received email from Lender stating the "..underwriter wants report submitted on a FHLMC 72 OR 998 or FNMA 1025 or 216 and to include an Operating/Income statement and comparable rent schedule. I haven't heard of a few of these forms before. I hope this isn't an issue. Please let me know as soon as you can. This is all we have left to close! Please get back with me and let me know if this request is going to be an issue......"

For my own twisted pleasure please let me know how you would respond. Expletives may be expressed in *^$#$@W format.

 

[Fred]

I am sure an avalanche of negative response is about to appear. The only advice I can give is to tell them that the formats requested are so incompatible with the property and will require so much extra work, that you will have to charge a lot more - like double.

 

[CANative]

Rent is rent, right? Of the 4 unit line grid use the top two for the two residential uppers and use the third unit for the "live and work" unit downstairs. Just don't call it a "work and live" or you've got a commercial assignment.

Charge half the price. LOL.

 

[Webbed Feet]

Lender orders an appraisal of a Mixed Use property; two apartments up (family occupied, no rental) and Beauty Salon on the first (arms length rental). HBU is as utilized though zoning would allow residential on the first. Prior to acceptance of request Lender had approved a narrative format report. Delivered report 3/23. This am received email from Lender stating the "..underwriter wants report submitted on a FHLMC 72 OR 998 or FNMA 1025 or 216 and to include an Operating/Income statement and comparable rent schedule. I haven't heard of a few of these forms before. I hope this isn't an issue. Please let me know as soon as you can. This is all we have left to close! Please get back with me and let me know if this request is going to be an issue......"

For my own twisted pleasure please let me know how you would respond. Expletives may be expressed in *^$#$@W format.

Ms. Kinnaird,

The FHLMC 72 and the FNMA 1025 are the same freaking form! The 998 and the 216 are the same form! They are both the operating income statement form. Sheesh.... they are just the Freddie and Fannie numbers for the same two forms. The real question is why in the ding dong do Freddie and Fannie have to use different numbers? It is all SO stupid!

So your dork rod is asking for a 2-4 family form with an operating income statement is all..... Only thing is... and don't quote me on this because it's off the top of my head and not looked up... but I don't think that it is either Freddie or Fannie acceptable to be placing a mixed use property on the 2-4 family form like that. I assume you also have, for that market, what would be a mix of short term month to month rents versus a long term lease for the lower unit.

I think your answer to this client is: "The terms of the original engagement have already been satisfied. But we can look to see if a new assignment using your parameters is possible." ... And I seriously doubt an underwriter is really making that request.... You have someone who can't obtain a loan at the rate they quoted the borrower and is now attempting to slip this into a conforming residential loan. It's because of the subprime lender meltdown... the really loose and cheap loans have all dried up and blown away so fast the mortgage side is reeling.

Barry Dayton