Reverse Mortgage and Violation

[Fernando]

I got a call from my Mortgage Broker who I haven't dealt with in over 10 years.
She asked if I can do a reverse mortgage appraisal.
I never done one before and she said lender allows her to choose the appraiser.
It's her house but there are tenants living in law unit refusing to move out.
The tenants reported to the city about the unpermitted unit and city has put violations on the property.
Do you think I should take this assignment?

 

[Fernando]

When I asked DeepSeek if Fannie Mae does reverse mortgages, I got "The server is busy. Please try again later."
When I asked Co-Pilot, I got response that Fannie does reverse mortgages.
Does it mean I can do the appraisal on 1004?

 

[sputnam]

Appraisers don't do mortgages... reverse or traditional. Appraisers do appraisals. The Lender, including GSEs, requirements for reverse mortgage appraisals vary somewhat... but they aren't very different. If you are qualified and competent to do an appraisal for a 'forward' mortgage, you can do an appraisal for a reverse mortgage. Make sure you research, review, understand, and adhere to the few differences. Most reverse mortgages... just in terms of numbers... are FHA, I think.

 

[Tom D]

The FHA reverse mortgages are for owner occupied, i believe. This appraisal is nothing more than an normal FHA appraisal, nothing different.
I don't know if conventional has gotten into this area. I did hundreds of FHA senior reverse long ago. If it is a conv reverse, then i don't know those rules. You gotta love tenants, you think they will let you in.

 

[Larry Phillips]

I got a call from my Mortgage Broker who I haven't dealt with in over 10 years.
She asked if I can do a reverse mortgage appraisal.
I never done one before and she said lender allows her to choose the appraiser.
It's her house but there are tenants living in law unit refusing to move out.
The tenants reported to the city about the unpermitted unit and city has put violations on the property.
Do you think I should take this assignment?

Good morning, the appraisal is most similar to an FHA appraisal. The impact of violations is the complicating factor that should be addressed. Yes, take the assignment, if you will not lose a friendship due to the unpermitted unit. You will not be reporting anything your client does not know, so it should not be a problem. You will not be reporting anything that another competent appraiser will report.

 

[Mark K]

Come on now...you can surely do better than that. If you're going to continue to make up scenarios, at least throw in some more roof issues and insurance problems along with it.

 

[Fernando]

I haven't taken this assignment. I didn't know borrowers can choose their appraisers if it will be a Fannie mortgage.
Would it be an issue if tenants in in-law unit won't let me inside?
Since I know the MB, I was thinking of giving her some advice and let her choose a less experienced hungry appraiser who would be less thorough than me.