Revision After Revision After Revision After Revision

[Mike Garrett RAA]

The best solution would be for those who review or underwrite appraisal to be licensed.

 

[Kim Whiting]

Boat slips can be in many cases vital to value. But then what does some idiot who has yet to see a cow out in the country know? I've started using the term in my addendum "geographical competency of the reader". Why bang our heads against the wall when some idiot reviewer doesn't even understand for example what a 2nd/vacation property is?

 

[Peter LeQuire]

How does an appraiser "remove" value for a property attribute? The slip either is or is not part of the real property: if it is, it either has or does not have value. I don't think it appropriate for a client to dictate what portions of the property an appraiser is to value or not. (Unless, of course, the easement provides access to the boat slip? Or it's an easement that includes the right to use the boat slip because it isn't owned?)

 

[Tru Red]

Is there a contact you have there you can speak with about this? Maybe someone in the "review" dept at the AMC?

I do run into this now & then (I have 2 main AMC's I work with along with a few others and some direct lenders). The 2 main AMC's, though, I have "learned" who I can speak to rationally. I can either talk to them and they can make a more rational decision or at least let me know what "clarification" they are looking for via additional narrative.

I will say, all in all, I agree it's a PITA and (I paraphrase) as MCG says the 5-10 mins to revise the report ... YES! It's a PITA and NONSENSE!

Yes there is and yes I did speak with the contact at the AMC. They agreed with me. Then......the lender sent it back to them and subsequently it came back to me for the revision. It just makes me mad...it was a good appraisal report. The lender is questioning the local county street easement for waterway rights that is common in the area and only identified in the half page legal description (not even in the preliminary title exclusions). I have NEVER once had a lender/underwriter question a county street easement in a legal description as to how it could affect value. This would not have upset me....if it came back with their first request. What makes me mad is they approve it...send it back....approve it....send it back. On and on and on.

 

[Terrel L. Shields]

I don't think it appropriate for a client to dictate what portions of the property an appraiser is to value or not.

There isn't any issue in valuing a partial estate as long as the client wants it that way... Still have to mention the impact of that item.

ask for the Fannie Mae "must disclose" information

Good idea.

The annoying part is that they won't send all their questions. They seem to start over after each stip, then keep the flow going, all the while expecting you to remain on their beck and call to answer immediately.

 

[Peter LeQuire]

There isn't any issue in valuing a partial estate as long as the client wants it that way... Still have to mention the impact of that item."

But that generally wouldn't pertain in a GSE-related appraisal, would it? (I'd assumed the OP related to such, since an AMC was mentioned. I get partial interest appraising....reely.)

"The annoying part is that they won't send all their questions. They seem to start over after each stip, then keep the flow going, all the while expecting you to remain on their beck and call to answer immediately.

"

It's called serial processing - the bane of the SFR mortgage business, IMO.

 

[Terrel L. Shields]

"

It's called serial processing - the bane of the SFR mortgage business, IMO.

Seems to be a method of slowing the process down for reasons unknown.

 

[Peter LeQuire]

It is - and BITD was a phenomenon that was directly related to inadequate/sloppy processing (by processors and underwriters). Funny thing, though, was that it was also associated to delaying loan fundings when a lender has mismanaged interest rate risk it its pipeline.

 

[huntercharlie]

Treatment of Personal Property
Lenders are reminded that personal property, including (but not limited to) furniture, vehicles, boats, floating boat docks, and art work, may not be included as additional security for any mortgage on a one-unit property unless otherwise specified by Fannie Mae. Personal property is permitted as part of the security for a loan on a two- to four-unit property to the extent it is pledged by the 1-4 Family Rider (Form 3170). Whether an item is real or personal property is generally determined by the law of the jurisdiction where the property is located. A professional appraiser who has the knowledge, experience, and geographical competence to complete the appraisal assignment must also possess the expertise to identify personal property items in the appraisal.

 

[Restrain]

In regards to the "revision after revision", wife has started anticipating any possible question and addressing it in the addenda...but they still don't always read it. Got a stip back on one that had gone to the lender regarding city location vs ZIP location. We put all our analysis in the first paragraph in the addenda page, addressing all the possible issues and why we put it in X city vs Y city. Just called them back up and said "read paragraph 1". Got an email back, OK, got it, we concur.

As to the specific easement, if it is off-site, and common to the area, the use of sales from the same area should indicate whether or not it is a market issue. At the same time, if this is a common easement, perhaps a drop-down like for private wells and septics would be something the OP should put in the appraisals for that area.