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'subject To Lender Notification' ?

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John Hassler

Senior Member
Joined
Jul 23, 2002
Professional Status
Certified Residential Appraiser
State
California
I recently performed a refi appraisal of a property that was also listed for sale. The listing history was included in my report. I received a request from the client, a major lender, that next time I should make the appraisal "Subject to Lender Notification". I've never hear of this so I requested more info. This is the response I received:


"You would use the 'lender notification' for any items that you think the reviewer should know. You just mark the 'subject to conditions' box, next to it write 'LENDER NOTIFICATION', and then insert a comment into the addendum.
What this means is, when you mark the report 'lender notification' one of our appraisers will look at the report. Normally reports go through an automated review process through our system. You can do this any time that there is an item that you think needs to be brought to our attention. "


I understand that they are trying to flag unusual items for staff review but this doesn't appear to be a correct or intended use of "subject to". Anybody else ever seen this?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Sure, I'd notify them. The condition would absolutely still be listed on the URAR though. Almost sounds like they are trying to keep that off the appraisal report, which would be misleading.

Nope, I've never heard of that term before.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
its a form...

Their automated review will kick it to a human if you check the box.

I have used it for years to draw attention to 'issues' of a significantly serious nature that I wanted the thing to stop cold dead until some one reads what I have to say.

It also means a human has to check a box someplace that says they read and take responsibility for what they did about whatever caused you to check the little 'alarm' box.

Works for me < shrug >.
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
Never heard of such of thing.

Their response is of great concern however. I can't imagine not having a human being reviewing appraisal work from this geographic area of the nation.

So what they are saying is they look at the value box, condition box, and look for a signature. Wooooow!

.....................a conveyor for rubber-stampers!
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Gently:

umm Verne... whadda ya think they been doing for the last oh so many years?...

Ever since you quit handing the finished report across the desk, and far too often before that...


condition box, and look for a signature
you incurable optimist, you!

I mean fer Pet's sakes' we all know that most of them
only looked at ONE box: $XX,000 :rolleyes:
 

GeorgiaBoy

Junior Member
Joined
Jul 23, 2003
Professional Status
Licensed Appraiser
State
Georgia
Although I've never had anyone ask me for that, I think it is a reasonable request. I think that your statement was probably missed by the underwriter at the brokers office but was noticed by the investor before thay bought they loan. This is a real problem for the broker because they have closed a loan that no investor would buy. Yikes!! Biggest problem you could have as a broker. I think that this is the brokers attempt to find a solution for underwriters that are poorly trained and do not read the entire report. Even a novice underwriter reads the "subject to" portion of the appraisal (ha ha).

That being said, anytime I am reporting something that will have a serious affect on the loan, I always call right before I deliver the finished report and give the processor or loan officer a "heads up". Nine times out of ten they appreciate it.
 

Pam Wyant

Senior Member
Joined
Feb 12, 2003
Professional Status
Certified Residential Appraiser
State
West Virginia
Lender notifiction - isn't that what the whole report is :question: :question: :question:

On a serious side, I would not mark the subject to box & state lender notification. That would just seem to be admitting that we don't expect the lenders to read all the CYA language we put in the report, if we don't think they even bother to read the specifics about the subject property.

But I do usually call the lender if there is something that is a problem with the property. It just makes good sense and saves a lot of frantic calls from lenders trying to track me down.
 

John Hassler

Senior Member
Joined
Jul 23, 2002
Professional Status
Certified Residential Appraiser
State
California
Thanks all for the responses!


Given that Lee Ann does this, and the fact that she is a stickler for accuracy/compliance, means to me that there's no reason I can't do this also. Might do it on every report so they read the damn things. :p However, I agree with Pam W. that it is an admission that I know nobody is reading the report - hard to say if that carries any liability for the appraiser since the client is a lender not a layman.

In the case of this particular appraisal, I told the lender before I accepted the assignment that the home was for sale as it came up in my preliminary review to bid the job (value was over $1m). There was no mortgage broker involved, the assignment was direct from the lender (an 800# gorrilla) so if they can't sell the loan tough luck!
 
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