"This appraisal must comply with secondary market guidelines"

[CANative]

Suggest reading the actual Fannie Guidelines posted above.

Agree!

Know the guidelines and comment when comment is necessary. No big deal.

 

[CANative]

If they require you to stay within those guidelines,

Staying within those guidelines simply means explaining why you had to exceed or vary from the guidelines.

 

[residentialguy]

What CAN said.

 

[Mike Garrett RAA]

What is "wack"?

 

[Peter LeQuire]

What is "wack"?

It's what "quack" sounds like if you forget to put you teeth in.

 

[BRCJR]

This situation can be "controled" a little better by putting the letter of engagement (assuming you got one) in the report.

There is no question about proper SOW and client requirments for a reader of the report when doing so.

 

[Mile High Trout]

Secondary market guidelines are flexible. And for more reasons than we know about, potentially involving borrower risk factors as well.

Many a middle man does not understand those harder to appraise within standard guidelines sort of markets. That's the danger of working with them. And then the same thing happens in the national lending arena, where a broker 'lands a customer' and tries to fit everything together, even though it may not fit. You'll find more conflict with clients who sell aggressively, yet are not able to sell the mortgage backed security through a variety of wholesale or specific channels as necessary. Some lenders can offer a wide variety of saleable avenues, others may not. You can count on one thing though, which is that they won't tell you their limited secondary market options are the problem. Like a monkey with his fist full of rice, he won't let go, even though he can't get his hand out. Just make sure that does not happen to you.

When it comes to managing the clients, you've got to know the regulations which drive the company policy. That's the key point several appraisers made. Also understanding that the low level persons you may be working with may or may not have a strong grasp on the actual rules. Often times, they only need to know the company policies. Sometimes you can learn a lot from mortgage people, but other times they've got a lot a lot a lot to learn. When you're squeezed with something like must adhere to this and that, consider the scope of work, order type, appraising climate, etc, etc. Essentially falling on the appraisers shoulders is this responsibility of altering scope of work if necessary, to produce credible assignment results. Either you can produce those credible results within existing scope, or you must alter scope so you can, possibly utilizing assumption or hypothetical or deviance from guidelines, however you need to do it, or you must withdraw from the assignment. Ethics keeps us tied up with this one, but also helps us because we hold the power to alter scope if we need to. Otherwise reject and let the next guy deal with it. If you honestly could not produce credible assignment results within scope, probably the next guy cannot either. He'll be the one hanging high, not you, and that same lender will eventually be back on the phone with the 1 of 3 appraisers in the area, or however that works in your rural setting. Just alter the scope, and ask them how they intend to sell it, because you'll be forced to have this and that deviance from the standard. If they're good, they'll understand the challenge of saleability and have pointed answers. Oh wait, we can't talk to mortgage bankers anymore. You could always play the message game between the controlling person. What a waste this industry has become.