U/W Verbiage

[ZZGAMAZZ]

The subject is a commercial store that is now a SFR. I provided the City Occupancy permit changing it from a store to a SFR, cross referenced it to the City website, and also confirmed that residential is legal conforming use.

The underwriter stip says "still need alta supp clarifying subject is SFR."

Several voice message to U/W have not been responded to. Does anybody know what "alta supp" means?

 

[Carnivore]

zz

if you ask(several times) and they dont answer, then sit back and wait.

When they call again , ask again and sit back and wait.

 

[Randolph Kinney]

The subject is a commercial store that is now a SFR. I provided the City Occupancy permit changing it from a store to a SFR, cross referenced it to the City website, and also confirmed that residential is legal conforming use.

The underwriter stip says "still need alta supp clarifying subject is SFR."

Several voice message to U/W have not been responded to. Does anybody know what "alta supp" means?

I believe you went beyond the SOW when you provided a copy of the CO. Just stating that you confirmed the CO and status change would be sufficient for your due diligence.

This is an underwriting problem, not an appraiser problem. Either they can satisfy their own requirements for documentation or they can just refuse the loan. Your job is done.

 

[ZZGAMAZZ]

RK: yea you might be right. actually the request was forward to me from the mortgage broker to whom the stipulation was sent by underwriting. it's my experience that brokers often don't have the expertise--or they don't want to--to understand stipulations...i previously generated an addendum reiterating what i already said in the report...the property is in long beach and it's surprising how much permit/building data is available on-line...i had a feeling from some prior comments from underwriting to the broker that he asked me to clarify for him that the lender just doesn't want the deal..the final stip also says "value opinion by regional chief appraiser" and it appears that the countrywide underwriter dept either doesn't need to communicate in "full" sentences, or don't know how...either alternative is relatively freightening...and i hope that the regional chief appraiser has better luck than i did with this complex property attached to a liquor store...that included an "analysis by proxy" in addition to the dissimilar, detached comps included in the grid...and that reminds me of the tv cell phone commercial where the guy has his network behind him...kinda like the Forum...

 

[George Hatch]

The underwriter stip says "still need alta supp clarifying subject is SFR."

They're (probably) referring to a title report supplement. "ALTA" refers to American Land Title Association. It looks like they want the title company to acknowledge this situation and cover it in their title policy.

It's got nothing to do with you and there's nothing you can do to remedy this stip.

BTW, good on 'ya for calling that prior use out. Even if it doesn't affect your value conclusion, providing notice of these types of situations in your report provides a defense for any specious claim they might try to make later saying "we never would have made this loan under these terms had we realized this was not an SFR".

Some things you should do for clients and intended users, other things you should do for yourself. IMO.

 

[ghrousseau]

The subject is a commercial store that is now a SFR. I provided the City Occupancy permit changing it from a store to a SFR, cross referenced it to the City website, and also confirmed that residential is legal conforming use.

The underwriter stip says "still need alta supp clarifying subject is SFR."

Several voice message to U/W have not been responded to. Does anybody know what "alta supp" means?

George is correct. ALTA is referring to the lenders title policy. The property description showing on the title prelim is probably still commercial. This is her and the title officer's responsibility. Just politely explain that you really can not request this type of change as you do not work for the lender.

 

[Kevin A. Spellman]

Can the property be converted back into a store? That could be an underwriters concern. In the past with a similar scenario I have made statements if a converted use can be returned by right, but I would not discuss special permits.

 

[ZZGAMAZZ]

HBU as SFR rather than commericial store was challenging.

The uncertainty of the variance process was the basis of my decision to describe the current status as improved as HBU.

I assumed--although I did not state that assumption--that the possibility of a change in status would be no different than the potential change that might be made to any parcel, and that potentiality is not routinely addressed in the SOW of an "as is" SFR assignment.

For once I am taking advantage of the limitation of the SOW in a manner that tends to support the possibility that collateralization will see fruition, and that my MB client will close the deal with the appraisal providing tangible support.

This might demonstrate a lack of objectivity on my part, although I am willing to support my rationale for failing to address the possible future variance. In fact if the new owers are smart they'll petition for the change back to storefront when the economy rebounds and heightened demand. The REO property has been vacant for quite a while; I appraised it approximately 25% above the selling price; and like the old saying goes "one person's loss is another person's gain."