VC Sheets and Homebuyer Summary - UNDER CONSTRUCTION

[BlueDog007]

I have an underwriter for a large tract builder all over my back about completing VC Sheets and Homebuyer Summary for homes UNDER CONSTRUCTION. In my report, I check the box "Subject To Completion", and note that "VC Sheets are not required for homes under construction." I get called back on EVERY file. I just got off the phone with FHA, and they showed me where to find this information on their web site. However, the UW does not care. I definitely want to maintain my relationship with this developer. FHA says to do whatever I want to do to maintain my relationship. How can I suffice the UW. If I check off "Subject To Completion", can I also check off everything on the VC sheets as being satisfactory and on the 4th page, make a comment "Subject to the completion and satisfactory final inspection of the property upon completion" in order to get around this UW? Any comments and/or help is much appreciated. Thanks!!!

 

[larryhaskell]

You may know most of this info but I'm going to post it anyway. You appraise the property with the plans and specs provided by the builder. No VC sheet is required. I don't believe that a Homebuyer's Summary is required either. Check with HUD. Submit the appraisal and you are done. Unless you are a HUD approved Complience Inspector, you cannot complete the final inspection.

 

[BlueDog007]

Larry-

I realize that I am not "supposed" to complete the VC Sheets and the Homebuyer Summary. HUD also explained this to me as well as showed it to me on their web site and the 4150 manual. However, this underwriter simply DOES NOT CARE - AND.......will not call HUD, look at the web site, or a fax of the information. The UW simply wants the VC Sheets and HB Summary Reports. I have explained this over and over. I do not want to lose my relationship w/the mortgage company over this. The mtg. co. says (isn't this typical), well.............our other appraisers turn them in. So, I am trying to figure out how they are doing this. Thanks for any help!

 

[larryhaskell]

Okay, now it's clear. You are working with a knothead. While HUD doesn't require the VC Sheet or Homebuyer's Summary they really don't care if you submit one. If this client is important to you, I would provide the forms as requested. At the same time I would get every HUD document I could find on the subject about them not being required and hope the lender will be reasonable. If not, your price for working with this company is waisting your time filling out the forms. You probably have no choice but to list everything not completed which could take some time. One thing is for certain. Even if they ask, you cannot do the final inspection.

 

[BlueDog007]

Larry-

Exactly. I do not want to lose the client. They are great to work with. However, the UW is out of town and is a knucklehead. I explained that it would be extremely time consuming noting everything that is not complete. Ex: No hot water, Electrical outlets not functioning, etc... It just does not seem very efficient at all. I wonder if the UW is really just looking for the Homebuyer Summary Report, but I do not think so. Another alternative that I have thought about is, checking all satisfactory items on the VC Sheets and noting on page 4 that these VC sheets are based on a satisfactory completion of the dwelling and a final inspection is required by a professional FHA Compliance Inspector. That way, I would not have to go through each item in the VC sheets for each property. This company sends me high volume and they pay full fee. I want to do whatever it takes to satisfy them. Thanks for any further help!!!

 

[Pamela Crowley (Florida)]

ric,

Your last post sounds like the best way to handle this. Eventually, the UW will figure it out. (S)he probably has the ego getting in the way of accepting what you've already proven, just can't admit out right the (s)he was wrong. Time to stop fighting it and let him/her find a way to remedy the situation without rubbing her face in it. Just do the VC the way you've explained and don't say another word about it. After a few like this, try another one without it and maybe nothing will be said anymore and you won't get this silly requirement anymore either.

Good luck!

 

[John M. Parker]

ric:

I have a ruling on this issue from the head of the Western Region of HUD. If you want me to fax it to you let me know. I had the same problem a year or so ago with an underwriter and sent it to her and haven't had a problem since.

 

[BenLuby]

Another option is to go to the HUD web site, and the 4150, and cut and paste the directions about the VC sheets directly from the manual onto your comments.
That way, she doesn't have to bother getting off her lazy butt and do any real work. You have provided her with the actual answer as per HUD.

 

[David S. Roberson]

Talk to the knucklehead's supervisor. Simple enough.

 

[rtubbs]

ricbiggers, can you test the heating/cooling system if it isn't installed? can you certify that the plumbing works if it's not installed or if water isn't turned on? I've also gone round and round with lenders and uw's on this and I refuse to provide vc sheets and homebuyer summary if the improvements are not 100% complete (that means power is on and c.o. issued).

face it, you'll probably lose the client later on for something else. somewhere along the line you have to take a stand and maintain your credibility. this one is black and white.