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WFB Unacceptable Assignment Conditions

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hastalavista

Thread Starter
Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
I was forwarded this anonymously. It is an email from a WFB loan rep explaining to brokers what is "required" for one of Well's lending programs.

The obvious issue is the first bullet point and the message to "send these requirements to your appraiser".

Had the first bullet point not been included, this probably wouldn't have been a big deal.
Unfortunately, the implicaiton is "give this to your appraiser so they can follow it accordingly!"
These may be UW guidelines, which is fine. Let the package be rejected by the UW if the market is declining. But don't tell loan brokers to "Send these requirements to your appraiser" with the first point being only stable or increasing market indications will be accepted. :new_smile-l:

Rate sheets will follow shortly. There has been a rate change.
Wells Fargo Home Mortgage will be open Monday for business and taking locks. If you're off - enjoy your long weekend!!

If you're submitting for max financing, the appraisal is your key!

Send these requirements to your appraiser.

Enhanced Appraisal Requirements
Minimum Appraisal Standards for Max Financing
At Risk Market Policy: WFHM Broker Guide Section 320 (B)



    • Appraisal must have "stable" or"increasing value" for market Two (2) closed sales within the last three (3) months and one (1) closed sale in the last six (6) months
    • At least one (1) comparable pending sale validating the market is at least stable.
    • All comparables must include days on market, and
    • The average days on market for the comparative sales must not exceed the Marketing Time box marked by the appraiser, and
    • The appraisal must conform to policy in all other aspects of the market approach or valuation determination:
        • Adjustments must fall within policy guidelines for Net and Gross Adjustments, and
        • Comparables must fall within policy guidelines for similarity in style and design, and
        • Comparables should be within the below proximities using the Sales Comparison Approach:
            • If located in an “Urban” or “Suburban” area, all comparables are within 12 blocks/one mile of the subject.
            • If located in a “Rural” area, all comparables are within 10 miles of the subject.
            • If proximities are not met, the appraiser must provide supporting comments justifying greater distance.
Additional restrictions may apply for "at risk" counties.



Thank you for your business!



BTW-Moderators take note: This is not a privileged email; from the bottom of WFB email-
In accordance with the Federal CAN SPAM Act of 2003, Wells Fargo Home Mortgage is required to disclose that this email may contain an advertisement or solicitation.
For your protection, we remind you that this is an unsecured email service, which is not intended for sending confidential or sensitive information. Please do not include your social security number, account number, or any other personal or financial information in the content of the email. To discontinue receiving all emails containing solicitation materials from Wells Fargo Bank N.A., including Wells Fargo Home Mortgage, please send an email to [email protected] with your name, company name and address.
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2005 Wells Fargo Bank. All rights reserved. Equal Housing Lender.
Wells Fargo Home Mortgage - 2701 Wells Fargo Way - Minneapolis, MN 55467-8000

Pam, I'll be sending you the details tomorrow! :new_smile-l:
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
An appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use.

Comment: If relevant information is not available because of assignment conditions that limit research opportunities (such as conditions that place limitations on inspection or information gathering),

an appraiser must withdraw from the assignment unless the appraiser can:
  • modify the assignment conditions to expand the scope of work to include gathering the information; or
  • use an extraordinary assumption about such information, if credible assignment results can still be developed.
An appraiser must not allow the intended use of an assignment or a client’s objectives to cause the assignment results to be biased.

-------

clearly modification is impossible

if on fannie form extraordinary assumptions are not permissible.

Client Directed Scope of Work that flies in the face of reality demonstrating sheer Advocacy MUST be declined.
 
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stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
In total agreement with Mike on this one. Could someone in CA send this into OREA (I think) so they know what's going on? Wouldn't it be nice if a regulator for a state Wells Fargo works in would direct the appraisers regarding the appropriateness of this type of directive?

I know, that makes too much sense!!!!
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Excerpt from attached PDF Senate Hearing

"In closing, let me reiterate that Wells Fargo is firmly committed to continuing to lead the industry in advocating and conducting fair and responsible lending and servicing. It is critical that mortgage lenders and servicers live by principles that eliminate troublesome practices and help consumers through challenging times. We look forward to continually working with all the participants in the housing finance industry to find more solutions that benefit consumers – expanding homeownership and preserving it."

:shrug:
 
Last edited:

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I predicted that the dropping of the supplemental standrds Rule and the emphasis on SOW was going to create some major problems.

This needs to go straight to ALL APPRAISAL BOARDS so that they may warn there licensed appraisers about this unethical conduct!!!!

Put the appraisal boards on the hot seat. Make them turn a blind eye to this!

Lets send this to ALL Banking commissions in the individual States.

Anybody know someone on Wall street? If Fannie MAe and Freddie Mac made a joint call to these Jackass_s something would happen.


This is sickening.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
I just sent this off to the folks at the ND Appraisal Board. If I hear anything from their meeting in March I'll let everyone know. I'm doubtful anything will happen!
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
The e-mail(s) should be submitted to the various state and federal banking regulators. Appraisal boards only regulate appraisers.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
And the unacceptable assignment conditions is...?
 
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