What Determines If Its A Pud?

[jeff samolinski]

Did google search for fannie mae sections you cited. found only definition of pud. are your bold response sections quotes from fannie mae or your opinions? non bold sections you cite do not convince me. The comments written in bold type appear to be your interpretation not quotes from guidelines. don't mean to be confrontational but this issue has been a pain in the b-tt for me for a long time. would like to settle it for certain even if i am wrong but need to know how to find appraisal guidelines you quoted to see for myself.

 

[Jo Ann Meyer Stratton]

You can access Fannie Mae guidelines at:

http://www.allregs.com/efnma/index.asp

The 1992 book is a hard copy that I purchased back in 1992. The Fannie Mae guidelines over the years have just rearranged sentences, but have basically said the same thing at least since 1990--I don't have copies of guidelines prior to 1990, but do have copies of everyone since.

The bold is part of Fannie Mae guidelines (although Fannie Mae doesn't print them in bold). Everything except the last two paragraphs at the bottom of the posting are exact quotes from Fannie Mae guidelines and HUD's 4150.2. The last two paragraphs are my attempt to provide more explanation.

 

[J in Florida]

Jeff,

The checking of the box PUD at the top of the form and filling in the PUD info ARE COMPLETELY UNRELATED TO ZONING CLASSIFICATION AND HAVE NOTHING TO DO WITH LOCAL GOVERNMENTAL DESIGNATIONS. I guess my stance has something to do with my 9 years employed by mortgage companies, my wife's 20 years employed in the mortgage business, and then there's FNMA's definition of PUD.

For lenders purposes, if there are mandatory HOA dues, we check the box and fill out that other part. Plain and simple. PUD and zoning have NOTHING to do with PUD and the URAR boxes, any more than the word Run means competing in a foot race and damage to panty hose. One has absolutely nothing to do with the other.

Sorry for the rant, but one of my clueless lenders demanded that I NOT check that box, NOT fill in the PUD info, as they CLAIMED their investor (CHASE) would not buy the loan with those boxes checked. I guess my years employed by Chase and my wife's years employed by Chase give us NO insight as to what Chase's policy regarding PUD's are.

An interesting note, when I continued to refuse to not "just do it", and say that the project was not a PUD, townhomes with pool, entry gate. common lot on lake, madatory HOA fees, That they faxed a copy of their regular guy (local number hitter) had the box whited our EEERRRRRR not checked and the PUD info whited out EEERRRRRR blank.

Guess how many assignments I get from that LO out of that project????

 

[jeff samolinski]

OK I looked up sections that Joan was referring to and found language saying not a zoning issue for the top part of form. Have to admit that I was wrong, probably won't be the last time but I have learned. That is what the forum is all about for the most part. My thamks to Joan for not giving up on me and for kindly and professionally guiding me to the correct conclusion. a real class act Joan. I think we will still have problems explaining it to some users of our reports but at least I will have the correct FNMA citation to send to them.

 

[Ken in Arkansas]

I've got a little twist on this topic. Friday I received plans and specs from a lender who has been asked to finance four four-plexes on one site. Here is the twist: The site is owned by four individuals who each own an undivided one-quarter interest. The property is zoned R-PUD (permits development of a PUD), and is to be subdivided into four lots. They will each deed one lot to each individual partner, and that partner in turn will ask for a construction loan to build a four-plex that will be used for rental purposes. At this point at least, no individual dwelling unit can be sold independently of the other three units in it's building (i.e. an owner can sell four apartments by selling his lot, but cannot sell one or two dwelling units).

I have yet to receive any common area maintenance agreements, so I don't know how the expenses and management will be handled. Supposedly the permanent loans will be sold to FNMA in secondary. Any thoughts on red flags I need to watch out for would be welcomed!

 

[Mike Garrett RAA]

Jeff....welcome to the real world of appraising! We all learn every day. The rules and guidelines seem to change every day too!. The Forum is a great place to find out about these things. I argued for years that PUD does not apply to single family neighborhoods but since most have HOAs that is the way they want it. There should have been a box to check on the form for "Deminimus PUD" which could have solved the problem. It is sort of "misleading" because most underwriters think of PUD as a town home or condo type project.

The Fannie Mae booklet, Property and Appraisal Analysis CT081L04/94 Copyright 1994 Fannie Mae was put out by the Customer Education Group. It is an excellent reference manual for both the appraiser and the underwriter. Unfortunately, it has been out of print for several years.