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Real Estate Applicants For A Loan Or Forbearance May Want To Get Their Consumer Reports

Sometimes people e-mail me the most interesting questions. If it is interesting enough I will answer my e-mail in public. I am a paralegal not an attorney so I do not give legal advice but I can share common knowledge.

Today, I shall share two points of order and will make no opinions regarding the quotes. BTW, these little snippets of New York state information can be found on government websites (if you care to look for it) and I am simply going to provide two quotes from here.

I love quoting the government. It makes my life easy. If you repeat the government it's pretty hard to mess the info up. What you each decide to do with it is completely up to you. :-)

Wordy C Disclaimer: Any comments and contributions provided on ActiveRain.com, ClubChaosAgents.com (or other electronic or print media) does not establish an agency relationship with any third party. Blog posts are intended to be informational only. Please be advised that real estate practices vary in regions and from state to state and market to market. The information contained herein does not constitute legal advice. All parties in need of legal, accounting, tax, or real estate guidance are directed to consult with the licensed professional of their choice. Please seek specific guidance from a retained professional in the specific field(s) required to service your interests. :-)

Now that we have all of that out of the way, lets get to the government quotes. Ready? Read:

" § 254-c. Right to a copy of real property appraisals and consumer reports in certain cases. 1. Any lender who requires an applicant for a loan or forbearance, which is to be secured primarily by an interest in real property, to bear the cost of either an appraisal of said property or the cost of obtaining a consumer report subject to the provisions of article twenty-five of the general business law as a condition to the processing of the application or the granting of the loan or forbearance, shall, upon the written request of such applicant, provide to him a copy of said appraisal or consumer report as the case may be, at no additional cost."

" 2. "Lender" as used in this section shall mean and include any bank, trust company, national bank, savings bank, federal mutual savings bank, savings and loan association, federal savings and loan association, private banker, credit union, federal credit union, investment company, insurance company, pension fund, mortgage banker or any other entity."

Yay! ;-)

Posted by C Tann-Starr on 03/29/2009 06:16 PM

Comments (4)

loan, forbearance, consumer reports, wordy c, club chaos, tannstarr

Originally posted at: C Tann-Starr's Outside Blog: Real Estate Applicants For A Loan Or Forbearance May Want To Get Their Consumer Reports

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4 Comments on Real Estate Applicants For A Loan Or Forbearance May Want To Get Their Consumer Reports

MAR

VERY interesting !

There seems to be a LOT of changes coming down the pipe for appraisals, but this one seems to benefit the consumer, and possibly the Realtor, by providing more concrete evidence as to how they are appraising the property.

Good info C !

... I'm gonna call you this week to catch up and go over a bunch of things, including how you're holding up. Hope you and the family are stayiong afloat after a tough few weeks...

Cheers

Sheldon

Thank you, Sheldon. I'm glad I got the question because it really made me think about what people have been doing lately. I know of one reader who paid for an appraisal twice because she switched lenders. I found myself wondering why she would have to... they were done within weeks of each other. Oh well... people are free to purchase as many professional reports they want. :-)

C...

I always wondered why buyers are not given copies of appraisals that THEY PAID FOR! That never made any sense to me.

Richard, it appears that no one bothered to tell them they could have a copy, so they sometimes don't ask for it.

I like having appraisal and inspection reports in my client files, so I habitually instruct my clients to ask for them. I also habitually instruct my clients to obtain the bank's copy of their credit report pulled. I explain if they forward it to me I wont have to pull it a second time. Multiple pulls lower your score. Why lower your score if you do not have to?

I tend to ask that they fax or e-mail their lender the request because I happen to know some lenders can either e-mail it back or make it available as a PDF download off of their secured site. I've never had a problem getting it because I know where these two little paragraphs are located. :-)

When people tell me they pay $50 to $150 to have their credit reports pulled by brokerage houses I always look at them in amazement and ask, "Why? Aren't you taking a loan out for a mortgage? Why pay multiple times for the same thing? Ask the bank to give you a copy and have them forward it to this e-fax number..." I have yet to charge a single client for their credit report. :-)

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