ABC Lender Guideline Update - Appraisal Guidelines
ABC Lender is amending the appraisal requirements for all of its loan programs. The changes include:
The Maximum Distance for Comparables is 0.5 (Urban), 1.0 (Suburban), and 5.0 miles (Rural). Comparables that exceed the distances above will not be accepted.
The Maximum Comparable Age is 3 months from the date of the property inspection as listed on the appraisal. One comparable may have a sale date not to exceed 6 months if the remaining two are within 3 months.
The Underwriter is responsible for including both of these changes in their review of the appraisal. If the comparables provided do not meet these requirements, additional comparables must be conditioned for. If the appraiser is unable to provide them, a Desk Review must be ordered.
An Appraisal Desk Review is also now required for all Second Mortgages, unless one was ordered on the First Mortgage.
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So... how many Appraisers are going to a) call Urban properties Suburban because they comparables are more than .5 miles from the subject? b) enter more than three comparables as it appears only two need to be within three months (I usually enter more than three in the first place)
When we start running into the off-season and where the housing market naturally cools due to the weather and the holidays, is this really a fair request? Isn't this what the sales date adjustment grid line is for? What do you think?
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I got a new email today from a different company.... This is getting ridiculous! I entered the requirements I find most offensive... especially the one regarding COD... Ummm, I believe that's not legal. Oh, I sent an email to clarify about not getting paid as well as the supervisory signature requirements.
Cost Approach
As stated in every order, the cost approach is required to be filled out in all reports. Please look in the
special instructions for the following verbiage concerning drive-by appraisals for specific clients:
IF THIS IS A DRIVE-BY ORDER, THE COST APPROACH IS REQUIRED
TO BE FILLED OUT. PLEASE COMMENT IN REPORT, "Appraiser is completing the cost approach section solely upon the request of the client. The cost approach figure was based upon inspection of public records and, as such, the comparison approach would be considered the more reliable value."
Signatures
All reports are required to be signed off by supervisory appraisers stating that you did inspect the interior of the subject and the exterior of the comparables. Included in the special instructions:
REQUIRED: It is mandatory for the licensed/certified appraisers to complete an interior/exterior
inspection of the subject and an exterior inspection of the comps and sign the report accordingly.
COD
As always, it is the appraisers responsibility to collect the COD payments from the borrower / homeowner at the time of inspection. If you do not collect the payment you will not be paid. XXX Company guarantees payment on all orders placed as 'Bill', not COD's. If you experience resistance with collecting COD's please stop what you are doing and call XXX Company immediately so we can relay this information to our client. With every COD order you receive you will also receive an attachment. This attachment will be our credit card form which is specific to your order. If you do not receive this form please call us or reply to the email to let us know so we can get that form to you as quickly as possible. When you schedule the inspection with the home owner please mention that you will be bringing a credit card form with you for them to fill out and the appraisal must be paid for at the time of the inspection.
IMPORTANT: XXX COMPANY DOES NOT ACCEPT PERSONAL CHECKS. IF YOU ACCEPT A PERSONAL CHECK ON BEHALF OF XXX COMPANY YOU WILL NOT BE PAID OUT UNTIL THE CHECK HAS CLEARED. THERE ARE NO EXCEPTIONS TO THIS POLICY.
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