Last evening in my email box,I received this message from a local lender named Dave Ehrlich of Churchhill Mortgage. I've known Dave for years, he's a good guy. He pays attention to the details and follow the rules and I really appreciate that he sent the following email. This flow of information between loan officers helps us stay on top of changes in this challenging market for you. I thought you might like to read this. Especially if you are trying to refinance or possibly anticipate selling your home. This information that will help you understand appraisers have some very tough guidelines to adhere to in order to formulate a solid market value for your home. Here is the email:
I wanted to reach out to you to keep you informed of some revised federal guidelines that outline 10 things that appraisers must do or provide for all FHA appraisals done after April 1, 2009:
- 1. The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71).
- 2. At least 2 comparable sales within 90 days of appraisal date.
- 3. A minimum of 2 active listings or pending sales in addition to the 3 closed comparables.
- 4. Bracketed listings using both dwelling size and sales price when possible.
- 5. Adjust active listings to reflect the List To Sales Price Ratio.
- 6. Adjust pending sales to reflect contract sales price when possible.
- 7. Include original list price and any revised list prices.
- 8. Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales.
- 9. Absorption Rate Analysis.
- 10. Known or reported sales concessions on active and pending sales.
FHA also is restating its warning that..."Direct Endorsement Lenders are reminded that if the appraiser they selected provides a poor or fraudulent appraisal that leads FHA to insure a mortgage at an inflated amount, the lender is held responsible equally with the appraiser for the integrity, accuracy and thoroughness of an appraisal submitted to FHA."
If the above appraisal guidelines look foreign to you, that's okay, because this update is intended for Appraisers and Underwriters. I sent this to ensure that you remain the FHA resource in your market.
Please let me know if you have any questions! I have been referred many a client who has been left sitting at the table because their lender did not know the rules! Don't let it happen to one of your clients!
Thanks!
Dave
Changing Lives, One Loan at a time...
David H. Ehrlich-Certified Mortgage Planner
Churchill Mortgage Office (866)853-6335 x112 Fax (703)563-9388
James or Erick Blackwelder of Erick and Company/Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's
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