Another Policy Change For Fannie Mae Freddie Mac
When the government enacted some new rules about who is entitled to hire an appraiser to complete a market analysis on a property, there were many ramifications that were not initially considered. Now Fannie Mae and Freddie Mac have some mandatory guidelines, which again will have some positive and negative impact on the real estate housing market.
Lenders must now provide appraisers a copy of the sales contract and all associated addendums. If a change is made to the purchase contract, the appraiser must be notified and updated paperwork made available.
Multiple appraisals can no longer be provided on a single parcel. In other words, the appraisal company cannot appraisal part of a parcel. They have to appraise the "entire" parcel.
Sellers beware! If you thought the foreclosed property next door in your neighborhood was not included in the market value of your home, think again. REO's, short sales and foreclosed homes now have to be considered by the appraiser in determining the market value of your home. The appraisal companies in the past were ignoring the REO's, short sales and foreclosures.
Third party appraisal companies who are at "arms-length" from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?
Any major repairs have to be considered in the appraisal. Now what a brilliant idea! The appraisal cannot be completed until these repairs are finished. Anyone ever heard of the FHA 203K loan?
If management in the appraisal company has an "employee" complete an appraisal, before management or a review appraiser can sign off on the appraisal, they must complete their own inspection on the property. Management cannot depend solely on the "employees" expertise.
The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.
Lenders must now provide appraisers a copy of the sales contract and all associated addendums. If a change is made to the purchase contract, the appraiser must be notified and updated paperwork made available.
Multiple appraisals can no longer be provided on a single parcel. In other words, the appraisal company cannot appraisal part of a parcel. They have to appraise the "entire" parcel.
Sellers beware! If you thought the foreclosed property next door in your neighborhood was not included in the market value of your home, think again. REO's, short sales and foreclosed homes now have to be considered by the appraiser in determining the market value of your home. The appraisal companies in the past were ignoring the REO's, short sales and foreclosures.
Third party appraisal companies who are at "arms-length" from a transaction must verify and approve any appraisal completed by someone that might have a financial interest in the subject property. It seems apparent this should have always been a guideline?
Any major repairs have to be considered in the appraisal. Now what a brilliant idea! The appraisal cannot be completed until these repairs are finished. Anyone ever heard of the FHA 203K loan?
If management in the appraisal company has an "employee" complete an appraisal, before management or a review appraiser can sign off on the appraisal, they must complete their own inspection on the property. Management cannot depend solely on the "employees" expertise.
The revised Home Valuation Code of Conduct applies many changes within the industry and was meant to stop improper influencing of values as well as protect the consumer. These changes although somewhat positive will most likely add additional delays to the transaction.
About the Author:
See more information about prescott az homes for sale by clicking the link: prescott az homes for sale today.
You like it? Share it!
posted by SolveItQuick at
10:55 AM
0 Comments:
Post a Comment
<< Home