Get Ready To Tackle That Summer Beach List
Friday, 27 August 2010 11:08
For many of us parents, the delight in hearing the school bells ring has arrived, unfortunately with the passing of summer.
So what did you do on your summer vacation?
For me and about two hundred other participants, there was a need to attend a HUD Appraisal Underwriting webinar! (No doubt, with that comment you now realize that August is a slow month for some of us!)
Many thanks to the gang at the HUD Denver HOC for an excellent presentation – is there a HUD form to file a complaint about that manufactured housing poll most of us missed?!
Not wanting to completely jolt you back into the desk chair, as a few more weeks of summer are remaining, perhaps a few general questions from the review material of the appraisal webinar I attended will start the blood flowing and motivate you to attack your summer beach list you created last month.
Q. What is the expiration date of an appraisal completed on August 17, 2010?
Q. What are the requisite “data” elements you must have in order to proceed with a reverse mortgage loan application?
Q. Where is the data plate located on a manufactured home?
Q. When does the name of the Lender have to be changed on the appraisal report?
Q. What is the new guideline for the maximum annuity amount you can sell to your borrower?
Q If the comparable were better than the subject, would the appraiser line item amount be added or subtracted?
Q. Can a manufactured home foundation inspection report be used more than once?
Q. Which item does FHA not automatically require an inspection for - wells, septic, termites, or flat and unobservable roofs?
Q With regard to the previous question, as an underwriter, which of the available responses would be your primary concern?
Q. What do the acronyms HRAP and DELRAP stand for?
It is important to carefully determine the condition of the subject property in a HECM transaction. In many situations, an appraisal and third party review of the subject property may not have occurred since their last “forward” mortgage transaction. Borrower age, financial stability and physical ability may have contributed to an increase in deferred maintenance potentially creating unsafe and unsound living conditions.
A face-to-face interview with the Borrower, when possible, is an excellent way to avoid surprise appraisal issues and value concerns arising from poor property conditions. Alternatively, asking the right questions at the time of interview will also provide better overall assistance to the Borrower and help to avoid those surprise conversations down the road.
Key to an initial subject property conversation is the condition of the heating, cooling, electrical and plumbing mechanicals. Questions regarding the age of the roof, understanding structural issues (if any) and the Borrower’s ability to conduct routine maintenance are also essential.
As the summer comes to a close, the arrival of fall for many also represents a time of focused preparedness for the upcoming winter with respect to “getting the house in shape.” Product education with local licensed contractors is an excellent origination strategy when considering the nature of HECM repair features and benefits.
Seriously, if you have not participated in a “refresher” course of late, you would be surprised how worthwhile it is to take a moment and get back to basics – I highly recommend it.
We have some tremendous industry agenda items on our plate, anticipated HUD changes, and some good news: increasing volume and interest in the HECM product. This sounds like a recipe for a busy fall.
The implementation of a new counseling protocol in combination with continuing consumer advocacy and state legislative efforts has certainly placed a great deal of focus on how we transact and deliver reverse mortgage loans to senior consumers. The key to maintaining a high level of professionalism and consumer safeguards is to remain fully educated and informed with the many facets of this product.
Welcome back from vacation!
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