Appraisers Can't Charge Broker Transfer Fee per HUD

This was a great email I just received from a broker.  I don’t know about you, but I’m tired of appraisers wanting to charge the borrower an additional fee to transfer the appraisal to a new lender or broker.  The regulators should require an appraisal to be just that, an appraisal with a non-biased determination of value irrespective of who the lender is.  All appraisals should be able to be used for the purpose of valuation regardless of who the lender is.  This is just a scam by the appraisers to charge the borrower more money or have an excuse as to why they valued the property the way they did.

 

Please see email below from Mardi Fahringer…………………..

 

I'm sure many of you are running into problems with FHA loans that require an FHA appraisal to be transferred from one broker to another.  Some of the appraisers are charging additional fees for a retype This is against HUD regulations, and the appraiser can be sanctioned for this.  I have been spending the better part of the last couple days with the lender and appraiser trying to get an appraisal transferred.  I contacted HUD directly, and below is the response I received from HUD with regards to the FHA appraisal.  If you or your borrower has been charged additional fees for the retyping of the appraisal you may turn them into the HUD office in Santa Ana and they will be sanctioned. You will need to go into the FHA connection and change the case assignment to reflect your borrowers name, and your broker and sponsor IDs. Go to up-date existing case to accomplish this.   I hope this information is useful to you in future transactions.

 

HUD/FHA does not allow at anytime an appraiser to retype an appraisal report showing the new lenders name, the new borrowers name or the new contract information. HUD/FHA will accept the appraisal in its present form. The underwriter should use the HUD form 54114 Analysis of Appraisal Report to explain that the case number was reassigned and the lender, borrowers name and contract information contained within the appraisal report is incorrect due to the case transfer.

If the lender has any questions, they can contact me at 1-800-225-5342, ask for the Santa Ana Homeownership Center and my extension is 3401.

Tom Wilke

Technical Support Branch I

U.S. Department of Housing and Urban Development

Santa Ana Homeownership Center

34 Civic Center Plaza. Rm 7015

Santa Ana, Ca. 92701

Responses do not set HUD policy

Refer to HUD manuals and mortgage letters at;

http://www.hud.gov/offices/hsg/keywords.cfm

 

 

Regards,

Brent

 

Brent Houston Bridgelock Capital 22837 Ventura Blvd., Ste. 300 Woodland Hills, CA  91364 Tel: 818.206.0657 xt-1008 Fax: 818.836.6710 Email: brent@bridgelockcapital.com Website: www.bridgelockcapital.com

FOR LOAN SUBMISSIONS:  LoanSubmit@bridgelockcapital.com Visit Our Blog:  http://hardmoneywholesalelender.blogspot.com Stay up to date with us on Twitter:  http://twitter.com/Bridgelock   About BRIDGELOCK CAPITAL Bridgelock Capital is the NextGEN Subprime lender providing alternative lending products and creative financing secured by residential and commercial real estate.  Bridgelock Capital provides loans through the Department of Corporations lic. #603 E273 and pursuant to wholesale lender exemptions in the states of AK, AZ, CO, HI, ID, NV, OR and UT.  Visit our website today to learn more about our lending programs, underwriting guidelines and rate sheets at www.bridgelockcapital.com.   This email is for distribution to mortgage brokers and for the intended recipient only.  It is not meant for the general public.    © 2007 Bridgelock Capital. All rights reserved. Bridgelock Capital and the 877.NOFICO.8 Logos, are trademarks of Bridgelock Capital.

 

 

 

Borrower's Credibility Becoming More Important

This was a good email sent to me from Ann Bellamy:

 

In this financial climate, credibility becomes more important than ever. 

 

Lenders who in the past would lend strictly on the equity in a property, are now looking at the character of the borrower more and more.  Being clear about what you plan to do, and delivering on what you say are important.  Not just for your next deal, but for all your future deals.

Here are some tips:

Provide full disclosure about the property and your situation.  In performing due diligence, if a lender finds you have been less than forthright with some particular aspect of the deal, it calls into question everything else you have presented. 

Be prepared to take pictures of everything.  Even the worst parts.  If you leave out a photo of a boiler that is ancient, rusted and asbestos wrapped, and the lender sees it on a site visit, he'll wonder what else you didn't disclose.  We understand rehabs.  That's why you got it at a huge discount.  So show it and what your rehab plan is for fixing it.

 

There is a fine line between "fake it til you make it" and just faking it.  I've had many conversations with a borrower that go something like this: 

Borrower: "We buy at 40 cents on the dollar, all cash, close quickly and sell at 80% of value to our buyer's list of first time homeowners." 

Me:  "Great, how many of these transactions have you completed this year?"

Borrower: <Silence>........................"Well, we haven't actually completed any, yet, but we've read alot and taken Trump University courses."

So save the sales pitch for the motivated seller.  The lender knew you were still new at this before the end of the first sentence.  Emphasize your strengths, such as a partner who is a licensed contractor, or the fact that you are a real estate broker, or whatever.  But don't lie about it, it will come out anyway. 

 

If you run into a snag that is going to impact your ability to deliver the project on time, be straight about it, and be able to explain your solution to the problem. 

 

Trust is earned over time.  And is part of relationship lending.  Starting with a few of the basics above will get you on your way to a productive and profitable relationship.

 

 

 

New Securitization Rules To Be Announced

The Treasury Department is getting set to reveal new rules of the road for the securitization markets, which have been dormant for much of the past year. Primarily, according to leaked documents that have made their way into the public, the Treasury Department seeks to have originators keep some skin in the game--that is, have them retain some of the risks to the loans. Specifically, they will have to keep 5% of the credit risk that is sold off to investors.

Other requirements include more disclosure for issuers as well as restrictions against originators hedging against their credit risk.

The news is expected to be released Wednesday by Treasury. Not surprisingly Treasury is declining to confirm details of the plan--indeed, if this latest endeavor will be par for the course, many details will be missing from the first announcement.

Unlike its previous economic and credit market initiatives though--namely TALF, PPIP--there is broad consensus behind the broad brush strokes of the plan, at least as they have been revealed thus far. It has been a given that any sort of new CMBS market would require more from originators.
This plan, though, will be just one piece in a complex machinery that Treasury has been constructing with an eye to revitalizing our credit markets. One piece--requests for loans to buy new CMBS in TALF--is still a work in progress, with advances coming in fits and starts. On Tuesday, the Federal Reserve announced it didn't receive any requests to buy new CMBS. At the end of July, the Fed will start accepting requests for loans to purchase vintage CMBS. The Fed, of course, is aware of the anemic uptake of TALF loans so far. In a speech earlier this month New York Fed President William Dudley predicted there wouldn't be much activity because the CMBS market "takes quite a while to ramp up."
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Brent Houston
Bridgelock Capital | BLC Servicing
(T) 877.663.4268  (F) 818.206.3510
www.bridgelockcapital.com | www.blcservicing.com

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