Abigail Eason

Just recently conditioned by an underwriter....This was a 1st, pasted below you'll see the actual UW comment:

URAR has some corrections required - what is other 27% land use?

Here's copy of my response:

It is to be implied and understood that individuals such as loan originators, brokers, appraisers and underwriters employed within the Mortgage lending industry are familiar with the design and format of the 1004 form as well as the define use of each section. The section title "Present Land Use " with sub-section name "Other" refers to and is understood to reflect non residential land use and non commercial land use such as parks, churches, schools and government use (ie. public space).

Conditions such as these reflect a lack of professionalism....

The previous version of the 1oo4 form actually had a small area where the appraiser could type in a detail response.

LPSP% formula: Sale Price divided by Listed Price equals % ratio. Realtors used this as a marketing tool for convincing Sellers/Buyers that listed/sales price falls within the market trend, it appears that Realtors my possibly used this or a similar application when performing BPO's and as a tool in determining the stated value of a BPO. I also review BPO's Nationwide for quality control purpose and have notice that this is a common practice performed by Agent/Brokers not all but most. This is not a valid application for Appraisers' to use this is why we use applications such as: Mean, Mode, Median as well as Absorption rates which results are base upon a large pool of data not 1 comparable nor an assumption. Please keep in mind Appraisers', unlike Realtors have a responsibility to certify that they have performed an objective and complete analysis of quantifiable data supporting their conclusion accompanied by found, supported data this is why the LPSP% can not produce an accurate ratio when being applied to just 2 or 3 active listings/contract sales because the end result has yet to be proven. Otherwise, I would highly suggest for those Appraisers' that feel that they are unable to stand their ground please refer note with a comment(s) in the report to comply with Standard Rule 1-1 for Credibility and the Competency Rule of USPAP. i.e. "LPSP % was used for hypnotical purpose and the results were noted by the Appraiser (opitional) per lender request. However unsettled comparables have little to no weight on the determined appraised value but provide additional support to the current market trend as stated by the Appraiser. For an underwriter to condition an Appraiser to perform a LPSP % is like asking an Appraiser to tell the future...It can be done but we call those types of reports "Subject to" or "Hypothetical Appraisals" or "Market Analysis".