Lender requests appraisal 6 months after closing?

Three months after I closed my lender requested proof of homeowners insurance! I think both of these situations are goof ups. Not a lawyer but I am an underwriter & I cannot possibly see how this could affect the terms of the already executed loan.

this is a secondary market market issue and should not affect your ownership or any terms of your note. for whatever reason they are having trouble selling/packaging the loan (probably to FNMA or FRE or it's a portfolio loan held on the books of the bank to which your originator is selling the loan). there are countless loans on the secondary market that are the subject of appraisal issues or other representation and warranties made by the originators/underwriters to the purchasers of the end-securities (of which your loan is a apart).

https://www.fanniemae.com/content/eligibility_information/coop-share-loan-documentation-requirements.pdf

I've been a mortgage broker and real estate broker for over 25 years and never heard of this.

It's one thing to request proof of homeowners insurance, but another to request that someone come to your home for an appraisal.

I would review my closing docs to see if there was any provision for this, and review my note.

I will see if I can talk to some bankers about this and get back.

This probably has to do with secondary market sales like the CondoPresident states.

you should call the new York times, this is a great -and ridiculous-- story. too bad you need to deal with these folks

you should write back to the bank, and tell them a few journalists have asked to be involved in this process from beginning to end. And the person reaching out to you would be "well advised" to speak to folks in his corporate comm dept. that'll get em thinking

>you should write back to the bank, and tell them a few journalists have asked to be involved in this process from beginning to end. And the person reaching out to you would be "well advised" to speak to folks in his corporate comm dept. that'll get em thinking

haha, guywithcat is the "guy" who made up the big false story of how he won punitive damages in Small Claims Court against a loud neighbor.

Sounds like the purchaser of the loan wants a better or second estimate to determine if LTV is as advertised. It should not affect you. I'd simply contact your lawyer on this and ascertain your compliance requirements. The purchaser of the loan is just kicking the tires to make sure the under-writing is as advertised.

Pre-2008 many loans were sold and the purchaser got loans which were not under-written according to the advertised guide-lines. Either they were "exception loans", the fico score was thin and not fat, and the appraisal method was not up to snuff, could have been an AVM, BPO, or the appraiser had a relationship with the mortgage lender. I guess fool me once versus twice is the apt expression here.

Thanks everyone. As someone extremely familiar with Securitization, I totally understand that this is a secondary mkt issue. My only concern is whether it can affect my loan. Also, what if the investor wants to fully re-underwrite the loan? There's no way I'm putting all that documentation together...Again!

PLUS-I am actually in the middle of a gut renovation right now, so the place looks like it was totally decimated. Wondering if I should give the lender a taste of some seriously messed up medicine & have the guy come in & do the appraisal, as is: no kitchen, no bath, huge holes in exterior walls, where ACs used to be, floors & radiators ripped out, all electric & plumbing exposed...that should make the loan even more desirable!

>Thanks everyone. As someone extremely familiar with Securitization,

So basically you are responsible for the financial mess we were/are in.

You should:

1) Have the appraiser come and see the place in decimated condition.

2) Offer to buy back the loan at a 20% haircut.

Good ideas. If you're not willing to go that far, you should certainly charge for the time and inconvenience. We don't know what happened here, but it seems that someone cut some corners. I bet they didn't share the savings with you.

sammy, be very careful if your place is in the condition that you're describing. there are typically clauses in mortgages that state that you will be living there within 60 days. the only way not to have that is if you got a construction loan, which doesn't seem to be the case. once the appraiser comes through, you can end up having your loan called for non compliance.

Thanks, ab_11218. Yes, that is one of my concerns.

@Greensdale/Huntersburg or whatever it is you're calling yourself today, thanks for the absolutely ignorant & irrelevant comment.