Letter from mortgage company

[MMustola]

I'm posting this letter because I thought many of you would enjoy it.

This came from an underwriter regarding a house I inspected. The lender drafted the letter and asked me to copy it onto my letter head and sign it. They said if I didn't then the buyer would not be able to get a mortgage.

It was very hard for me to not laugh out loud. I was nice and give them all the business reasons why that was not going to happen.

The lender had my inspection report because they demanded that the buyer give it to them. The report contained some structural issues that I recommended be repaired.

At first the lender gave my report to the appraiser and asked them to look at the issues and then sign the same letter. When the appraiser refused they came to me.

Of course now I am the bad guy because the buyer can't get a mortgage. I'm not worried about it, the house is what it was. The buyer was going to fix the problems after they moved in.

Has anything like this ever happened to anyone else?

[Robert Jones]

I have had one occurrence where the buyers agent sent my entire report to the under writer. Needless to say, the under writer called for everything in my report to be repaired and for me to reinspect and submit a letter stating all repairs were completed. It was a disaster. If I received a letter, such as the one you posted, I would do the same as you. Just explain your stance to YOUR customer/client, which is the buyer and leave it at that.

[Marc]

What's interesting is that HUD 4105.2 doesn't exist. That is according to a search of the HUD site. As for HUD 4905.1, It's only 8 pages and include mostly rudimentary requirements.

If I could resolve the non-existent HUD 4105.2 issue with this underwriter, I might sign the document with a $500 price tag attached.

Marc

[Nolan Kienitz]

It was probably a typo. They are likely referring to: 4150.2

4150.2 is an ~195-page document titled: "Valuation Analysis for Single Family One- to Four- Unit Dwellings"

It is pretty much an FHA/HUD Appraisal process guideline.

It is used in the HUD 203k products.

[Les]

Hey Mark,

We had basically the same thing happening a couple of times over in our area. "Bite me" comes to mind as the exact terms I used!

I would strongly suggest removal of the exact address from your post above.

Now they want us to actually inspect the properties, after they refused to look at our reports for several years.

[inspector808]

Just last week a buyer's agent said that I needed to submit a letter for the mortgage company stating all utilities were on and functional at time of the inspection in which I completed over a month ago. Unlike the above letter, there was no mention of any HUD requirements. This was the first time I had been asked to do this, but didn't see any harm in stating in writing that the electric and water was on and working during the inspection.

[MMustola]

Les, thats good advice about removing the address. How do I do that?

Mike, Can you removing the PDF Link and than I can upload a new corrected file?

I received a call from the mortgage company today and they agreed that asking me to sign that letter was foolish. But now they are asking my to reword the report. They basically want me to say that something is wrong but it's ok and safe.

Heres an example of what they have a problem with. I said that there was missing flashing and gaps in the soffits that were large enough to allow animals to enter the structure. ( there were some holes that were 3 to 4 inches in diameter). They what me to change the report to say that the holes are only big enough to allow birds into the structure but not raccoons.

I told them that was crazy, what about bats, mice, insects, weather, and of course larger animals like squirrels and raccoons will exploit the holes and get in if they are so inclined.

There are many other more serious items in the report were they what to word smith the comments. Of course I told them no.

[Les]

Hey Mark, I removed the pdf, so you can edit it now!

The lenders in Michigan are on a tear to start the whole real estate fiasco again.

[randynavarro]

Tell them you'll change the words in your report if they'll change the wording in their mortgage docs.

Something like "Annual Percentage Rate won't really be 6.25% but we'll see if we can swing something like 5.75%"

I know you're not the borrower, but it'd still be fun.

[hausdok]

Uh Oh,

I missed Les' comment and deleted the link. Sorry Mark, please repost it.

OT - OF!!!

M.