Is it common that appraisal report is under management review?

[Anonymous]

Eight and half weeks after we were under contract, 13 days after paying for appraisal, we are still waiting for the appraisal report. This afternoon my LO told me that the appraiser has sent in the report and it is under management review at lender. Is it common?

[ShanetheMortgageMan]

In some areas, and with some appraisers, and with some homes, appraisal reports take longer to complete.  When the home is available to inspect, the type of home, and available comparables all contribute to that time.  Helped someone refinance an A-Frame in rural West Virginia recently and it took nearly 2 weeks for the appraiser to provide a usable appraisal, so while 13 days is awhile, it's not unheard of.  Under the new Home Valuation Code of Conduct law you are required to get a copy of the appraisal 3 days prior to closing.  Not all appraisals go to management review, but since yours did I suspect this may not be an easy to appraise home, or could be unique in some way.  If it's a cookie cutter home in a subdivision with plenty of recent sales of similar homes, it would be odd that it was sent to management review.

[Anonymous]

It's not an easy appraisal. The first appraiser made an appointment with the seller's agent, then cancelled it, because he could not find many comparables. The house we are buying is a duplex in a mostly single house community. Most owners of duplexes keep them for rental so there are very few sales recently. My realtor says this is a good thing because supplies are low. But I don't know how it would help me if the appraisal report is not usable.

The first time it took 12 days to get the appraisal report. Lender never questioned about it, but it caused a real headache for us, because it was 15k lower than contract price. Anyway, that loan was denied because we could not agree to repair every deficiency on inspection report, not appraisal report (see the thread here: http://ficoforums.myfico.com/t5/Mortgage-Loans/Will-my-FICO-score-be-lower-if-I-change-mortgage-brok...).

If the appraisal report is under management review, does that mean it looks questionable? What will happen if the lender says it is not usable?

[ShanetheMortgageMan]

Gotcha, from what you've laid out (and skimming through the other thread you linked) it does appear that there could be some questions that need addressing, or perhaps the appraiser needs to provide more info, etc.  If the lender won't use it then they may allow you to get a new appraisal, or you'd have to switch lenders (and may have to order a new appraisal if the current one can't be transferred).  Biggest issue on loans I've had recently are problems with the home itself, seems like lenders are nervous about anything not a cookie-cutter.

[BridgetM]

I feel for you. The first house we tried to buy this year came back with a conditional appraisal - two week after the appraiser made the site visit and with one key piece of information incorrect. I made him call town hall, get the right info and submit a corrected appraisal. However, we had to walk on that house because we weren't thrilled with the idea of financing home repairs mandated by the appraisal (as in "The house wlll be worth this only if you do that") on a property we didn't yet own.

The appraiser on the second house threw up a bunch of red flags when he felt the loan wouldn't be saleale to Fannie Mae so he just didn't finish it. That whole transaction is in limbo now and I can't help but feel that the bank's underwriters might have had a better sense of the property with a complete appraisal.

[Anonymous]

Finally got appraisal report today. There are a few errors in it, but the appraised value is the same as the contract price. All other conditions were cleared as of last week. I can see the finish line. Thanks.

[Anonymous]

Got final approval yesterday. Now lender's attorney is reviewing final documents. Keep my fingers crossing. Thanks.

[Anonymous]

Wednesday afternoon (June 23), lender's attorney asked for proof that insurance coverage is enough. The rebuilt cost Geico estimated is less than loan amount. There is 20% extended coverage which did not show on declaration page. I contacted Geico, an agent put the 20% in writing and re-sent the declaration page.

Thursday morning (June 24), seller's dad past away. He is in another state and can't come to the closing. Documents must be Fedexed today to get back on Monday (the last day of contract).

Thursday afternoon (June 24), still no final HUD-1. Per the funding specialist in attorney's office, "all we're pending is underwriting approval to allow the earnest money". What? I was told the uw approved the loan two days ago. How come earnest money is not approved now? Sent in a copy of the check (both front and back sides) and a receipt from title company (which was already attached to the contract).

When I asked my realtor if we should change closing time from tomorrow (June 25) to Monday (June 28) since seller won't get the package anyway, she became extremely upset and asked why the delay? Sometimes I really doubt if she has my best interest in mind.

Oh well, tomorrow morning we should find out from title company if we will close or not.

[ShanetheMortgageMan]

Sounds like it's just reviewing the earnest money and then the closing docs will be sent for the Final HUD-1 approval, although these items shouldn't happen, they often do.  The end of this month is a very busy time for closings (particularly with the tax credit deadline) so most will see more errors than in a normal months end.  Realtor probably was just venting and you happened to be the one on the phone at the time, it wasn't directed at you but at the overall process.  I'm sure things will be fine.

[Anonymous]

Thank you, Shane. You made me feel better. You are so knowledgeable and understanding. Is it allowed here to ask for your contact information?

At 8:30 AM (June 25), my realtor told me the closing is postponed from 10 AM to 1 PM as the title company is still waiting for final approval of HUD-1. I have been waiting for 60 days, I can wait for another 3 hours. Everything should be fine at the end.