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#1715284 - 06/28/12 03:08 PM Changed Circumstance?
TomS Offline
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Joined: Jan 2004
Posts: 318
USA
When we originate a secondary market loan secured by a condo, the investor requires that the condo association complete a condo questionnaire to ensure the condo meets secondary market guidelines. I came across a loan where the condo association required q $150 fee to complete the questionnaire, and our Lending Department treated it as a changed circumstance and re-issued the GFE to disclose the new fee.

I question whether that's really a changed circumstance. I don't think there are any circumstances "particular to the borrower or transaction" that have changed, but would like others' opinions as well.
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#1715291 - 06/28/12 03:13 PM Re: Changed Circumstance? TomS
RR Joker Offline
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I believe I could make a case for this being a legit CofC. You had no idea this fee would be charged and it is particular to the borrower who is buying a condo.
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#1715295 - 06/28/12 03:18 PM Re: Changed Circumstance? TomS
#Just Jay Offline
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Cheeseheadland
I feel two ways on this.

Not all condo associations charge to complete the questionaire. I think charging is a the result of many factors (part of the country, state, size of the associations, etc.).

I think it is prudent to quote some sort of fee (and smart to ask the borrower or seller if there will be one!), but since there is not a consistency, I feel it can also be a justifed CC as well.

That said, $150! Wow...
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#1715328 - 06/28/12 03:43 PM Re: Changed Circumstance? TomS
Truffle Royale Offline

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The investors we work with do not require this form to be completed.
Like Jay, I could argue it either way...nd $150 does seem steep.

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#1715448 - 06/28/12 05:28 PM Re: Changed Circumstance? TomS
mac444 Offline
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Joined: May 2011
Posts: 78
On codo properties, we quote $190 as an estimate for condo cert because we have found most charge to complete the form. The amount is adjusted when the actual amount is verified.

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#1715506 - 06/28/12 06:25 PM Re: Changed Circumstance? TomS
TB 12 Offline
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Foxboro
As others have said, there is no consistency around here as to whether an association charges a fee and if so, how much. We handle those as a COC.
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#1716598 - 07/03/12 01:35 PM Re: Changed Circumstance? TB 12
TomS Offline
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Joined: Jan 2004
Posts: 318
USA
Thanks, I appreciate everyone's input.
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