FNMA repurchase demand
Q: " I did an appraisal 4 years ago for one of my clients. They never questioned me about that report. Today I found out that client sold the loan to FNMA and now they want me to help them. It seems that FNMA has a negative review of my appraisal and they are using that as the basis for a repurchase demand to the lender. The client said they think my report is good, and they don't think the review is supportable, but they want me to help them prepare some kind of response to FNMA. Do I have to do this? If so, who is going to pay me for my time?"
A: I don't think you HAVE to do this, but I certainly think you should. If the original lender is still a client of yours, you don't want to jeopardize that relationship by refusing to help them fight off this FNMA repurchase demand. If you can give some reasonable critiques of the review sent by FNMA, they might drop the demand to repurchase and you will be on the client's good side. In addition, you don't have to worry about the client turning around and making some demand for damages against you if they have to repurchase the loan and wind up losing money.