"Your explanation was perfect..."

As I am currently single, I was shopping at Von's in San Diego at lunch this past week since I ran out of Bounty paper towels. I checked my I Phone and reviewed a request for help from a lender in San Diego.

She was at an impasse with the underwriter of a VA guaranteed loan for a condominium in a project in Corona, CA. The veteran had purchased a detached condominium, the marketing name of which did not appear on the list of VA approved condominium projects.

She did not understand how to respond to the underwriter since the VA had approved a "Master Association" with a similar name.

This issue arose a few months ago with a long-time friend and member of the California Bar whose client has a division which works directly with the VA. The division submitted a similar project to the VA without a VA attorney opinion letter. The VA office, to whom the project was submitted, was not responsible for approval of condominium projects in California. This VA office referred the project to its legal department who allegedly advised my colleague's client to process the detached condominium as a "planned unit development" ("PUD"). I assured my colleague this is not correct since a VA appraiser must include the VA ID # (which is assigned only to VA approved condominium projects) as part of his appraisal report. I never heard back from my colleague as to how this was ultimately resolved.

I have great respect for lenders and divisions of developers that work with VA/FHA and Fannie Mae. These ladies and gentlemen are well meaning, but are not attorneys who prepared the organizational documentation for Master Associations and/or detached condominium projects.

VA does not "require" a VA attorney opinion letter to submit a condominium project for VA approval. VA "recommends" a VA Attorney opinion letter when submitting a condominium project for approval. FHA does not require an FHA attorney opinion letter. Fannie Mae does require an attorney opinion letter.

What was my explanation to the lender, while waiting in line to pay for the paper trowels, which elicited the above response from the lender ?

Stay tuned...