Does 1004D appraiser assume liability for underlying report?

[Zoe]

I was asked to do a 1004D on another appraisers original FHA report. During the inspection I noted that the original deficiency had been corrected, but there were two smoke detectors missing and the inside cover of the circuit breaker box was not secured. I marked the original deficiency as complete and added a comment about the other deficiencies I had observed. The lender is now asking me to remove the comments about the additional deficiencies. What do you all think? My understanding is that once I sign the completion report I am taking on the liability for the entire report. Should I hold the line?

My answer to you on the title of your thread is "yes".

 

[Zoe]

Does 1004D appraiser assume liability for underlying report?​

My answer is yes. I have explained who you represent in your valuation services. Your client(s).

 

[Mark K]

Unless, for some reason, you feel that you are responsible to re-inspect the entire property, I'd limit it to the deficient item.

Personally, I'd also include a comment that the re-inspection was limited to the one item only.

 

[Zoe]

I am not trying to be obtuse. I see both sides like I see both clients.

 

[The Bob]

I was asked to do a 1004D on another appraisers original FHA report. During the inspection I noted that the original deficiency had been corrected, but there were two smoke detectors missing and the inside cover of the circuit breaker box was not secured. I marked the original deficiency as complete and added a comment about the other deficiencies I had observed. The lender is now asking me to remove the comments about the additional deficiencies. What do you all think? My understanding is that once I sign the completion report I am taking on the liability for the entire report. Should I hold the line?

In a case of being asked to sign off on another appraiser's work, I TELL the client, "what repairs/items am I verifying and what photos do you want." I tell them DO NOT send me the OA, just tell me what you want verified. That goes into my very specific SOW.

One problem I see with your approach, even though your intentions were good, is what happens if there is serious item the OA failed to note? Because if I'm the client and you pointed out one thing, why didn't you point out the other one that was missed in the OA?

Terrell makes a good point regarding SOW specific to FHA on certifying repairs. I don't think I ever been asked to do one for an FHA appraisal, they were all Conv loans. Even so, I'd still do an FHA as describe above.

 

[J Grant]

The few times I did a 1004D where another appraiser did the original report, I was not sent the original - just asked to go and inspect if the X item ( a window, for example) was repaired or repaired.

We are not signing off on another person's work - we are signing off on our own work - which was an assignment to inspect to see if the broken rear window was replaced.

 

[Tom D]

By the way. How come nobody here knows the missed repairs resonse by the FHA. Although, i never focused on the house itself when doing my final.

 

[TerryRohrer]

The few times I did a 1004D where another appraiser did the original report, I was not sent the original - just asked to go and inspect if the X item ( a window, for example) was repaired or repaired.

We are not signing off on another person's work - we are signing off on our own work - which was an assignment to inspect to see if the broken rear window was replaced.

How do you then certify that the conditions or requirements stated in the original appraisal have been satisfied?

 

[Zoe]

In a case of being asked to sign off on another appraiser's work, I TELL the client, "what repairs/items am I verifying and what photos do you want." I tell them DO NOT send me the OA, just tell me what you want verified. That goes into my very specific SOW.

One problem I see with your approach, even though your intentions were good, is what happens if there is serious item the OA failed to note? Because if I'm the client and you pointed out one thing, why didn't you point out the other one that was missed in the OA?

Terrell makes a good point regarding SOW specific to FHA on certifying repairs. I don't think I ever been asked to do one for an FHA appraisal, they were all Conv loans. Even so, I'd still do an FHA as describe above.

I am different from you. I won't do it without original report.

VA operates that way. They don't mind another appraiser performing the final. But they want the original appraiser to contact the other appraiser to do their final inspection. Like the original is sick or something.

VA can do it but they would rather original appraiser contact another VA appraiser to do it. VA is fine with that. I have had to do it a time or two and original appraiser just sent me NOV. But with it being FHA, I would probably ask the lender for copy of original appraisal.

 

[Zoe]

Okay, if it is FHA, and I am going to perform final. I am not doing a full inspection of the house. However, if FHA has not done their final acceptance of the loan, and I see something that is dangerous to the occupants?

Now, where does that put me doing the 1004D?

I could just go back and tell lender I can't do the 1004D. I saw this just doing the final. I will gladly do a new assignment for you/FHA.

When would you like me to start? This will be my fee for new assignment.