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FNM 2055 form

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by moh malekpour, Jan 21, 2009.

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  1. moh malekpour

    moh malekpour Elite Member

    0
    May 25, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I know forms are only tools of appraisals but when they are used, their certifications must be implemented.
    2055 Certification says that the form is not designed for condo, coop or manufactured units but I know an appraiser who is frequently using that form for 2-4 units and condos.
    Isn’t this a misleading and violation of USPAP even if the AMC and the lender don’t object to using that form despite of what is in the certification?

    [size=+1]This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project.[/size]
     
    Last edited: Jan 21, 2009
  2. Hola27

    Hola27 Sophomore Member

    0
    Dec 2, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Ohio
    If the client will accept it thats fine. It won't fly on the secondary market.:peace:
     
  3. Riick

    Riick Elite Member

    45
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    ^^^^
    Bingo
    ........FHA used to use the old 1004 for everything...
     
  4. moh malekpour

    moh malekpour Elite Member

    0
    May 25, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California

    But 1004 certification didn't say that the form was not designed for condo, coop or 2-4 units. did it?
    The 2055 certification clearly tells the appraisr not to use that form for condo or coop. Why it should be OK to use that form for condo if the client says use it despite the advice from the maker of the form? It doesn't make sense. The certification of the form is the only page that appraiser has to sign and upon that signature, the appraiser is responsible for everythin about the certification. The form doesn't contain enough information to communicate a condo or (2-4 unit) appraisal report to the client and that is why its maker says that is not design for that purspose. Isn't the appraiser liable for that signature on that certification that says the form is not designed for condo unit but the appraiser ignores it and use it? Show me where in the certificate says to use that form for condo as long as it is OK with the client. Ignoring what the form says is like ignoring what your car owner's manual says. If your car owner's manual says that the car is not built for the speed of over 85 miles per hour but you ignore and went 100 mph, aren't you responsible for a fatal accident? Do you drive a trailor over a bridge that says it is not designed for trailor pass?
     
    Last edited: Jan 22, 2009
  5. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    The words state that the form is not "designed" for certain uses. I didn't read "prohibited" among those words.
     
  6. moh malekpour

    moh malekpour Elite Member

    0
    May 25, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The maker of the form cannot prohibit the user of the from from filling it out and send it to someone the same way that a maker of the car cannot prohibit a reckless drive who doesn't pay attention to the note on dashbord saying this car is not designed to drive on the mountain roads.
    Form is only a tool of communication. The maker of the form has the responsibily to tell the user of the form about the capacity and the purpose of that form. It is not the responsibility of the maker of the form to prohibit the user from tearing the form, using it for toilet or communicating an appraisal. The appraiser knows what is the capacity and the purpose of the form and should not misuse it because the form cannot communicate the condo or 2-4 units to the client and for that reason it is misleading and a violation of USPAP. Standard 2
     
  7. Riick

    Riick Elite Member

    45
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    "The customer is always right"
    -- even when the customer is an idiot, and not acting in his own best interest.
     
  8. moh malekpour

    moh malekpour Elite Member

    0
    May 25, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The customer is not always right. The customer always has a right to use you or not but you also always have a right to agree with the customer or not especially when it is about protecting yourself.
    What about the customer asks you to jump over the bridge?
     
  9. Mike Siegfried

    Mike Siegfried Junior Member

    0
    Nov 6, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    Oh, so you've met my clients?

    Mike
     
  10. PBKlingensmith

    PBKlingensmith Sophomore Member

    0
    Feb 15, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    Are you sure they are not using the old version of the 2055 that allowed those uses?
     
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