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  #1  
Old 12-07-2009, 04:17 PM
staceyuw staceyuw is offline
 
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Default Re-certification of value

I have an appraisal that was done on July 16, 2009. I need to get a recertification of value. But, the original appraiser and his whole office is shut down for the month for the holiday. Am I SOL??
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  #2  
Old 12-07-2009, 04:24 PM
Thomas Fiehler Thomas Fiehler is offline
 
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Yes-Appraisers do not complete "recertifications" of value. What they are likely asking for is an updated appraisal. Not sure if appraiser "B" can provide the update since they did not complete the original report. FWIW, lenders often ask for these recertifications, but as licensed/certified appraisers we are not allowed to provide them. We can provide recertifications for specific items (remodeling completed, addition completed, etc) but when it comes to value, it cannot be recertified.
  #3  
Old 12-07-2009, 04:30 PM
Em Tee Em Tee is offline
 
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Stacey: Please delete the words "recertification of value" from your vocabulary. It's not what you really want, but it's the outdated terminology used when a lender wants to know if the value today is the same as a prior appraisal without actually having a new appraisal.

You'll need to have a new appraisal completed.
  #4  
Old 12-07-2009, 04:45 PM
staceyuw staceyuw is offline
 
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Thank you, I appreciate your answers.
  #5  
Old 12-07-2009, 04:57 PM
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alex gilbert alex gilbert is offline
 
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Quote:
Originally Posted by staceyuw View Post
I have an appraisal that was done on July 16, 2009. I need to get a recertification of value. But, the original appraiser and his whole office is shut down for the month for the holiday. Am I SOL??
Stacey - first off, this is a case where appraisers and lenders often do not share the same definition of terminology. To appraisers a "recertification" is the clearing of an appraisal condition. For example, a home is appraised subject to completion. We'd call the final inspection to certify completion a recert. To most lenders "recertification" means to indicate that a property's value is no less than it was as of a prior appraisal. For us, the correct term for that is an update, becasue you're bringing the date of value forward. Any time an appraiser provides an opinion of value (no matter if it's a point estimate, a range, or a not-less-than opinion) it's an appraisal. So an update really is a new appraisal. There are some reporting options when doing an update, so it may not require an entirely new report.

In your specific case, yes, you maybe SOL if you can't get the original appraiser to do the update. Maybe your best bet would be to provide a copy of the original report to a new appraiser and have them do an "exterior-only" based on the assumption that the subject's interior remains as described in the first appraisal. It's not a perfect solution, but it may offer some time/cost savings, and can be done without re-inspection.
  #6  
Old 12-08-2009, 11:03 AM
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Webbed Feet Webbed Feet is offline
 
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Quote:
Originally Posted by Em Tee View Post
Stacey: Please delete the words "recertification of value" from your vocabulary. It's not what you really want, but it's the outdated terminology used when a lender wants to know if the value today is the same as a prior appraisal without actually having a new appraisal.

You'll need to have a new appraisal completed.
So, was that perfectly clear?

  #7  
Old 12-08-2009, 11:12 AM
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Webbed Feet Webbed Feet is offline
 
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Quote:
Originally Posted by alex gilbert View Post
<....snip.....>
In your specific case, yes, you maybe SOL if you can't get the original appraiser to do the update. Maybe your best bet would be to provide a copy of the original report to a new appraiser and have them do an "exterior-only" based on the assumption that the subject's interior remains as described in the first appraisal. It's not a perfect solution, but it may offer some time/cost savings, and can be done without re-inspection.
Sigh ................... Ok we need to examine this idea. As your above would be defined to be an Extraordinary Assumption (EA) Would you please now explain to our O.Per., that undoubtedly would try and attempt to order such an assignment to be reported on the 03/2005 Fannie 2055 form, just exactly how in the ding dong the appraiser is going to use that EA without violating the Fannie prohibition against modifying the SOW?

I will answer for you... There is only one way to do that. And it would be to use CB4 to bring in the EA, and doing so would require an "inspection" for that. This would force underwriting to "prove" the EA before Fannie would accept the real estate appraisal.

So when you made your suggestion, obviously, you meant for the O.P. to get an appraisal report using some generic forms with no intention of passing the loan on to hardly any GSE's .. right?
  #8  
Old 12-08-2009, 11:54 AM
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Webbed Feet Webbed Feet is offline
 
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Default Update = New Appraisal = New Report !

Quote:
Originally Posted by staceyuw View Post
I have an appraisal that was done on July 16, 2009. I need to get a recertification of value. But, the original appraiser and his whole office is shut down for the month for the holiday. Am I SOL??
Oi !!!!!! My head is hurting, is yours? So what we have now is an "Update" is really a "New Appraisal," but somehow one can use an old appraisal report to provide an "Update" without having to provide an entirely new report for the "New Appraisal" even though the new appraisal is new.

Stacy, allow me to unwind this for you. The word "Update" should not even be a "correct term" any longer to any real estate appraiser, let alone the lending industry. Jargon is jargon, and "Update" is just as much jargon as "Recertification of Value" has become. So to clear the mud here. You need a new real estate appraisal. Your lending stuff is telling you that all that is needed is a document that says the value has not declined relative to a prior real estate appraisal value opinion, as of a nice new fresh, date that appraisers call the "Effective Date." But the act of doing this for you is a new real estate appraisal and a new real estate appraisal assignment. To understand this you need to think of the opinion of value as being the "Appraisal" and not the physical 1004 form report as being "The Appraisal." New Effective Date = new opinion of value (not less than or less than) at a new point in time = new appraisal.

It also equals an "entirely new" real estate appraisal report too. Using parts of any prior "report" as exhibits in a new report is called "incorporation." But the new report is entirely new, not some old borrowed one. An old report can be "incorporated" by "attachment," or by "reference." "Reference," means someone like you has the old report in hand, and appraisal standards require you (your firm) be the original client for that report for it to be used by an appraiser by "reference."

What does this all mean? A willing completely different appraiser can "incorporate" your old report either by attachment or by reference and use it to provde you a new appraisal (opinion) that uses a "not less than," or "Less than," type of value conclusion with the old value conclusion becoming a benchmark. Not many appraisers are willing to do this starting with the work of some other appraiser. But who knows? You might find a stupid and greedy appraiser willing to do it for you on the cheap. A bright and informed appraiser will know it doesn't save time, or money, trying to do so, and only causes them all sorts of liability.

Last edited by Webbed Feet : 12-08-2009 at 01:27 PM.
  #9  
Old 12-08-2009, 01:33 PM
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Mike Kennedy Mike Kennedy is offline
 
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IF FANNIE IS APPLICABLE TO ORIGINAL POST:


Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Document Standards,
Report, and Property Inspections
April 1, 2009
Printed copies may not be the most current version. For the most current version, go to the online version at
http://www.efanniemae.com/sf/guides/ssg/. 431



Note:
The inspection and the appraisal update must occur within the four months that precede the date of the note and mortgage.

Updating the Original Appraisal Report
The following table details requirements for determining appraisal update requirements:

If … Then …
the appraiser indicates the property value has declined the lender must obtain a new appraisal for the property.

the appraiser indicates the property has not declined in value, the lender should request the appraiser to provide an update to the appraisal, based on the
appraiser’s exterior inspection of the property and knowledge of current market conditions.

The inspection and the appraisal update must occur within the four months that precede the date of the note and mortgage.

Updating the Original Appraisal Report or Property Inspection

Updates can be reported in the following formats:

• Appraisal Update and/or Completion Report (Form 1004D),
• Uniform Residential Appraisal Report (Form 1004), or
• in a letter.

See B4-1.2-06, Appraisal Forms and Report Exhibits, for more information.

Completing an Appraisal Update

The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers.

When updates are completed by substitute appraisers, the substitute appraiser must review the original appraisal and express an opinion about whether the original appraiser’s opinion of market value was reasonable on the date of the original appraisal report.

The lender must note in the file why the original appraiser was not used.

Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Document Standards,
Report, and Property Inspections

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  #10  
Old 12-08-2009, 01:49 PM
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residentialguy residentialguy is offline
 
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Quote:
Originally Posted by Em Tee View Post
Stacey: Please delete the words "recertification of value" from your vocabulary. It's not what you really want, but it's the outdated terminology used when a lender wants to know if the value today is the same as a prior appraisal without actually having a new appraisal.

You'll need to have a new appraisal completed.

I disagree with this. There is nothing wrong with a "recertification of value". That just means that you certify (again) that your appraisal done on xx/xx/xxxx was correct. It is basically reviewing your own appraisal.

But, to say that you the value applies at a later date is a separate appraisal.
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