1004p

[Eli]

I still don't get what triggers what. It's sketchy to me. It's like the bully playing God. I don't understand it when the appraiser is responsible for SOW. I wouldn't doubt the CFPB gets involved deeper.

I could understand it if the value was like lender value or a restricted appraisal. It stinks the way it is with "market value" being the value definition. And the borrower getting a copy of the report. It ain't right. Just send an inspector out and let the loan officer put a value on it. We can do like Phil Crawford is saying and work the other side.

 

[Fnbpos]

I still don't get what triggers what. It's sketchy to me. It's like the bully playing God. I don't understand it when the appraiser is responsible for SOW. I wouldn't doubt the CFPB gets involved deeper.

I could understand it if the value was like lender value or a restricted appraisal. It stinks the way it is with "market value" being the value definition. And the borrower getting a copy of the report. It ain't right. Just send an inspector out and let the loan officer put a value on it. We can do like Phil Crawford is saying and work the other side.

This bifurcated appraisal could possibility - maybe turn out to be satisfactory ONLY if the fee is commensurate with the work. Appraisers could choose to be on one side of the job or both sides. I would imagine the most common cause of owner / buyer lawsuits against the appraiser pertain to something about the physical inspection part of the job. That liability would just about disappear if you only wanted to handle the "report prep" part of the bifurcated job.

If the goal of this bifurcated appraisal is to save time OR to save a full appraisal (i.e. inspection causes a waiver of 1004P), well, that is possible.

If it is to save more dollars, then it will never suceed as the amount of work required to complete the inspection and the 1004P is the same as we do now on a full 1004.

 

[Eli]

This bifurcated appraisal could possibility - maybe turn out to be satisfactory ONLY if the fee is commensurate with the work. Appraisers could choose to be on one side of the job or both sides. I would imagine the most common cause of owner / buyer lawsuits against the appraiser pertain to something about the physical inspection part of the job. That liability would just about disappear if you only wanted to handle the "report prep" part of the bifurcated job.

If the goal of this bifurcated appraisal is to save time OR to save a full appraisal (i.e. inspection causes a waiver of 1004P), well, that is possible.

If it is to save more dollars, then it will never suceed as the amount of work required to complete the inspection and the 1004P is the same as we do now on a full 1004.

Most of the complaints I have witnessed from the property owner or agent side is value related. Not inspection related. However, from an appraiser standpoint, they are closely related. Neighborhoods change constantly and driving them helps constantly. The more heterogeneous the neighborhood, the more it helps. Like one street or jurisdiction can have huge impacts. And that changes constantly.

 

[Evincere]

Most of the complaints I have witnessed from the property owner or agent side is value related. Not inspection related. However, from an appraiser standpoint, they are closely related. .

As if it’s not bad enough now and we have been inspecting? . The oven is going to get even hotter when value complaints are filed and the appraiser, responsible for signing off on value try’s to shuffle away claiming they never actually saw the property and relied on a 3rd party inspection.

A few yrs from now when the downturn is truly upon us again and people are once again really underwater is when the fallout and failure of these products will rear its ugly head.

Agents and inspectors will walk away from it all with no liability or accountability.

Appraisers are being told it’s all good, no worries, USPAP says so. Agents / inspectors are probably being sold the same no worries narrative because they’re not opining value. .

State Appraisal boards can’t go after agents and inspectors. Lawyers however, can go after anyone.

 

[djd09]

Just curious, but what measurement standard/format are you using? Do they specify how they want it measured? Rounded off to the nearest 6" or foot? ANSI standard? Modified ANSI?

Still waiting for this answer.

 

[J Grant]

We’ve also considered this new process in light of USPAP Advisory Opinion 31. It says, “[a]n appraiser often uses assistance that does not constitute significant appraisal assistance. Although it is the appraiser’s responsibility to determine the role of any individual providing assistance, tasks such as, but not limited to, writing down measurements the appraiser provides when measuring a structure, taking photographs of the subject property, and providing clerical duties are not considered significant appraisal assistance.”

The above from the Fannie newsletter- USPAP AO 31 :it is not signification appraisal assistance if an individual WRITING DOWN MEASUREMENTS the appraiser provides, which indicates the assistant is on site with the appraiser (or else how can they be writing down what the appraiser provides? Which is different from the individual measures the property. What would USPAP FAQ answer for the individual measures the property vs writing down measurements the appraiser provides.

 

[DWiley]

What would USPAP FAQ answer for the individual measures the property vs writing down measurements the appraiser provides.

What you don't want to hear is that the answer for that would be no different than it would be for someone measuring a comp instead of measuring the subject. You (and others) see some profound difference between using third party data for a comp versus using third party data for the subject, but USPAP recognizes no such difference.

 

[Michigan CG]

this thread IS about a 1004p inspection and not 1004d.

I’d gladly do a 1004d for $150 as well. And referencing the 2 very different forms as a comparison in the same thread is what’s ridiculous

The 1004P inspection is taking photos and measuring a property. I would do that all day for $150 with no liability.

 

[Michigan CG]

WHO had the hutspa to promote AND decide for Appraisers what the pricing and fees would / should be? Brokers, Quicken, Rocket, Fannie, Amrock, Clear Capital, Proteck?

They can try to get fees that low but the market sets the fees, just like anything else. There are AMCs paying $250 for a 1004 because they can but the majority of appraisers aren't completing 1004 reports for $250.

 

[Michigan CG]

the paultry fees offered/tested (and if accepted) will fast become standardized and written in stone as customery and reasonable.

I disagree.

First of all the 1004 is not going away.

If the fees for these ala carte products pay less than what appraisers make on traditional products then they won't do them.