Recertification, New Assignment or Neither

[Meandering]

You don't analyze the contract for purchase, in a refinance situation.


.

 

[Meandering]

You can't refinance, before you actually own the property.

So the effective date is the killer of the scope of the work

 

[Meandering]

Oh yeah,

and you have to fill in the 3 year sales history of the subject,

so that will be different than the purchase appraisal.

 

[Meandering]

And maybe, something was damaged during the move in phase, so now the condition is different than when the property was for sale.

 

[DWiley]

So the effective date is the killer of the scope of the work

Exactly. It is the effective date, not the type of transaction that is the key. I was hoping that pointing to the significant six in the SOWR would help some see that.

 

[Sadie]

It came into play because you cited intended use. But when I look at appraisal reports I don’t see appraisers using a different IU statement for a refi versus a purchase. You can’t just keep citing the SOWR and then ignoring what the rule actually says. . The SOw is driven by the six items in the assignment elements list provided in the SOWR.

But I am very curious, other than analyzing a contract, what do you do differently for a purchase vs a refi?

I always state the intended use in my appraisals. On a 1004 I use Conditions of Appraisal addendum. And I bet most appraisers do also. Maybe you just don't see it.

 

[Sadie]

It came into play because you cited intended use. But when I look at appraisal reports I don’t see appraisers using a different IU statement for a refi versus a purchase. You can’t just keep citing the SOWR and then ignoring what the rule actually says. . The SOw is driven by the six items in the assignment elements list provided in the SOWR.

But I am very curious, other than analyzing a contract, what do you do differently for a purchase vs a refi?

A 1004 form has in the Subject section a box to check for Purchase Transaction, Refinance Transaction, or Other. Hmmm that tells me transaction type is important and you better get it right.

 

[DWiley]

I always state the intended use in my appraisals. On a 1004 I use Conditions of Appraisal addendum. And I bet most appraisers do also. Maybe you just don't see it.

On a 1004 for a GSE loan, the intended use is pre-printed on page 4, along with notice that modification, additions or deletions are not allowed. If one modifies the intended use, the appraisal report is no longer GSE eligible.

 

[DWiley]

A 1004 form has in the Subject section a box to check for Purchase Transaction, Refinance Transaction, or Other. Hmmm that tells me transaction type is important and you better get it right.

Never said it wasn’t important. I said it was not an identified assignment element. As such, changing the transaction type does not automatically mean a new assignment. Changing any of the identified assignment elements does automatically mean there is a new assignment

 

[Sadie]

Never said it wasn’t important. I said it was not an identified assignment element. As such, changing the transaction type does not automatically mean a new assignment. Changing any of the identified assignment elements does automatically mean there is a new assignment

Well, you know assignment conditions are one of the elements and if the original assignment is to estimate MV for a purchase, changing it estimate MV for a refinance is a change in SOW and the requirements for that assignment are a little different.