Confusion with Exterior Only Appraisals....

[PrincessLeia]

Back in the day I did exterior only appraisals under the extraordinary assumption that the interior was similar to the exterior, or if there were recent MLS photos within the last 1 or 2 years, that the interior condition had not changed significantly from the date of the last sale. If we don't have interior access... how do we know? Hence, the EA.

Then COVID came along and we were not allowed to make assumptions. We were supposed to rely on homeowner's photos, etc. I did not feel comfortable with that & took a hard pass. I kept doing full interiors for the last several years.

Now, with the forbearance period ending, quite a few lenders need/want pre-foreclosure exterior only appraisals. I've searched the FNMA selling guide... it only mentions desktop appraisals and the various full interior appraisal forms... the Exterior only is suspiciously missing.

Can anyone update me on what the deal is with this? I feel like I missed something. The COVID rules are now over. Can we go back to making an EA about the interior condition of a property in order to complete an exterior only?

For instance: I have an order (I haven't accepted yet) to ascertain market value, I believe it's in pre-foreclosure. The last time the property sold was in 2009. Being distressed, the owners aren't going to let me in. And the lender needs to know what it's worth. How on earth are we supposed to appraise these if we're not supposed to use Extraordinary Assumptions about the interior quality/condition?

Thanks in Advance,

 

[Terrel L. Shields]

Back in the day I did exterior only appraisals under the extraordinary assumption that the interior was similar to the exterior

That violates the FNMA 2055 requirement that you obtain a description of the interior from a reliable source. Caveating away the interior on a 2055 puts you in jeopardy of a sanction from the state. And that has always been the case with the 2055...which is why I did exactly one, decided it was at least as much time to do if not more than a 1004 and never took another 2055 assignment.

Can we go back to making an EA about the interior condition of a property in order to complete an exterior only?

No.

 

[Sadie]

I have no problem going back to the EA, but I am not the one making that decision. Fannie says its verboten, so no EA.

 

[PrincessLeia]

That violates the FNMA 2055 requirement that you obtain a description of the interior from a reliable source. Caveating away the interior on a 2055 puts you in jeopardy of a sanction from the state. And that has always been the case with the 2055...which is why I did exactly one, decided it was at least as much time to do if not more than a 1004 and never took another 2055 assignment.


No.

Thanks Terrel,

Tht's what I'd *heard. Hence, why i havent done a 2055 in 6+ years. But where is this requirement in writing? I can't find it. TIA.

 

[PrincessLeia]

I have no problem going back to the EA, but I am not the one making that decision. Fannie says its verboten, so no EA.

Where do they say that? I've only seen it listed under COVID products which are no longer in use. I just searched the selling guide and couldn't find it. Thanks in advance.

 

[DWiley]

Thanks Terrel,

Tht's what I'd *heard. Hence, why i havent done a 2055 in 6+ years. But where is this requirement in writing? I can't find it. TIA.

That requirement is printed on the 2055

 

[ramrcdk]

Never were we able "to assume" current Value from past information.
I have had exactly the same situation. When I contacted the lender-rep'... she said just DO IT as countless other appraisers DO.
I responded with the last information was from many years ago (just like your example). She huffed & puffed, actually got irate.
She said IF I found it necessary, she would send the appraisal she had on file. It was FROM 2002.
My response was " Did she need a RETRO-appraisal from 2002?"
Round-&-round, she became more irate. So I copy-pasted the exact verbiage from the FORM INSTRUCTIONS she had ordered. LOL!!
She said she had NEVER heard of That and SHE had never been questioned. And sorta...Who in the Hell-was-I?

We parted ways. So, this brings a point of contention = THE THIRD PARTY WILL ORDER ANYTHING because it is just 1 PROPERTY on their LONG LIST to get Assigned. THEY DO NOT CARE! And with the NEW FORMS...they will NOT CARE.

HOW much time does ONE appraiser spend on finding out (FREE of charge) Information to EVEN DO the service?
Upgrade THE FORM type? Then re-negotiate the (proper-fair) FEE and then they GO SHOPPING for CHEAPER.

YEP that is sure to SAVE TIME. Same old spin. Shortage of appraisers my arse.

 

[Terrel L. Shields]

Thanks Terrel,

Tht's what I'd *heard. Hence, why i havent done a 2055 in 6+ years. But where is this requirement in writing? I can't find it. TIA.

It is actually on the 2055 form certification

 

[Bobby Bucks]

I wonder how many people have been incarcerated for performing 2055 HUD pre-foreclosures with an EA.

 

[Dublin ohio]

Back in the day I did exterior only appraisals under the extraordinary assumption that the interior was similar to the exterior, or if there were recent MLS photos within the last 1 or 2 years, that the interior condition had not changed significantly from the date of the last sale. If we don't have interior access... how do we know? Hence, the EA.

The date of the latest version of the 2055 cert is 2005. So how long ago was "back in the day".