Order Says To "Stop And Call" If C5 Or C6

[joe lee]

This is going to be an issue going forward and I know many are not aware or some are and just disregard.

If you recieve an order that states to follow guidlines set forth from FNMA, Freddie, FHA, USPAP but then states - if you observe at the inspection conditions that would make the home C5 or C6 to stop and call the client or AMC to see how to proceed - you potentially violate several key appraiser independence regulations, including Dodd-Frank, the Appraiser Independence Requirements (AIR), and the Uniform Standards of Professional Appraisal Practice (USPAP)

FNMA states the report should be "subject to" if the home has issues beyond normal wear and tear that impact safety ect.
Freddie also
FHA of course

Not to mention if the order states to complete on a FNMA form which requires you to follow the guidelines of FNMA regardless of if the client states they are not using FNMA

anyone delt with this issue?

 

[CGinMN]

Fannie Mae accepts C5.
Freddie Mac does not.

Stop and call because the lender wants to know what it would take to bring it into C4 condition before deciding which route to go.

 

[joe lee]

they can inquire but as the appraiser you are in the process of completing a report at that point. Even the inspection is part of the process. We are not contractors nor a home inspector. We are engaged to complete an appraisal report. If the client has any concerns related to the repairs or condition that should be addressed with the appraiser after the report is complete.

 

[ucbruin]

Bad customer service....

 

[joe lee]

they can inquire but as the appraiser you are in the process of completing a report at that point. Even the inspection is part of the process. We are not contractors nor a home inspector. We are engaged to complete an appraisal report. If the client has any concerns related to the repairs or condition that should be addressed with the appraiser after the report is complete.

Fannie Mae accepts C5.
Freddie Mac does not.

Stop and call because the lender wants to know what it would take to bring it into C4 condition before deciding which route to go.

correct FNMA does allow C5 as not all C5 condition homes would require "subject to " repairs. again this would be noted in the appraisal report once it is completed and sent to client

 

[djd09]

appraiser independence is as useless as USPAP...

 

[TerryRohrer]

There is no issue regarding appraiser independence here. If you accept the assignment, you accept those terms. Simple as that. My issue with those elements is whether or not I will be paid for the time I have invested to the point I make that call. Most want to pay $50 for a trip fee. I have more time invested than that before I leave for the inspection, and typically inspect and photograph comps in the same trip so expect to be paid for all time invested.

The choices are accept, reject, or renegotiate the terms of the assignment. I usually try to estimate the condition of the property from available sources to guess which way it might go, then respond accordingly. Either raise my price or clarify cancellation terms, etc.

 

[glenn walker]

Has nothing to do with appraisal independence or USPAP.

 

[CGinMN]

If you recieve an order that states to follow guidlines set forth from FNMA, Freddie, FHA, USPAP but then states - if you observe at the inspection conditions that would make the home C5 or C6 to stop and call the client or AMC to see how to proceed

We are engaged to complete an appraisal report.

Apparently the terms of your engagement require more than just an appraisal report under certain scenarios. If you don’t like the terms, don’t accept the assignment.

 

[djd09]

B. No person is allowed to influence or attempt to influence the development, reporting, result, orreview of an appraisal through coercion, extortion, collusion, compensation, inducement,intimidation, bribery, or any other manner including, but not limited to:

the law is clearly written...