1004D Update

[2020]

I completed a 1004 pre-construction in May 2025. This order was through an AMC. The lender just emailed me wanting a % completed. He said he does not order updates through AMCs. He wants a % completion and wants to pay me directly. I have never had a lender request through email before. Is there any reason why I should not accept the assignment from the lender directly this time?

 

[Tom D]

Let's repeat this 100 times again. A 1004D reinspection is not an appraisal. A monkey can do it, that's why the have the original lender on the top, and the signature page has a line for a different lender, if needed.
Who the h*ll is the AMC, nothing but a transmitter of some order. You always note on the 1004d that you did the appraisal. After that it's just clerical work, no appraising involved as per the USPAP definition of 'appraisal'.

 

[TerryRohrer]

I would be wary if the lender were from out of state. Through the AMC, you generally have a tiny bit of protection if they don't pay and are licensed in your state. If the lender is not in your state, you might get a judgment after spending 10 times your fee in legal fees. Then what? There is no viable collection process across state lines that I am aware of.

 

[Surf Cat]

Let's repeat this 100 times again. A 1004D reinspection is not an appraisal

The OP didn't state this request was to be made on a 1004D.

A 1004D does not provide a percentage based assessment of progress. There's a check a box indicating whether the improvements are complete or not complete.

I would provide narrative report that detailed the current stage of completion, work in progress, and whether the construction aligned with approved plans and specs. Lots of photos, descriptions of what and what is not complete.

Remember, it's an "estimate" of % complete. Make sure to include CYA commentary that you're not a contractor or builder. State "nothing" about costs, value, or current market trends. Charge appropriately.

 

[Flakey]

This is a great opportunity to engage directly with the lender and show there is better service and value outside the AMC plantation. There are numerous spreadsheets and forms for determining percentages of completion. I would jump all over this as a possible doorway to direct engagement. It's worked for me.

 

[alebrewer]

The OP didn't state this request was to be made on a 1004D.

This was the title Surf: "1004D Update"

I agree with ya, though, that the 1004D isn't really a construction inspection form. There are other forms for reporting construction completion milestones.

 

[sputnam]

I completed a 1004 pre-construction in May 2025. This order was through an AMC. The lender just emailed me wanting a % completed. He said he does not order updates through AMCs. He wants a % completion and wants to pay me directly. I have never had a lender request through email before. Is there any reason why I should not accept the assignment from the lender directly this time?

Sounds like a construction draw inspection. Not a big deal. Whether you accept it or not is a business decision.

 

[DWiley]

Sounds like a construction draw inspection.

I agree. The thread title refers to a 1004D, but the post itself addresses a standard construction draw request, which has nothing to do with a 1004D. Perhaps the OP can clarify.

 

[Surf Cat]

This was the title Surf: "1004D Update"

Well whadaya know....Lol When I read the OP, I was thinking to myself "1004D?, what?" After reading Tom's comment.

Tom D., my apologies....

 

[2020]

This was the title Surf: "1004D Update"

I agree with ya, though, that the 1004D isn't really a construction inspection form. There are other forms for reporting construction completion milestones.

What forms are you referring to?