1004/GP

[2020]

I have an order for a 1004 UAD. The lender noted instructions that this is not for lending purposes. Can I still use the 1004 form that they are requesting if it is not for lending purposes?

 

[Mr Rex]

What is the purpose of the assignment?

 

[2020]

To obtain market value

 

[Randolph Kinney]

What is the intended use?

What are the intended users?

 

[Mr Rex]

Most appraisals are to determine market value. What is the assignment type on page 1? What goes in the "other" description?

 

[George Hatch]

"purpose" is kind of a vague term. What you want to know is how the client intends to use the appraisal; what kinds of decisions are they trying to make?

 

[Brian Cooper]

I was taught that the 1004 was for lending ONLY. I would use a GP if the appraisal is not for lending.

 

[Mr Rex]

The 1004 was designed for a "mortgage finance transaction". There are many "mortgage finance transactions" that do not include a mortgage origination aka lending. REO, Servicing, PMI removal etc.

 

[Terrel L. Shields]

I have an order for a 1004 UAD. The lender noted instructions that this is not for lending purposes.

Tell the client that the 1004 is not appropriate for non lending. Recommend a non-lending form. You can use the GPAR forms or similar and some software has an almost look alike "non-lender" form which we used a lot when my now retired assistant did residential reports.

 

[Overimprovement]

Is there a clear definition out there for 'lending' purposes? I would think PMI removal and even on-going marking to market for asset valuation purposes would still be a lending related purpose. If a lender wants a value to make a loan, or for some assurance on an existing loan, those are both lending purposes. The purpose could even be a PAST extension of credit.