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1004 URAR REO

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Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm doing an REO appraisal for asset valuation purposes. Client wants me to use 1004 URAR to report it and the REO addendum with no wording "for mortgage financing" but instead "asset valuation purposes".
I am concern about certification #23 in my 1004 form and the Fannie Mae approved clarification language related to cert #23 if I remove "for mortgage financing".

What do you guys think? Am I missing something here?

Thanks a lot!
 

Thomas Fiehler

Senior Member
Joined
Jun 2, 2003
Professional Status
Certified General Appraiser
State
Ohio
If it is for REO purpose then it is NOT for mortgage financing. I've completed about 100 +/- with the asset valuation data.
 

Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
So it's ok to remove the wording for mortgage purposes and use the same form 1004 to report the appraisal?
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
I usually check the "other" box on page 1 and type something like "REO Asset Disposition." I scan in any client guideline/requirement documents they send me which I consider to be clarification or additions to the pre-printed Fannie Mae scope of work.

I don't worry too much. If I was writing some sort of demonstration project I might be concerned. But REO clients are usually sophisticated, regular users of appraisal reports and probably won't be confused by appraiser trivia.
 

Bamba

Junior Member
Joined
Sep 12, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Thanks a lot!
 

Dale Hill

Sophomore Member
Joined
Jan 12, 2006
Professional Status
Appraisal Management Company
State
Pennsylvania
Mr. Joe Minnich from Fanniemae, at valuation 2005 in New Orleans, at the instructors class on the new forms (3/05) specifically described a foreclosure as "the ultimate mortgage finance transaction" when directly questioned whether the "new" forms were allowable for REO purposes with the certifications stating they are for mortgage financing purposes.

Mr. Don Clark was in attendance in the same class and I would assume he could also confirm this.

I am well aware of Mr. Brad Ellis's position on this issue, but in this instance I have to agree with the opinion of one of the people who helped develop the form and it's intent.

I am also unaware of anyone having been disciplined by their state board based on the interpretation that using the 3/05 forms for a foreclosure report was considered misleading. Mr. Mike Kennedy, in my opinion, you would be more up to date on this than anyone, are you aware of any examples of that? (not a challenge or sarcastic, it's a serious inquiry).
 

EVAUSA

Junior Member
Joined
Jan 26, 2008
Professional Status
Certified Residential Appraiser
State
California
A forclosure is part of a mortgage transaction, so I would not worry about cert #23. On page one, check the box "Other" and put Asset Valuation Purposes. If any of your written verbiage states "mortgage transaction", edit it to read "asset valuation".
 

joe huffman

Junior Member
Joined
Sep 20, 2004
Professional Status
Certified General Appraiser
State
Missouri
Unless the Market Value defination is the same as the one on the 1004 form, which in a REO is generally not the case, the 1004 would not be the correct form to use.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Mr. Joe Minnich from Fanniemae, at valuation 2005 in New Orleans, at the instructors class on the new forms (3/05) specifically described a foreclosure as "the ultimate mortgage finance transaction" when directly questioned whether the "new" forms were allowable for REO purposes with the certifications stating they are for mortgage financing purposes.

Mr. Don Clark was in attendance in the same class and I would assume he could also confirm this.

I am well aware of Mr. Brad Ellis's position on this issue, but in this instance I have to agree with the opinion of one of the people who helped develop the form and it's intent.

I am also unaware of anyone having been disciplined by their state board based on the interpretation that using the 3/05 forms for a foreclosure report was considered misleading. Mr. Mike Kennedy, in my opinion, you would be more up to date on this than anyone, are you aware of any examples of that? (not a challenge or sarcastic, it's a serious inquiry).

Dale,

That in fact is the case, exactly as you have stated it. In my opinion, and the opinion of Fannie Mae who developed the form, an REO is mortgage related. There is no language that needs changing. Just check other and state what it is.
 
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