1004 URAR REO

[Bamba]

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]

If it is for REO purpose then it is NOT for mortgage financing. I've completed about 100 +/- with the asset valuation data.

 

[Bamba]

So it's ok to remove the wording for mortgage purposes and use the same form 1004 to report the appraisal?

 

[CANative]

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]

Thanks a lot!

 

[Dale Hill]

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]

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]

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]

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.