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1004d And Prior Service

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JTip

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Oct 12, 2004
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Certified Residential Appraiser
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Pennsylvania
I completed a report on a house for conventional financing on 9/10.

The utilities were off.

1004D ordered, I inspected, everything is on.

1004D completed and submitted.

-----

They come back and say I have to put in a 'prior services' statement. Of course I did the 1004, it says it on the 1004D.

Is a 1004D a 'new assignment' or an extension of the original 1004?

GD AMC. Monday morning BS......

Thanks for your advice and comments.
 

J Grant

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Dec 9, 2003
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Certified Residential Appraiser
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I just took a USPAP course and they are wrong in terms of it being a USPAP requirement,

Would still be okay to put the statement in, since the statement is true and we can always exceed USPAP which is min standards. Imo, put the statement in not worth fighting them over it.
 
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Terrel L. Shields

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Arkansas
The engagement letter should state that any 1004D is considered an extension of the original assignment.
 

DWiley

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Certified Residential Appraiser
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Tennessee
Whether it is for an inspection or an update, a 1004D is a separate service. Given that it is ordered separately, and there is a separate invoice and different form, I really don't see how one could argue otherwise. However, the prior service disclosure is not required if the 1004D is only for an inspection. It is required if the 1004D is for an update. From USPAP:

257 In assignments in which there is no appraisal or appraisal review report, only the initial disclosure

258 to the client is required.

This was a change a coupe of years ago.
 

form1025

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Jul 11, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
Whether it is for an inspection or an update, a 1004D is a separate service. Given that it is ordered separately, and there is a separate invoice and different form, I really don't see how one could argue otherwise. However, the prior service disclosure is not required if the 1004D is only for an inspection. It is required if the 1004D is for an update. From USPAP:

257 In assignments in which there is no appraisal or appraisal review report, only the initial disclosure

258 to the client is required.

This was a change a coupe of years ago.

One would argue that at times the original appraiser does not complete the inspection, therefore the statement would be appropriate in both scenarios(Update / Completion). Additionally, lenders are notorious for paperwork misplacement. just my thoughts.
 

TXTea

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Aug 25, 2016
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Certified General Appraiser
State
Texas
1004D is not an appraisal if it is being used for final inspection purposes so a prior services comment is not applicable. The AMC is incorrect as usual.

As someone else pointed out on this thread, using the 1004D as an update is a different matter; however, at the top of the form, you're already placing your name as the original appraiser and the effective date of the original appraisal so a separate disclosure statement would be redundant.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania

236. USE OF CERTIFICATION WITH FORM 1004D/442 (NEW)


Question: My client has asked me to re-inspect the property and provide them with a

certification of completion for an appraisal that I completed for them eight months

ago and submit the report on the Fannie Mae Form 1004D/Freddie Mac Form 442.

The assignment does not include an updated value opinion. Does this assignment

require a certification regarding the prior service?

Response:
No. Because this is neither an appraisal nor appraisal review assignment, USPAP does not require


a certification. Although a disclosure of the prior service is required at the time of accepting this


assignment,
no certification is required. The Conduct section of the ETHICS RULE states in part:

In assignments in which there is no appraisal or appraisal review report, only the initial

disclosure to the client is required.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
One would argue that at times the original appraiser does not complete the inspection, therefore the statement would be appropriate in both scenarios(Update / Completion). Additionally, lenders are notorious for paperwork misplacement. just my thoughts.

A certification in the 1004D inspection report would not be needed regardless of who did the original appraisal. See USPAP citation provided above.

As I noted, this was a change that was covered in the USPAP update class. Lenders, AMCs and appraisers are all "notorious" for not keeping up with these small changes to USPAP :)
 

form1025

Member
Joined
Jul 11, 2009
Professional Status
Certified Residential Appraiser
State
Illinois
A certification in the 1004D inspection report would not be needed regardless of who did the original appraisal. See USPAP citation provided above.

As I noted, this was a change that was covered in the USPAP update class. Lenders, AMCs and appraisers are all "notorious" for not keeping up with these small changes to USPAP :)

I said statement not certification.
 

Restrain

Elite Member
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Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Wife always puts a statement in saying that the 1004D is an extension of the original service and not a new service. Made it a drop-down. Reason is that we occasionally have one that is a new service (appraiser on vacation, sick, etc). Takes 5 seconds at most.

It is a service and even though the engagement letter may call the 1004D an extension, you should under USPAP state if it is a new service or not.
 
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