1004D Assignment by a Different Appraiser ?

[andrew81]

I have completed exactly two 1004D completion reports for an assignment completed by another appraiser and they were both for the same original assignment. The first time I went to the property the repairs were not completed. Here is what I put on the form:

Property does not meet HUD’s Minimum Property Requirements as outlined in the FHA Single Family Policy Handbook 4000.1. See attached supplemental addendum, contractor estimates, and photographs. I was not the original appraiser and am not developing an opinion of value as it relates to the impact of market value. I am not performing an appraisal as defined in USPAP. I suggest the client and/or intended user(s) contact the original appraiser for value opinions.

On the supplemental addendum I said this:

On 03/13/2019 I received an assignment request from AMC Name to provide a Completion Report.

Original File# 0000000000
FHA Case# 000-0000000
Subject Property - 123 Main St, City, IL
Client and Intended Users - AMC Name, Lender Name, and FHA
Intended Use - Mortgage Finance Transaction
Borrower - Jane Smith
Original Appraiser - John Smith
Effective Date of Value - 12/13/2018
Date of Report - 12/19/2018
Interest Appraised - Fee Simple

This Completion Report incorporates by reference the original appraisal. This option is used because the original client and intended users are involved.

I read the original appraisal report for items listed as conditions or requirements. The report was completed subject to HUD/FHA related inspections and repairs on the basis of a hypothetical condition that the repairs or alterations have been completed. Those items are listed on page 3 of the URAR and its attached photograph addenda.

On 03/15/2019 I performed a visual inspection of the subject property to determine if the conditions or requirements stated in the original appraisal have been satisfied and found them to not be completed. Property does not meet HUD’s Minimum Property Requirements as outlined in the FHA Single Family Policy Handbook 4000.1. See below for list of repairs found to be completed and/or not completed. See attached photographs.

I then copied and pasted the original repair requirements with an explanation of if the repair was completed or not. For example:

1. "Subject was built prior to 1978 and lead based paint hazards exist - peeling/chipping paint was noted on several exterior windows (including basement window trim), the sheds and exterior of garage - all defective paint must be scraped and repainted with suitable non lead based paint when outside temperature allows for proper curing (DIY Cost to cure $100 for materials)."
- Painting of the exterior windows, basement window trim, sheds, and exterior of garage is completed.

Lastly, at the bottom of the addendum I added Additional Certifications

Completion Report Additional Certifications
- This is neither an appraisal nor appraisal review assignment. I am not performing an appraisal as defined in USPAP. I have not been asked to perform a valuation service that is provided by an appraiser as a consequence of an agreement with a client. I have only agreed to perform a visual inspection of the subject property to determine if the conditions or requirements stated in the original appraisal have been satisfied.
- Additional intended user includes FHA.
- The compensation for this assignment is $150.
- The client is the appraisal management company AMC Name, which is acting as an authorized agent for the lender Lender Name.
- The appraisal management company's Illinois registration number is 000000000 and it expires on 12/31/2020.
- I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
- The comments by the licensed real estate appraiser contained within this report on the condition of the property do not address "standards of practice" as defined in the Home Inspector License Act [225 ILCS 441] and 68 Ill. Adm. Code 1410 and are not to be considered a home inspection or home inspection report.

 

[ZZGAMAZZ]

I have completed exactly two 1004D completion reports for an assignment completed by another appraiser and they were both for the same original assignment. The first time I went to the property the repairs were not completed. Here is what I put on the form:



On the supplemental addendum I said this:



I then copied and pasted the original repair requirements with an explanation of if the repair was completed or not. For example:



Lastly, at the bottom of the addendum I added Additional Certifications

I appreciate the opportunity to be aware of the actual response of a peer. Would the SOW based upon the assignment conditions regarding the bottom half of t he 1004D include all disclosures regading the fact that an opinion of value was not being rendered regardless of whether you or a peer provided the original valuation?

 

[The Bob]

I've done a couple of these (verifying repairs) and the last thing I want is a copy of the OA. Why go there? Are you going to open a can of worms and opine on the work product?
I ask the client what I'm verifying, and what photos they want. I state something to the effect "My SOW of work for this 1004D is limited to verifying X"

 

[Mark K]

$200 for 2 hours including inspection, photos, report.

I've done a few in the past; for $200 ea. I'd do as many as they want to send.

I don't know how some people can get themselves to leave the house in the morning worrying about all of the 'what if' scenarios playing in their heads.

 

[Mark K]

I've done a couple of these (verifying repairs) and the last thing I want is a copy of the OA. Why go there?

Because you have to certify that the conditions in the OA have been met. How can you do that without seeing a copy of the report?

 

[ZZGAMAZZ]

Because you have to certify that the conditions in the OA have been met. How can you do that without seeing a copy of the report?

The 1004D form can't be populated without info from the prior report, including orig date/value/contract/etc., although to devote more effort to covering one's axx than to reporting salient results seems overly cautious.

 

[ZZGAMAZZ]

I've done a few in the past; for $200 ea. I'd do as many as the want to send.

I don't know how some people can get themselves to leave the house in the morning worrying about all of the 'what if' scenarios playing in their heads.

It would be interesting to learn more about the "cautious" personality type. I'm like you in that I literally can't devote even a minute of my time to tasks that don't seem to be reasonable/necessary, although I'm sure that individuals who feel otherwise have arguments that are equally as compelling--although it's oxymoronic that I don't mind devoting half of every day to the AF [LOL]...

 

[glenn walker]

Right now we have a lot of appraisers, who won't, leave their houses afraid they will get the Covid. We also have some that are infected so we are seeing more 1004-D having to be completed by another appraiser, I review the original report and as long as its nothing real crazy I have no problems doing them... Each one is a case by case decision.

 

[TMG]

I won't do them. Sure as hell some Attorney will try to pin responsibility for the whole report on me.

I just got a 1004D final inspection ASSIGNED TO ME (by an AMC that usually requires low ball bidding) Fee is $75 and they want it in 2 days, and I'm not the original appraiser. I declined, and in the comments put "$75...LOL"

 

[ZZGAMAZZ]

I just got a 1004D final inspection ASSIGNED TO ME (by an AMC that usually requires low ball bidding) Fee is $75 and they want it in 2 days, and I'm not the original appraiser. I declined, and in the comments put "$75...LOL"

Good response. Good business decision. Another $10K - $15K annual revenue in my coffers because you failed to enhance the Public Trust in the appraisal industry. It is hoped that other peers follow suit and f up their reputations as well. Rock On.