1004D completion on report from 12+ months ago

[Tacoman]

I agree with most here--PER WHAT IS BEING ASKED, those items have been completed. I also agree the kitchen situation should at least be mentioned. This is to cover yourself.

This may need a 2nd look at intended use though--is this for a GSE loan? Has the lender kept this loan on hold for 2 years? Can't see a situation where the entire process wouldn't need to be started over. If it is not for an origination loan, what IS it for exactly?

Or was the loan made and closed and this is just for some bookkeeping, audit purposes perhaps? If so, maybe no mention of other current conditions is even warranted...

Quick mention/question to client could alleviate a lot of angst, IMHO.

You're right about the angst, that should be my middle name.

So I asked, and the AMC is telling me not to mention it at all, which is the answer I was afraid of... I feel like that has to be at least mentioned. I'm happy to caveat it with language stating it is not related to the original report.

 

[jay trotta]

If your position is that it needs to be reported, then you have expanded the scope. Simple as that.

The intended use of this certification of completion is for the lender/client to confirm that the requirements or conditions stated in the appraisal report referenced above have been met.

It is my interpretation that this is a reference to the HC Checkboxes 2 and 3 on the bottom of Page 2 of the URAR.

Additions and alterations are always a work in progress, the scope of work refers (IMO) to the OAR & Effective date. The HO's decision to expand the work does not appear to impact the OAR but has come into observation during the Final. IMO - the Client would need to provide input on those changes brought to their attention and perhaps the LTV was/is suitable as of the original effective date, we would not know that.

 

[Tacoman]

If your position is that it needs to be reported, then you have expanded the scope. Simple as that.

The intended use of this certification of completion is for the lender/client to confirm that the requirements or conditions stated in the appraisal report referenced above have been met.

It is my interpretation that this is a reference to the HC Checkboxes 2 and 3 on the bottom of Page 2 of the URAR.

Are you saying it doesn't even need to be mentioned? I don't want to put words in your mouth if you weren't suggesting I shouldn't mention it. I'm thinking of a simple hypothetical scenario here: imagine a report is subject to completing a bathroom. You go out 1 month later and the bathroom is done. But now the other bathroom is gutted. In that case, I would think it's pretty straightforward that you'd have to report that.

for the other discussion about what "conditions" refers to that you and Dublin Ohio are addressing, I did mention physical condition ratings (C3) above but I was also referring to the bottom of page 2 meaning more of a checklist of things that exists (and one thing on that list was a kitchen in C3 condition). Even though a report would never explicitly state every single detail, as the pictures do a lot of lifting, there's an unwritten implication that when you go back and say the work is done and now the original conditions of the dwelling noted in my report are basically the same (or maybe better) and the unfinished thing is done. In my situation it's, the thing is done but something else which I said was done is now unfinished.

 

[TN Pro]

You did not explain that until now - it kept changing

Ok, so the latest info is the original kitchen is still functional so now I would state yes it is complete and mention the some interior walls are down for an ongoing renovation

I dont get where you are coming from. What they have done in the subsequent 2 years has no bearing. Its like using a comp that burned down the week after it closed. Its still a comp and can still be used.

 

[TN Pro]

If your position is that it needs to be reported, then you have expanded the scope. Simple as that.

The intended use of this certification of completion is for the lender/client to confirm that the requirements or conditions stated in the appraisal report referenced above have been met.

It is my interpretation that this is a reference to the HC Checkboxes 2 and 3 on the bottom of Page 2 of the URAR.

Again, nonsense. What happens after effective date of the appraisal has NO bearing on your appraisal. The original issues are resolved but yes. i would mention it to the lender, but not on the 1004D.

 

[J Grant]

You're right about the angst, that should be my middle name.

So I asked, and the AMC is telling me not to mention it at all, which is the answer I was afraid of... I feel like that has to be at least mentioned. I'm happy to caveat it with language stating it is not related to the original report.

Why would you obey an AMC instrution telling you not to mention it at all ?
We are not supposed to be misleading and are expected to divulge information we found at an inspection

If a client tells you something sleazy to do, the answer is politely refuse the request and if they insist give the assignment back.

 

[Tacoman]

Again, nonsense. What happens after effective date of the appraisal has NO bearing on your appraisal. The original issues are resolved but yes. i would mention it to the lender, but not on the 1004D.

In case our replies overlapped, what about this scenario? You submit a report subject to a bath being completed. You go out one month later and the bath is complete but the second bath, which was functional, is now gutted.

I am starting to see your point that it has no bearing but I am going through an AMC, how else but in this 1004D would I notify them (or trust that they would someday acknowledge I notified them? What if they sell the loan to a new lender?) It seems like a simple "please be advised, new work outside the scope of the original report has commenced and is not completed as of today. The original specified work is complete."

 

[J Grant]

Again, nonsense. What happens after effective date of the appraisal has NO bearing on your appraisal. The original issues are resolved but yes. i would mention it to the lender, but not on the 1004D.

?? Mention a condition observed at inspection on the 1004D_ that is where it belongs...how do you "mention" it to the lender with an AMC as client.
Just disclose what was noted at inspection with photos and if the client has a problem with it then let them decide how to proceed - they are not babies.

"The bathroom is completed per the 1004 D inspection. The original kitchen is still in place and functional, however it should be noted that on inspection date the appraisal found the owner has removed two interior walls in dining area to open up the floorplan, which does not affect the value opinion made on the original X effective date."

 

[Overimprovement]

You're right about the angst, that should be my middle name.

So I asked, and the AMC is telling me not to mention it at all, which is the answer I was afraid of... I feel like that has to be at least mentioned. I'm happy to caveat it with language stating it is not related to the original report.

Have you determined the reason for this 1004D almost 2 years later, in other words, the intended use? If it is to originate a loan somehow, I would be hesitant to leave out the mention.

YOU and only you determine the ultimate SOW. If you and client cannot come to terms on that, you must decline the assignment.

If this was a one off assignment, not a hill worth dying on. If a main client, that gets more fuzzy in practical terms, but USPAP takes precedence over business concerns.

 

[Dublin ohio]

We are not supposed to be misleading and are expected to divulge information we found at an inspection

In this case. Why would it be misleading and where does it say we are required to divulge information not applicable to the report. By expanding the scope. You could easily open yourself up to liability. If reporting the kitchen condition screws up the loan.