1004D:Major Form

[RNMOVR]

I did a pre-construction for an interim loan for client A 4 months ago. Client B contacts me and wants a final inspection and a recert of value on the same property. The major 1004D form appears to be set up to handle different lender/client's. The first page has original appraiser and original lender. The end has current lender/client. What is your opinion on doing a final inspection for a different lender than the original appraisal was for.

As for the recertification of value, I believe that these are not USPAP compliant?? If they are not, why is there even a form for them. I know the forms are designed by Fannie Mae not USPAP. But what is the the point of a non USPAP compliant form if we are all required to be USPAP compliant. So, would you consider the recert to be a new assignment??

 

[stefan olafson]

New Client, New Appraisal, New Fee

What's the intended use of the original appraisal?

What's the intended use of the Client B appraisal?

Sounds like you did one appraisal, subject to completion, RIGHT?

Now they want you to do another appraisal, as complete, without paying for the appraisal......

 

[Marcia Langley]

RN,

Bottom line, you must do a new appraisal on a 1004. Forget the 1004d.

In your particular case, the new request is for a new lender. Your assignment is all new and does not relate to your previous assignment at all.

Even if it was not a new lender there would be issues but that, in itself is a deal breaker for using the 1004d.

-------

Notice the 1004d is actually a form that can be used for two different assignments, the bottom half is just to verify completion with no new value opinion.

The term "recertification" should not be used in conjunction with the term "value". Refer to Advisory Opinion #3 for details on nomenclature.

When a more current opinion of value is needed, it is called an "update", not a recertification.

The "update" form is on the top half of the 1004d.

But an entire new 1004 is also an "update" and is simply more efficient than using the 1004d.

-------

Lenders sometimes confuse the language and they also sometimes think that an "update" on a short form is less expensive than an "update" on a full form. This is not the case because they both take the same amount of work and carry the same liability, and require the same USPAP considerations.

It is actually cheaper for me to produce the new 1004 than it is to use the 1004d for an update.

 

[Webbed Feet]

Search The Forum About The 1004d!

I did a pre-construction for an interim loan for client A 4 months ago. Client B contacts me and wants a final inspection and a recert of value on the same property. The major 1004D form appears to be set up to handle different lender/client's. The first page has original appraiser and original lender. The end has current lender/client. What is your opinion on doing a final inspection for a different lender than the original appraisal was for.

And EXACTLY at what point did "Client A" give you permission to discuss confidential information.. namely your opinions and conclusions .... with "Client B" ???????? Inquiring minds want to know..

As for the recertification of value, I believe that these are not USPAP compliant?? If they are not, why is there even a form for them. I know the forms are designed by Fannie Mae not USPAP. But what is the the point of a non USPAP compliant form if we are all required to be USPAP compliant. So, would you consider the recert to be a new assignment??

When has Fannie EVER created any "forms" that were compliant with USPAP at the time they were released? Answer: Never!

And that is NOT a "recertification of value," it is an appraisal "update." Your client "B" wants a new opinion of value, with a new effective date, with their name on it right? Let me see... we call that a "New Assignment" in my neck of the woods. Just to be sure here, you DO understand that a "not less than" opinion based against a prior benchmark (your prior opinion of value) is a real estate appraisal?

You ALSO understand that just because this new "Client B" has a copy of your prior appraisal report that this DOES NOT mean you are in compliance with USPAP regarding "Updates" by either attaching a copy of your prior appraisal report (you'd be breaking confidentiality doing so even if Client B already has a copy as you are NOT authorized to deliver a copy to somebody other than your original client.) and that you CANNOT "incorporate" the original appraisal by "reference" for a different client.

See where this is going? ...

Webbed.

 

[CANative]

USPAP schmoospap... When in doubt just start from scratch and if they don't like it, tough toenails.

 

[Webbed Feet]

<snip>
Lenders sometimes confuse the language and they also sometimes think that an "update" on a short form is less expensive than an "update" on a full form. This is not the case because they both take the same amount of work and carry the same liability, and require the same USPAP considerations.

It is actually cheaper for me to produce the new 1004 than it is to use the 1004d for an update.

Ms. Langley,

JUST the lenders???? ... LOL! ... I am, yet again, sitting here right now looking at a 1004d, signed by a certified general appraiser, who thought all he had to do was check off two boxes on the 1004d and he had a "Summary" report of a new assignment if he attached the old original appraisal report.

Yet once again, one more that gets to explain where the "current" market analysis is, for a "Summary" report of the new real estate appraisal, to the state appraisal board.

MORONS!!!!

Webbed.

 

[Brad Ellis]

RNMOVR,

What is a recert and on which form does that appear?

Brad

 

[OSU Beavers]

Ok, help me follow this. The old "Recertification of value" is now called an "Update", but the 1004D form cannot stand alone as a new summary report, so anytime anyone wants a new value for a prior appraisal, a new report is required?

I ask because I just got this: In regards to the above appraisal you did for us, we have finally received a clear for closing except now our appraisal has come to a date cut off and the lender is asking for a recert of value. If there is any way you could possibly get this back over to us tomorrow it would be so much appreciated as then we can close before the holiday weekend.

 

[CURT VAN HOOSER]

Yes it can. I think Daffy's point was that you cannot just check two boxes and attach the original report as evidence of your analysis. You are doing an update which requires( may require) a real time market analysis.

 

[OSU Beavers]

So I can use a 1004D if I meet all of the development and reporting requirements of a summary report? Which would seem to be more work than just redoing the 1004C with a new inspection date plus new comparables and analysis.