1004d Or Disaster Certification After Hurricane Irma

[DrSpaceman]

I have a lender that is asking me to perform an exterior inspection of a property that was appraised last month ( I was not the appraiser) and make commentary regarding any impact of Hurricane Irma. They asked for the report to be completed on a 1004D- not the disaster certification form. I am NOT being provided with the original appraisal therefore I don't know the original value and the preprinted language re: Intended User and Scope of Work will both be contrary to what I am being asked to do. The lender's instructions are violating the USPAP certification that is preprinted within 1004Ds. SMH... Are any FL, GA appraisers completing these on 1004Ds?

 

[RSW]

That is the only form besides the 1004 URAR that their system will accept. That is why they ask for it. I would decline their request or tell them you would use the disaster form in your software.

 

[VolcanoLvr]

Lenders and their agent AMC's are 'GSE form centric'. There is NO actual GSE form for Disaster Inspections. So they get flustered and request the 1004D..............which IS NOT and NEVER was designed for disaster inspection purposes.

If the client is not agreeable to submitting only a disaster EXTERIOR inspection on a Disaster Inspection Form (available in your software forms package), or another GSE form such as the 1075, then the only way around this is to put the 1004D into the report, with the statement "THE SCOPE OF WORK FOR THIS DISASTER INSPECTION ASSIGNEMNT DOES NOT APPLY TO THIS SECTION OF THE FORM" in BOTH the top and bottom of the 1004D form, and then attach a 'real' exterior inspection form that provides the info about the property condition as observed from the street. Also include a photo page.

The reason for including the 1004D is the client's back office processing system is designed only for reception of a GSE form as a primary report form. But it can be done as above just to get the inspection report through the system.

 

[Tom Woolford]

Most of the Lenders I have been dealing with are fine using the "generic" forms provided by the software vendors. FHA is insisting on the 1004D. I disclose all over the place its not the right form but no damage was observed and reference a narrative addenda in the form. If there WAS damage, I'd probably do what Volcano suggested.

 

[DWiley]

Most of the Lenders I have been dealing with are fine using the "generic" forms provided by the software vendors. FHA is insisting on the 1004D. I disclose all over the place its not the right form but no damage was observed and reference a narrative addenda in the form. If there WAS damage, I'd probably do what Volcano suggested.

Actually, the 4000.1 specifically states that no specific form is required.

 

[J Grant]

At first I was put off by the 1004D form for a disaster inspection but now I've made my peace with it...it is not a value update, it is a completion of repair or inspection...the appraisal was done as is, but I write a blurb that client added an ext inspection conditon ( int for FHA), due to recent storm and asked for it to be reported on the 1004D form ( then I write my findings, no damage observed or observed)

 

[Tom Woolford]

Actually, the 4000.1 specifically states that no specific form is required.

I know that and you know that but the client doesn't and I'm not prepared to die on that technicality sword.

 

[DWiley]

I know that and you know that but the client doesn't and I'm not prepared to die on that technicality sword.

My clients certainly know it - because I have sent them the FHA verbiage to help them make sure they are aware of what FHA does (and does not) actually require.

 

[RSW]

Actually, the 4000.1 specifically states that no specific form is required.

Are you talking about a disaster inspection or a final inspection?

 

[DWiley]

Are you talking about a disaster inspection or a final inspection?

From the 4000,1


c. Inspection and Repair Escrow Requirements for Mortgages Pending Closing or Endorsement in Presidentially-Declared Major Disaster Areas

All Properties with pending Mortgages or endorsements in Presidentially-Declared Major Disaster Areas (PDMDA) must have a damage inspection report that identifies and quantifies any dwelling damage. The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the Property, and the report must be dated after the Incident Period (as defined byFEMA). FHA does not require a specific form for a damage inspection report.

Streamline Refinances are allowed to proceed to closing and/or endorsement without any additional requirements.

FHA does not require the Appraiser to ensure utilities are on at the time of this inspection if they have not yet been restored for the area.

Damage inspections should be completed by the original Appraiser. However, if the original Appraiser is not available, another FHA Roster Appraiser in good standing with geographic competence in the affected market may be used. If the Mortgagee uses a different Appraiser to inspect the Property, the Appraiser performing the damage inspection must be provided with a complete copy of the original appraisal.

All damages must be repaired by licensed contractors or per local jurisdictional requirements. All damages, regardless of amount, must be repaired and the Property restored to pre-loss condition with appropriate and applicable documentation.