1004d recertification of value

[Tom D]

What should be included with the update?

This is a cheap way for the lender to get a newer value. You basically have to do a new appraisal. How do you know if the the value went up or down or stable since 11 months have gone by. Be careful, this is a trap. No prior service unless you do another appraisal. But i always say in the 1004d, previous appraisal done by appraiser the value hasn't changed, when just a simple update.

You better have a whole new appraisal in your work file. 11 months is too long for a simple search. Most lenders used to go 6 months max on an appraisal, not sure why a 1004d 11 months, but you can do a full 1004d appraisal using new comps market grid and new market data. But what are you getting for it. Not a full fee, but count your time needed. Some discount maybe.

 

[TerryRohrer]

No prior service unless you do another appraisal.

211. RECERTIFICATION OF VALUE AND APPRAISAL UPDATE
Question: The terms recertification of value and appraisal update are often used interchangeably. Do
they have the same meaning?
Response: No, these terms do not have the same meaning. The terms update and recertification of value are
discussed in Advisory Opinion 3, Update of a Prior Appraisal.
An update is a new appraisal assignment involving a property that was previously appraised. An
update is subject to the same USPAP requirements as any other appraisal assignment.
A recertification of value is performed to confirm whether or not the conditions of a prior
assignment have been met. One example of a recertification of value is a final inspection. When
an appraiser is asked to complete a final inspection, the appraiser is confirming that conditions
established in an assignment have, or have not, been met.
Final inspections are commonly used in the case of proposed construction where an appraisal is
completed subject to completion per plans and specifications.
See AO-3 for additional information.

ADVISORY OPINION 3
A New Assignment of a Prior Assignment
Regardless of the nomenclature used, when a client seeks a more current value or analysis of a property that was
the subject of a prior assignment, this is not an extension of that prior assignment that was already completed – it
is simply a new assignment. An “assignment” is defined in USPAP as:
a valuation service that is provided by an appraiser as a consequence of an agreement with a client.
The same USPAP requirements apply when appraising or analyzing a property that was the subject of a prior
assignment. There are no restrictions on who the appraiser is in such a circumstance, who the client is,1 what

 

[J Grant]

This is a cheap way for the lender to get a newer value. You basically have to do a new appraisal. How do you know if the the value went up or down or stable since 11 months have gone by. Be careful, this is a trap. No prior service unless you do another appraisal. But i always say in the 1004d, previous appraisal done by appraiser the value hasn't changed, when just a simple update.

You better have a whole new appraisal in your work file. 11 months is too long for a simple search. Most lenders used to go 6 months max on an appraisal, not sure why a 1004d 11 months, but you can do a full 1004d appraisal using new comps market grid and new market data. But what are you getting for it. Not a full fee, but count your time needed. Some discount maybe.

If the same appraiser did an original appraisal and then does a 1004D 11 months later, the appraiser performed a prior service and needs to state it.
The 1004 D form asks if the subject value has declined. Taht is a yes or no answer ( not a new value ). I agree that the 1004 D is an appraisal, though, even if we check the value did not decline box - it is a benchmark value ( the prior value 11 months ago ). if the value declined, check that box .

 

[sputnam]

Do I disclose prior services for a recertification?

Yes. Even if someone could make a good argument that you don't need to.... what does it harm?