1004D Update and USPAP addendum question

[blue77]

I recently performed an appraisal update on a property which I previously appraised. I have just received a revision request from a lender asking me to include verbiage in an addendum which includes "...the statement of fact are true and correct...i have no present or prospective interest in the property...my compensation is not contingent on a predetermined value...." etc, etc all of which were in an addendum in my original appraisal.

I have NEVER been asked to provide this type of an addendum on a 1004D update before, but wouldn't APPRAISER'S CERTIFICATION item # 2 "I performed this appraisal update in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal update was prepared" cover this? Is the reviewer correct to ask this?

Thanks for your help!

 

[TerryRohrer]

An update is essentially a new appraisal, and the requested verbiage looks to be right out of USPAP's requirements for certifications. An easier route might be to include incorporation of the original appraisal report, including the assumptions, limitations, and certifications included therein. At this stage, though, I would likely copy and past all those items (mostly embedded in the form) into your update.

 

[glenn walker]

recently performed an appraisal update on a property which I previously appraised. I have just received a revision request from a lender asking me to include verbiage in an addendum which includes "...the statement of fact are true and correct...i have no present or prospective interest in the property...my compensation is not contingent on a predetermined value...." etc, etc all of which were in an addendum in my original appraisal.

I have NEVER been asked to provide this type of an addendum on a 1004D update before, but wouldn't APPRAISER'S CERTIFICATION item # 2 "I performed this appraisal update in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal update was prepared" cover this? Is the reviewer correct to ask this?

Thanks for your help!

Its not a problem and no its not a USPAP issue, unless you have something to hide just do it and be-done

 

[Bob Ipock]

I recently performed an appraisal update on a property which I previously appraised. I have just received a revision request from a lender asking me to include verbiage in an addendum which includes "...the statement of fact are true and correct...i have no present or prospective interest in the property...my compensation is not contingent on a predetermined value...." etc, etc all of which were in an addendum in my original appraisal.

I have NEVER been asked to provide this type of an addendum on a 1004D update before, but wouldn't APPRAISER'S CERTIFICATION item # 2 "I performed this appraisal update in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal update was prepared" cover this? Is the reviewer correct to ask this?

Thanks for your help!

Did you even give a value?

 

[glenn walker]

Did you even give a value?

Most you are just saying the value has not changed since original inspection and effective date..

 

[blue77]

Did you even give a value?

The form asks what the original appraisal value is. I have only said that my original value conclusion has not declined.

 

[DWiley]

I have only said that my original value conclusion has not declined.

Such a statement constitutes the communication of a value opinion, expressed as a reference to a benchmark. Hence, you are communicating an appraisal report, and it would be subject to the requirements of STD 2, including the standard certification items you note in the OP

 

[timindp]

New report=New comment
1004D is a new assignment, thus include the comment, not a big deal.

 

[Bob Ipock]

Such a statement constitutes the communication of a value opinion, expressed as a reference to a benchmark. Hence, you are communicating an appraisal report, and it would be subject to the requirements of STD 2, including the standard certification items you note in the OP

Danny, how about the Certification of Completion? It does not mention value.

 

[DWiley]

Danny, how about the Certification of Completion? It does not mention value.

If the 1004D is used for completion only, then the appraiser is providing a valuation service outside of the Standards Rules. It isn't even a "report" as defined in USPAP.

I am so glad that in the new UAD the updates and completions are being separated into their own thing. I think that will generate less confusion.