1004D Update and USPAP addendum question

[Bob Ipock]

Exactly. That form should have one use only. I have seen many people who are doing it wrong and don't even know it.

 

[Bobby Bucks]

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.

That is good news indeed. Every time I look at the current form I shake my head and wonder why the decision was made to create a form that was undoubtedly going to lead to so much confusion for all parties that use it and rely on it. It reminds me of the old saying that goes "I don't know what he got for doing that, but he should have gotten life. "

 

[Bob Ipock]

Some say say using the 1004D is fine for use as a disaster form. If you read the purpose at the very top of the form they will see the purpose of the form.

 

[Lee Lansford]

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!

I recommend reading Advisory Opinion 3 as it covers this very topic and lays out your options quite nicely.

 

[Terrel L. Shields]

recently performed an appraisal update

By update I assume you are verifying the value has either not changed, was higher or lower. It is an appraisal and that verbiage needs to be included - the certification. As TAF notes

an appraisal of a property that was the subject of a prior assignment is not an extension of the prior assignment – it is a new appraisal assignment.”​

Since an update is a new appraisal, it needs to comply with USPAP and that includes the signed certification... period.

 

[Cob]

By update I assume you are verifying the value has either not changed, was higher or lower. It is an appraisal and that verbiage needs to be included - the certification. As TAF notes

an appraisal of a property that was the subject of a prior assignment is not an extension of the prior assignment – it is a new appraisal assignment.”​

Since an update is a new appraisal, it needs to comply with USPAP and that includes the signed certification... period.

INTENDED USE: The intended use of this appraisal update is for the lender/client to evaluate the property that is the subject of this report to determine if the
property has declined in value since the date of the original appraisal for a mortgage finance transaction.

INTENDED USER: The intended user of this appraisal update is the lender/client.

SCOPE OF WORK: The appraiser must, at a minimum: (1) concur with the original appraisal, (2) perform an exterior inspection of the subject property from
at least the street, and (3) research, verify, and analyze current market data in order to determine if the property has declined in value since the effective date of the original appraisal.

HAS THE MARKET VALUE OF THE SUBJECT PROPERTY DECLINED SINCE THE EFFECTIVE DATE OF THE PRIOR APPRAISAL?