1004d Update Not For Original Report

[ipari21]

I performed an appraisal on 05/17 for a purchase transaction that was an As-Is report.
Today, I received an assigment for a 1004 update reporting for a refinance purpose with new loan number.
I've confused that I can do handle this 1004 update.
Anyone have experience for this ?
Any advise would be helpful.
Thank you.

 

[nstanbru]

Some here will say you can and some will say you can't. I'm not going to say either. But, if I did an appraisal 4 months ago (regardless of the prior or current intended use), I would tell the client I have to do a new appraisal which would include an interior/exterior inspection (no "drive by" for me). Too many things could have changed since the first appraisal, both with the home and with the market. My gut reaction to the 1004D request was they don't want to pay for an appraisal which, in reality, is what you would be doing anyhow. My advice? Do a new appraisal.

 

[hastalavista]

I'm not far off from nstanbru's advice (but for slightly different reasons).

Yes, the assignment can be completed as an update.
However and in my opinion, the time it will take you to augment the one-page form so that it is USPAP compliant (and, you should know that the one-page form, by itself, is not compliant under any circumstances) will take more time than the 15+ minutes it takes you to reinspect the subject property (assuming nothing has changed) and cloning the old report with updates in it where appropriate.

The lender likely thinks the 1004D is an appropriate substitute for new appraisal completed on the 1004... and it may be.
The lender likely thinks the 1004D can be turned around faster (with the exception of scheduling the appointment, they may be correct).
The lender likely thinks the 1004D will be less expensive; thus saving the borrower some money... again, that is likely the case. But I doubt they've considered that the amount of work the appraiser is saving isn't that significant; they probably think the one-page form is fine as-is.

While the turn-time could be shortened (due not needing to coordinate with the borrowers for an interior inspection) the amount of work you'll need to put into this update isn't that much different from a 1004. Quicker turn-time (yes) but no significant savings on the appraiser's work needed for the development and reporting process.
I don't know about you, but I'd charge a reduced fee for an assignment I just completed 3-4 months ago and no significant changes to the improvements/property have occurred. But that reduced fee will be the same for a 1004 as it would be for a 1004D (in this scenario); so if I'm the appraiser, there is no cost savings to the borrower... the amount of work I need to do is nearly the same.

Your call- good luck!

 

[Terrel L. Shields]

Price it like a new report and see what they want to do

 

[Tim The Enchanter]

4 months ago, it's outdated. New appraisal, maybe a discount since you save time in the inspection.
You'll have to do new comp search and market analysis either way.