1007 only (Certifications needed?)

[Mark K]

There are more important issues to debate than this.

I've always been a fan of the Ford v. Chevy debates.

BTW, Fords suck!

 

[alebrewer]

I've always been a fan of the Ford v. Chevy debates.

BTW, Fords suck!

Exactly! REALLY important topics like this... My grandpa was a Mopar man - and I guess that rubbed off on me, although I'm not a fan of the big bulky Challengers and Chargers. Much prefer the Mustang for a modern muscle car. Even the Camaro's are - IMO - too bulky for a muscle car. Now the mid-engine Vettes on the other hand... that's some sweetness.

 

[Airstream]

It is not my scenario the appraiser isn't - that is the premise of the OP post, the appraiser is providing only an opinion of market rent .

But you agree that the borrower will use some method of their own choosing to associate rent to the overall value, and they are basing it on the opinion of rent $ in the appraisal. The UW for lender might do their own rent to value analysis using the rent $ value opinion we provide .

So, our opinion of rent matters to a decision-

The property that I am providing an opinion of market rent on is:
1) Not the subject of the loan.
2) Is already rented and I have the rental agreement.
3) The opinion of market rent is only being used to substantiate that the present amount of the rent is consistent with the market rents in the area.
4) This property’s income (rent) is being used to determine the credit worthiness of the borrowers for another purchase in another state.
5) Therefore, we are not determining the market value of the property I am doing a 1007 on. It is only being used to make sure that the cash flow is there for the ability to purchase another property.

 

[glenn walker]

The property that I am providing an opinion of market rent on is:
1) Not the subject of the loan.
2) Is already rented and I have the rental agreement.
3) The opinion of market rent is only being used to substantiate that the present amount of the rent is consistent with the market rents in the area.
4) This property’s income (rent) is being used to determine the credit worthiness of the borrowers for another purchase in another state.
5) Therefore, we are not determining the market value of the property I am doing a 1007 on. It is only being used to make sure that the cash flow is there for the ability to purchase another property.

Personally I would not worry about it , sign and date it and be done LOL

 

[Airstream]

Personally I would not worry about it , sign and date it and be done LOL

I agree. I actually have it all figured out. So I’m good to go. Sending the report in Monday.

 

[J Grant]

The property that I am providing an opinion of market rent on is:
1) Not the subject of the loan.
2) Is already rented and I have the rental agreement.
3) The opinion of market rent is only being used to substantiate that the present amount of the rent is consistent with the market rents in the area.
4) This property’s income (rent) is being used to determine the credit worthiness of the borrowers for another purchase in another state.
5) Therefore, we are not determining the market value of the property I am doing a 1007 on. It is only being used to make sure that the cash flow is there for the ability to purchase another property.

Regardless of the above list of uses, you are still opining a market rent-see what Danny Wiley posted - If an appraiser offers an opinion of a $ value amount , it is an appraisal -

 

[Airstream]

Regardless of the above list of uses, you are still opining a market rent-see what Danny Wiley posted - If an appraiser offers an opinion of a $ value amount , it is an appraisal -

My post is not suggesting otherwise. I just want people to understand the nature of the assignment; which is a bit odd.

 

[glenn walker]

I agree. I actually have it all figured out. So I’m good to go. Sending the report in Monday.

In General it's an Appraisal - Danny Is Correct BUT there is no certification form on a Stand Alone 1007 or a 2016 Operating income statement. Your only requirement is to have a Work File.

This was posted by Mike Garrett years ago :
We cover this in both the 15 hour and 7 hour update class. First of all the appraiser needs to decide what is the purpose of their assignment. Is it property specific? What would be the rent for 123 Main street or is it non-specific such as ... what are the rents for a single family residence in Lovely Subdivision.

The first is an appraisal ... the second is not but rather appraisal practice. Why appraisal practice? Because you were contact "as an appraiser". If the service you perform is an appraisal then the standards apply and you will be required to maintain a work file. If it is appraisal practice and there are no standards, you will be required to perform both ethically and competently and there is no work file requirement. I would; however, retain a file for reference but that is just me.

Remember that many people perform VALUATION SERVICES, IE, real estate brokers, attorneys, and accountants. This is the broad classification. Next is APPRAISAL PRACTICE. Something you might do because you were contacted as an appraiser. The last sub-set is APPRAISAL. It is where an opinion of value is given which could be expressed as a point value, a range of values, or (as in our example) a rent for a specific property. Appraisal includes Appraisal, Appraisal Consulting Assignments, and Appraisal Review.

 

[Carnivore]

See AO-21. An opinion of market rent is an opinion of the value to use and occupy space for a specified period. In short, it is an appraisal. Hence, when you communicate it you need an appraisal report that complies with the applicable requirements in STD 2. There are several threads here with suggestions on how to do that

There may be a follow up question to your answer.

I do have a solution for the OP. If the OP is using Ala Commode Software there are a number of USPAP Addendum the OP might find helpful.
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How are you doing? If you don't know I am sunsetting. My Goal is to quit/retire completely. I did a test run and have not completed any work in the last 30+ Days. Well that sucks because its winter and I can and do ride my motorcycle in the winter if its not to cold or wet. So I am kinda Bored

So I will not take 21 hr of annual CE, and just let my license expire june 2023.

 

[Airstream]

I actually made up a USPAP compliant addendum for this to stick in the report. And I do use Ala Commode Software.