2-4 Unit On 2055 Exterior Form?

[VolcanoLvr]

Some lenders/AMC's ask appraisers to complete an EXTERIOR report for a duplex, triplex, or 4 plex on the 2055 Form. Apparently, some appraisers do these assignments this way, without blinking (or thinking).

Here's what the form says:
"This report form is designed to report an appraisal of a ONE-UNIT property or a ONE UNIT property with accessory unit; including a unit in a planned unit development (PUD)."

Furthermore, the form also says: "Modifications, additions, or deletions to the intended use......ARE NOT PERMITTED."

I've heard through the grapevine that one prominent Chief Appraiser at a large appraisal firm with staff appraisers across the US that the CA has told at least one AMC that it's perfectly fine that this form be used for 2-4 Unit Exterior only assignments, without violating USPAP.

What do the "guru's" say about this kind of assignment on this 2055 form, relative to the appraiser's responsibility under USPAP?

 

[Carnivore]

Well, the form is just that a form. The first issue is that it may mislead a reader/user. You still have to comply with USPAP. Its better to think about this as a client looking to get something on the cheap. They want a stated Market value on a specific date; date of inspection is most common. If they could get you to provide a letter size one page report with your name, state seal, effective date and market value they would tell you that's all they want and that's all they will pay for. They know you have mandatory requirements. They don't have mandatory requirements.

So my advice is, Pass on it. Let some other sap do it.

 

[DWiley]

I see it is Groundhog Day at the Forum. .

I ask the question I have posed before -

Given that many lenders (especially the default department) have a need for exterior only appraisals on 2-4 unit properties, given that there is no Fannie Mae form for exterior only 2-4 unit properties, and given that most lenders' systems cannot accept non-Fannie Mae forms, what solution is suggested?

 

[Randolph Kinney]

I agree with Carnivore.

 

[gregb]

I see it is Groundhog Day at the Forum. .

I ask the question I have posed before -

Given that many lenders (especially the default department) have a need for exterior only appraisals on 2-4 unit properties, given that there is no Fannie Mae form for exterior only 2-4 unit properties, and given that most lenders' systems cannot accept non-Fannie Mae forms, what solution is suggested?

Use the 1025, subject to inspection, once it is an REO.

 

[ucbruin]

I see it is Groundhog Day at the Forum. .

I ask the question I have posed before -

Given that many lenders (especially the default department) have a need for exterior only appraisals on 2-4 unit properties, given that there is no Fannie Mae form for exterior only 2-4 unit properties, and given that most lenders' systems cannot accept non-Fannie Mae forms, what solution is suggested?

Not to sound disrespectful....

But the solution is not the appraisers' responsibility....

 

[Michigan CG]

Not to sound disrespectful....

But the solution is not the appraisers' responsibility....

Someone please come and check on me, I just "liked" something that UCBruin posted.

 

[Randolph Kinney]

Someone please come and check on me, I just "liked" something that UCBruin posted.

Same here.

 

[Michigan CG]

Given that many lenders (especially the default department) have a need for exterior only appraisals on 2-4 unit properties, given that there is no Fannie Mae form for exterior only 2-4 unit properties, and given that most lenders' systems cannot accept non-Fannie Mae forms, what solution is suggested?

Every single lender with more than three brain cells knows that some states will sanction appraisers for doing what they ask yet they still ask. Sounds like the lenders need to come up with a solution involving FNMA.

What the lenders are saying is "We need this, and know that your state board could sanction you for this but we don't care and if you do get sanctioned we feel terrible about your increased E and O, that USPAP class you had to take, those clients you lost and that fine...............but will you please update the system and remember this report is due by 3:42 Thursday or we will have to put a negative mark on your report card."

 

[DWiley]

Every single lender with more than three brain cells knows that some states will sanction appraisers for doing what they ask yet they still ask. Sounds like the lenders need to come up with a solution involving FNMA.

What the lenders are saying is "We need this, and know that your state board could sanction you for this but we don't care and if you do get sanctioned we feel terrible about your increased E and O, that USPAP class you had to take, those clients you lost and that fine...............but will you please update the system and remember this report is due by 3:42 Thursday or we will have to put a negative mark on your report card."

Can you please cite a case where an appraiser did this, included proper disclosures, and was still sanctioned? I can cite a state newsletter that said that it was OK with proper disclosures.

I have seen sanctions, but in the cases I have seen the appraiser just used the base form and added no commentary/explanation - so, in those cases the report was misleading. Waiting anxiously to see your citations.