2055 for proposed construction?

[bobburnitt]

I check the 'based on interior / exterior inspection' box. Again, it is an interior inspection because you have analyzed the plans and specs. The plans and specs tell what the interior is proposed to be. **If you don't have enough information to know what the interior (and exterior) is, then you don't have enough information to do the appraisal** And, of course, the appraisal is based on the assumption that the structure will be completed per plans and specs.

I guess you could put an asterisk in the box and explain in the comments if you want to be really super picky about it. Just as long as it is not ambiguous.

It is no different from doing a proposed construction on a 1004 (Complete Appraisal). You are relying on the plans and specs the same way, whats the difference?

In a perfect world, the form could have a plans & specs box, wouldn't be anything wrong with that.

BB in Texas

 

[Frederick R. Ruffell]

I disagree, there is no way you can do an "interior inspection" on proposed construction, and it is misleading to say that you have. If the form is not suited to the assignment (i.e. scope of work) do not use it. If the client cannot live with that so be it, I would not say I did an inspection of something that does not exist. I am not saying that the assignment cannot be done on a 2055, just do not say what is not true.

 

[bobburnitt]

Fred,

You may be right, but I still maintain that you have inspected the interior on paper. You have a set of plans that shows the layout. You can determine if there are any functional problems from them. You have the specs. They describe the quality and amenities. That is all you can do in the the inspection of the interior of an EXISTING structure, except for examining the condition, and you know what the condition of the proposed structure will be---it is proposed to be new or good condition.

However, it is your decision, you can check the inspected from street only box, if you feel that is more accurate. I don't know what the guru's think about it. I have been trained to check the inspected interior box because I HAVE INSPECTED THE INTERIOR BY VIRTUE OF ANALYZING THE PLANS & SPECS. The condition will be ASSUMED to be good.

I don't know why you couldn't check the inspected from the street only box, and then explained that you have examined the plans and specs, and of course you will attach the plans and specs to the report, uh appraisal. Looks like to me, you could go either way and it wouldn't be wrong. I wonder what the ASB thinks about it?

As far as being misleading, I am going to state in the comments that I examined the plans and specs blah, blah etc. and that it is a proposed new construction blah, blah. It is not misleading if it is clearly explained. However, it is always important to do what YOU think is right, you are the one who will pay if it goes south.

BB in Texas

 

[Frederick R. Ruffell]

Bob,
Here is the thing, you are the appraiser, you are the one who's butt is on the line, you are the one that is the expert, you are the one that is going to court if it goes south, you are the one that knows the difference between the 2055 and the 1004, you know that the 2055 does not have a "Proposed/Existing" feature built into the format and was never designed to accomodate proposed construction, you are the one that does know the 1004 does have a "Proposed/Existing" feature built into the format and was designed to accomodate proposed construction, you are the one that is to advise your client as to what is appropriate, you are the one that is going to answer to this in front of the judge. Question: What is the appropriate form (excluding narrative) for proposed construction for use in mortgage origination?

 

[bobburnitt]

Fred,

Look at the form, (Freddie Mac 2055).

It has a choice of boxes at the bottom of page. One that asks you "as is" or "subject to plans and specs". And it wouldn't matter if it didn't. There is nothing in USPAP that prohibits you from using the 2055 form for a proposed new construction.

If you do a narrative report, the "format" is a blank piece of paper until you fill it in with the data. There ain't no proposed / existing box on one of them either.

When you are doing a proposed new construction on a 2055, you are basing the appraisal on the assumption that the subject will be completed as per plans and specs just like you would on a 1004.

Give me the page, and line number in USPAP where it says you can't.

You need to look at the form a little closer.

BB in Texas

 

[David S. Roberson]

I'm with BB in Texas on this one.

 

[Rick Neighbors]

I'm with Bob in Texas also. I have done new construction on 2055 forms before also. I don't see any problem as long as the report/appraisal is not ambigous or misleading. You can type your little heart out on the extended comments page and disclose whatever you feel about the subject. If your client wants a 2055, and USPAP doesn't object, whats the problem?!

And Bob, you are right about the form having a check box for "subject to".

 

[Frederick R. Ruffell]

Bob,
I never said you "can't" nor did I say USPAP prohibits it. Furthermore you did not answer the question posed at the end of my last post. We all know we can report the appraisal on toilet paper in crayon and nowhere in USPAP does it say you can't (I use this extreme to demonstrate my point). But that is not the question. Let me rephrase it.

What is the MOST appropriate form (excluding narrative, as narrative is not a "form" but a format) for proposed construction for use in mortgage origination in the U.S.A.?

And you are right Bob, and I quote, "it is always important to do what YOU think is right".

For your consideration:

in.ter.nal; adj. [ L internus] 1 of or on the inside; inner
and
in.spect; [ L in -at + specere, look at ] 1 to look at carefully 2 to examine or review offically - inspection.

both from Websters new world dictionaryand thesaurus 1996

 

[P.Johnson]

Take a look at USPAP. If the cost approach applies, you must use it. FNMA does not care if you're in compliance with USPAP. However, your state investigator or your own personal ethics may dictate. The type of form is not important if you add to it. Also, don't forget USPAP requires an "as-is" value also and the effective date should be the date of inspection.

 

[Bob Ipock]

ALL Fannie Mae appraisla must comply with USPAP...they do not only care, but insist that that appraisal used for their loans are UPAP compliant.

Check out item # 7 on page 2 of the Fannie Mae Form 1004B (06/1993) under Appraiser's Certification.

Just curious? Does your particular State Appraisal Board require thet ALL appraisals done in your state be USPAP compliant? Ours does. I have had to fax that section of the Appraisal Act to a couple of lenders over the years who did not want the appraisal to be USPAP compliant.

Bob