2055 & USPAP

[residentialguy]

I fail to see how one can create a credible report without seeing the interior. Regardless of a recent MLS listings, how do you know the roof didn't spring a leak a few days before the effective date of the appraisal and there is mold and mush everywhere?

If that's the case, why would they create a 2055 form that under no circumstance could be done without an EA?

These have been done by the 1000's since 2005 and I haven't seen one appraiser hung by it. If they hang one, they'll have to hang them all.

 

[Terrel L. Shields]

Appraisers make assumptions (extraordinary assumptions ) on Virtually ALL "as is" reports. Read the five ASSUMPTIONS and limiting conditions for an interior inspection on a URAR form.

An extraordinary assumption is an assumption that applies only to the subject and is not a generic assumption such as written into the 1004 certs pages.

I believe you are NOT required to turn down an assignment when you cannot obtain information on the interior from a third source. I think you need to inform them that they need to upgrade the inspection to interior.

Of course, pre-foreclosure or if the people are in bankruptcy, there is a legal requirement for the bank to stay off the premises. Do not take it upon yourself to trespass. You could get in real trouble even if the property appears vacant.

So, I think the first issue is if the pre-foreclosure report needs to be reported on the 2055 or it is outside fannie mae's purview. But if the 2055 (current version) is the requirement, then it looks like a catch 22 if you cannot get in and you cannot find an alternative source of interior info...and fannie says no to any extraordinary assumptions.

That's why I have never done one and never will. It is my experience that a lot of REOs however are listed just prior to foreclosure as a desperate measure to get out of the house. If so, you can find the listing in the withdrawn, expired, or current listings and as such, you can usually get info about the property from the Realtor who listed it.

 

[Non Sequitur]

These have been done by the 1000's since 2005 and I haven't seen one appraiser hung by it. If they hang one, they'll have to hang them all.

I agree, except the numbers are probably in in the millions.

 

[hastalavista]

I fail to see how one can create a credible report without seeing the interior.

Credible results without an interior inspection are produced every day. Arriving at a credible result is evaluated by the intended use/user's needs/expectations and the SOW developed to complete the analysis.

If that's the case, why would they create a 2055 form that under no circumstance could be done without an EA?

My bold.

HouseWear: You and I will need to disagree because in your opinion, credible results cannot be achieved without an interior inspection or the use of an EA that provides the basis for the interior condition rating.
In my opinion, the basic SOW is sufficient to provide credible results. Again, I'll restate my position:
1. The only allowable EAs for GSE work are those provided for on the form. To violate this is to violate the signed certification. While some appraisers may think they can sign the certification and alter it in the addendum, at least two state regulators I know of (Oregon & California) have determined otherwise.
2. If I have a drive-by and I conclude that I need an EA for interior condition rating, then I should upgrade to an interior (or, decline the assignment).

:new_smile-l:

 

[Non Sequitur]

Credible results without an interior inspection are produced every day. Arriving at a credible result is evaluated by the intended use/user's needs/expectations and the SOW developed to complete the analysis.

Yep, appraisal 101; Intended use and user, SOW developed to solve the problem.