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704 Limimting Conditions

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Atlanta CG

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Anyone out there have a sample of additional comments inserted in a 704 report to make USPA compliant? One of my clients has decided to make this his form of priority and not the 2055. I cannot change his mind.
John from Atlanta
go h...
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
8)

John:

No form is USPAP compliant unless you follow USPAP, and include a signed certification page similar in content to the one in Standard Rule 2-3 on page 30, lines 1059 - 1084, 2002 edition of USPAP. Also, please note that there are different types of certification(s) for:
1. Appraisal review report
2. Business appraisal
3. Consulting services
4. Mass appraisal
5. Personal property
6. Real Property Appraisal Report

Look in the index of the 2002 USPAP on page 227.

Sometimes you just have to read it for yourself.

PS: The standard FNMA certification and limiting conditions form is not USPAP compliant unless you add additional statements. I suggest you add the additional statements on an addendum as lenders have a hissy fit if you do so on the Fannie Mae form.

Remember: An appraisal is a thought process. A report is the vehicle you use to convey those thoughts. There are no "USPAP Approved Forms". There are and can be a USPAP compliant form using any form, or narrative format.

Don Clark
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
My discussions with clients regarding 704 has been that for $zzz I will do a 2055 but the 704 will cost a $100 more because of all the additional pages, etc that I will need to do. So I haven't had to do a 704 since 1996 because the client decides the 2055 will work just fine. And Don is very correct, all of Fannie Mae's forms were created prior to the latest changes to USPAP so additional and different certifications have to be used or added to the package if the loan is being sold to Fannie Mae. Fannie Mae requires their 1993 version of 1004b but will accept additional limiting conditions (updated UPSPAP version). Have you tried the increased fee method with your client?
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
My state has said the 704 is not in compliance with USPAP; therefore, not to be used. Haven't done a 704 since 95.
 
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