Amending the original appraisal from "subject-to" to "as-is" ?

[Zoe]

However the lender sends the reports to you, you can insert the reports in 1004D and get paid. Go back and take new pictures and talk to anyone that might be there about the repairs.

You would need permission to go back from somebody besides the lender.

 

[Dublin ohio]

She has not said whether the assignment was secondary market or not. If not, then an as is value is required...period.

We know, we know. But the as is value would have been based on the original effective date and take into consideration the needed repairs. Unless the want a new report with a new effective date reflecting the completed repairs

 

[Zoe]

I would play dumb. Please send me the reports on the repairs so I can go back and do final inspection. Are my original contacts for inspection still the same?

I need it for my workfile. I would run faucets and flush toilets. I would take pictures. With septic, I would want to know where the septic is for sure so I could take pictures of the ground.

 

[Zoe]

I completed an assignment "subject-to" repairs and inspections, as there were some plumbing/septic issues noted by the seller. The issues have been addressed and fully inspected.

The lender is asking for me to change the appraisal from subject-to to as-is? I told them I would still need to complete a 1004D, because as of the date of inspection, the property was not in compliance.

I told them as long as I have recieved the plumbing and septic reports, I would not need to go out to the property, as there is nothing to inspect. Two questions, am I wrong in this approach, and can't

the UW clear this issue without needing a follow-up 1004D?

Thanks for any insight.

You only owe me a thank you for my advice. Do you need money for a 1004D? I would gladly comply. The effective date don't change on a 1004d depending on what box you check.

 

[Elliott]

Isn't there an AO about this that says, don't sweat it?

 

[Zoe]

Isn't there an AO about this that says, don't sweat it?

I am telling you what route I would take. 1004D with reports from person who repaired it and final inspection.

I really wouldn't care if somebody in the transaction gave me the reports vs the lender. They would be in my 1004d when I submitted it with 1004d.

My effective date would not change.

 

[J Grant]

She has not said whether the assignment was secondary market or not. If not, then an as is value is required...period.

She referenced a 1004 form - that is a Fannie/Freddie form intended for the secondary market.

 

[J Grant]

Do not change the original report. Recently Fannie approved using inspection reports to as evidence that the repairs had been completed. BTW, the UW can also clear this.

Agree. Even if the lender chooses not to order a 1004D, and instead uses an inspection or an owner or agent photo/letter documenting the work done, then the lender needs to amend it on their end that on X date, an inspection indicated septic issues repaired ( which satisfied the subject to condition ).

The appraiser can not make the report retrospective back on the effective date "as is"- because it had safety or repair issues on that date that needed to be cured ( and/or can have a different value "as is" back on the eff date)

This is one more example of a GSE decision not to use an appraiser for portions of the appraisal can cause problems for the appraiser that they need to push back on. For appraisals made subject to, it used to be that a 1004 D was ordered, and the appraiser went back out . On the lender side, the appraiser having check off the "as completed" on the 1004 D removed the subject to condition. Now, a lender can opt not to have a 1004 D and can use an inspection report or have an agent or homeowner photo the repair and simply say it was done. Which makes it the lender's task, and not our task, to remove the "subject to" condition.

 

[J Grant]

So one in one hundred appraisals require a change in a check box and an explanation putting the responsibility on the lender/AMC....so build it into the cost of an appraisal. We aren't the inspection police.

We can't just change a check box. It is misleading to do that, because as of the eff date, the subject had a safety or repair issue that affected the condition and/or value.

 

[Terrel L. Shields]

She referenced a 1004 form - that is a Fannie/Freddie form intended for the secondary market.

Actually it is the form used by most appraisers for NON-CONFORMING conventional loans as well. Conforming loans are secondary market but NON-CONFORMING loans are still residential bank loans. Often I think the bank isn't clear about whether the assignment comes from one of the (secondary) loan origination departments or from a (inhouse) loan officer.