Appraisal Update Question

[Backscratcher]

A loan officer sent me the following request: "I have 2 house loan applications that I want to do under the expedited process for the secondary market. This requires that the appraiser verifies that the property hasn’t declined in value since the most recent appraisal."
I assume he is asking for an appraisal update on 1004D. I completed the appraisals in 2009 & 2010. Our market has not declined since 2009. Is there a limitation on how long after the effective date an appraisal can be updated?

 

[Lee Lansford]

Is this for a loan which is headed to the secondary market?

 

[Backscratcher]

Yes, it is going the secondary market.

 

[Lee Lansford]

In that case, inform the wannabee client as to the conditions (current inspection, communicate appraisal via 1004/URAR, 1004mc, uad--I assume) under which you are willing to proceed.

 

[NORTON]

A loan officer sent me the following request: "I have 2 house loan applications that I want to do under the expedited process for the secondary market. This requires that the appraiser verifies that the property hasn’t declined in value since the most recent appraisal."
I assume he is asking for an appraisal update on 1004D. I completed the appraisals in 2009 & 2010. Our market has not declined since 2009. Is there a limitation on how long after the effective date an appraisal can be updated?

can't argue with you as I don't know your market but no decline since 2009....that's impressive! an appraiser would be crazy to do a 1004d with a 2 to 3 year window since prior inspection

 

[SutnNC]

My best advise based on your post and having no other details, don't even consider it.

 

[Michael Tipton]

FHA, Freddie, FHA, VA or a specific wholesale lender's refi program? Without knowing where the loan is going we cannot address their specific appraisal guidelines. As others have stated, I would not consider anything less than a new interior/exterior inspection due to the amount of time that has passed and other issues.

 

[Rich Heyn]

Lenders only have a short (four or six month, can't remember) window from the effective date of the original appraisal to use a 1004D. I think Elvis has left the building.

 

[Lee Lansford]

Lenders only have a short (four or six month, can't remember) window from the effective date of the original appraisal to use a 1004D. I think Elvis has left the building.

Rich, it was very nice to meet you 8/13 at the ICAP seminar (side-note to all: Rich gave a quite nice presentation on all matters UAD ) on Monday!

For anyone who might be considering attending (live or webinar) one of Rich's presentations, my advice is do it!

 

[andrew81]

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page 516

Age of Appraisal or Age of Property Inspection​

Properties must be appraised or inspected (if that is the level of property fieldwork recommended for a loan casefile underwritten through DU) within the 12 months that precede the date of the note and mortgage.​

The selling guide goes on to state that the 1004D applies when

appraisal reports are more than four months old on the date of the note and mortgage

—regardless of whether the property was appraised as proposed or existing construction,​