Can I Have An Effective Date Prior To Contract Date

[Fargo1]

I am banging my head on my concrete driveway .. Just do the appraisal and be done .. LOL

The appraisal is already done. The lender asked me to change the contract date because I have an effective date prior to a contract date. I am trying to figure out if I am correct to hold my ground or should I not have considered any contracts signed after the effective date? The frustrating thing is, you know that if I used the older contract the lender would be asking me to change the value because the values don't match. So at this point I am inclined to just sit on the appraisal as it was completed. I'm still not convinced that I can't have an effective date earlier than a contract date. The contract provided is the contract I used in my scope of work regardless of when I viewed the property.

EDIT: Yeah, I feel like I am banging my head on the wall too.

 

[huntercharlie]

You said this was for VA and doesn't sound like you've received a concrete answer. This is from a Fannie Q&A and they are the author of the report, so perhaps it helps (or not). Note, it does not state that we are required to comment on it in the report, which may sound odd, just that it was given to us and we had a chance to review;


Q7. Why does Fannie Mae require the lender to provide the sales contract to the appraiser?

Fannie Mae’s policy is intended to help ensure that the appraiser is aware of all relevant

aspects of the transaction. The sales contract provides important sales and financing data,

including whether there are any concessions as part of the transaction. If the contract is


amended, the lender must provide the updated contract to the appraiser to ensure that the


appraiser has been given the opportunity to consider any changes and their effect on value. If


the appraiser determines that there is no impact to value, then no additional commentary is


required from the appraiser.

 

[Fargo1]

There again, we are asked to consider the sales contract.

What is odd in my situation, is that the lender and the VA are asking me to disregard contract addendum that was dated after the date of the inspection. But I don't see how I can do that. I had it. Even if it didn't come from the lender, I had the contract in my possesion and it was part of my scope of work. Where did the VA get this idea that the scope of work ends the day I view the property? Isn't 'scope of work' a process? Isn't it possible for my scope of work to change as I discover new information. Even though the contract was dated after my effective date, I had the contract in my possesion and considered it as part of the assignment.

The more I look into this the more I am confident I don't need to change my report. My effective date and the contract date are concurrent. I don't think it matters if I viewed the property the day before they signed the final papers. I had all the paper work as I completed the appraisal. That addendum was included in my scope of work.

I think I am going to leave my report alone. I'm going to need more substantial proof from the lender that this is a USPAP violation before I change anything. I have not heard any of my peers say this is a violation and I don't see it either. Thanks for the help guys.

 

[Don Clark]

There again, we are asked to consider the sales contract.

What is odd in my situation, is that the lender and the VA are asking me to disregard contract addendum that was dated after the date of the inspection. But I don't see how I can do that. I had it. Even if it didn't come from the lender, I had the contract in my possesion and it was part of my scope of work. Where did the VA get this idea that the scope of work ends the day I view the property? Isn't 'scope of work' a process? Isn't it possible for my scope of work to change as I discover new information. Even though the contract was dated after my effective date, I had the contract in my possesion and considered it as part of the assignment.

The more I look into this the more I am confident I don't need to change my report. My effective date and the contract date are concurrent. I don't think it matters if I viewed the property the day before they signed the final papers. I had all the paper work as I completed the appraisal. That addendum was included in my scope of work.

I think I am going to leave my report alone. I'm going to need more substantial proof from the lender that this is a USPAP violation before I change anything. I have not heard any of my peers say this is a violation and I don't see it either. Thanks for the help guys.

My solution is this, and I have received the exact set of circumstances you refer to many times, mostly this past year. You cannot change the contract date in the report. If you do it is a new assignment. New assignment's do not necessarily require a revisit to the property. See FAQ 134, page 273 at top of page. Unless there is a good reason, you can use a previous report, in whole or in past in a new assignment. But what you are describing can be easily accommodated by simply noting the change on an addenda(I use page 3 of the URAR) I put in caps ADDITIONAL COMMENTS AS OF (DATE): (SAMPLE): Lender has requested that information contained in a contract that was amended after the effective date of the appraisal be included in the report. The original contract date and terms cannot be changed without doing a new assignment which VA will not allow. The amount and terms of the new agreement is___________________________________________________. The date of the report has been changed to accommodate this information, but not the effective date.

This keeps you in compliance with USPAP. See also FAQ 135, page 273.

 

[Fargo1]

Thank you Don. I am going to do something like that. Except I am not touching my report unless they come back to me again. Then I will view the new report as a new assignment using the old contract and I will comment on the contract changes for the addendum changes after the effective date.

 

[Don Clark]

Thank you Don. I am going to do something like that. Except I am not touching my report unless they come back to me again. Then I will view the new report as a new assignment using the old contract and I will comment on the contract changes for the addendum changes after the effective date.

VA will not allow a new assignment of an existing appraisal that is less than 6 months old.

 

[Fargo1]

VA will not allow a new assignment of an existing appraisal that is less than 6 months old.

You can have a new assignment, but you need to use the same VA loan #. At least thats how I understand it.

 

[Don Clark]

You can have a new assignment, but you need to use the same VA loan #. At least thats how I understand it.

Not what the Roanoke RLC has told me, many, many times.

 

[Fargo1]

Not what the Roanoke RLC has told me, many, many times.

Yeah, somehow that doesn't surprise me. I can call the VA and talk to 3 different people in the same office and get 3 different answers on things. But I don't see how the VA is the one with the power to determine what is a new assignment. If a contract or property changes significantly, it is a new assignment. You can't just say its not a new assignment because you don't want to pay extra fees or something. A new scope of work is a new assignment. They can call it the same file and use the same case number, but the appraisal itself is a new assignment. Fees charged are or course a business decision and irrelevant to whether its a new assignment or not.

 

[Mike Garrett RAA]

it's the golden rule...them with the gold makes da rules.