Change in GLA from Plans & Specs

[PropertyEconomics]

Intended Use.

Intended use? You know what the intended use is. Its to complete the mortgage transaction ... so are you telling me I cant complete an appraisal like that?

 

[Mike Kennedy]

A “Recertification of Value” is performed to confirm whether or not the conditions of a prior assignment have been met. One example of a “Recertification of Value” is a “Final Inspection.” When an appraiser is asked to complete a “Final Inspection,” the appraiser is confirming that conditions established in an assignment have, or have not, been met.


“Final Inspections” are commonly used in the case of proposed construction where an appraisal is completed subject to completion per plans and specifications.

 

[PropertyEconomics]

The USPAP requires Fannie SOW adherence when the client-requested/suggested/required SOW is determined by the Appraiser to allow for development of a credible OV and the order is accepted.

How do we even know this is a Fannie loan and that Fannie SOW is applicable? Just because its put on the 1004 doesnt mean its a fannie product does it?
And I remain convinced that the original requirements of the appraisal report have been met ... not only have they been met they have been exceeded thus use of a 1004d is not misleading and you can answer YES. The original appraisal is not VOID as some have suggested. There were not structural changes to the residence constructed. Only the addition of finished attic space and the addition of a garage / shop. Show me in any circumstance where the original improvements were not constructed in accordance with the plans?
I would agree with you had the plans called for the attic to be finished and it wasnt, thats a different story, however, thats not the case. All improvements are complete ... and exceeded.

I suppose the only way to do it under the Kennedy Doctrine is to complete a new 1004 at the same price of a final inspection fee and give them new comps. Certainly demanding your client get a new 1004 and pay full fee for it will result in the loss of your client. The choice is yours, however, USPAP does not prevent you from doing the job as described by Mr Rex throughout this thread. Common sense should prevail.

 

[Mr Rex]

Mike, do you offer any service other than a 1004? Have you ever? Can you walk us through how you make these alternative products USPAP compliant?

 

[Mike Kennedy]

So, where does it say on the Fannie form 1004D, that the only acceptable answer is a new 1004?

Cathy, "Since an additional sale is required by the lender I would grid one or two sales based on the now 3900 SF home with the workshop that will show a higher value (already researched) than the original report"

If true - the higher value will not "concur" with the original value which is required SOW for the 1004D. The Lender required the original Fannie 1004. The Lender then required the Fannie 1004D. Odds are there is a reason they expected the original report, and now the 1004D, to be Fannie compliant (also USPAP COMPLIANT).

Given Cathys' statement above (anticipated above in all my posts), an Upgrade to 1004_05 for it to be acceptable for the Intended Use will be required by Fannie (and most assuredly by the Lender assuming they intend to sell the loan).

 

[PropertyEconomics]

WOW ... that was a fast change .. deleting NOR CERTIFY "NOT LESS THAN" the orginal value .....

The new value will in fact certify a value not less than the original value ..... tsk tsk tsk.

 

[Mike Kennedy]

Mike, do you offer any service other than a 1004? Have you ever? Can you walk us through how you make these alternative products USPAP compliant?

:laugh:Have you ever answered direct questions with anything other than another irrelevant (per this thread) question?

 

[Mike Kennedy]

WOW ... that was a fast change .. deleting NOR CERTIFY "NOT LESS THAN" the orginal value .....

The new value will in fact certify a value not less than the original value ..... tsk tsk tsk.

Do you not review your own postings and adjust them? Tisk.


Will the New Higher Value "concur" with the original report? Is the subject STILL the original subject? tisktisk.


Will Fannie accept a NEW value (whether lower or higher) on a 1004D? (no). Will a lender who intends to sell the Loan to Fannie? (no).

 

[Mr Rex]

Cathy, "Since an additional sale is required by the lender I would grid one or two sales based on the now 3900 SF home with the workshop that will show a higher value (already researched) than the original report"

If true - the higher value will not "concur" with the original value which is required SOW for the 1004D. Upgrade to 1004_05 for it to be acceptable for the Intended Use will be required by Fannie (and most assuredly by the Lender assuming they intend to sell the
loan).

Quote your source. I don't see any references in your post to actual lender guidelines. The lender client seems to be perfectly happy with a concurrence. The subject iimprovements exceed the plans and specs established and the LTV based on the smaller GLA, but a lost in space appraiser demands that he do a new appraisal.

 

[Mr Rex]

Have you ever answered direct questions with anything other than another irrelevant (per this thread) question?[/quote]
:laugh:
Have you ever asked a direct question? (we will get to answering later)