Construction Draw Inspection 1004d?

[redfish]

Client requested a construction draw inspection but wants it reported with a 1004D. The loan is a FNMA rehab loan. The lender client provided the contractor invoice detailing the work that is to be complete for the draw. I am reporting on the 1004D because I have found no direction from FNMA on the appropriate reporting format. Am I missing something?

 

[hastalavista]

I don't think you are missing anything.

Lenders default to the 1004D for a lot of things because it uploads to their system without a hassle.
You will (and you know this already) need to provide an addendum identifying the type of service (which is not an appraisal) you are performing and that your engagement is limited to X, Y, and Z responsibilities.

For small banks, I just send them a signed letter on my own letterhead of what I've done. They don't have the complex uploading systems. The letter gets stuck in the loan file and the check is issued.
For larger lenders, they feel the need to have everything-appraisal captured in the .env or xml formats. This is why many do not accept out-of-date forms anymore (they are not compatible with their uploading system), and this is why many require the appraisal-communication to be completed on some kind of "form" that can be uploaded through their portal system.

 

[redfish]

Thanks Dennis, I prefer other methods of reporting inspection results but hey, I'm just an appraiser.

 

[Terrel L. Shields]

The 1004D has to be about the worst possible form to use...but probably is used the most. Dumb, really dumb. But the last one I did was simple narrative...inspection for draw was not for a report of the existing property. We simply followed the stage of completion and when that was done, we provided a final report and value (it was an REO).

 

[Meandering]

Client requested a construction draw inspection but wants it reported with a 1004D. The loan is a FNMA rehab loan. The lender client provided the contractor invoice detailing the work that is to be complete for the draw. I am reporting on the 1004D because I have found no direction from FNMA on the appropriate reporting format. Am I missing something?

If there will be more than one inspection and report and construction draws,

Alamode has a simple inspection report that you fill in and up date for each new inspection,
and then do the 1004d at the last inspection.

Seemed to be a better system then 4 or 5 1004ds, as the inspections are numbered on the forum and it's easy to look at midway and see what's been completed and what is yet to be completed.

.

 

[Tom D]

i hate doing construction draws. do you realize the liability you have. your verifying that it was done & done correctly. if it's something simple then that's ok. i would as the famous book says "run rabbit run" away from a new house construction draw. by the way, technically a construction draw report is not an appraisal. are we sure that we are covered by our E&O. what expertise do you have beside your own ego? by the way, i have built homes so i know how they can do it badly.