Does 1004D appraiser assume liability for underlying report?

[Steve Pendleton]

I was asked to do a 1004D on another appraisers original FHA report. During the inspection I noted that the original deficiency had been corrected, but there were two smoke detectors missing and the inside cover of the circuit breaker box was not secured. I marked the original deficiency as complete and added a comment about the other deficiencies I had observed. The lender is now asking me to remove the comments about the additional deficiencies. What do you all think? My understanding is that once I sign the completion report I am taking on the liability for the entire report. Should I hold the line?

 

[alebrewer]

You're reporting what you saw. I personally would do the following:

• note whether the original items had been remedied
• point out any additional non-compliance you note during the site inspection
• Disclaim that your inspection is not intended to be exhaustive and that there could be additional areas of non-compliance

 

[Tim Hicks (Texas)]

You can try. No good deed goes unpunished.

You are not incorrect in your observations, it is just not their objective.

UWM?

 

[Steve Pendleton]

You're reporting what you saw. I personally would do the following:

• note whether the original items had been remedied
• point out any additional non-compliance you note during the site inspection
• Disclaim that your inspection is not intended to be exhaustive and that there could be additional areas of non-compliance

I reported that the original deficiency was corrected and added a note about the additional deficiencies I noted while there. I know the chance is small but I dont want to hang if a fire starts and someone dies or gets hurt.

 

[Steve Pendleton]

You can try. No good deed goes unpunished.

You are not incorrect in your observations, it is just not their objective.

UWM?

UWM??

 

[Tim Hicks (Texas)]

United Wholesale Mortgage. They have frequently new underwriters.

 

[J Grant]

I personally do not see why someone completing a 1004 D for a specific item repaired or installed has any liability beyond that one item -

 

[togatour]

When an FHA report is submitted subject to repair(s), it is assumed that when those specific repairs are satisfactorily completed that the property will meet the minimum FHA standards. I typically put a comment to that effect on my FHA 1004D reports.

The underwriter can sign off on your report exactly as you sent it in. They want you holding the bag and your instincts are correct. Push back and if it is a client worth keeping, try to educate them (good luck) as to why you are required to report deficiencies that were observed.

Is this a purchase? Buyers have a right to know. If a refinance, they probably already know.

 

[Tom D]

A 1004d is not an appraisal. A monkey can do it. It is a specific item repair requested. You over stepped. Did they ask you for a home inspection, or to review the inspection. I would never do a 1004d for another appraiser done. You do need to state that you were not involved in the previous appraisal. Now you have learned why, it's an existental threat.

If i'm the lender, i'm saying wha da to your over stepped 1004d, and checking you off my list. Worth doing soneone's appraisal 1004d.

 

[Terrel L. Shields]

Part A/Summary Appraisal Update• Purpose: Extend validity time of existing appraisal:– About to expire or– For incomplete new construction• Is completed by original FHA Roster appraiser • NOT for properties that have declined in value• NOT when valued building improvements not visible from street• NOT when inspection reveals deficiencies/changesML 2010-13, ML 2009-51 effective 02/15/10

Yes, according to FHA guidelines, the original appraiser is required to complete the 1004D completion certificate, which is used to verify that any required repairs or conditions noted in the initial appraisal have been completed before final loan approval; in most cases, another appraiser cannot substitute for the original one to complete this form.