Does a 1004D recert of value require a drive by inspection?

[chad hampton]

A 1004d update should really go to the original appraiser. I wouldn’t do one on someone else’s report. Different that a completion certificate.

And the form says at a minimum you drove by the subject and checked out the exterior from the street. So I recommend doing that.

 

[J Grant]

What’s your thoughts on Fannie’s requirements regarding a substitute appraiser doing the update though?

"The appraisal update must occur within four months prior to the date of the note and mortgage.

The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. When updates are completed by substitute appraisers, the substitute appraiser must review the original appraisal report and express an opinion about whether the original appraisers opinion of market value was reasonable on the date of the original appraisal report. The lender must note in the file why the original appraiser was not used”.

To me….the word "must" constitutes a review assignment “on top” of the update assignment. so, yes, this can be done but the scumbag AMC is only looking at a $75 update fee seeing if they can take advantage of the green appraiser who’s not familiar with these.

It would be easier if the OP just did a new assignment.

agree. Even if the client pays $150 or $200 the more I read what is asked for an update the more it is not worth it. Let the cheapskates pay for a new appraisal or it is not our problem.

A completion of a 1004 D is different and straightforward.

 

[BRCJR]

Revised...this is a confusing question as asked on the form.... I concur with the original appraisal, since The 1004 D asks if the value has declined yes or no
I agree, typically it requires an external drive by photo, but the OP should ask their client.

For the OP - it is not called a recert of value anymore, it is an update. Charge enough for your time or decline it.

Does USPAP recognize or define an appraisal "update"?

 

[J Grant]

Does USPAP recognize or define an appraisal "update"?

Why are you asking me? Research it yourself.

The 1004 D form asks what it asks for, in addition to whatever USPAP says or does not say on the topic.

 

[BRCJR]

Why are you asking me? Research it yourself.

The 1004 D form asks what it asks for, in addition to whatever USPAP says or does not say on the topic.

Forms do not have to be USPAP compliant, so I do not care what the form says. That is for form fillers........

I asked you because the word "update" is not a phrase I use. Just was wanting your take on it.

 

[Tom D]

They actually mean your signed confomation of the value, it's an appraisal per USPAP.

I wouldn't do someine else's update. And for how much. And you better have a good workfile.

 

[Fernando]

When you have no assets and nothing to lose, those are the appraisers the lenders want to do their cheap updates.

 

[ZZGAMAZZ]

LOL……No.

Have a read of Fannie Mae’s appraisal age, and use requirements. This goes for the OP too.

Yea but somebody said that a 1004D isnt an appraisal..

 

[Tom4value]

I have seen the term, “substitute appraiser” mentioned in these comments. Can someone tell me what the hell a “substitute appraiser” is? I saw a 1004D once. There is “original appraiser”, “appraiser” and “supervisory appraiser”……no mention of a “substitute appraiser”.

Yeah, I am being snarky but I have a serious point. You sign that document, you are acting as an APPRAISER. You do the market research of the property and the market conditions for the time of the original appraisal and the current conditions and are forming an opinion/reconciliation of the two to determine if the value has declined. If I am the original appraiser, half of that assignment has already been done. If I am not the original appraiser, I need to do both.

Sorry but I have seen a lot. I have had AMCs telling me on appraisals I have done that I need a “revision” that states that “the value hasn’t declined”. I have gotten orders for a 1004D with a copy of someone else’s appraisal (usually just page 1 and 2) to “just state value hasn’t declined. No inspection needed, just your knowledge of the market”. Fee- $50. Go pound sand! You want my signature, I am doing that appraiser sh…er, stuff. I am also getting paid as such.

 

[DWiley]

Yea but somebody said that a 1004D isnt an appraisal..

When the Form 1004D is used as only a completion form, it is not an appraisal report.

When Form 1004D is used to report an "Appraisal Update" then it is an appraisal report, with the value expressed as a reference to a benchmark (the benchmark being the original appraised value).
Failure to comply with all the applicable USPAP requirements is a common issue for "Appraisal Update" reports. More specifically, such reports often fail to address SR 2-2(a)(x)



Often, appraisers just check the "No" box and move on.

This is addressed with a better design of the update form as part of UAD 3.6.