Drive-by on 1004C form

[sandbob]

Major bank wants a drive-by 2055 for default purposes – the AMC (and presumably lender) don’t know it is a manufactured home until I find out and call the AMC.
They changed the form type to a 1004C 'exterior' – hence my question...

The certificate, assumptions, scope of work, etc that I will be signing state several ‘musts’ that involve interior inspection. And, the form states no deletions, modifications or additions to any of this are permitted.

I am uncomfortable signing and then stating elsewhere in the report that none of this is really true. And I would have to state that I have actually changed the scope of work, limiting conditions and assumptions on this form that I have signed saying I had not.

Isn't this just too many contradictions, or am I just being to literal – if I had no one to run this by I would probably decline the assignment. Something ‘feels’ misleading about stating one thing in one part of the report and stating the contrary in another part of the report.

This major lender has hundreds of these coming through this major AMC

 

[Mr Rex]

I'd suggest changing the last 3 pages. It's not that hard to do.

 

[sandbob]

You mean change the Certification, Assumptions & Limiting Conditions? but one of those is the signature page and on the first of those 3 pages it states 'no deletions, modifications or additions are permitted'

 

[Mr Rex]

Umm, you delete and replace that form.:icon_idea:

 

[Jo Ann Meyer Stratton]

No, do not report an exterior only appraisal on a 1004C. You would not have access to the HUD label or data plate to verify it really is a manufactured home. You also would not have any information about the interior; for example paneled walls or drywall, etc.

Use the old 2055 form with lots and lots and lots of explanation and descriptions.

 

[sandbob]

That is what I was thinking -- can't do an exterior only appraisal on an interior/exterior manufactured home form that is intended for interior/exterior... AMC says just 'Assume' everything (full slab for instance) and put disclaimers
.... can't change the last 3 pages of the from either as previously suggested.
Wellsfargo wanted the 2055 originally, (this is default purposes) but changed it to the 'drive-by' 1004C when they found out it was a manufactured home. They called it a 1004C exterior. For some reason (no one seems to know) Wells won't do a manufactured home on a 2055, and yet I can't do an exterior only on the 1004C.why they won't accept a 2055 for a manufactured home.
Seems like there would be some concrete, definitive USPAP relevancy that I could show

 

[Deleted member 128537]

I would do it on the 1004C as the client wants it. Heck if they change their mind all you have to do is exchange the two reports. Pretty simple. Also it really doesn't matter much, you just put an addendum in that the scope of work has been changed. Also you would have to put in some parts of the report N/A for that data you don't have. Also if this is for a default someone has those certification numbers. They should be able to provide that to you since it's their loan. I have asked for data from a previous appraisal on an exterior pre-foreclosure when the data that I had from the assessor was inadequate. They gave it to me. Otherwise state that due to the scope of work they aren't available or haven't been provided. Also some of the information might be available in the tax records of the assessor.

Remember they are primarily looking for a value they can use for risk analysis. This isn't going to a GSE or some other lender. It's pretty much an in-house thing. They aren't going to go after you because of something they asked you to do.

 

[Rich Heyn]

I'll play devil's advocate on this one.

Suppose you get a call from Bob at the local credit union. You have a good, long relationship with Bob, who explains to you that they are foreclosing on a loan involving a manufactured home with a hostile occupant. Since the CU is familiar with the MH form they want the assignment reported on a 1004C but realize that it will be exterior only. They want the form transmitted electronically and stripping off the last three pages is not an option. The CU is the only intended user.

You explain that you will have to make a very clear and prominent countermanding statement that despite what the form says in the preprinted language on pages 5 and 6, the scope of work did not include an interior inspection, given the inability to access the interior due to a hostile occupant.

You also explain that you will be including prominent statements that even though the 1004C form was designed for use with an interior inspection, the reporting format used was chosen by the client as the best alternative and was used at the specific request of the client.

Finally, you explain there will be prominent statements to the effect that there are no other intended users and that the report is not intended to be used in any transaction involving Fannie Mae, Freddie Mac or any other entity with similar requirements.

Bob is good with all this and you write up a short engagement letter in which Bob stipulates to all these issues.

If I missed any certifications or such that would not apply, let's assume, for the sake of this discussion, that those would be countermanded as well.

I'm not saying that there are not better alternatives, such as a short narrative, but that's not my point. I just don't see a USPAP violation here.

The "modifications and deletions...not permitted" has to be viewed within the context of the form's intent and design. What it says is that if a lender wants to sell a loan to Fannie or Freddie, they will not accept an appraisal report with such modifications or deletions. To my knowledge, there is no legal authority that would prevent an appraiser from countermanding anything on the form. The forms are not copyrighted and Fannie has acknowledged that folks are gonna do what they're gonna do with the forms.

For the record, I'm not a fan of countermanding statements for a number of reasons, but USPAP violations are not one of them.

 

[CANative]

It's like "the law" about tearing the tag off a new mattress.

 

[Lee Lansford]

You mean change the Certification, Assumptions & Limiting Conditions? but one of those is the signature page and on the first of those 3 pages it states 'no deletions, modifications or additions are permitted'

The sole Intended User is the lender-client, yes?

The intended use is as you stated, right?

The use does not include a loan which is headed to the secondary market, yes?

Thus, neither Fannie nor Freddie are involved in this matter (re: your comments regarding "no deletions...").

I'd have a detailed 'letter of engagement' between the lender-client and yours truly and specific to the modifications and SOW for the assignment. With the above understandings, I could conduct such an assignment...but, I don't have certainty as to how the folks in Oregon understand these matters.