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Fannie 1004 (March 2005) Question

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Francois K. Gregoire

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Florida
Hi All,

I've scoured the documents I have, but have not been able to find a specific requirement or instruction related to checking "Supervisory Appraiser" boxes on page 6 of the Fannie Mae Form 1004, March 2005.

Although it seems reasonable to me to assume the boxes under "SUBJECT PROPERTY" on the lower right of page 6 apply to the SUPERVISORY APPRAISER, is anyone aware of a specific instruction or requirement from Fannie or Freddie that states the boxes pertaining to inspection of the subject property and/or comparable sales relates to the SUPERVISORY APPRAISER?

I need something published prior to December, 2006.

Thanks, in advance for your assistance.
 
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Thomas Fiehler

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Ohio
Frank-Not sure of your question (possible too much Tequila) but there are boxes to check that the SA did/did not inspect.
 

Francois K. Gregoire

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Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Frank-Not sure of your question (possible too much Tequila) but there are boxes to check that the SA did/did not inspect.

Yep, those are the boxes I'm referring to. Are you aware of a specific reference that states those boxes refer to the Supervisory Appraiser inspecting the subject property or comparable sales.

I believe a reasonable person could make that inference, but am looking for a specific rule or guideline.
 

Mike Kennedy

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New York
XI, 101.01: Licensing and Certification Requirements (06/30/02)
We require a lender to use appraisers that are state-licensed or state-certified (in accordance with the provisions of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989) to appraise the properties that secure mortgages it intends to deliver to us. The lender (and any third-party originators it uses) must be aware of, and in full compliance with, state laws for licensing and certification of real estate appraisers. The lender must document that the appraisers it uses are licensed or certified as appropriate under the applicable state law, either by including the license or certification number with the appraiser’s list of qualifications that the lender has on file or by retaining a copy of the license or certification in the file the lender maintains for the appraiser. The appraiser must note his or her license or certification number on the individual appraisal report forms.

When a new appraisal is required for a mortgage that a lender delivers to us, the lender warrants that the property has been appraised by a state-licensed or state-certified appraiser. Our appraisal report forms define the appraiser as the individual who personally inspected the property being appraised, inspected the exterior of the comparables, performed the analysis, and prepared and signed the appraisal report as the appraiser.

This definition does not preclude an appraiser from relying on individuals who are not state-licensed or state-certified to provide significant professional assistance (such as an appraiser trainee or an employee of the appraiser doing market data research or data verification) in the development of the appraisal.

The state-licensed or state-certified appraiser who signs the appraisal report must acknowledge in the report the extent of the professional assistance provided by others and the specific tasks performed by each such individual and must certify that the named individual(s) are qualified to perform the tasks.

Under some state laws, a lender’s use of an unlicensed or uncertified appraiser who is working as an employee or sub-contractor of a licensed or certified appraiser will satisfy the state’s licensing and certification requirement, as long as the appraisal report is signed by a state-licensed or state-certified “supervisory” or “review” appraiser.
________

USPAP SR 2-3
I have (or have not) made a personal inspection of the property that is the subject of this report.

(If more than one person signs this certification, the certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraised property.)(note41 )

-----

Also suggest referring to individual State Requirements and Scope of Work mortgage lending assignment requirement re whether Supervisory Appraiser MUST co-inspect and/or check boxes on 1004_05 indicating same.
 
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Francois K. Gregoire

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Professional Status
Certified Residential Appraiser
State
Florida
Mike,

Thanks. All of that tends to support what I know to be true. However, I would really like to find a specific published rule or guideline stating the boxes relate SPECIFICALLY to the the level of inspection made or not made by the SUPERVISORY APPRAISER.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
FRANK....It's a scope of work issue and State Licensing requirement issue....see TOP OF PAGE 16.........>>>


Inspection:​
Inspections may be required at the discretion of the Underwriter or Appraiser.
 
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Francois K. Gregoire

Thread Starter
Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Florida
FRANK....It's a scope of work issue and State Licensing requirement issue....see TOP OF PAGE 16.........>>>


Inspection:

Inspections may be required at the discretion of the Underwriter or Appraiser.

Mike,

The problem with using the Supplemental Standards Rule is it calls for Supplemental Standards to be issued (i.e., published) by an agency or GSE. I'm trying to locate a published standard.

I do not need convincing, but must convince another, non-appraiser, of the requirement.
 

Restrain

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Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Check your state regulations and how they are interpreted. We all know how the GSEs would interpret the requirement. The Left side is for the Inspecting Appraiser, the Right Side is for the Supervisory Appraiser (who may also be an inspecting appraiser). It is stated in the declarations and certifications that, unless otherwise specified, all signatories inspected the property. The boxes above the Supervisory Appraiser allows the Supervisory Appraiser to show the extent of the inspection.
 

Don Clark

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Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Mike,

The problem with using the Supplemental Standards Rule is it calls for Supplemental Standards to be issued (i.e., published) by an agency or GSE. I'm trying to locate a published standard.

I do not need convincing, but must convince another, non-appraiser, of the requirement.

Frank,

I have an original power point for instructors that was provided by Fannie Mae in a "Train the Trainer course I took in 2005 when Fannie Mae taught over 50 instructers how to teach others to use the new forms. I will send the PP to you if you want it. But I will have to do that in the AM. It is on my computer at work. I will also look for that specifically.
 

cdeyoung20

Junior Member
Joined
Aug 10, 2008
Professional Status
Certified Residential Appraiser
State
Louisiana
I understand that you are trying to find documentation on this, but I would have to say that it is obvious that these boxes are specifically for the supervisory appraiser. The appraiser is certifying that they inspected the property on page 2 and 6 (combined with appraiser signature). If anyone other than a supervisory appraiser marks these boxes on page 6, then the report would become misleading to the reader. If the person (non-appraiser) is questioning this, you may want to ask them how they would interpret and appraisal under such a situation? If they can't honestly answer that question then I wouldn't waist time with that person. Any honest person would know that only a supervisor can mark those boxes. Maybe they are trying to change the definition of the word "IS".
 
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