FNMA Update requirements for less than 4 months

[Atlanta CG]

Did the appraisal in June, now they need an update. Requirements only discuss 4-12 month time period, anything I should or need not due to update less than that?

 

[TerryRohrer]

Your USPAP requirements are the same as if you were doing the first assignment, accept that you have to report prior services.

 

[Atlanta CG]

Not certain I am understanding this. I believe I can use the 1004D form for an update but what other info is needed?

 

[Fernando]

You should have a workfile to support your update for the new date you sign.

 

[DWiley]

Not certain I am understanding this. I believe I can use the 1004D form for an update but what other info is needed?

The 1004D is self labeled as a Summary Appraisal Report (now called an Appraisal Report). That means you need all the things USPAP requires in such a report. Simply checking a box and having data in a workfile would work if it was labeled a Restricted Report, but that is not the case.

So, after you check the box, you also need to add (in the 1004D report) a summary of the analysis that led you to the decision as to which box to check. Failing to do this is a very common USPAP error.

Sometimes I would add it in narrative, sometimes I would add a grid. There is no prescribed format - just has to be a summary

 

[Joe Flacco]

The 1004D is self labeled as a Summary Appraisal Report (now called an Appraisal Report). That means you need all the things USPAP requires in such a report. Simply checking a box and having data in a workfile would work if it was labeled a Restricted Report, but that is not the case.

So, after you check the box, you also need to add (in the 1004D report) a summary of the analysis that led you to the decision as to which box to check. Failing to do this is a very common USPAP error.

Sometimes I would add it in narrative, sometimes I would add a grid. There is no prescribed format - just has to be a summary

Since it is so common, how many would you estimate have been disciplined for this USPAP violation?

 

[Fernando]

Since it is so common, how many would you estimate have been disciplined for this USPAP violation?

Even if not USPAP violation, a real appraiser should make summary comment in deriving the update.

 

[djd09]

form reject...new appraisal

 

[DWiley]

Since it is so common, how many would you estimate have been disciplined for this USPAP violation?

No idea. I recently saw a letter where a state board said that signing a certification swearing that you inspected the home, when you actually did not, was not a USPAP violation. In the past I saw a state board suspend a credential for 3 months over the single charge of not providing a prior service statement. In short, disciplinary actions are all over the board.

Given the wide variance in how states approach discipline, there is no basis to estimate the number of actions related to the issue of improperly reported updates.

 

[sputnam]

Your USPAP requirements are the same as if you were doing the first assignment, accept that you have to report prior services.

Yes. An update is a new appraisal. The written report, as always, needs to meet Standard 2. The update report does not have to have the same level of detail as the original appraisal.

As for time frame.... who cares? The Client wants an update. It's an opportunity to earn another fee.