Forms or Addenda that should be included in 1004 Report

[NC Values]

What additional forms / addenda do you normally include in a standard 1004 appraisal report for lenders? By this I dont mean subject & comp photos, plat or location maps, text addenda, etc that are directly related to supporting the value opinion and understanding the appraisal. Rather what forms or addenda should be included to comply with legal, USAP, or typical lender requirements (in other words, CYA stuff)?

It seems to me the Current 1004 form with its Scope of Work, Statement of Assumptions and Limiting Conditions, and Appraiser's Certification pretty much should stand on its own for most lender appraisals. Is this true?
I would like to eliminate non-essential paperwork in my reports, but dont want them to be bounced back by underwriters for failing to include missing items. Please advise and if possible provide reasons or references that specify what should be included. Thanks!

 

[Terrel L. Shields]

Check it against the checklist banks use if you are trying to create a barebones report...

I donno. Reports are easy...my last one is about 27 pages.

 

[George Hatch]

I do not consider any of the Fannie forms to be usable straight out of the box - they all need some help. Personally, I think they should get out of the forms business altogether because (IMO) they suck at it. Still. Look at how they mucked up the 1004mc.

I try not to use the Fannie forms for anything at all; but I'll do one if a client insists. On those rare occasions when I am compelled to use one, I take advantage of the space on pg3 to fill in some of the holes, and I use a 1-page addendum to get specific about my intended use, intended users and SOW. I make it a point to note that Fannie is not an appraisal entity and is incompetent to define appraisal methodology or interpret USPAP; their form has problems from an appraisal standards perspective; and that any original writing in my report that may appear to conflict with the hardwired and murky verbiage on the form should be considered to override the form. I am the appraiser, not Fannie.

 

[Judy Whitehead (Florida)]

The only extra pages I include are addendum pages - if the explanations are longer than what will fit in the 1004 or 2055, my license, plat map, listings (1 or 2 usually with pictures), a flood map only when it is in a flood zone, and I use the invoice as the cover page. I'm thinking of going to a cover page with an index, but feel like I'm killing trees. I simply don't want anyone to have to print out 20+ or 30+ pages when 12-15 could transmit the information properly and easy to understand. There is a space on the cost approach page that gives room for land sales. If I need more room, then I put it on the addendum. I try to limit it to one addendum. Of course I often include additional comparable sales and pictures.

 

[NC Values]

The managing appraiser at a firm I am associated with routinely adds the following forms to almost all appraisals:
USPAP Identification
GLB Act Privacy Notification
Appraiser Disclosure Statement

Are these really necessary? I want opinions other than his.

 

[Jo Ann Meyer Stratton]

When the new forms came out in 1994, and then newer forms came out in 2005--those three additional pages became obsolete.

 

[Terrel L. Shields]

USPAP Identification
GLB Act Privacy Notification
Appraiser Disclosure Statement

Are these really necessary? I want opinions other than his.

depends.

I use the MPA for my convenience. I could write text.
I do believe that an explicit Gramm-Leach Privacy Act statement needs includes as we are included with "banks" as "financial institutions" under some interpretations.

I also like to add a page of abbreviations. BrkV doesnt' mean much to most folks.
Definitions are a part of my report as well. I would rather have too much in it than not enough.

 

[Jo Ann Meyer Stratton]

The Multi-Purpose Addendum was developed in 1991 when USPAP went into effect and Fannie Mae/Freddie Mac weren't up to date. When the new URAR was issued in December 1994, it no longer was necessary.

A statement or two on the forms or in the addendum in regard to GLB is sufficient. I have the following comment in all my reports: "The appraiser certifies that no confidential information obtained in the course of completing this assignment will be disclosed to any person or entity except as required by law."

 

[NC Values]

The Multi-Purpose Addendum was developed in 1991 when USPAP went into effect and Fannie Mae/Freddie Mac weren't up to date. When the new URAR was issued in December 1994, it no longer was necessary.

A statement or two on the forms or in the addendum in regard to GLB is sufficient. I have the following comment in all my reports: "The appraiser certifies that no confidential information obtained in the course of completing this assignment will be disclosed to any person or entity except as required by law."

Isnt this statement already covered by Appraiser Certification No. 22 in the 1004 which states" I am subject to the provisions of USPAP that pertain to disclosure"?

 

[nauthead]

Invoice
Appraisal Cover
Table of Contents
URAR Pages 1-3
Additional Comparables Page
Comment Page (information on subject only, neighborhood description, site desciption, condition of improvements, etc)
Market Conditions Page
Sales Comparison Comments
Sketch Page
Plat Map(s)
Flood Map
Location Map
Subject Photos
Additional Subject Photos
Comp Photos
Addition Comments Page (including highest and best use analysis, intended user comments, etc)
Definitions
Scope of Work
Scope of Work Continued
Certification Pages

If the property is an acreage parcel, waterfront etc, I also include aerial photos, and a map of land sales. On manufactured housing I also include a foundation sketch from HUD Guide to Foundation and Support Systems for Manufactured Housing. The list goes on. Some of my reports may have 35 or more pages.