• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Freddie Mac 2070

Status
Not open for further replies.

Dave Lowry

Freshman Member
Joined
May 1, 2003
I am performing my first appraisal on a Freddie Mac 2070 form. I know this is a limited appraisal but is it a summary or a restricted report. And what USPAP standards are departed from when using the 2070 form. :lol:
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Dave,

You are not performing an appraisal. You are performing an inspection of the subject exterior or sometimes interior plus a few other things.

This is kinda of like asking a doctor to give you an immunization even though his nurse is allowed to under the law.

Naturally, the doctor will charge you roughly $75.00 for his time plus the cost of the vaccine.

The nurse on the other hand would probably charge $10.00 plus the cost of the vaccine.

Now, you know have an idea of HOW MUCH and why you charge for this.


In North Carolina you dont even have to have an appraisal license for this. Do you have a young son or daughter that could use a few extra bucks?
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
And what USPAP standards are departed from when using the 2070 form.

None...... it's a consulting assignment. Now go forth and make :mrgreen:
 

Rich Heyn

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Michigan
M Leggett,

I assume you are using the word "consulting" in a generic sense. However, there seems to be some confusion in the appraisal community as to the use of this word, so perhaps a comment is appropriate.

An "appraisal consulting" assignment has an opinion of value as a component so a 2070 is not an appraisal consulting assignment.

The closest definition under USPAP is that it's a valuation service. If it's performed by an appraiser, acting as an appraiser, then at least part of USPAP applies.

Rich Heyn
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Originally posted by Rich Heyn@Jun 16 2003, 07:37 AM
M Leggett,


The closest definition under USPAP is that it's a valuation service. If it's performed by an appraiser, acting as an appraiser, then at least part of USPAP applies.

Rich Heyn
Rich,

Kindly give me the line number of USPAP 2003 that your are refering to.

Thanks

Lazy Andrew
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Rich:
Given that there is no value involved: is it even a valuation service :question: ...

Methinks it is just a generic service, that the lender prefers to have performed by an appraiser....
 

Rich Heyn

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Michigan
Lee Ann and Andrew:

I would agree that in the strictest sense of the definition (and the common sense version) the term "valuation services" would seem to involve something directly related to value.

However, in the class I took to become an AQB certified USPAP instructor, there was some emphasis placed on this topic and several of the examples included things like brokerage, leasing, etc.

In the overhead transparencies the ASB supplies to instructors is one I like very much. Envision a large circle that is labeled "Valuation Services." Inside this large circle is a smaller one called "Appraisal Services - USPAP applies." Inside the VS circle but NOT inside the AS circle are brokerage, leasing, and teaching brokerage classes. Inside the AS circle are appraisal, appraisal review and appraisal consulting. Also inside the AS circle are things like measuring and calculating GLA and teaching appraisal classes.

The idea is that if an appraiser is providing valuation services AS AN APPRAISER, USPSP applies.

AO-21 has some good information on this topic. Check out the chart following line 146.

Rich Heyn
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Rich:

Thank you! well errr sort of: ... Thankfully I live where horsesense is still valued, and where members of the state board have expressed an opinion on this matter.

I think it is marginally reasonable to apply the valuation stick to processes like brokerage and leasing activities wherein a value or opinion or consulting is applied... due to the perception of expertise, etc...

I think it patently rediculous that a Real Estate Appraiser is precluded from voicing an opinion in another area of specialty such as a hobby of glass collection without developing a file... USPAP should NOT in my opinion bridge that big a gap....

However it is a slippery slope to state that developing a GLA or as in the case of a 2070 REPORTING a GLA 'developed by others' could be considered to fall under USPAP absent any value or development in other words 'valuation service'...

I have read and reread the form and although I can see several instances where a weak arguement could be made, I personally would fight tooth and nail if someone attempts to place that form as falling under USPAP.

I mean we have to apply commpon sense at some point.

I do not develop a workfile when pointing out to my daughter that the house brand of soup is cheaper and a better value than the brand-name version of same. :rolleyes: thus expressing a concrete 'opinion of value' despite my 'technical' violation I am not going to look for USPAP police.... I mean C'mon!

Why don't we leave the 'threat of suit or sanction' to the private sector in this sort of matter, rather than throwing it back on the state?!?!?
 

Rich Heyn

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Michigan
Lee Ann,

I don't know of anything in USPAP that precludes an appraiser from voicing an opinion in another area of specialty without developing a file. And I wouldn't worry about offering opinions to your daughter as to the value of soup.

However, it's my understanding that if someone approaches you BECAUSE YOU ARE AN APPRAISER and you accept the assignment (soup valuation, measuring GLA, whatever) AS AN APPRAISER, then USPAP (or at least portions thereof) applies.

I may have simplified this a little, and I suppose the USPAP hair-splitters would have something to say about it, but that's the general idea as I understand it.

Rich Heyn
 

John SRA

Junior Member
Joined
Jan 19, 2002
The ASB has addressed this matter directly in a Q&A. (question #1, March 2003)

March 2003 Q&A

Valuation services are any services that pertain to aspects of value. "Valuation Services" need not include a value opinion. Both of these forms clearly require comment on items pertaining to aspects of value (detrimental environmental conditions, location, physical attributes, etc.) Also, Form 2070 and Form 2075 both require an "appraiser's" signature. Therefore, they are being done as an appraiser, and fall within appraisal practice. USPAP applies.

There are no Standards Rules governing this type of service, so the parts of USPAP that would apply are the Ethics Rule, Competency Rule, Jurisdictioanl Exception and Supplemental Standards.

There would be no workfile requirement. Workfiles are only required for appraisal, appraisal review or appraisal consulting assignments.

Best Wishes

JC
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks