New lender purchased old lender...

[PeterPetrelli]

This 1004D/appraisal transfer issue has been done to death... however, of the umpteen threads I searched I could not find any opinions on the issue I have. I know I can't be the first to have this happen...

At any rate, I did this FHA appraisal last year. My client got bought out by a bigger outfit, now the bigger outfit wants a 1004D in their name. AO-3 indicates the intended user/client should be involved, as I understand it, but they technically are not... and the AMC is about to have a coronary (not that I care). I have held firm that I won't do it but I'm just wondering what y'all think.

Thanks!

Edit: This is an appraisal update for a 7 months old appraisal, not completion certificate, just for clarification.

 

[glenn walker]

Yes it's portable and you can change the name.

 

[J Grant]

This 1004D/appraisal transfer issue has been done to death... however, of the umpteen threads I searched I could not find any opinions on the issue I have. I know I can't be the first to have this happen...

At any rate, I did this FHA appraisal last year. My client got bought out by a bigger outfit, now the bigger outfit wants a 1004D in their name. AO-3 indicates the intended user/client should be involved, as I understand it, but they technically are not... and the AMC is about to have a coronary (not that I care). I have held firm that I won't do it but I'm just wondering what y'all think.

Thanks!

A 1004 D is a new assignment anyway. Just use the new lender's name and disclose that you performed prior service on the property within the last three years.

 

[Terrel L. Shields]

My client got bought out by a bigger outfit

I would treat it as the same lender. They are just now under a new name and I'd say so in comments. There is no lender A anymore, right?

 

[glenn walker]

The FHA case number stays the same and its a Name Change only not a new assignment. If you can't sleep call your HOC and they can walk you through it

 

[TerryRohrer]

You can do a 1004D for anyone. In your case, I would do it showing the old lender where it asks, the new lender where it asks, and not disclose any confidential info (value). I would accept the assignment under the condition that I would not disclose prior assignment results.

Edit: Above comment pertains to a final inspection. After a year, I would only do a new report if they want an update.

 

[Surf Cat]

I did this FHA appraisal last year.

So....if you were to acquiesce to doing the 1004D, would you reinspect? Or, make the assumption that the interior hasn't changed since the OA?

Even though it's a 1004D, it's still going to require significant research and documentation due to being done several months ago. Throw in the mix that the original lender no longer exists. Due to the limitations of the 1004D..... you may want to do a new assignment (full appraisal) and offer them a discount. I can understand your hesitancy.

 

[Tawfik Ahdab]

The intended users of all FHA appraisal reports are, to quote:

“FHA and the mortgagee”.

Note that standard 2 does not require you to identify an intended user by name, but type of intended user is sufficient.

That should set aside any compunction you might have about completing this assignment,

 

[sputnam]

A 1004 D is a new assignment anyway. Just use the new lender's name and disclose that you performed prior service on the property within the last three years.

That is exactly the right way to handle it.

 

[PeterPetrelli]

So....if you were to acquiesce to doing the 1004D, would you reinspect? Or, make the assumption that the interior hasn't changed since the OA?

Even though it's a 1004D, it's still going to require significant research and documentation due to being done several months ago. Throw in the mix that the original lender no longer exists. Due to the limitations of the 1004D..... you may want to do a new assignment (full appraisal) and offer them a discount. I can understand your hesitancy.

I actually already drove by there to take exterior pictures which is the minimum required inspection.
It was not until I got back to the office that I noticed the client had changed. I should have specified that the 1004D is being used as an appraisal update, not certificate of completion. So yes, I will need to do a fair amount of research and documentation for my file.