No assumptions allowed (on property condition)

[Gillian Kaiser]

I've searched the forums and haven't found a discussion specific to use of the extraordinary assumptions (EA) and FNME restrictions for the use of EA and how other appraiser's are managing with this restriction when the condition information, data, and/or photographs have been provided to the appraiser by a third-party data source (owner, MLS, etc.) whether for a desktop or exterior appraisal report.
An EA is defined in USPAP as: EXTRAORDINARY ASSUMPTION: an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.
USPAP Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis.
In the past I have used comments such as: "Photographs provided in this appraisal report for the subject property and street scene were taken by this appraiser during the course of this assignment. Appraiser makes the extraordinary assumption the subject is occupied as of the effective date of the appraisal report with no repairs or deferred maintenance required at the time of the inspection and that the subject property improvements are in the same and/or similar condition as reflected on the MLS listing #xxx974. Use of the extraordinary assumption might have affected the assignment results."
I feel it would be misleading to not use the EA since I am uncertain if the condition as of the effective date is the same as what is viewed in the photographs, information, and data from the third party sources which most often is not taken on the same date as the effective date.
What commentary are you using that complies with FNME EA use restrictions and USPAP reporting requirements when you do not get real-time data and photographs that are not from the same date as the effective date of the appraisal report?
Thank you for your responses -they are all appreciated.
Gillian

 

[CANative]

No EA for Fannie Mae.

EA's for FHA's.

 

[Gillian Kaiser]

No EA for Fannie Mae.

EA's for FHA's.

Are you accepting/completing assignments other than FHA? If so, are you putting any commentary in the appraisal report? Thanks for the response.
Gillian

 

[CANative]

Yes, I'm doing the exteriors for conventional. You simply have to have enough data to complete the appraisal credibly with no EA's. If there is not enough information (MLS, owner/borrower information, etc., etc) then you have to decline.

The main difference is that Cert 10 (of the pre-preprinted) has been removed.

 

[CANative]

Property Description and Condition:
Level site with just under one acre of land area. Access from the public street; public power, gas and water (there is also a well for irrigation or landscaping); no sewer system and properties rely on on-site private systems (septic tanks). Views of nearby vineyards, distant hills and neighborhood.

Modest, single-family residence; site-built construction. Estimated GLA is 2,400 sf which includes the conversion of an attached, two-car garage with exterior and interior access. No record of permits (on County website - the Mendocino County planning and building department has closed its public counter service due to COVID-19 and phone service is limited.) The conversion was completed in a workmanlike manner and is similar to the rest of the dwelling. Some buildings were observed from their interiors. The interior of the residence was not inspected. Condition rating estimated from observing interior photos of prior listings in BAREIS (MLS#'sxxx and xxy) and from interview with property owner via telephone and at the site. See photo pages.

Some exteriors of certain outbuildings were observed while making a limited, onsite walk around the property and, to some extent, from their interiors. The interior of the residence was not inspected. Additional structures include an older, 3 stall-barn on slab (fair to average condition, about 600 sf); detached structure with space similar to a carport/studio or shop unit with bath/storage area (about 1,000 sf and in average condition; a small well-house; vinyl, 3-rail horse fencing. Square footage of the outbuildings estimated using Google Earth aerial imagery.

Last sale in 2013 was REO. The owner has since replaced some of the floor coverings with wood laminate and re-roofed (new sheathing, shingles and some eaves.) Overall quality rated at Q4 and overall condition rated at C4. REL of at least 30 years. Property owner stated that the water heater was seismically strapped and that smoke and CO alarms are installed.

 

[Gillian Kaiser]

Thank you for taking the time to send me your response, CANative.
Gillian

 

[Terrel L. Shields]

No not mistake ordinary assumptions for extraordinary assumptions. Assumptions about the data that you have a documented source are not extraordinary. We can 'confirm' ourselves down an endless hole otherwise. I assume my sources are accurate or I wouldn't use them. But I cannot confirm the sources source or the sources sources source were accurate.

 

[Gillian Kaiser]

No not mistake ordinary assumptions for extraordinary assumptions. Assumptions about the data that you have a documented source are not extraordinary. We can 'confirm' ourselves down an endless hole otherwise. I assume my sources are accurate or I wouldn't use them. But I cannot confirm the sources source or the sources sources source were accurate.

Thanks, Terrel!

 

[CANative]

No not mistake ordinary assumptions for extraordinary assumptions. Assumptions about the data that you have a documented source are not extraordinary. We can 'confirm' ourselves down an endless hole otherwise. I assume my sources are accurate or I wouldn't use them. But I cannot confirm the sources source or the sources sources source were accurate.

I caught a Realtor in a lie about a property I'm working on. A lie he told the loan officer of the lender that is my client. The LO kept pushing the lie. Now everything the Realtor told me about the property went down the toilet.

I requested an upgrade to an interior/exterior. I sent an email to the Realtor for access this morning ... nothing yet and he's generally pretty fast when a commission is on the line. I think they're furious and furiously trying to get this one reassigned. I like the client but I wonder if they'll play along. I blasted them pretty hard (don't think a loan salesman should be trying to lecture me on manufactured homes. And I certainly don't care for an LO getting involved in the appraisal process.

 

[gregb]

Are the LO and/or Realtor claiming the subject is a modular?