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Recert/Update REASONABLE request... bbbbut how?

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Farm Gal

Thread Starter
Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Folks I am SOO confused:
Too many classes indicating what we are going to be doing AFTER 1/1/2003

We have what seems (on the surface) a reasonable request to provide a service....

Situation is this:
Inspected 2/27/2002...
No known changes to the market or subject..
No better comps available :roll: .
Client wants an 'update or recert' or 'something'....but they don't seem to know what thye want :evil:
No value change, just new appraiser signature... date is ???

OK understanding the difference between an update and recert, I am still at a loss:

Usually, I hold out for an appraisal since usually something HAS changed :eek: bbbut having driven by it and its all very reasonable to comply with client request (once they figure out what they want... :roll: )HOW do we comply and stay out of hot water?

The ONLY references I can find is in Fannie Mae 02-02 page 5...and USPAP pg 129... but sifting through USPAP 2002 I cannot figure out how to report this in a USPAP compliant manner.. do we need a certification with an update will a one page 'what we did how we did it and why' letter suffice??
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Why not a simple letter form:

"We have been requested to re-consider our appraisal of such-and-such a date, and find that there have been no apparent changes to the subject, and no more recent or suitable available comparable sales. Given that there has been no known or measurable change in the market and that none of the components of the prior appraisal have changed we state herein that as of this date the value reported in our prior appraisal dated such-and-such a date is an appropriate value conclusion as of this (current) date."
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
FMMA requires at least an exterior inspection of the property for any new effective date and I agree. If you do that you should have USPAP addenda aling with your letter or form or new report.
 

Farm Gal

Thread Starter
Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
First off the darn client still isn't sure what they want or need... IF update then we need two new comps, there are no better I say back then just do the other (recert) but we need a new effective date, then its a update, but if it's an update we need new comps.... :roll:

Bill: that new effective date is where you cross the line from a recert to an 'update'... its what you have to put into the file and into the docs you send the client I am confused on.

(Thanks Tim!)
I am leaning towards putting a USPAP compliance addendum in even if we just do the "no changes in market - no change in value which remains $XX,zzz...

or does leaving this $$ off let me get by without the value..

Yeah I know you gotta do the exterior to see if it is still there and reasonably intact, bbbbut.

I wa OK until I tried to talk and chew bubble gum at tha same time - really :( .
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Lee Ann:

Recerts are no longer permitted. You have a choice between an update and a new appraisal. An update can be done when the effective date is more than four months but less than one year. You should drive by and change the effective date and use the same comparables if there is nothing better.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
I really don't think that a letter can cover all the USPAP compliance CYA. I really believe it would be best to just perform a 2055 exterior as an extension of the original appraisal with appraisal update disclosure. I have had lenders accept that. However, I just had one refuse to accept it because they wanted a stand alone document. It is to the point that I may just start saying new effective date, new appraisal, give them a slight discount or offer for them to pay full price for a new appraisal from somebody else.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Lee Ann:
In my sample Update to an Appraisal letters, the second one is more simple than the first. I do usually use my first sample (I like it better), I just don't reference a sales grid and don't attach a grid. At other times the comparables on my grid might be an active, or a canceled, or a withdrawn or a pending--and only one! Nothing new available reinforces the information that the market hasn't changed! It isn't always necessary to have "comparables", just that research and analyse current market data for a new effective date. Just like considering the income approach meets USPAP even though it was not shown in the report or completed. If I haven't sent my templates for Update to an Appraisal letter, let me know and I can email them to you.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
LeeAnn

Larry has it all wrapped up nice & neet for you; and that is exactly what I would do, after all your still under the 1 year time limit before the dwelling will blow up on it's own.

8)
 

Farm Gal

Thread Starter
Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Larry (and all),

Like sooo many other things in this business, I have 'heard' that also, but can you please reference me to exactly where it say so and why? In this case it has been less than 6 months, the market hasn't changed, the client wants it, and I cannot personally find ANY reference to why a recert is now verbotton....

I am starting to wonder if this is another 'everybody knows' with no real substance?!?!?! I sort of remember it from my most recent USPAP class, but after talking with the instructor she said 'nope not me'.

It's driving me nuts because the client wants proof as to why I cannot do this, and I can't FIND it :oops: Sometimes I HATE this business....
:evil:
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
FNMA Appraisal Guidelines

Section 201 - Age of Appraisal

The property must have been appraised within the 12 months that precede the date of the note and mortgage. When the appraisal report will be more than four months old on the date of the note and mortgage--regardless of whether the property was appraised as proposed or existing construction--the appraiser must inspect the exterior of the property and review current market data to determine whether the property has declined in value since the date of the original appraisal.

If the appraiser indicates that he or she believes that the property has declined in value, the lender must obtain a new appraisal for the property.

If the appraiser indicates that he or she believes that the property has not declined in value, the lender should request the appraiser to provide a certification to that effect, based on his or her exterior inspection of the property and knowledge of current market conditions. The inspection and the certification must occur within the four months that precede the date of the note and mortgage.

Generally, the original appraiser should complete the certification of value; however, the lender may use a substitute appraiser. In such cases, the substitute appraiser must review the original appraisal and certify that the appraiser's estimate of market value was reasonable on the date of the original appraisal report. The lender should note in its files why the original appraiser was not used

I hope this helps. note you must review this appraisal first.
 
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