Recertification of Value

[blondie]

USPAP compliance and the 1004D

I've been asked to provide "an update" on the 1004D for a property I appraised back in September...I thought this was no longer used since an update was not allowed per USPAP. the client has put me on "hold" until I decide to comply even though I've provided them with A-O3 and tried my best to explain. The client said they've asked the Ohio Division of Real Estate if an update was permissible and they said yes. I need some help. Am I misunderstanding what is/is not allowed regarding an update?

 

[CANative]

An "upate" is simply a current opinion of value. A new assignment. You can report the appraisal on a 1004 (like a start over) or you can use Fannie's 1004D which requires an exterior inspection. You can also use a 2055 in some cases.

 

[residentialguy]

An "upate" is simply a current opinion of value. A new assignment. You can report the appraisal on a 1004 (like a start over) or you can use Fannie's 1004D which requires an exterior inspection. You can also use a 2055 in some cases.

Pretty much the same amount of work and liability goes into all 3, regardless of the length of the form. Same amount of work & liability equates to same amount of pay, imo. This seems to be a mis-understood by many lenders and appraisers alike.

VA appraisers typically can't even charge (or minimally) for a 1004D m2:

 

[Mike Kennedy]

" Updating the Original Appraisal Report
The following table details requirements for determining appraisal update requirements:
If … Then …
the appraiser indicates the property value has declined
the lender must obtain a new appraisal for the property.​

the appraiser indicates the property has not declined in value,
the lender should request the appraiser to provide an update to the appraisal, based on the appraiser’s exterior inspection of the property and knowledge of current market conditions.​

The inspection and the appraisal update must occur within the four months that precede the date of the note and mortgage.​

Updating the Original Appraisal Report or Property Inspection​

Updates can be reported in the following formats:
• Appraisal Update and/or Completion Report (Form 1004D),
• Uniform Residential Appraisal Report (Form 1004), or
• in a letter.​

See B4-1.2-06, Appraisal Forms and Report Exhibits, for more information.​

Completing an Appraisal Update
The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. When updates are completed by substitute appraisers, the substitute appraiser must review the original appraisal and express an opinion about whether the original appraiser’s opinion of market value was reasonable on the date of the original appraisal report. The lender must note in the file why the original appraiser was not used."​

Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Document Standards,
Report, and Property Inspections​

April 1, 2009

Printed copies may not be the most current version. For the most current version, go to the online version at​

http://www.efanniemae.com/sf/guides/ssg/.