A lender called to ask me to do a recert on an appraisal that I didn't originally do. She sent a copy of the original appraisal. I thought only the original appraiser could recertify a value. Anyone know what else she may be talking about?
Sounds like they want you to "bless" the value. If that's the case, maybe a more appropriate assignment would be for you to do a review on the other appraisal. I wouldn't do a "recert" (Like M Leggett says) NOPE!
Just because you can do something, why would you do it? Why would you want to take on the additional liability of someone elses work? The only way I would do that would be to basically check everything on the report including inspecting the house and make sure that I could live with the adjustments, conclusions, assumptions etc. For that type of work, you would need to be paid the same as doing a whole new report.
What this sounds like is quick needed value at a low cost with an appraiser signing off that the UW have no problems with.
My question to the LO would be, why not have it recerted or updated by the original appraiser? The answer to that question will tell you a lot.
Depends on what the lender is really looking for. A "Recertification of Value" is performed to confirm whether or not the conditions of an appraisal have been meet. A Recertification of Value does NOT change the effective date of the value opinion. Lines 3484-3483, page 100 2002 USPAP.
So if the client only wants to know if the home was completed per plans and specs and did the appraiser really and truly say the home was worth $1 on 01-01-2001, then they are looking for a "recert" as defined in the above quoted lines of USPAP. And the different appraiser than original would need to have a copy of the plans and specs to compare to what was actually constructed.
If they want to know if the value as of 09-25-2002 is at least the $1, then it is a completely new assignment. An "Update of an Appraisal" is defined as an extension of the original Complete or Limited Appraisal and a report relied on by a client for a prior business decision. The Update of an Appraisal changes the effective date of the value opinion. Lines 3477-3480, page 100 2002 USPAP.
So if you did NOT do the original report, your report could NOT be an extension of the original report, you wouldn't be able to do an "Update". Since you are not the same appraiser as the original, you could only offer a new 2055 or a new 1004 with a new effective date. If they don't want a new 2055 or new 1004 and do want to know if the value is still $1 on 09-25-2002, then the lender needs to contact the original appraiser for an Update of an Appraisal. Which that appraiser could do either in a letter form (if the market and the subject has not changed) or a new 1004 or new 2055 if something has changed.
Talk to someone at the lender's office that knows what they are really doing, not just the receptionist that was handed a note to call an appraiser for a "recert"!
OK I had posted on Recert over in the Urgent forum on this topic and am not getting enough response there....
You CAN in fact do an update if you were not the original appraiser, as long as you work in the same office and have FULL access to the original workfile, AND are willing to take responsibility for the original work, AND you do at least an extrior inspection of the subject... but as mentioned above why would you want to? Sell the upgraded service. If you don't have access to the workfile it is verbotten. End of subject.
Now in MY case I did the original appraisal, the bank wants a real recert (less than 6 months and original date will suffice), no change in market, no better comps available, I drove by the exterior.... so Fannies rules are met.
Will someone PLEASE point me to any ACTUAL documentation for why I cannot do a Recert??? This seems to be a situation where everyobody knows (except all those who don't :roll: but I cannot find ANYTHING to show my client why I cannot do what they are asking of me. And they are a little hot about my inability to back my words
So if they really and truly do not want current market conditions, then write up a letter stating that yes on 01-01-2002 you did say the value was $1 and the home was completed per plans and specs, that is a "recert". Also do a 442 reporting the home as completed per plans and specs. The two forms could be placed in the same package with the photos. But since they do not want current market condition, a grid would not be necessary or photos of comparables or location map for the comparables.
I have also a Recertification of Value letter in my batch of update letters. I have never used the letter because I have never had a lender that was not concerned about current market conditions. A recertification of value could be done at any time after the original date because the information in the report is being recertified--no new information is being provided. Only photos as the subject exist on a new date--which should have turned out exactly as proposed. First report had a photo of a bare piece of ground. Photos for recertification of value would show that the structutre was completed as per plans and specs. If the original report had an existing structure--then the photos would only show that the existing structure is still standing in the same condition as the original report for a recertification of value.
Any changes to the structure rules out the recertification. Now a new assignment with a new effective date is occurring and it becomes an update to an appraisal or updated appraisal.