Recertifications

[Tater Salad]

Is this scenario possible:

Attach the old report to the appraisal update form with new comps, with a cover letter that states that the original report is attached, etc., making sure all 7 items are addressed (client, intended user, etc.)?

Or is the update form now completely obsolete, even if attached to a copy of the old report?

I, too, have suggested a 2055 attached to the old 1004 and have had a lender say no. Even though it offers more info than the update form. I can't say that I blame them for being confused, since it looks like a lot of appraisers are, too (including me!) :roll:

 

[Jo Ann Meyer Stratton]

What update form are you talking about? Fannie Mae, etc do not have an update form. Each of the software vendors have developed some forms of their own design, but be very, very cautious using their forms. Compare every word, sentence, paragraph, phrasing, etc to 2003 USPAP, especially Advisory Opinion 3--before accepting that form.

Advisory Opinion 3 lists three reporting option. Which one are you trying to use? The first two you could use either a 1004 or a 2055. Option one would be completely filled out, just like a completely new report with all the attachments on a property you have never seen before. Option two could be only partially filled out (I would at least place XXXXs or ////s or something in the blanks so it wouldn't look like I forgot something), with exhibits because the information would be in the attached original with all its exhibits that is being incorporated by attachment.

If it is Option three that you are attempting to follow--you could write a letter if you wanted to, making sure that the required items are included, plus other items that USPAP requires and only new photos, new sales comparison grid and new comparable location maps would be needed. Because the original client has a copy of the original report and you as the original appraiser has a copy of the original report---the original report does not need to be incorporated except by reference (statements in your letter). Or you could use the 1004 or 2055 with comments in all the blanks see information in original report and new photos of the subject, new comparables with a new location map and whatever other exhibits you wanted to provide.

 

[Jo Ann Meyer Stratton]

Mike: Appraisers could start faxing clients copies of Section 201 of Fannie Mae guidelines and Advisory Opinion 3 if they get any argument from the office clerk about how to handle the problem. I had to fax a copy of several pages out of the 4150.2 to a FHA underwriter the other day. She wanted something that hasn't been necessary for about 10 years! Kept trying to tell me FHA required it--so finally faxed the page out of the 4150.2 that said plainly it was not required.

 

[Tater Salad]

Sorry, Jo Ann, I should have been more specific! Long ago, you were kind enough to forward a copy of your update form that you use. I incorporated some of your wording into a cover letter that I include with the Athena form for updates. That's what I was using.

I know that it needs to be tweeked, as it is no longer an extension of an old report, etc., but it sounds like this would be o.k. with the added info (USPAP 7) and an attached copy of the old report.

 

[Jo Ann Meyer Stratton]

I have attempted to write a new one that would be in compliance with AO 3. Still working on it, but if you would like to take a look at it let me know and I can email it to you. Will be out of town for the next two days for a NAIFA meeting, so it might be later in the week. Haven't had to do one yet, but my plans for my package would be a cover sheet with a front photo of the subject from one angle, my letter, front (different angle), rear and street photo of the subject, a sales comparison grid with some recent sales / pendings / actives (don't have many choices here), photos of the new comparables, new location map with the new comparables listed and then of course any addendum that I think might be necessary to describe the situation. Because I will be incorporating by reference I won't need legal description, assessor's maps, zoning, etc, and so on.

jmstratton@aznex.net

 

[Tony Lehn]

Sorry if I'm beating a dead horse, but in the last 2 years, this is the first I hav heard of any distinctions like these. What I was doing when asked for a "recertificaton of Value", is to submit Wintotal's Recertification of value form, which states, with my added comments, all of AO-3's required 7 items, along with new subject photos taken during an external inspection.

What I should do is to add a 2075 to the above, so that it will FNMA compliant as well?

Thanks for the help.

 

[Jo Ann Meyer Stratton]

If you are using a form that has the phrase of "Recertification of Value" anywhere on it, it would not be in compliance with USPAP, even if every thing else on the form meets the requirements in AO-3. The phrase Recertification of Value does not change the effective date of the opinion value, which would mean no market data that has occurred since that original date would or could be considered. I don't know what the form you are referring to looks like, but if there was some way you could remove any references to recertification from the form, you might be able to make it work for a new report for a new assignment with a new effective date of opinion of value that incorporates by reference. If it cannot be revised, then maybe use a 2055 to create a new report for the new assignment if you don't want to compose a letter. The 2075 doesn't have any space or room or grid for any current market activity (the 2055 at least does). If you are using Option 3, where the new report is incorporating by reference, you could type in see original report in many of the blanks (zoning, site area, etc) but also remember with the 2055 (or any Fannie Mae form for that matter), you have to include an additional certification that is in compliance with USPAP (see USPAP 2003 Standards Rule 2-3) which had changes in 1999 and 2000. Fannie Mae forms were all created prior to those dates (except for their new Field Review Form 2000 that came out in 12/2002). Fannie Mae requires theirs and USPAP requires theirs--so every report needs to have two to keep everybody happy.

 

[Blue1]

"Recertification" makes on sense anyway because I did not "certify" in the first place.. On the original report I offered the most probable value. In any case, if they want a value as of a new date, it's an update. If they want me to verify that the value is the same as of the date of the appraisal I can "certify" that the appraisal was done correctly. I do not "recertify" anything.

 

[Jo Ann Meyer Stratton]

Another appraiser brought to my attention that I misquoted Fannie Mae Guidelines. So to clear up some confusion that I caused , here is the exact sentence from Section 201 - age of Appraisal (or Property Inspection) last paragraph:

"When a property inspection report for a Desktop Underwriter processed mortgage will be more than four months old on the date of the note and morttgage, the appraiser must re-inspect the property and prepare a new Desktop Underwriter Property Inspection Report (Form 2075)."

A property inspection report is a Form 2075, so when the original Form 2075 is over four months old, a new Form 2075 must be completed. I had gotten 2055s and 2075s all mixed up. A 2075 CANNOT be used to update a 2055.

 

[Mountain Man]

Ah, okay, that makes more since now. Thanks for the correction. One goof in a very long time, I'll still consider you to be one of the greatest wells of knowlege. :wink: :lol: