restricted use appraisals vs summary and self contained

[JamesRockford]

How can a Certified Residential Appraiser ask this question?

Bingo!.....

 

[Webbed Feet]

Hello,

Am i correct that 1004 resiedential reports, ordered by my client ( a bank ) would in fact be a restricted use?

No, you are not correct.

I would have no other client and want to make sure I understand the differences.

Thank You

Then you need to study and attend more CE classes. Drink more coffee while you do so.

 

[hastalavista]

This sounds like a case of confusing
(a) the purpose of identifying clients/intended users/intended use, and
(b) how development results are communicated to the clients/intended users.

Because of the confusion (and, maybe it is I'm the confused one), I read the question two potential ways:
1. Are typical mortgage appraisal reports restricted to mortgage-related uses (as in intended users/intended use), or
2. Are typical mortgage appraisal reports restricted-use reports (as in reporting format).

I'd refer the OP to AO-11 and AO-12 for a start, but I don't think the AO provides the precise answer the OP is looking for. FAQ #236 also touches on the issue.

Good luck!

 

[23Degrees]

I don't know if this will be helpful but the first line of the 1004 right below the title line is (my bold):

The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.

I think the summary designation is also often missed on the upper portion of the 1004D that labels the report as a Summary Appraisal Update Report. - But that's a whole new pool full of worms we can save for another day.

 

[Mike Kennedy]

2-2C See the Comments
http://www.USPAP.org/USPAP/stds/sr2_2.htm

Follow up, after reading the definition of "Restricted" in 2-2C, now read Appraiser's Cert. 23 on the 1004. :icon_idea:

 

[Caligirl]

They are summary reports IF

1. they are filled out properly and
*2. adequate narrative is added where indicated, or where necessary for the intended user to understand the information contained in the report.* (This is the area lacking in most form reports that I have seen, and IMO without the add'l narrative they do read like RURs).

 

[PropertyEconomics]

They are summary reports IF

1. they are filled out properly and
*2. adequate narrative is added where indicated, or where necessary for the intended user to understand the information contained in the report.* (This is the area lacking in most form reports that I have seen, and IMO without the add'l narrative they do read like RURs).

This cannot be stated enough ... very good post Cali ... this is my experience as well.

 

[Couch Potato]

They are summary reports IF

1. they are filled out properly and
*2. adequate narrative is added where indicated, or where necessary for the intended user to understand the information contained in the report.* (This is the area lacking in most form reports that I have seen, and IMO without the add'l narrative they do read like RURs).

It is a summary report with or without those two things due to the label placed on the form. Now being a USPAP compliant summary report does indeed depend on those two items. :new_all_coholic:

 

[Terrel L. Shields]

It is a summary report with or without those two things due to the label placed on the form. Now being a USPAP compliant summary report does indeed depend on those two item

technically, I would aver you are correct. If there is no label, it is presumed to be a self-contained. But I don't agree with our investigator's argument that if you state something in a summary, the report becomes a "restricted" report. I think that is a poor way to veiw it and the lines between - state - summarized - describe etc. are way to blurred to be useful tools. Format should not be a USPAP issue imho.

 

[Caligirl]

It is a summary report with or without those two things due to the label placed on the form. Now being a USPAP compliant summary report does indeed depend on those two items. :new_all_coholic:

The OP asking the question is referencing a lender client. Ie., USPAP compliance is key.

I haven't used forms in a long time, and back when I did they were not 'Summary' without many additions; of course back then, we had Supplemental Standards and underwriters well versed in the USPAP. Miss those days... At any rate, I wouldn't advise anyone to assume anything is a 'Restricted', 'Summary', or 'Self-Contained' just because it is labled as such.