Review of 1004D "Update"

[Webbed Feet]

To All,

I knew this was going to happen!!!!! LOL

Ok.. reactions everyone..... You are asked to consider reviewing an appraisal of a plus million dollar value opinion... you get the PDF file and the first page is the 1004D form with "Summary Appraisal Update Report" checked ... and "Has the market value of the subject property declined since the effective date of the prior appraisal?" question is checked (yes or no does not really matter). There is an additional photo page showing one new front view of the subject .... The original appraisal, done six months ago, is attached.

There is no other information of any kind. No addendums, no new comparable, no hint of any prior approach to value being reconsidered, no current market analysis, not a mention of any kind, anywhere, as to how the question regarding property value decline since the original effective date got answered...I cannot even tell if the update was based on an exterior only or not, because nothing is stated. Nothing at all about what was done or what was not done... But there IS a new effective date now six months later....

Who here would like to review this new appraisal?

P.S. Ok.. to help everyone here, the answer regarding if market value had declined was "No" And yes, an AMC is requesting this to be reviewed on the Fannie 2000 03/2005.

 

[Wally Jones]

It looks like the lender didn't get the new appraisal they wanted by asking for an update so they now would like you to provide a review which they're hoping will have nice, shiny new comparables and at least confirm the value of the loan.

CCBB. (Cash Check Before Beginning)

 

[Hal Mann]

I knew this was going to happen!!!!! LOL

Mr. Dayton,

It didn't take too long did it? We all knew this one was coming as soon as we saw this form.

 

[Workbox]

A Review on A 1004D update? I wouldn't be surprised if it was an AMC who ordered it. Still, I could be wrong. Maybe a good underwriter caught it and is trying to to do the right thing.

 

[Mr Rex]

An AMC ordering a review of a 1004D. 3 opinions of value for $299.

 

[Otis Key]

To All,

I knew this was going to happen!!!!! LOL

Ok.. reactions everyone..... You are asked to consider reviewing an appraisal of a plus million dollar value opinion... you get the PDF file and the first page is the 1004D form with "Summary Appraisal Update Report" checked ... and "Has the market value of the subject property declined since the effective date of the prior appraisal?" question is checked (yes or no does not really matter). There is an additional photo page showing one new front view of the subject .... The original appraisal, done six months ago, is attached.

There is no other information of any kind. No addendums, no new comparable, no hint of any prior approach to value being reconsidered, no current market analysis, not a mention of any kind, anywhere, anyhow, anywho, as to how the question regarding property value decline since the original effective date got answered... But there IS a new effective date now six months later....

Who here would like to review this new appraisal?

Barry Dayton

Interesting proposition and thread. And yes, we all knew it would come around. However, hehehehehe, the red/bold part above does play a significant decision into your approach about where to go with this.

If the appraiser/s had marked "YES" then it was up to the "lender" to order a new appraisal. At that point I think I would perform a "cursory" review to reject the appraisal.

If the appraiser/s had marked "NO", then I would expect some sort of "support" in the comment section, as I expect you would also.

Now, back to the original question, as I understand it, which is "Who here would like to review this new appraisal?". I would, if I had the competency for that market. I would address it in the SOW aspect. I would also probably send it back as "additional support required from original appraiser" and subject to that.

Of course, I haven't had that come up yet and my opinion just might change at that immediate moment.

Do I win the "boobie prize"? Nice post and I look forward to the reading and response of everyone else.

 

[Marcia Langley]

It seems you have two appraisals. Will there be two reviews?

 

[Mike Kennedy]

Review Assignment must include the 1004D (which hopefully references the prior 1004) which should be attached to the 1004. Without it - the order is for a new appraisal NOT a Review. No original report - no Review.

 

[Webbed Feet]

More information

To All,

Yes, this was asked for a fee quote by a AMC. No order has been placed or acceptance of assignment yet. The answer on the 1004D regarding market value decline was "No." Yes the original appraisal of six months ago is attached. AMC wants this reviewed on the Fannie 2000 form. I cannot even tell if a exterior only was done for the 1004D... it states nothing regarding what was done or not done. All I have is the 1004D with "Update" checked and "No" checked.. no other comments or exhibits of any kind regarding any current analysis of any kind.. just the attached prior appraisal.

Considering this, technically there are not two appraisals here, there is one appraisal only, the 1004D update IS the only appraisal because the attached prior appraisal is in fact incorporated by attachment. Making the entire prior appraisal an exhibit meant to support the update (Which of course we all know is a new appraisal.)

This becomes very interesting. The 1004D SOW line three states you have to verify, and analyze current market data in order to determine if the property has declined in value since the effective date of the original appraisal. What I have appears to be a total case of noncompliance with Standards Two as there is no reporting of any of this whatsoever. Opinions?

During a class on the new forms that I attended, with one instructor happening to be on my state appraisal board by coincidence, it was stated the 1004D for Updating required the use of a EA, was not in compliance with Standard 2-3, it's scope was inadequate, and anyone using it sure had better follow A03. At least those are the notes I took during class.

A certified general I discussed this with today concluded that as the prior report is really now data in support of a new appraisal that it is not under review, the new appraisal (update) is. Since the new appraisal (update) fails to report, as per Standard Two, any of the current analysis used to reach it's conclusion, that therefore no consideration of performance of Standard One can be made. Hence, there is nothing to review.

I am looking forward to discussion as to how a SOW employing the requirements of the Fannie 2000 form is going to work for a 1004D update with no information of any kind as to how it's conclusion was made.

Should make for an interesting and informative thread...

 

[Marcia Langley]

Barry,

I agree with your analysis of the situation. The 1004D appraisal does not seem to be compliant. As you said, there is nothing to review except the fact that there is a conclusion with no supporting analysis.